After Neighbors Sued, Cattle Feedlot says it is Closing

Luke Nozicka reported on the front page of today’s Kansas City Star that, “Citing economic strains, a steak company that had been trying to add thousands of cattle to its feedlot near Powell Gardens, igniting a legal battle with residents, on Monday said it was closing.

“In a statement, Valley Oaks Steak Company said it would shut down immediately. The company, which launched in 2016, said it had become a ‘lightning rod for individuals and organizations opposed to animal agriculture operations.’

“‘For the future of all Missourians, urban and rural, we hope that people will rely on the science of modern agricultural techniques and methods, and not be swayed by persons and organizations who sow seeds of fear and distrust for their own personal gain and profit,’ the company said in the statement.”

The article noted that, “Valley Oaks planned to become a local ‘hoof-to-table’ supplier. But the company faced neighbor opposition when it applied for a permit to allow its feedlot to expand from 999 cattle to 6,999.

Dozens of Jackson County property owners filed a lawsuit last month that contended they could not escape the odor emanated by the company’s operations. They said they were fed up with the insects, increased traffic and other quality of life issues.

“Kenneth McClain, an attorney for the 141 property owners, said his clients were pleased with Valley Oaks’ decision and described the company as having done the right thing. He said his clients will ‘no longer feel like prisoners in their own homes.'”

The Kansas City Star article also indicated that, “McClain said his firm was assessing the pending lawsuit, saying the company’s decision to close stopped future nuisances to nearby residents but did not resolve previous damages. And, he said, it does not prevent another company from opening there.”

Posted in Agriculture Law | Comments closed

Mastermind of Organic Food Fraud Sentenced to Prison

Associated Press writer Ryan J. Foley reported last week that, “A judge on Friday sentenced the mastermind of the largest known organic food fraud scheme in U.S. history to 10 years in prison, saying he cheated thousands of customers into buying products they didn’t want.

“U.S. District Judge C.J. Williams said Randy Constant orchestrated a massive fraud that did ‘extreme and incalculable damage’ to consumers and shook public confidence in the nation’s organic food industry.

Williams said that, between 2010 and 2017, consumers nationwide were fooled into paying extra to buy products ranging from eggs to steak that they believed were better for the environment and their own health. Instead, they unwittingly purchased food that relied on farming practices, including the use of chemical pesticides to grow crops, that they opposed.”

The AP article noted that, “Williams said the scam harmed other organic farmers who were playing by the rules but could not compete with the low prices offered by Constant’s Iowa-based grain brokerage, and middlemen who unknowingly purchased and marketed tainted organic grain.

“Williams ordered Constant, a 60-year-old farmer and former school board president from Chillicothe, Missouri, to serve 122 months in federal prison, as his wife and other relatives sobbed.”

Posted in Agriculture Law | Comments closed

Company in Argentina Scrutinized Over its Organic Grain Practices

Adam Belz reported in today’s Minneapolis Star Tribune that, “For years, American farmers’ battle against fake organic-grain imports has centered on Eastern Europe. Now, an organic farm in South America is being scrutinized.

A lengthy complaint filed with the U.S. Department of Agriculture, and obtained by the Star Tribune, alleges fraud at an organic-grain company in Argentina that exports millions of bushels of organic corn and soybeans to the United States each year.

“The complaint said that Rivara SA deliberately used prohibited fertilizers and herbicides to produce grain that it then passed off as organic to U.S. customers, including the largest U.S. producer of organic chickens.”

“Rooting Out Fake Organic Grain,” by Adam Belz. Minneapolis Star Tribune (August 16, 2019).

The article noted that, “The 115-page complaint against Rivara is painstakingly detailed, and raises concerns in a global supply chain — organic grain — that has been rife with problems as the market for organic poultry, eggs and milk in the United States has quickly outpaced the supply of domestic corn and soybeans to feed those animals.

“Officials at the USDA’s National Organic Program (NOP) would not confirm receipt of the complaint or say whether an investigation is underway. Matthew Haverstick, a lawyer at Kleinbard LLC in Philadelphia, told the Star Tribune he filed the complaint last December.

“The president of Rivara SA, Fernando Rivara, said in an e-mail to the Star Tribune that the accusations are ‘false’ and that his company has cooperated with the USDA’s investigation.”

Today’s Star Tribune article added that, “It has taken the NOP — a 40-person organization still coming to terms with the scope of the global organic supply chain — several months or even more than a year to formally conclude an investigation.”

Posted in Agriculture Law | Comments closed

USDA Using Flexibility to Assist Farmers, Ranchers in Flooded Areas

A news release today from USDA’s Risk Management Agency (RMA) stated that, “The [RMA] today announced it will defer accrual of interest for all agricultural producers’ spring 2019 crop year insurance premiums to help the wide swath of farmers and ranchers affected by extreme weather in 2019. Specifically, USDA will defer the accrual of interest on spring 2019 crop year insurance premiums to the earlier of the applicable termination date or for two months, until November 30, for all policies with a premium billing date of August 15, 2019. For any premium that is not paid by one of those new deadlines, interest will accrue consistent with the terms of the policy.

“‘USDA recognizes that farmers and ranchers have been severely affected by the extreme weather challenges this year,’ said U.S. Secretary of Agriculture Sonny Perdue. ‘I often brag about the resiliency of farmers but after a lifetime in the business, I have to say that this year is one for the record books. To help ease the burden on these folks, we are continuing to extend flexibility for producers with today’s announcement.’

“RMA Administrator Martin Barbre added, ‘This administrative flexibility is not unprecedented but is a move RMA takes seriously and only under special circumstances like we’re experiencing today. Growers typically have some crop harvested and cash flow to make their billing date, but with so many late planted crops, this year will be an anomaly.'”

Today’s update noted that, “America’s farmers and ranchers have been especially challenged throughout the 2019 crop year, struggling through severe flooding and excessive moisture conditions across the grain belt and in many other rural communities, with some areas also dealing with extreme heat and drought. Such weather conditions are expected to take a serious toll on acres planted, crop yields, and crop quality as harvest begins. One of the largest operating costs for producers is crop insurance premiums paid to their Approved Insurance Provider. Many spring crop insurance premiums are due to be paid before October 1.

“Without the interest deferral, policies with an August 15 premium billing date would have interest attach starting October 1 if premiums were not paid by September 30. Now, under the change, policies that do not have the premium paid by November 30 will have interest attach on December 1, calculated from the date of the premium billing notice.”

Posted in Agriculture Law | Comments closed

U.S. Mortgage Debt Reached a Record in the Second Quarter

Harriet Torry reported in today’s Wall Street Journal that, “U.S. mortgage debt reached a record in the second quarter, exceeding its 2008 peak as the financial crisis unfolded.

“Mortgage balances rose by $162 billion in the second quarter to $9.406 trillion, surpassing the high of $9.294 trillion in the third quarter of 2008, the Federal Reserve Bank of New York said Tuesday.

Mortgages are the largest component of household debt. Mortgage originations, which include refinancings, increased by $130 billion to $474 billion in the second quarter. The figures are nominal, meaning they aren’t adjusted for inflation.”

“U.S. Mortgage Debt Hits Record, Eclipsing 2008 Peak,” by Harriet Torry. The Wall Street Journal (August 14, 2019).

The Journal article added that, “The milestone for mortgage debt has been long in the making. Americans’ mortgage debt dropped by about 15% from the 2008 peak to the trough in the second quarter of 2013 and has climbed slowly since then.

“Total household debt has been on the rise since mid-2013. It rose by 1.4% from the first quarter to $13.86 trillion, the 20th consecutive quarter of increase.”

Ms. Torry added that, “Still, the household debt picture is much different in 2019 than it was 11 years ago, since lending standards are tighter and less debt is delinquent today.”

Posted in Real Estate Law | Comments closed

Report: Farmers Prevented from Planting Crops on More than 19 Million Acres

An update yesterday from USDA’s Farm Service Agency (FSA) stated that, “Agricultural producers reported they were not able to plant crops on more than 19.4 million acres in 2019, according to a new report released by the U.S. Department of Agriculture (USDA). This marks the most prevented plant acres reported since USDA’s Farm Service Agency (FSA) began releasing the report in 2007 and 17.49 million acres more than reported at this time last year.

“Of those prevented plant acres, more than 73 percent were in 12 Midwestern states, where heavy rainfall and flooding this year has prevented many producers from planting mostly corn, soybeans and wheat.

“‘Agricultural producers across the country are facing significant challenges and tough decisions on their farms and ranches,’ USDA Under Secretary for Farm Production and Conservation Bill Northey said. ‘We know these are challenging times for farmers, and we have worked to improve flexibility of our programs to assist producers prevented from planting.'”

The FSA update noted that, “USDA supported planting of cover crops on fields where farmers were not able to plant because of their benefits in preventing soil erosion, protecting water quality and boosting soil health. The report showed where producers planted 2.71 million acres of cover crops so far in 2019, compared with 2.14 million acres at this time in 2018 and 1.88 million at this time in 2017.

“To help make cover crops a more viable option, USDA’s Risk Management Agency (RMA) adjusted the haying and grazing date of cover crops, and USDA’s Natural Resources Conservation Service held signups in select states that offered producers assistance in planting cover crops. Meanwhile, USDA added other flexibilities to help impacted producers, including adjusting the deadline to file acreage reports in select states.”

Posted in Agriculture Law | Comments closed

Updated Statistics on U.S Honey Bee Colonies

An update earlier this month from USDA’s National Agricultural Statistics Service (NASS) stated that, “Honey bee colonies for operations with five or more colonies in the United States on January 1, 2019 totaled 2.67 million colonies, up 1 percent from January 1, 2018. During 2018, honey bee colonies on January 1, April 1, July 1, and October 1 were 2.64 million, 2.67 million, 2.96 million, and 2.87 million colonies, respectively.

Honey bee colonies lost for operations with five or more colonies from January through March 2019, was 408 thousand colonies, or 15 percent. During the quarter of October through December 2018, colonies lost totaled 445 thousand colonies, or 16 percent, the highest number lost of any quarter in 2018. The quarter in 2018 with the lowest number of colonies lost was April through June, with 355 thousand colonies lost, or 13 percent.

Honey bee colonies added for operations with five or more colonies from January through March 2019 was 248 thousand colonies. During the quarter of April through June 2018, 676 thousand colonies were added, the highest number of honey bee colonies added for any quarter of 2018. The quarter of October through December 2018 added 220 thousand colonies, the least number of honey bee colonies added for any quarter of 2018.”

The NASS update noted that, “Varroa mites were the number one stressor for operations with five or more colonies during all quarters of 2018. The quarter of April through June 2018 had the highest percentage of colonies reported to be affected by varroa mites at 56.4 percent. The percent of colonies reported to be affected by varroa mites during January through March 2019 were 45.6 percent.”

Honey bee colonies lost with Colony Collapse Disorder symptoms on operations with five or more colonies was 59.9 thousand colonies from January through March 2019. This is a 26 percent decrease from the same quarter of 2018,” the NASS update said.

Posted in Agriculture Law | Comments closed

Next Glyphosate Lawsuit Likely Postponed, Bayer Says

Reuters writers Ludwig Burger and Patricia Weiss reported this week that, “Germany’s Bayer said the next U.S. lawsuit scheduled to be heard over claims that its glyphosate-based weedkiller Roundup causes cancer would likely be postponed.

“Bayer, which acquired the weedkiller as part of its purchase of Monsanto last year, was initially scheduled to face its first trial outside California in St. Louis, Missouri, on Aug. 19, brought by Illinois resident Sharlean Gordon, who blames her non-Hodgkin’s lymphoma on using Roundup at home.

“‘We anticipate that this court case will be postponed but we have not received any written decision,’ a Bayer spokesman said. He would not comment on how Bayer was informed of the delay or on the reason for it.”

The article noted that, “Bayer has seen its market value slashed by about 30 billion euros since August last year, when a California jury in the first such lawsuit found that Monsanto should have warned of the alleged cancer risks.

“The company, which says regulators and extensive research have found glyphosate to be safe, is banking on U.S. appeals courts to reverse or tone down the first three court rulings that have so far awarded tens of millions of dollars to each plaintiff.”

Posted in Agriculture Law | Comments closed

Mortgage Rates Sink to 3-Year Low

Diana Olick reported earlier this week at CNBC Online that, “Escalating tensions over a trade war with China sent investors rushing to the relative safety of the bond market late last week. That pushed the yield on the 10-year Treasury, which mortgage rates loosely follow, down sharply.

“The average rate on the popular 30-year fixed mortgage hit 3.70% on Friday, the lowest since November 2016, according to Mortgage News Daily. That rate will likely dip even lower Monday, as bond yields continue to fall.

“The drop last week meant that 8.2 million 30-year mortgage holders could likely qualify for a refinance and save at least 0.75% off of their current interest rate by doing so, according to a new tally by Black Knight, a mortgage software and analytics company.”

The CNBC update added that, “The size of that population, however, is still very sensitive to even the slightest rate moves, since so many borrowers have already refinanced to very low rates. Just a one-eighth of a point move lower could add another 1.5 million borrowers to the eligible refinance pool, and the same move in the other direction would knock 1.3 million out.”

Posted in Real Estate Law | Comments closed

Delgado Bill to Aid Family Farmers Passes Both Chambers of Congress, Goes to President for Signature

A news release last week from Rep. Antonio Delgado (D., N.Y.) stated that, “Before adjourning for the August in-district work period, the U.S. Senate passed [Rep. Delgado’s] bipartisan legislation to ease the process of reorganizing debt through Chapter 12 bankruptcy rules to assist farmers during this down farm economy. The legislation now awaits President Trump’s signature. Rep. Delgado introduced H.R. 2336, the Family Farmer Relief Act in April along with House Judiciary Committee Ranking Member Jim Sensenbrenner (R-WI), House Agriculture Committee Chairman Collin Peterson (D-MN) and Reps. TJ Cox (D-CA), Kelly Armstrong (R-ND) and Dusty Johnson (R-SD). The House passed H.R. 2336 on July 26, following Rep. Delgado’s testimony on the floor.

“‘Farming in Upstate New York is a way of life and the current down turn in the farm economy threatens this time-honored tradition for thousands of family farms in our district. I am so pleased to see the Senate vote to pass the Family Farmer Relief Act which will bring relief to struggling family farmers and allow them the flexibility to continue operations.’ Delgado continued, ‘This legislation was a bipartisan, cooperative effort from the beginning and I thank my colleagues on both sides of the aisle for joining me to champion this important cause. I urge President Trump to sign this vital legislation soon so we can bring family farmers in Upstate New York much needed relief.'”

The update added that, “The Family Farmer Relief Act was introduced with a Senate companion led by Senators Chuck Grassley (R-IA), Amy Klobuchar (D-MN), Ron Johnson (R-WI), Patrick Leahy (D-VT), Thom Tillis (R-NC), Doug Jones (D-AL), Joni Ernst (R-IA) and Tina Smith (D-MN). The bill expands the debt cap that can be covered under Chapter 12 bankruptcy from $3,237,000 to $10,000,000. The changes reflect the increase in land values, as well as the growth over time in the average size of U.S. farming operations and are meant to provide farmers additional options to manage keep their doors open during downturns in the farm economy. The legislation is endorsed by: American Farm Bureau, National Farmers Union, National Corn Growers Association, National Milk Producers Federation, the National Pork Producers Council, and American Bankruptcy Institute.”

Posted in Agriculture Law | Comments closed