Document: 350 U.S. 473 76 S.Ct. 527 100 L.Ed. 565 James P. MITCHELL, Secretary of Labor, United States Department Petitioner,v.Joseph T. BUDD, Jr., and Florence W. Budd, Co-Partners, Doing Business as J. Jr. Company; King Edward Tobacco Company Florida, May Company. No. 278. Argued Feb. 29 March 1, 1956. Decided 26, Rehearing Denied 14, See 351 934, 786. Bessie Margolin, Washington, D.C., for petitioner. Mr. Milton C. Denbo, respondents Co. Mark F. Hughes, New York City, respondent Justice DOUGLAS delivered the opinion Court. 1 These are actions brought by Labor under § 17 Fair Standards Act, 52 Stat. 1060, 63 910, U.S.C. 201 et seq., U.S.C.A. to enjoin from violating minimum wage, 6, record-keeping provisions, 11, Act. The employees concerned work in tobacco-bulking plants operated Quincy, which has a population excess 2,500. Respondents claim these exempt District Court ruled against respondents. 114 F.Supp. 865. Appeals reversed. 221 F.2d 406. We granted certiorari 859, 103, because importance problems presented apparent conflicts between decision below Tobin v. Traders Compress Co., 10 Cir., 199 8, Maneja Waialua Agricultural 349 254, 75 719, 99 1040. 2 processing operations involve Type 62 Sumatra tobacco, leaf tobacco used exclusively cigar wrappers. This type requires special cultivation. It is grown fields that completely enclosed covered with cheesecloth shade. leaves plant picked stages, each matures. taken immediately barn, located on farm, where they strung sticks dried heat. Before drying process completed, allowed absorb moisture. Then again. There some fermentation at this stage. But treatment barns essentially operation during moisture content reduced 10% 25%. 3 At end operation, packed boxes farm bulking further processing. plant, placed piles, known 'bulks,' aggregating 3,500 4,500 pounds tobacco. 'sweating' or process, carefully controlled regulation temperature humidity. Proper heat control includes, among other things, breaking up bulk, redistributing adding water. aging bulk be reconstructed several times. lasts four eight months, after baled. large amount equipment, including steam-heated platforms, thermometers, covers, baling presses, mats packing, sorting grading tables. substantially changes physical properties chemical improving color, increasing combustibility, eliminating rawness harshness freshly cured leaf. 4 overwhelming majority farmers region litigation case have their processed others. In there 300 who grow Of these, only 9 maintain operate plants; 5 themselves. appears cannot economically done ordinary small farmer growing less than acres. present group, 80% 25 acres per year, while 1/2 year. Respondent Budd grows no itself confines its 263 farmers. employs about 108 workers bulking, sorting, grading, 6 processes involved produced farms it. (It two purchased growers.) here 13 miles Edward's farms. A 120 also 7 own it employees, farms, being transported back forth May. Seventy employed plant. 8 Area Production.—Section 13(a) Act creates exemptions wage maximum hours provisions One those contained 13(a)(10) includes: 'any individual within area production (as defined Administrator), engaged handling, storing, ginning, compressing, pasteurizing, drying, preparing raw natural state, canning agricultural horticultural commodities market, making cheese butter dairy products'. Administrator's definition 'area production' provides if (1) 'in open country rural community', not city, town urban place 2,500 greater population', (2) specified mileage distance source 95% commodities.1 11 Appeals, following earlier decisions Jenkins Durkin, 208 941, Lovvorn Miller, 215 601, held was invalid. concluded once 'geographic lines been established, act makes exemption effective area', any qualification reason size establishment page 603. For conclusion found comfort Addison Holly Hill Fruit Products, Inc., 322 607, 64 1215, 88 1488. 12 one alternative definitions production'. That geographic terms then added another standard whether employee an having more seven employees. '* * Congress did leave Administrator decide bounds him permits discrimination based upon number employees.' Id., 616, 1220. said phrase "area production" had 'plain implications' consistent. 618, 1221. definition, therefore, struck down. alternative, here, passed upon. fact, we reserved criterion, now decision, valid. 610, 1217. think valid Hill. 'area' calls delimitation territory relation complicated economic factors labor conditions market enterprises near production.' 613—614, 1219. aim 'employed agriculture', 13(a)(6), production', 13(a)(10). meant drawing line operating ruralagricultural subject urban-industrial conditions. An working packing edge Los Angeles strikingly different environment doing same heart Kansas. Nearness city problem his definition. proximity metropolitan center, like located, may make decisive difference environment.2 Likewise, nearness supplies considered irrelevancy. understandable farness. Distance important factor formula seeks treat unity production'.3 14 No could produce complete equality, variables too numerous. fulfills role when he reasoned Gray Powell, 314 402, 411, 326, 332, 86 301. On phase can say proceeded capriciously use inadmissible standards. Experts might disagree over desirability rather another. enough us expert stayed allowable limits. one. 15 Agriculture.—The were 13(a)(6) covers agriculture'. relied broad 'agriculture' 3(f) provides, relevant part, term 'includes farming all branches things includes practices (including forestry lumbering operations) performed incident conjunction such operations, preparation delivery carriers transportation market.' plants, court ruled, 'preparation market' meaning 3(f). 16 read operators well ones, recently supra, 260, 723, 'extraordinary methods' agriculture conventional ones. 261, 723. question sugar milling included 13(a)(6). necessary look facts surrounding determine farming. 264—265, 725. not, even grower. considerations indicate does extend through but ends, receiving platform 'delivery true raise. many plants. heavily stressed indicia bring into exemption. our view tip scales way. 18 First, do ordinarily perform operation. As already mentioned, area, remaining crops most part divorced cultivation farm. separate 19 Second, state significantly cane. indicated above, improves ways turns industrial product. What concerning apt here: results 'more akin manufacturing agriculture.' 265, 726. 20 judgments reversed affirmed. 21 so ordered. 22 Appendix. 23 follows (29 CFR, c. V, 536.2): 24 (a) shall regarded section products: If community 95 percent come normal sources supply air distances establishment: 26 (i) With respect ginning cotton—10 miles; 27 (ii) fresh fruits vegetables—15 28 (iii) storing cotton otherwise subsection—20 (iv) compressing compress-warehousing cotton, grain, soybeans, poultry eggs—50 miles. 30 (b) purposes section: 31 'open community' include within: 32 air-line mile town, 50,000 33 Three 500,000, 34 Five 500,000 according latest available Census. 35 'normal supply' received 36 distances, 37 assemblers establishments commodity customarily moves, community, 38 provided demonstrated distances. 39 (3) period determining last preceding calendar month carrier workweeks more, except until time 40 (4) percentage determined weight, volume unit measure, dollar value measured units comparable. entire set Appendix opinion, 532. findings dated December 18, 1946: 'Although clear attempting distinguish 'urbanindustrial' 'rural-agricultural' communities basis best approximation, equally none proposals advanced hearing would accomplish objectives test much accuracy test. class, places predominantly industrial, populations agricultural. limit 2,500, moreover, years official dividing 'rural' 'urban' Bureau Census studies. accepted studies made Economics, Federal Emergency Relief Administration, Works Progress Administration government agencies. furnished sociologists. incorporated statute legislation communities.* To very great extent handling carried towns example, grain elevators more. Only 11% gins populated places. About two-thirds fruit vegetable egg assembling less. 'On evidence, my 'urban-industrial' fine precision, will close accomplishing objective possible general rule applicable situations.' references 356, 1200. said: 'The selection appropriate groups easy task, accomplished weighing synthesizing variety factors. Among consideration following: kind crop; industry receive pertinent sections Act; geography topography various normally produced; location areas; concentration country; pattern establishment; differences practice single crop areas diversified perishability received; deal commodities; nature received, degree industrialization operations; hands particular moved since leaving possibility passing increased costs farmer; marketing industries; rates paid, overtime commodities.'

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