Justia Agriculture Law Opinion Summaries

This case centered on a rural water conservation program administered in part by Defendants-Appellees United States Department of Agriculture (“USDA”), the Secretary of the USDA, the Farm Service Agency (“FSA”), and the Administrator of the FSA (collectively, “the agency”). Plaintiffs-Appellants Cure Land, LLC, and Cure Land II, LLC (collectively “Cure Land”) argued that the agency’s handling of a proposed amendment to the conservation program violated the National Environmental Policy Act (“NEPA”) and the Administrative Procedures Act (“APA”). The district court upheld the agency’s actions. Finding no reversible error after review of this matter, the Tenth Circuit affirmed. View "Cure Land v. USDA" on Justia Law

On April 21 and April 29, 2015, the Oklahoma Senate and the Oklahoma House of Representatives, respectively, passed House Joint Resolution Number 1012, directing the Oklahoma Secretary of State to refer a proposed constitutional amendment to a vote of the people of Oklahoma. The proposed amendment would add a new section to Article II, prohibiting the Legislature from passing any law "which abridges the right of citizens and lawful residents of Oklahoma to employ agricultural technology and livestock production and ranching practices without a compelling state interest." Plaintiffs filed a petition in the district court, urging that the measure was facially unconstitutional. Defendants filed a motion to dismiss, submitting that the challenge was untimely. The district court granted the motion to dismiss finding the challenge was timely and was not facially unconstitutional. Plaintiffs appealed. Finding no reversible error, the Oklahoma Supreme Court affirmed the dismissal of the case, but on grounds that the district court should have abstained from review of a referendum before voted on by the people. View "Save the Illinois River, Inc. v. Oklahoma ex rel. Oklahoma Election Board" on Justia Law

Compart, a producer of breeding swine, filed a negligence suit against the United States under the Federal Tort Claims Act (FTCA), 28 U.S.C. 2671 et seq. Compart intended to export over three hundred pigs to China but China suspended all imports from Compart after it was notified by the United States government that the test results from a small set of the blood samples were "inconclusive" for Porcine Reproductive and Respiratory Syndrome virus (PRRSv). The district court dismissed the suit for lack of jurisdiction. The court affirmed, concluding that the discretionary function exemption precludes jurisdiction over Compart's negligence claims because the testing and reporting of Compart's swine was governed by discretionary governmental procedures and susceptible to policy analysis. View "Compart's Boar Store, Inc. v. United States" on Justia Law

A federal district court certified two questions of law to the Iowa Supreme Court in a priority dispute between competing creditors of a bankrupt hog operation. Crooked Creek Corporation operated a farrow-to-finish hog facility where it bred gilts and sows and raised their litters for slaughter. After the company filed for bankruptcy, the hogs were sold, but the sale did not generate enough money to pay off competing liens asserted by two of Crooked Creek’s creditors: Oyens Feed & Supply, Inc. and Primebank. Oyens Feed held an agricultural supply dealer lien because it sold Crooked Creek feed “on credit . . . to fatten the hogs to market weight.” Primebank had a perfected article 9 security interest in the hogs to secure two promissory notes predating Oyens Feed’s section 570A.5(3) agricultural supply dealer lien in the hogs. At trial, Oyens Feed claimed it was entitled to all of the escrowed funds because its agricultural supply dealer lien had superpriority over Primebank’s earlier perfected security interest. The bankruptcy court concluded the plain meaning of section 570A.4 created a “discrete window of time,” beginning with the farmer’s purchase of feed and ending thirty-one days later, within which an agricultural supply dealer must file a financing statement to perfect its lien. The bankruptcy court concluded Oyens Feed had only perfected its lien as to amounts for feed delivered in the thirty-one days preceding the filing of each of its financing statements. In reaching its decision on the extent of Oyens Feed’s lien in the escrowed funds, the bankruptcy court reasoned the acquisition price of the hogs was zero because Crooked Creek raised hogs from birth rather than purchasing them. The court concluded “the ‘purchase price’ comprises the vast majority, if not all of, the ‘acquisition price’ for . . . purposes of Iowa Code § 570A.5(3).” The United States District Court for the Northern District of Iowa asked the Iowa Supreme Court: (1) whether, pursuant to Iowa Code section 570A.4(2), was an agricultural supply dealer required to file a new financing statement every thirty-one (31) days in order to maintain perfection of its agricultural supply dealer’s lien as to feed supplied within the preceding thirty-one (31) day period?; and (2) whether pursuant to Iowa Code section 570A.5(3), was the “acquisition price” zero when the livestock are born in the farmer’s facility? The Supreme Court answered both certified questions in the affirmative. View "Oyens Feed & Supply, Inc. v. Primebank" on Justia Law

Plaintiffs are partners in the business of dairy farming. Defendant is an agricultural cooperative in the business of producing and supplying dairy products. In 1980, plaintiffs became members of defendant’s cooperative, paid $15 for shares of defendant’s common stock, and entered into a “Milk Marketing Agreement” with defendant. In 2005, plaintiffs temporarily ceased milk production. Defendant notified plaintiffs that it had terminated their agreement and plaintiffs’ membership in the cooperative and tendered $15 to plaintiffs to redeem the shares of common stock. Plaintiffs rejected the payment and sought shareholder remedies pursuant to the Business Corporation Act (805 ILCS 5/12.56). Based on defendant’s alleged concealment, suppression, or omission of its interpretation of its by-laws, count II alleged a claim under the Illinois Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505/1), and count III alleged common-law fraud. Plaintiffs’ counsel withdrew and they obtained multiple extensions. After a voluntary dismissal, plaintiffs refiled. The circuit court dismissed the refiled action on grounds of res judicata and the statute of limitations. The appellate court reversed and remanded and the Illinois Supreme Court affirmed. Although nearly five years elapsed between the time plaintiffs were granted leave to file an amended complaint and their voluntary dismissal, defendant did not seek a final order dismissing the matter with prejudice, definitively ending the action. View "Richter v. Prairie Farms Dairy" on Justia Law

In 2014 the Tax Court held that Roberts had deducted expenses from his horse‐racing enterprise on his federal income tax returns for 2005 and 2006 erroneously because the enterprise was a hobby rather than a business, 26 U.S.C. 183(a), (b)(2)..The court assessed tax deficiencies of $89,710 for 2005 and $116,475 for 2006, but ruled that his business had ceased to be a hobby, and had become a bona fide business, in 2007. The IRS has not challenged Roberts’ deductions since then and Roberts continues to operate his horse‐racing business. The Seventh Circuit reversed the Tax Court’s judgment upholding the deficiencies assessed for 2005 and 2006. A business is not transformed into a hobby “merely because the owner finds it pleasurable; suffering has never been made a prerequisite to deductibility.” The court noted instances demonstrating Roberts’ intent to make a profit. View "Roberts v. Comm'r of Internal Revenue" on Justia Law

In 2014 the Tax Court held that Roberts had deducted expenses from his horse‐racing enterprise on his federal income tax returns for 2005 and 2006 erroneously because the enterprise was a hobby rather than a business, 26 U.S.C. 183(a), (b)(2)..The court assessed tax deficiencies of $89,710 for 2005 and $116,475 for 2006, but ruled that his business had ceased to be a hobby, and had become a bona fide business, in 2007. The IRS has not challenged Roberts’ deductions since then and Roberts continues to operate his horse‐racing business. The Seventh Circuit reversed the Tax Court’s judgment upholding the deficiencies assessed for 2005 and 2006. A business is not transformed into a hobby “merely because the owner finds it pleasurable; suffering has never been made a prerequisite to deductibility.” The court noted instances demonstrating Roberts’ intent to make a profit. View "Roberts v. Comm'r of Internal Revenue" on Justia Law

Plaintiffs challenged the USDA's determination that a portion of their farmland is a wetland within the meaning of the pertinent federal statutes and regulations. The court affirmed the district court's grant of summary judgment in favor of the USDA, concluding that the agency's final decision was not arbitrary, capricious, or contrary to the law. In this case, the USDA did not err in determining that Site 1 had the requisite hydrology to quaify as a wetland, and the USDA properly determined that Site 1 would support a prevalence of hydrophytic vegetation under normal circumstances. View "Foster v. Vilsack" on Justia Law

Plaintiffs, brothers who worked in the pest control industry, filed suit against LDAF and LDAF's Assistant Director David Fields, in his individual capacity, alleging various claims related to the hearings before LDAF for violations of Louisiana's Pest Control Laws, La. Stat. Ann. 3:3363. The court concluded that plaintiffs failed to establish sufficient evidence to demonstrate that defendants retaliated against them for complaining before the Commission and others. Because summary judgment was proper as to plaintiffs' First Amendment claims, summary judgment is also proper as to plaintiffs' state law claims. The court also concluded that summary judgment was properly granted as to the substantive due process claims. In this case, although plaintiffs may have a protected interest in being free from arbitrary state action not rationally related to a state purpose, they do not have a constitutional right to violate rules and regulations of the Louisiana Pest Control law. The record establishes a substantial basis for defendants’ actions and precludes any inference that such actions were arbitrary. Because Louisiana courts have found the due process protections in the Louisiana Constitution to be coextensive with the protections of the Fourteenth Amendment, the same determination applies to plaintiffs’ state law claims. Finally, the court concluded that plaintiffs' Eighth Amendment claim fails because, assuming that the Excessive Fines Clause applies in this instance, the record indicates that each of plaintiffs' offenses resulted in fines that do not exceed the limits prescribed by the statute authorizing it. Under the facts established in the summary judgment record, plaintiffs' claims against David Fields failed. Accordingly, the court affirmed the judgment. View "Cripps v. Louisiana Dep't of Agriculture & Forestry" on Justia Law

Plaintiffs, brothers who worked in the pest control industry, filed suit against LDAF and LDAF's Assistant Director David Fields, in his individual capacity, alleging various claims related to the hearings before LDAF for violations of Louisiana's Pest Control Laws, La. Stat. Ann. 3:3363. The court concluded that plaintiffs failed to establish sufficient evidence to demonstrate that defendants retaliated against them for complaining before the Commission and others. Because summary judgment was proper as to plaintiffs' First Amendment claims, summary judgment is also proper as to plaintiffs' state law claims. The court also concluded that summary judgment was properly granted as to the substantive due process claims. In this case, although plaintiffs may have a protected interest in being free from arbitrary state action not rationally related to a state purpose, they do not have a constitutional right to violate rules and regulations of the Louisiana Pest Control law. The record establishes a substantial basis for defendants’ actions and precludes any inference that such actions were arbitrary. Because Louisiana courts have found the due process protections in the Louisiana Constitution to be coextensive with the protections of the Fourteenth Amendment, the same determination applies to plaintiffs’ state law claims. Finally, the court concluded that plaintiffs' Eighth Amendment claim fails because, assuming that the Excessive Fines Clause applies in this instance, the record indicates that each of plaintiffs' offenses resulted in fines that do not exceed the limits prescribed by the statute authorizing it. Under the facts established in the summary judgment record, plaintiffs' claims against David Fields failed. Accordingly, the court affirmed the judgment. View "Cripps v. Louisiana Dep't of Agriculture & Forestry" on Justia Law