Dairy Policy
Agricultural Law Weekly Review—May 7, 2020
Dairy Policy: Justice Department Concludes Investigation of Dean Foods Asset Sale
On May 1, 2020, the U.S. Department of Justice Antitrust Division (DOJ) announced that it had concluded its investigation into Dairy Farmers of America, Inc.’s (DFA) bankruptcy auction purchase of the substantial majority of dairy processing assets of Chapter 11 bankruptcy debtor Dean Foods (Dean). Its conclusion is embodied in the civil antitrust lawsuit filed that same day in the U.S. District Court for the Northern District of Illinois stating its opposition to the bankruptcy sale agreement unless DFA excluded from the purchase three specific Dean fluid milk processing plants (in Harvard, Illinois; […]
Agricultural Law Weekly Review—April 30, 2020
COVID-19: President Delegates Defense Production Act Authority to USDA Secretary to Ensure Continued Supply of Meat and Poultry
On April 28, 2020, President Donald Trump issued an Executive Order, titled “Delegating Authority Under the DPA with Respect to Food Supply Chain Resources During the National Emergency Caused by the Outbreak of COVID-19.” This Executive Order delegates authority to USDA Secretary Sonny Perdue “to ensure the continued supply of meat and poultry” by taking “all appropriate action” under the The Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et seq.) (DPA), “to ensure that meat and poultry processors […]
Agricultural Law Weekly Review—April 16, 2020
Avian Influenza: Highly Pathogenic Avian Influenza Detected in South Carolina:
On April 9, 2020, USDA Animal & Plant Health Inspection Service (APHIS) announced the confirmed presence of H7N3 highly pathogenic avian influenza (HPAI) in a commercial turkey flock in Chesterfield County, South Carolina. APHIS stated that there is no immediate human health concern. A report issued by APHIS to the World Organization for Animal Health (OIE) states that 34,160 turkeys were “suspectible,” 1,583 died, and 32,577 were culled. APHIS also stated that this is the first confirmed case of HPAI in commercial poultry in the United States since 2017, and it appears […]
Agricultural Law Weekly Review—April 2, 2020
COVID-19 Pandemic: Congress Enacts Three Laws Providing Pandemic Assistance
Over the last few weeks, the U.S. Congress has enacted three new federal laws providing COVID-19 pandemic assistance benefits and programs to individuals and businesses, including agricultural stakeholders.
On March 5 and 6, 2020, respectively, Congress enacted and the President signed the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020, H.R. 6074 (P.L. 116-123), providing $8.3 billion in emergency funding, which includes appropriations for several Small Business Administration (SBA) financial assistance and loan programs for which agricultural producers are eligible.
On March 18, 2020, Congress enacted and the President signed the Families First […]
Agricultural Law Weekly Review—March 26, 2020
Dairy Policy: Dean Foods Bankruptcy Asset Sale Proceeds Without DFA as Pre-Negotiated Opening Bidder
On March 19, 2020, a hearing was conducted in the Dean Foods Chapter 11 bankruptcy, pending in the U.S. Bankruptcy Court for the Southern District of Texas, Case #19-36313, on a motion filed by Debtor Southern Foods Group, LLC and forty-two affiliated companies (Dean Foods) to amend the February 17, 2020, “Bidding Procedures for Sale of Debtors’ Assets” Order. That Order established dairy producer cooperative Dairy Farmers of America, Inc. (DFA) as what is referred to in bankruptcy terminology as a “Stalking Horse Bidder” whose bid […]
Agricultural Law Weekly Review—February 20, 2020
Pesticides/Herbicides: Missouri Federal Jury Returns $265 Million Verdict in Dicamba Drift Trial
On February 14 and 15, 2020, a jury empaneled in the case of Bader Farms, Inc. v. Monsanto Company and BASF Corporation, (Case No. 1:16-cv-00299-SNL) in the U.S. District Court for the Eastern District of Missouri returned verdicts in favor of Plaintiffs and against Defendants, awarding $15 million in compensatory damages and $250 million in punitive damages. The case appears to be the first U.S. jury trial and verdict in a cause of action for property damage to a neighboring landowner caused by drift of the herbicide […]
Agricultural Law Weekly Review – January 23, 2020
International Trade: USMCA Receives Congressional Approval, Awaits President’s Signature
On January 16, 2020, the U.S. Congress completed the statutory approval process for the United States-Mexico-Canada Agreement (USMCA). It now awaits the formal application of the President’s signature, which has yet to be scheduled. Pursuant to the Bipartisan Congressional Trade Priorities and Accountability Act of 2015, 19 U.S.C. 4201 et seq., (generally referred to as “Trade Promotion Authority” or “TPA”), Congress granted approval through passage of HR 5430, titled the United States-Mexico-Canada Agreement Implementation Act. HR 5430 was introduced on December 13, 2019, passed the U.S. House by a 385-41 […]
Agricultural Law Weekly Review —January 9, 2020
Dairy Policy: Borden Dairy Files Chapter 11 Bankruptcy
On January 5, 2020, Borden Dairy Company, headquartered in Dallas, TX, and seventeen affiliated companies (collectively “Borden”) filed Chapter 11 reorganization bankruptcy petitions in the U.S. Bankruptcy Court for the District of Delaware. The bankruptcy proceedings are being jointly administered under Case No. 20-10010. Borden’s bankruptcy claims agent has established a website for public access to the court dockets, filings, notices and other legally required disclosures at www.donlinrecano.com/borden. A thirty-one page declaration of Borden CFO Jason Monaco filed in support of the bankruptcy petitions contains a lengthy narrative account of the firm’s history […]
Agricultural Law Weekly Review —December 12, 2019
Dairy Policy: PMMB Enters Order Mandating Cooperative Costs Recovery
On December 4, 2019, the Pennsylvania Milk Marketing Board (PMMB) entered an order, titled “Interim Order Regarding Cooperative Milk Procurement Costs Hearing,” (Interim Order) mandating that, from January 1, 2020, through December 31, 2020, milk dealers pay $.20 per hundredweight as part of the producer price paid to dairy cooperative members for milk produced, processed and sold in Pennsylvania as reimbursement for cooperative services such as field, laboratory and calibration services, producer payroll, sales invoicing, and dispatch and logistics. The Interim Order resulted from a compromise agreement reached in PMMB […]
Agricultural Law Weekly Review – November 14, 2019
Dairy Policy: Dean Foods Files Chapter 11 Bankruptcy Petition and Discloses Sale Negotiations to Dairy Farmers of America
On November 12, 2019, Southern Foods Group, LLC d/b/a Dean Foods, and forty-two (42) affiliated companies (collectively referred to as “Dean”) filed Chapter 11 reorganization bankruptcy petitions in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. All of the bankruptcy proceedings are being jointly administered under Case No. 19-36313. The firm of Epiq Corporate Restructuring, LLC, is retained as Dean’s bankruptcy administrative agent and maintains a website disseminating all legally-required public information about the proceedings, including the court dockets and […]
