Showing posts with label agribusiness. Show all posts
Showing posts with label agribusiness. Show all posts

Thursday, July 19, 2018

Agricultural Law Weekly Review—July 19, 2018


Written by:
Sara Jenkins—Research Assistant
M. Sean High—Staff Attorney
                 
The following information is an update of recent local, state, national, and international legal developments relevant to agriculture:

WOTUS: EPA and Army Seek Additional Comment Regarding Repeal of WOTUS Rule
On July 12, 2018, the U.S. Environmental Agency (EPA) and the Department of the Army (Army) published notice in the Federal Register seeking additional comment on the agencies proposal to repeal the 2015 rule defining Waters of the United States (WOTUS) (83 FR 32227).  On July 27, 2017, EPA and the Army announced a proposal to permanently repeal the 2015 WOTUS rule (82 FR 34899).  Subsequently, the agencies accepted comments on the proposed repeal from July 27, 2017, through September 27, 2017.  During that time, the agencies received more than 685,000 comments from interested parties.  Because of this large response, EPA and the Army determined that it would be in the public interest to provide an additional opportunity for comment.  Accordingly, the agencies will accept comments until August 13, 2018.  Nevertheless, EPA and the Army stated, that “regardless of the timing or ultimate outcome of [the] additional rulemaking, the agencies are proposing a permanent repeal of the 2015 Rule at this stage.”

Food Labeling: FDA Intends to Limit the Labeling of “Milk” to Dairy Products
On July 17, 2018, Politico reported that U.S. Food and Drug Administration’s (FDA) Commissioner Scott Gottlieb’s intends to enforce regulations recognizing the term “milk” as a dairy product, instead of a plant-based product.  The National Milk Producers Federation (NMPF) previously sent comments to the FDA calling for enforcement action to be taken.  The NMPF was encouraged by Gottlieb’s comments, stating that several non-dairy products were misleading to consumers because they did not contain the same nutritional value as dairy products.  The NMPF is hopeful that the FDA will begin enforcing federal labeling standards soon, holding food marketers accountable for the terms used on non-dairy products.

Agricultural Labor: USDA Releases Guidance on Changes to Housing for Seasonal Farm Workers
On July 10, 2018, the U.S. Department of Agriculture (USDA) released guidance on changes to the Housing Act of 1949 which now permits H-2A employers to gain access to Section 514 Farm Labor Housing loans (Consolidated Appropriations Act of 2018).  Secretary Perdue expressed his support for the change, stating that Congress’ decision created a much-needed housing solution for temporary farm workers.  The pre-application for Section 514 FLH loans is available now, and must be submitted by August 27, 2018.

Water Quality: Ohio Gov. Signs Executive Order to Reduce Agricultural Runoff into Lake Erie
On July 11, 2018, Cleveland.com reported that Ohio Governor, John Kasich, signed an executive order allowing the Department of Agriculture to more closely regulate farming activities affecting Lake Erie water quality.  The order allows the Department of Agriculture to set certain requirements and nutrient management plans for farmers.  For a more detailed analysis of Governor Kasich’s action see Peggy Kirk Hall’s article “Agricultural nutrients targeted in Clean Lake 2020 bill and Kasich Executive Orders” appearing in the Ohio Agricultural Law Blog on July 12, 2018. 

Animal Welfare: California Voters Advance Animal Welfare Initiative for November Ballot
According to Feedstuffs, the Prevent Cruelty California (Prop 12) campaign received more than 660,000 signatures, moving it to California’s November ballot. Prop 12 would require that pork, eggs, and veal sold in the state meet certain standards including cage-free requirements and ensuring the animals were not confined in a cruel manner.  The ballot measure would require a minimum of 144 sq. in. of floor space for each egg-laying hen, 24 sq. ft. for each breeding pig, and 43 sq. ft. for each veal calf.  If passed, farms would have until the end of 2019 to comply with the calf requirements, and until the end of 2021 to comply with pig and hen requirements.

FSMA: FDA Expands Funding to $32.5 Million for States Implementing Produce Safety Rule
On July 12, 2018, the U.S. Food and Drug Administration (FDA) announced $32.5 million in funding supporting state efforts to implement the Food Safety Modernization Act Produce Safety Rule.  The rule sets standards for safe growing, harvesting, and transporting of fruits and vegetables.  Currently, 46 states have signed cooperative agreements with the FDA, establishing outreach, education, and inspection programs to help implement the rule.  Participating states may use the funds for determining resource and infrastructure needs, conducting trainings, and recruiting personnel among other things.

Food Policy: Major Food Companies Create New Alliance to Improve Public Policy in the Food Industry
On July 12, 2018, four major food companies (Danone North America; Mars, Incorporated; NestlĂ© USA; and Unilever United States) announced the creation of the Sustainable Food Policy Alliance.  The Alliance encourages member companies to do more in advancing solutions to issues in the food industry.  For example, the Alliance advocates for public policy in five particular areas: consumer transparency, environment, food safety, nutrition, and communities. The four member companies are currently focusing on nutrition labeling, supporting a clearer definition of general terms like “healthy.” The Alliance encourages open dialogue on problems facing the U.S. food system, and seeks to impact positive change.

Agribusiness: Man Steals More Than $3 Million in Grain from Ohio Farmers
On July 9, 2018, Farm and Dairy reported that Richard J. Schwan, operator of Schwan Grain Inc., plead guilty to several theft charges totaling over $3 million in grain from thirty-five farmers.  Schwan was hired by the victims to transport and sell their grain.  Schwan filed several reports with the Ohio department of Agriculture falsifying information regarding sales of grain and deliberately withheld profits from the farmers who hired him.  Schwan was ordered to pay $3,222,209.70 in restitution and will be sentenced on August 23rd.

From National Ag Law Experts:
What do Produce Suppliers Give Up When They Waive Their PACA Trust Rights?, Nicole Cook, Maryland Risk Management Education Blog, July 17, 2018

Provisions to Watch During Farm Bill Debate, Kristine Tidgren, Iowa State University, The Ag Docket, July 10, 2018

Pennsylvania Legislation:
Agriculture and Rural Affairs (S)
HB 1518 legislation to require the appointment of two alternate farmer members to the Agricultural Lands Condemnation Approval Board (referred to committee July 6, 2018)

SB 823 legislation amending Clean and Green eligibility regarding leases and agriculture related enterprises (referred to committee June 29, 2018)

Agriculture and Rural Affairs (H)
HB 2518 legislation amending the Agriculture Code regarding mobile food vendors (referred to committee June 19, 2018)

Pennsylvania Actions and Notices:
Department of Conservation and Natural ResourcesConservation and Natural Resources Advisory Council meeting

Penn State Research:

AgLaw HotLinks:
AFBF President Asking for Trade Resolutions – Brownfield Ag News   
Why consumers fear GMO foods – Delta Farm Press

Stay Informed:
Listen to our weekly Agricultural Law Podcast
Read our monthly Agricultural Law Brief newsletter     
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive daily AgLaw HotLinks
Connect with us on Facebook to view our weekly CASL Ledger detailing Center publications and activities
Visit The Ag & Food Law Blog for a comprehensive summary of daily judicial, legislative, and regulatory developments in agriculture and food

Thursday, May 24, 2018

Agricultural Law Weekly Review—May 24, 2018


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:

Air Quality: Court Issues Mandate for CERCLA/EPCRA Reporting [Updated May 30, 2018]
On May 2, 2018, the U.S. Court of Appeals for the DC Circuit issued a mandate vacating a 2008 final rule that provided agricultural exemptions for reporting air emissions under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the Emergency Planning and Community Right-to-Know Act (EPCRA).  Under the 2008 final rule, all agricultural operations were provided a complete exemption from CERCLA reporting requirements.  While the 2008 final rule required certain concentrated animal feeding operations to report air emissions under EPCRA, the regulation exempted all other agricultural operations from EPCRA reporting requirements.  Subsequently, on April 11, 2017, the U.S. Court of Appeals for the DC Circuit vacated the 2008 final rule.  Following the court’s ruling, on March 23, 2018, President Donald Trump signed into law the Consolidated Appropriations Act, 2018 (Omnibus Bill) which contained language exempting agricultural operations from CERCLA air emission reporting requirements (Public Law No: 115-141).  Additionally, because the Omnibus Bill excluded the reporting of air emissions from animal waste under CERCLA, “these releases fall out of the reporting requirements of EPCRA section 304” (see EPA document entitled: How does the Fair Agricultural Reporting Method (FARM) Act impact reporting of air emissions from animal waste under CERCLA Section 103 and EPCRA Section 304?).  As a result, despite the May 2, 2018, court mandate, agricultural operations are not required to submit reports regarding air emissions from animal waste at farms under either CERCLA or EPCRA.

Dairy Policy: Pennsylvania Introduces “Choose PA Dairy” Campaign to Promote Local Milk
On May 18, 2018, the Pennsylvania Department of Agriculture (PDA) announced the introduction of a new dairy promotion campaign entitled: Choose PA Dairy: Goodness that Matters.  PDA asserted that the purpose of the campaign is to educate consumers on how to recognize and purchase Pennsylvania-produced milk by looking at a product’s packaging.  Consumers can identify Pennsylvania-produced milk by locating either the PA Preferred® logo or plant code 42.  Plant codes, which indicate the state where the milk was processed, are located at the top of each container.   Accordingly, plant code 42 is the designation assigned to milk processed in Pennsylvania.  PDA stated that the new campaign is a partnership between PDA, the Center for Dairy Excellence, Pennsylvania Dairymen’s Association, PA Preferred, American Dairy Association Northeast, the Professional Dairy Managers of Pennsylvania, and the Pennsylvania Farm Bureau.

Dairy Policy: California Dept. of Food & Ag Issues Response Regarding Proposed FMMO
On May 12, 2018, California Department of Food & Agriculture (CDFA) issued a letter responding to the U.S. Department of Agriculture’s Recommended Decision proposing the establishment of a Federal Order (FMMO) to regulate the handling of milk in California.  According to CDFA, while “ready and willing to establish a stand-alone, producer funded quota program,” the department sees potential conflict with current California statutes.  As a result, CDFA stated that prior to holding the California FMMO producer referendum, the department intends to sponsor new legislation and develop details for the stand-alone quota program

Agribusiness: Pennsylvania Exempts Qualified High Tunnels from Storm Water Management Regulations
On April 18, 2018, Pennsylvania Governor Tom Wolf approved Act 15 which exempts qualifying “high tunnels” from requirements under the Pennsylvania Storm Water Management Act.  Under Act 15, a high tunnel is defined as a structure used for the production, processing, keeping, storing, sale or shelter of an agricultural commodity that:

  • Has a metal, wood or plastic frame;
  • When covered, has a plastic, woven textile or other flexible covering; AND
  • Has a floor made of soil, crushed stone, matting, pavers or a floating concrete slab

To qualify for the exemption, the high tunnel (or its flooring) may not result in an impervious area that exceeds 25% of all structures located on the owner's total contiguous land area.  Additionally, the exemption only applies when a high tunnel meets one of the following requirements:

  • The high tunnel is located at least 100 feet from any perennial stream or watercourse, public road or neighboring property line;
  • The high tunnel is located at least 35 feet from any perennial stream or watercourse, public road or neighboring property line and is located on land with a slope not greater than 7%; OR
  • The high tunnel has a buffer or diversion system that does not directly drain into a stream or other watercourse

Pesticides: EU Court Upholds Ban on Pesticides Thought Potentially Harmful to Bees
On May 17, 2018, Euractiv reported that the European Court of Justice has upheld a European Union (EU) ban on three pesticides thought to be harmful to bees.  According to the report, the court rejected attempts by Bayer and Syngenta to lift current EU restrictions against the nicotine based pesticides clothianidin, thiamethoxam and imidacloprid.  In upholding the current ban, the court cited potential risks the pesticides posed to bee populations.  According to Euractiv, “past studies have found neonicotinoids can cause bees to become disorientated such that they cannot find their way back to the hive, and lower their resistance to disease.”


From National Ag Law Experts:


Pennsylvania Case Law:
  • Encore Fund Trust v. Cribbs, No. 1420 WDA 2017, Pa. Superior Court (May 18, 2018) (finding existence of implied easement and right to use neighbor’s driveway)


Pennsylvania Legislation:
Agriculture and Rural Affairs (S)
  • SB 819  Legislation to amend the Agricultural Area Security Law to provide uniformity and protection for agritourism activities (Reported out of committee for Senate consideration, May 22, 2018)
  • SB 1171 Legislation to replace Nutrient Management Advisory Board with Farm Animal Advisory Board (Reported out of committee for Senate consideration, May 22, 2018)


Agriculture and Rural Affairs (H)
  • HB 2422 Legislation to enable PA Game Commission to work with Department of Agriculture to combat spread of Chronic Wasting Disease (Referred to committee May 17, 2018)


Pennsylvania Actions and Notices:
Milk Marketing Board


Penn State Research


AgLaw HotLinks:


Stay Informed:


Thursday, August 27, 2015

Leading Agricultural Corporations Approve Merger

Written by Tyler R. Etter

On August 24, 2015, the owners of United Suppliers, Inc. and Land O’Lakes Inc. agreed to the merger of the two corporations. United Suppliers will merge with Land O’Lakes’ crop inputs business. According to the press release, the aim of the merger is to “create a single, relevant and competitive system of independent agricultural retailers.”

Land O’Lakes is a leading member-owned cooperative, with operations spanning from farm production to consumer foods. The company conducts business in all 50 states, and in over 60 countries. United Suppliers is a customer-owned wholesale supplier of crop protection inputs, seed, and crop nutrients. The company is comprised of 600 dealers operating 2,800 retail locations.

Chris Policinski, President and CEO of Land O’Lakes, stated that the merger will allow both companies to continue to meet consumer needs, while combining their resources to better compete in an environment of “consolidating suppliers and competitors.” The first step of the merger will bring the seed and crop protection operations of United Suppliers and Land O’Lakes’ WinField US, LLC. Following this, the two companies’ crop nutrient businesses will merge.

Customers are anticipated to benefit from expanded product offers, enhance services, tools, technologies, improved product insight, consulting, and more.

Wednesday, May 20, 2015

SunOpta Inc., First to Receive USDA Non-GMO Certification


On May 18, 2015, SunOpta Inc., a “company specializing in the sourcing, processing and packaging of natural, organic and specialty food products” announced that it has become the first United States food manufacturer to receive verification under the U.S. Department of Agriculture (USDA) Process Verified Program (PVP) for non-Genetically Modified (GMO) products.  As a result of receiving this verification, SunOpta, Inc. is now permitted to market specifically approved products as non-GMO. 

PVP is instituted by the federal government as a way for agribusinesses to assure customers of the quality of services and products provided.  By submitting to USDA’s verification methods, agricultural products that attain PVP approval are permitted to be marketed as “USDA Process Verified.”  Importantly, approved products are allowed to bear the official “USDA Process Verified” shield and term.

While PVP is a well-established program, a system for verification regarding of non-GMO products had not previously existed.  Responding to market demand, SunOpta, Inc. voluntarily approached USDA and requested a method of formal review.  As a result of SunOpta, Inc.’s action, other agricultural companies will now have the ability to submit to PVP procedures and work towards non-GMO verification.  
Written by M. Sean High - Staff Attorney
May 20, 2015