Written by:
M. Sean High—Staff Attorney
Audry Thompson—Research Assistant
The following information is an update of recent
local, state, national, and international legal developments relevant to
agriculture:
Food Labeling: Plant-Based Food Company Brings
Suit Challenging Arkansas Meat Labeling Law
On July 22, 2019, Tofurky Co., a producer of
plant-based food products, brought suit in the Eastern District of Arkansas
alleging that the Arkansas law prohibiting the labeling of plant or cell-based
products as “meat” violates the Free Speech Clause of the First Amendment to
the U.S. Constitution. (Tofurky v.
Soman, No. 4:19-cv-514-KGB). Under Arkansas
Act 501, the term ‘meat’ is defined as "a portion of a livestock,
poultry, or cervid carcass that is edible by humans.” The law further
states that the term “‘meat’ does not include a: (i) Synthetic product derived
from a plant, insect, or other source; or (ii) Product grown in a laboratory
from animal cells.” Accordingly, food producers are prohibited from using
the term “meat” on products that do not conform to the law’s definition of
meat. In similar fashion, Act 501 also prevents plant-based or cell-based
producers from using “meat” related terms such as “bacon,” “beef,” “poultry,”
“pork,” “ham,” or “sausage.” In its complaint, Tofurky Co. asserted that
Act 501 violates the Free Speech Clause of the First Amendment by placing “a
restriction on commercial speech that prevents companies from sharing truthful
and non-misleading information about their products.”
Agricultural Finance: U.S. House of
Representatives Passes Legislation to Permit More Chapter 12 Bankruptcies
On July 25, 2019, the U.S. House of Representatives
passed legislation to increase the Chapter 12 Bankruptcy operation debt cap
limit from $3,237,000 to $10,000,000 (H.R. 2336
(116)). Under Chapter
12, qualifying “family farmers” experiencing financial difficulties are
provided with the ability to establish plans to repay parts or all of their
debts. Through increasing the debt cap limit, the proposed legislation,
known as the Family Farmer Relief Act of 2019, would allow more farmers to
qualify for Chapter 12 Bankruptcy.
Agricultural Labor: Department of Labor
Proposes Changes to H-2A Program
On July 26, 2019, U.S. Department of Labor (DOL)
published in the Federal Register a notice of a proposed rule to change
the H-2A temporary agricultural labor certification program (84
FR 36168). According to DOL, the proposed changes include the
“streamlining” of the H-2A application process and a reduction in the
regulatory burdens associated with participation in the program.
Interested individuals have until September 24, 2019, to submit comments on the
proposed rule. For more information regarding the proposed changes to the
H-2A program, see the
Penn State Agricultural Law Weekly Review dated July 18, 2019.
Biotechnology: APHIS Notes Closing of the
Comment Period for GE Movement Regulations
On July 25, 2019, U.S. Department of Agriculture’s
Animal and Plant Health Inspection Service (APHIS) issued an announcement
reminding interested parties that the comment period for a “proposed rule
titled ‘Movement of Certain Genetically Engineered Organisms’ will be closing
August 6, 2019.” Previously published in the Federal Register on
June 6, 2019, the proposed rule revises regulations regarding the importation,
interstate movement, and environmental release of certain genetically
engineered organisms (84
FR 26514). APHIS stated that the proposed revisions are in response
to scientific advancements in genetic engineering and knowledge regarding plant
pest risk. Accordingly, the new revisions are designed to reduce
regulatory burdens regarding organisms that are unlikely to pose plant pest
risks. According to APHIS, the proposed rule is "the first
comprehensive revision of the regulations since they were established in
1987."
Biotechnology: Pioneer Seeks Deregulation
of GE Corn Variety
On July 25, 2019, the U.S. Department of Agriculture’s
Animal and Plant Health Inspection Service (APHIS) published a notice in the Federal
Register regarding a petition from Pioneer Hi-Bred International, Inc.
(Pioneer), to deregulate a genetically engineered (GE) corn variety (84
FR 35850). According to APHIS, the GE corn variety, designated as
DP202216, “has been genetically engineered for enhanced yield potential and
resistance to glufosinate-ammonium herbicide.” Interested individuals
have until September 23, 2019, to submit comments regarding the potential
deregulation of DP202216.
National Agricultural Policy: USDA
Announces Details of Support Package for Farmers
On July 29, 2019, U.S. Department of Agriculture’s
Farm Service Agency (FSA) and Commodity Credit Corporation (CCC) published
notice in the Federal Register of fund availability for payments to producers
under the Market Facilitation
Program (MFP) (84
FR 36565). MFP will provide payments
for non-specialty crops planted by August 1, 2019. The payments range
from $15 to $150 per acre and are determined by a unified county rate based on
the impact of foreign trade retaliation in that county. Dairy producers
in business as of June 1, 2019 will receive $0.20 per hundredweight of milk,
and hog producers will receive $11 per head of live hogs. Producers can
sign up for MFP from July 29, 2019, through December 6, 2019, at their local FSA office.
International Trade: USDA Awards
Agricultural Trade Promotion Funding
On July 19, 2019, U.S. Department of Agriculture
(USDA) Secretary Sonny Perdue announced
the allocation of $100 million from USDA to 48 organizations
through the Agricultural
Trade Promotion Program (ATP). ATP is a cost-share program available
to all sectors of U.S. agriculture with demonstrable damages due to tariffs
imposed on U.S. agricultural products in 2018-2019. The program
reimburses U.S. agricultural-related entities for approved foreign market
promotion activities such as consumer advertising, public relations,
participation in trade fairs and exhibits, market research, and technical
assistance. The 48 recipients are among the organizations that applied in
2018 for the $200 million of ATP funds awarded earlier this year.
Urban Agriculture: Pennsylvania Governor
Announces Grants Available for Urban Agriculture from PA Farm Bill
On July 26, 2019, Pennsylvania Governor Tom Wolf announced
the launch of the Urban
Agriculture Infrastructure Grant Program, an initiative to provide $500,000
in grant funding to increase market opportunities for the commonwealth’s urban
agriculturalists. The program was created under Act 40 (SB
661) which was signed into law on July 1, 2019, as part of a package
of bills designed to aid Pennsylvania agriculture. The program
offers both “microgrants” of up to $2,500 that can be used for single
applicants or one-time projects and “collaboration” grants of up to $50,000 to
support community development and cooperative efforts to share resources.
Individuals and organizations can apply for the grants
from August 1, 2019, through September 6, 2019.
From
National Ag Law Experts:
“Budget
Deal”, John R. Block, Ag/FDA Blog – Olsson Frank Weeda
Terman Matz PC (July 24, 2019)
“Will
Carbon Farming Finally Show Us the Value of Ag Data?”,
Todd Janzen, Janzen Ag Law Blog – Janzen Ag Law (July 19, 2019)
Federal
Actions and Notices:
Food and Drug Administration
Pennsylvania
Actions and Notices:
Department of Agriculture
Milk Marketing Board
Penn
State Research:
“Clues
on how soils may respond to climate change found”
– Penn State News
AgLaw HotLinks:
“Regulations
Limiting Drone Potential for Farmers” – Brownfield
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