Lack of Pollination Impacting Maine’s Wild Blueberry Crop

Associated Press writer Patrick Whittle reported yesterday that, “Maine’s wild blueberry crop is likely to be much smaller this year than in recent summers because the industry is contending with troubles such as disease and a lack of pollination.

“The New England state is the wild blueberry capital of the U.S., and in recent years crop sizes have soared and prices have plummeted, bringing uncertainty to a key state industry. The crop grew a little less than one percent last year to almost 102 million pounds (46 million kilograms), while prices hit a 10-year low of 27 cents per pound to farmers.

“But it’s apparent as the summer harvest nears its end that that’s all changing this year, University of Maine horticulture professor David Yarborough said. He said ‘mummy berry’ disease, a crop-killing ailment caused by a fungal pathogen, and other factors could cut the crop as much as 36 percent this summer.”

The AP article stated that, “Yarborough said a shortage of pollinators like bees, a lack of rain and some localized frost issues have also held back the blueberry crop. Another factor influencing the crop size is that farming effort appears to be down this year, possibly influenced by the low prices to farmers, he said.

“The high crops of recent years have taken a toll on the industry due to oversupply. The U.S. Department of Agriculture approved up to $10 million to purchase surplus Maine blueberries last month in an effort to prop up prices. The USDA also made a similar move in 2016.

“One year of lower blueberry yield might not be enough to raise prices, Yarborough said, because so many surplus blueberries from past years remain in freezer storage. A rise in prices to farmers could eventually impact consumers in the form of higher prices, but it’s unclear yet if that will happen any time soon, he said.”

Posted in Agriculture Law | Comments closed

American Craft Brewers are now Bracing for a Shakeout

Jennifer Maloney reported last week at The Wall Street Journal Online that, “Some of the country’s biggest craft brewers are struggling with falling sales, hurt by a glut of competitors crowding retail shelves and moves by megabrewers to scoop up some of their rivals.

“‘It is more competitive than it has ever been,’ said Ken Grossman, founder and chief executive of Sierra Nevada Brewing Co., the No. 2 U.S. craft brewer by volume.

“His company’s retail-store sales were off 7.5% this year as of July 16, according to Beer Marketer’s Insights. The brewer’s shipment volumes fell 6.9% in 2016—its first decline since Sierra Nevada was founded in 1980. Just two years ago, the Chico, Calif., company logged record sales after opening a second brewery in North Carolina.”

The Journal article noted that, “After years of strong gains, American craft brewers are now bracing for a shakeout. Shipments are falling for many independent brewers stuck in the middle between local niche brands and competitors that were bought by heavyweights such as Anheuser-Busch InBev and Molson Coors.

“Besides Sierra Nevada, those losing ground include Sam Adams maker Boston Beer Co., the biggest independent brewer, as well as smaller producers such as F.X. Matt Brewing Co., which brews Saranac in upstate New York, and Abita Brewing Co. in Louisiana, according to Beer Marketer’s Insights.”

Last week’s Journal article added that, “There were 5,562 total breweries in the U.S. as of June 30, up roughly 900 from the previous June, according to the Brewers Association.”

Posted in Agriculture Law | Comments closed

July Sees a Decline in Home Sales

Laura Kusisto reported today at The Wall Street Journal Online that, “Sales of previously owned homes fell in July to their weakest level this year, as a shortage of homes for sale weighs more heavily on the market.

“Existing home sales fell 1.3% to a seasonally adjusted annual rate of 5.44 million, the National Association of Realtors said Thursday. The sales pace is still up 2.1% from July of last year.

“‘Nearly all realtors across the country are reporting that the inventory shortage is limiting sales potential,’ said Lawrence Yun, chief economist at the National Association of Realtors.”

Ms. Kusisto indicated that, “At the current sales pace there was 4.2 months of supply of homes on the market, down from 4.8 months a year ago. There were 9% fewer homes on the market in July than there were a year earlier.

“‘One year ago, I thought it was a very tight condition, but the housing shortage has intensified,’ Mr. Yun said.

“Inventory has been steadily declining for most of the last three years.”

The Journal article explained that, “A lack of inventory limits demand both because buyers get frustrated and give up if they can’t find a home they like and because it pushes up prices beyond what many families buying their first home can afford.”

Posted in Real Estate Law | Comments closed

Cargill Invests in “Clean Meat” Startup Company

Jacob Bunge reported yesterday at The Wall Street Journal Online that, “Cargill Inc. is betting you won’t always need cattle to make hamburgers.

“The agricultural conglomerate has invested in Memphis Meats Inc., a startup developing technology to grow meat from self-reproducing animal cells. The stake marks the first investment by a traditional meat company in the nascent ‘clean meat’ sector, where startups are creating products they say are better for the environment than meat derived from traditional feedlots and slaughterhouses. Cargill and Memphis didn’t disclose the size of the stake.

“Meat companies are under pressure from consumers to reduce their reliance on animal drugs and to treat livestock more humanely. Some have invested in plant-based burgers and chicken strips, hoping to win business from both vegetarians and carnivores concerned about the meat industry’s heavy use of crops and water.”

Mr. Bunge noted that, “Memphis and other startups in the U.S. and Europe are working on another route to assuage those concerns: Using cell-culture technology to grow meat from living animal tissue in stainless-steel cultivator tanks.”

Yesterday’s Journal article added that, “Memphis on Wednesday said Cargill’s investment was part of $17 million in funding that also drew from Bill Gates, Richard Branson and venture-capital firms Draper Fisher Jurvetson and Atomico. The companies didn’t provide details on their individual investments.”

Posted in Agriculture Law, Start-up Company Law | Comments closed

Dicamba Drift and Soybean Yields

An update yesterday from South Dakota State University (SDSU) Extension stated that, “During 2017 Dakotafest, the most frequently asked question Paul O. Johnson, SDSU Extension Weed Science Coordinator received from growers was: ‘How will soybean fields affected by dicamba drift or sprayer contamination yield?’

“‘It would be nice if there was a formula that could be used to determine that answer but unfortunately, that is wishful thinking,’ Johnson said. ‘Trying to predict soybean yield response to observed short-term plant injury symptoms caused by dicamba injury is nearly impossible.’

“However, Johnson added there are some things growers should consider which may be useful in answering the question.”

The SDSU update noted that, “First, examine the growing point of the soybean plant.

“‘Continued development of new leaves is a positive sign,’ he said. ‘Historically, when dicamba injury was noted on soybean before June 15, and if the growing point remained healthy, it was very likely no yield reduction would be noted.’

“If the growing point was damaged, Johnson said, based on historical data, a yield reduction was likely.

“‘Throughout most of the fields I have scouted this year, the growing point is still intact,’ he said. ‘However, many dicamba applications occurred this year after June 15. And, no credible information exists on the potential yield reduction to soybean when dicamba injury happens after June 15.'”

Posted in Agriculture Law | Comments closed

Retiring Farmers Face Strain in Selling Farm

Sarah Jarvis reported last week at the Minneapolis Star Tribune Online that, “Bob and Bonnie Dehn didn’t plan on being farmers. He was a mailman, she worked in finance, and they just wanted to own some land to build a house and grow flowers to sell at the local farmers market.

“When Bob was diagnosed with cancer in 1979 they started Dehn’s Garden, a family farm in Andover where they could grow and harvest vegetables and herbs to support themselves in case he took a turn for the worse. Now they want to retire, but they’re struggling to find buyers who will continue the 105-acre operation. Their two daughters don’t want to do it, and the offers they’ve entertained have fizzled out.

“The Dehns’ situation illustrates the strains faced by family farms in the metro area, from the difficulty of finding farmers who can afford to buy and maintain large operations to preserving a rural lifestyle in a sprawling suburban area.”

The article indicated that, “Sellers hoping to secure a future for their farms have some options. They can connect with buyers through websites that list properties including Minnesota Farm Link, created by the state Agriculture Department to bring retiring and new farmers together. Landowners, including the Dehns, aren’t always aware of such matchmaking programs.

 Another option the Dehns have considered is a conservation easement. Groups like the Minnesota Land Trustand the Land Stewardship Project may acquire the land to prevent development.

“One problem is that land prices often are prohibitive for young farmers. Bonnie Dehn said land in the area has been selling for $20,000 to $30,000 per acre.”

Ms. Jarvis added that, “Jan Joannides, executive director of Renewing the Countryside, a nonprofit that works to support rural communities and farmers, said her organization is working with others this fall to create a ‘farmers access hub‘ ­— a support network for farmers looking to buy and sell that may include a type of land trust. She said suburban farmers face special challenges, such as insufficient zoning and neighbors who complain about the sounds and smells of a farm.

“‘There’s no one-size-fits-all,’ Joannides said.”
Posted in Agriculture Law | Comments closed

Every Company Needs a Plan for Defending Against Fraud Accusations After Investor Losses

Sara Randazzo reported yesterday at The Wall Street Journal Online that, “When pharmaceutical company Depomed Inc. of the U.S. said this month it is fielding federal and state inquiries over its marketing of opioid painkillers, a stock drop was likely to follow.

“But it was less expected, legal experts say, that shareholders would then sue the company for securities-law violations, alleging that Depomed made false and misleading statements over a more than two-year period leading up to the Aug. 7 announcement in its earnings statement.

“Depomed, which is one of several pharmaceutical companies involved in the opioid probes, declined to comment Sunday.”

The Journal article noted that, “The Friday lawsuit comes after 131 class-action securities suits were filed in federal court in the first six months of the year, a historic high, according to data from Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse.

“The volume, which doesn’t include suits challenging mergers and acquisitions, is higher than in any equivalent period since the Clearinghouse began tracking data in 1996, after the passage of landmark securities-litigation legislation. Under securities laws, investors can sue to recoup losses after a stock drops by proving a company or its employees fraudulently misstated or withheld information that would have been material to buying or selling shares.

“‘What’s going on this year is absolutely without precedent,’ said Kevin LaCroix, an attorney who advises companies on directors and officers insurance.”

Yesterday’s article stated that, “Industry watchers say the rise is being driven by enterprising plaintiffs’ firms bringing more, arguably weaker cases under the perceived strategy that companies will settle early to make a case go away. Advisers are alerting clients that in the current era, every company, from small-cap firms to corporate giants, needs a plan for defending against fraud accusations after investor losses.”

Posted in General Interest | Comments closed

Dicamba Damage Persists

Mikkel Pates reported yesterday at AgWeek Online that, “Farmers, agronomists and insurers in the region continue to wade through the troubled waters of soybean damage attributed to off-target drift damage from the herbicide dicamba.

“In 2017 major manufacturers commercialized new formulations of herbicides that only go with soybean varieties that were genetically-modified to be resistant to it. The makers specified a package of adjuvants, nozzles and instructions to keep it from ‘volatilizing’ or moving among fields once it is applied.

“The new chemistries cost hundreds of millions of dollars for manufacturers like Monsanto and BASF to develop. They were widely anticipated as a new ‘tool in the toolbox‘ to help cope with the increasing weed resistance to glyphosate, which often goes under its initial product name Roundup.”

The article noted that, “The North Dakota Department of Agriculture has a survey system that includes about 130 ‘reports’ but only 28 ‘complaints’ that trigger an investigation. None have been ‘closed,’ according to Agriculture Commissioner Doug Goehring.

“As of Aug. 17, the Minnesota Department of Agriculture had received 214 complaints from 46 counties. The complaints that trigger investigations are not public until the investigations are complete. J.D. Farley, a South Dakota Department of Agriculture ag program specialist, said the department had 120 surveys filled out for dicamba damage in soybean areas east of the Missouri River, as of Aug. 16.”

Mr. Pates also pointed out that, “Losses aren’t covered in victim’s multi-peril crop insurance policies because it is a manmade loss. It isn’t clear whether the neighbors’ ‘property and casualty’ policies will cover losses. Companies and courts must sort out damage for things like stress from heat, drought nutrient or micronutrient deficiencies, and even soil types. Officials say it’s trickier than assessing damage from glyphosate which kills plants, rather than simply injuring them. Some privately speculate whether the situation seems ripe for a class-action lawsuit.

“Goehring says some of the damage he’s seen occurred despite applicators apparently following the label. Goehring is urging farmers to collect leaf samples and have them tested in laboratories. His own staff does that and investigates application complaints by studying weather records and interviewing people, but determining fault doesn’t trigger compensation.

“Goehring already has informed a governmental affairs official from Monsanto that he’s considering his authorities and procedures for possibly adding state restrictions on the dicamba formulations for next year. He’s thinking of lowering the wind speed to 10 to 12 mph from the current 15 mph maximum or confining applications to mornings and early afternoons.”

Posted in Agriculture Law | Comments closed

Farmers May Be Confused by Dicamba Application Instructions

Reuters writers Tom Polensek and Karl Plume reported today that, “With Monsanto Co’s latest flagship weed killer, dicamba, banned in Arkansas and under review by U.S. regulators over concerns it can drift in the wind, farmers and weed scientists are also complaining that confusing directions on the label make the product hard to use safely.

“Dicamba, sold under different brand names by BASF and DuPont, can vaporize under certain conditions and the wind can blow it into nearby crops and other plants. The herbicide can damage or even kill crops that have not been genetically engineered to resist it.

“To prevent that from happening, Monsanto created a 4,550-word label with detailed instructions. Its complexity is now being cited by farmers and critics of the product. It was even singled out in a lawsuit as evidence that Monsanto’s product may be virtually impossible to use properly.”

The article noted that, “‘The restriction on these labels is unlike anything that’s ever been seen before,’ said Bob Hartzler, an agronomy professor and weed specialist at Iowa State University.

“The label instructions are also of interest to lawyers for farmers suing Monsanto, BASF and DuPont over damage they attribute to the potent weed killer moving off-target to nearby plants.

“A civil lawsuit filed against the companies in federal court in St. Louis last month alleged it might be impossible to properly follow the label. Restrictions on wind speed, for example, do not allow for timely sprayings over the top of growing soybeans, according to the complaint.”

The Reuters article added that, “Monsanto said that while its label is detailed, it is not difficult to follow.

“‘It uses very simple words and terms,’ Scott Partridge, Monsanto’s vice president of strategy, told Reuters. ‘They are not complex in a fashion that inhibits the ability of making a correct application.’

“BASF and DuPont could not immediately be reached for comment on the lawsuit on Friday.”

Posted in Agriculture Law | Comments closed

California Tightening Rules on Popular Pesticide

Associated Press writer Scott Smith reported last week that, “California is tightening the strictest rules in the nation on a pesticide that is popular with farmers over new health concerns, officials said Friday.

“Farmers use chlorpyrifos (klor-PHIR-e-fos) to kill pests that attack a wide variety of crops like grapes, almonds and cotton grown in California, the nation’s agricultural leader, as well as across the country.

“State officials are taking steps to put it on a list of chemicals known to be harmful to humans and to also increase the distance from schools and homes in which farmers can apply.”

The AP article noted that, “The moves run contrary to a decision by Scott Pruitt, the administrator of the U.S. Environmental Protection Agency, to end his agency’s effort to ban the pesticide sold by Dow Chemical after federal scientists concluded it can interfere with the brain development of fetuses and infants.

“Pruitt told Congress in June his decision was based on ‘meaningful data and meaningful science.’ Pruitt’s staff has thus far declined to provide details of what information Pruitt reviewed before making his decision.

 “California officials say that researchers are learning more about how the pesticide harms the developing brains of unborn babies and young children. Farmers apply it to 60 different crops, and it is most heavily used in San Joaquin Valley farming communities.”
Posted in Agriculture Law | Comments closed