Written by M. Sean High – Staff Attorney
The following information is an update of recent,
local, state, national, and international legal developments relevant to
agriculture:
GIPSA:
USDA Announces Updated Farmer Fair Practices Rules
On December 14, 2016, the United States Department
of Agriculture’s (USDA) Grain Inspection, Packers and Stockyards Administration
(GIPSA) announced updated changes to the Farmer Fair Practices Rules. According to USDA, the new regulations—contained
in an interim final rule and two proposed rules—are intended to “level the
playing field for farmers by proposing protections against the most egregious retaliatory
practices harming chicken growers.” Relatedly, House Committee on Agricultural Chairman
K. Michael Conaway (R-TX) issued a statement the he “will make it a priority to
roll back these, and other midnight regulations from the Obama Administration,
as soon as Congress returns in January.”
FSMA:
FDA Publishes Guidance for Voluntary Third-Party Certification
On December 6, 2016, the United States Food and Drug
Administration (FDA) published notice in the Federal Register “announcing the
availability of a guidance for industry and FDA staff entitled ‘Third-Party
Certification Body Accreditation for Food Safety Audits: Model Accreditation
Standards’” (81 FR 88099). The guidance
contains non-binding “FDA recommendations on third-party certification body
qualifications for accreditation to conduct food safety audits and to issue
food and/or facility certifications under an FDA program required by the FDA
Food Safety Modernization Act (FSMA).”
Litigation:
Court Rules FDA did not Negligently Issue Salmonella Warning
On December 2, 2016, the United States Court of
Appeals for the Fourth Circuit upheld a district court ruling that the United
States Food and Drug Administration’s (FDA) did not negligently issue a 2008
warning that certain types of raw red tomatoes were likely contamination with Salmonella
Saintpaul (Seaside Farm, Inc., v. United
States of America, 2016 WL 7030629).
According to the court, shortly after the warning was issued, it was
determined that the outbreak did not result from tomatoes, but from jalapeño
and serrano peppers imported from Mexico.
The plaintiff, Seaside Farms, alleged that FDA’s warning was negligent
and devalued its tomato crop by $15,036,293.95.
The court determined that the warning properly fell within the
discretionary function exception of the Federal Tort Claims Act and that the district
court “ruling was essential to protect FDA’s vital role in safeguarding the
public food supply.”
SNAP:
USDA Announces Final Rule for Retail Establishments
On December 8, 2016, the United States Department of
Agriculture (USDA) Food and Nutrition Service (FNS) issued a news release announcing
a final rule entitled Enhancing Retailer
Standards in the Supplemental Nutrition Assistance Program (SNAP). According to FNS, the final rule amends the SNAP
retailer eligibility criteria to require that authorized SNAP retail food establishments
must “offer a larger inventory and variety of healthy food options.” Additionally,
FNS stated that the final rule provides changes to the definition of the term
“accessory food” so as to “ensure that stores are not able to participate in
SNAP by selling primarily snack foods.”
Class
Action: Post Holdings Announces Settlement of Egg Price-Fixing Claims
On December 8, 2016, Post Holdings announced that the
company has agreed to pay $75 million to settle claims, asserted by direct
purchasers of shell eggs against Michael Foods, Inc., for allegedly conspiring
to inflate egg prices (In re Processed
Egg Products Antitrust Litigation, Case Number 2:08-md-02002). Filed in the Eastern District of Pennsylvania
in 2008, the litigation predates Post Holdings acquisition of Michael Foods in
2014. According to Post Holdings, “the
terms of the settlement must be formally documented and are subject to approval
by the court following notice to all class members.”
Industrial
Hemp: 2017 Pilot Program Parameters Announced
On December 10, 2016, the Pennsylvania Department of
Agriculture (PDA) published notice in the Pennsylvania Bulletin announcing the
Industrial
Hemp Research Pilot Program parameters for 2017 (46 Pa.B. 7668). The parameters outline the requirements necessary
for 2017 Industrial Hemp Research Pilot Program permit applications. According to PDA, all applications must be
submitted to the department by January 6, 2017.
Fruit
Production: Pennsylvania Terminates Apple Marketing Program
On December 10, 2016, the Pennsylvania Department of
Agriculture (PDA) published notice in the Pennsylvania Bulletin that the
Pennsylvania Apple Marketing Program will be terminated on May 26, 2017 (46 Pa.B. 7677). From October 17—31, 2016, a
referendum was held among eligible producers to determine if a majority wished
the Program to continue for an additional 5 years. According to the notice, the eligible
producers voted 56% to 44% against continuation of the program.
Follow us on Twitter at PSU Ag & Shale Law
(@AgShaleLaw) to receive AgLaw HotLinks
Recent AgLaw HotLinks include:
- Top food safety prosecutor continues accountability approach - FoodSafetyNews
- Animal protein analyst talks about avian influenza worries - Brownfield
- “Big data in ag continues to expand” - Feedstuffs
- “Class action over Syngenta corn moves forward” - AgriPulse
- Fewer family farms, more million-dollar farms says the USDA - Brownfield
- Water infrastructure legislation reduces EPA regulatory requirements - Brownfield
- Drastic measures taken to prevent bird flu spread in Asia and Europe - Meatingplace
- “USDA announces farmer fair practices rules” - USDA.gov
- “Weather radar helps researchers track bird flu” - Meatingplace
- While most farmers are 55 years old or more, young farmers still have big impact on farming operations - Brownfield
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