Justia Agriculture Law Opinion Summaries

Garland Joseph Nelson was convicted of mail fraud and being a felon in possession of a firearm, following a cattle fraud scheme he operated in Missouri. Nelson received cattle from Diemel’s Livestock, a company owned by brothers Justin and Nicholas Diemel, with the agreement to feed and sell the cattle after they had grown. However, Nelson failed to properly care for the cattle, resulting in many deaths. Instead of disclosing the loss, Nelson continued to accept more cattle and sell them under the pretense of the original agreement. Nelson also engaged in similar fraudulent conduct with farmer David Foster in Kansas and farm owner John Gingerich in Missouri.Nelson was sentenced to 360 months of imprisonment and 36 months of supervised release, and ordered to pay $260,925.07 in restitution by the United States District Court for the Western District of Missouri. Nelson appealed the restitution order, arguing that the district court erred by not requiring the government to prove loss amounts by a preponderance of the evidence and that the restitution award to Diemel’s Livestock would result in double recovery.The United States Court of Appeals for the Eighth Circuit affirmed the district court's restitution order. The court found that Nelson failed to object to the factual allegations regarding the loss amounts outlined in the Presentence Investigation Report (PSR), and thus the district court did not err in accepting the unobjected-to loss amounts. The court also disagreed with Nelson's argument that the restitution order amounted to an impermissible double recovery, as the settlement agreement expressly stated that Diemel’s Livestock would not recover damages under the settlement, and Nelson did not present evidence that Diemel’s Livestock received any other compensation in connection with the fraud alleged in this case. View "United States v. Nelson" on Justia Law

James and Levi Garrett, a father and son farming duo in South Dakota, were found guilty by a jury of making false statements in connection with federal crop insurance. The Garretts had participated in a federal crop insurance program, administrated by Crop Risk Services (CRS) and backed by the Risk Management Agency of the United States Department of Agriculture (USDA). They had obtained insurance for sunflower crops in 2018, and James had obtained insurance for a corn crop in 2019. The Garretts were accused of falsely certifying the number of acres of sunflowers and corn they planted in 2018 and 2019 respectively, and subsequently reporting harvest losses to CRS.The case went to trial in October 2022. The jury heard from several witnesses and examined dozens of exhibits. At the conclusion of the trial, James was convicted on two counts of making a false statement in connection with insurance for sunflower and corn crops, and Levi was convicted on one count of making a false statement in connection with insurance for a sunflower crop. The Garretts moved for judgment of acquittal, and in the alternative, a new trial, arguing there was insufficient evidence to support their convictions. The district court denied their motion.The Garretts appealed to the United States Court of Appeals for the Eighth Circuit, challenging the district court’s evidentiary rulings and its denial of their post-trial motions. They argued that the district court erred in admitting certain evidence and excluding others, and that there was insufficient evidence to support their convictions. The Court of Appeals affirmed the judgment of the district court, concluding that the trial record supported the jury verdict and that the district court did not err in its evidentiary rulings or in denying the Garretts' post-trial motions. View "United States v. Garrett" on Justia Law

Bader Farms, Inc. sued Monsanto Company and BASF Corporation, alleging that its peach orchards were damaged by dicamba drift between 2015 and 2019 due to the defendants' negligent design and failure to warn. The jury awarded $250 million in punitive damages against both Monsanto and BASF based on Monsanto’s acts in 2015-16, which the district court later reduced to $60 million. The defendants appealed the decision.The United States Court of Appeals for the Eighth Circuit affirmed the lower court's decision except for punitive damages, holding BASF and Monsanto liable as co-conspirators in a civil conspiracy. The court remanded the case to separately assess punitive damages against Monsanto and BASF. However, before the new trial, Monsanto settled with Bader Farms. The district court did not conduct a new trial and instead ruled that BASF could not be liable for any punitive damages, dismissing all claims against BASF.Bader Farms appealed, arguing that the district court ignored the appellate court’s mandate and its holding that BASF could be assessed punitive damages for its acts in furtherance of the conspiracy. The appellate court reviewed the district court’s interpretation of its mandate de novo and found that the district court did not comply with the appellate mandate. The appellate court held that BASF is vicariously liable for Monsanto’s actions and remanded the case for a trier of fact to apportion the punitive damages award. The court reversed the judgment and remanded with instructions to hold a new trial on the single issue of punitive damages. View "Bader Farms, Inc. v. BASF Corporation" on Justia Law

The case in question pertains to a dispute over the enforceability of dragnet clauses within mortgages used to secure loans funding Frank Welte’s farming operations. The Vera T. Welte Testamentary Trust, of which Frank Welte is the sole beneficiary, pledged its property as security for these loans, which were provided by Roger Rand, another Iowa farmer. The Trust's primary asset is 160 acres of farmland that were leased to Frank. Upon Rand's death, his estate initiated a foreclosure action against the Trust's farmland. The Trust subsequently filed for chapter 12 bankruptcy, which led to a stay of the foreclosure action against the Trust.The Estate filed a proof of claim and a motion to dismiss the Trust’s bankruptcy petition, alleging that the Trust was not a business trust as required by chapter 12. The Trust objected to the Estate’s proof of claim. The Iowa state court ruled that the dragnet clauses in the mortgage documents secured the loans made to Frank in excess of the face amount of the promissory notes.The United States Bankruptcy Court for the Northern District of Iowa, however, held that the dragnet clauses were not enforceable, thereby concluding that the Trust no longer owed a debt to the Estate. Following this, the United States District Court for the Northern District of Iowa gave preclusive effect to the judgment of the Iowa Court of Appeals concerning the enforceability of the clauses and the amounts owed thereunder.The Trust and the Estate both appealed the district court’s order. The United States Court of Appeals for the Eighth Circuit dismissed the appeal and cross-appeal due to lack of jurisdiction, as the district court's order was not final and required further proceedings in the bankruptcy court. View "The Security National Bank of Sioux City, IA v. Vera T. Welte Testamentary Trust" on Justia Law

The United States Court of Appeals for the Eighth Circuit reversed a lower court's decision that an Iowa law violated the First Amendment. The law prohibited accessing an agricultural production facility under false pretenses or making a false statement or misrepresentation as part of a job application at such a facility, with the intent to cause physical or economic harm or other injury to the facility. Various organizations challenged this law, arguing it was unconstitutional as it was "viewpoint-based", targeting speakers with negative views of agricultural production facilities. The United States District Court for the Southern District of Iowa agreed and granted summary judgment for the plaintiffs, enjoining officials from enforcing the law. On appeal, the Eighth Circuit disagreed, finding that the law was constitutional as it restricted intentionally false speech carried out to cause a legally recognized harm. Therefore, the appellate court reversed the judgment, vacated the injunction, and remanded the case for further proceedings. View "Animal Legal Defense Fund v. Reynolds" on Justia Law

=Public Water Supply District No. 1 of Greene County, Missouri (“PWSD”) and the City of Springfield, Missouri (the “City”) filed cross motions for summary judgment, and the district court1 granted summary judgment in favor of the City. The district court also denied PWSD’s subsequent motion to alter or amend the judgment under Rule 59(e) of the Federal Rules of Civil Procedure. PWSD appealed these decisions. PWSD asserts its claims are timely under the continuing-violations doctrine because the City continues to provide water to customers within the Disputed Subdivisions.   The Eighth Circuit affirmed the finding that PWSD’s claims are time-barred. Here, it is undisputed that the City began serving each of the Disputed Subdivisions in or before 1994. Based on the principles set forth above, a § 1926(b) violation must occur (and the statute of limitations accrues) when a municipality begins providing service to a new subdivision, and “not when it continues to do so.” Contrary to PWSD’s contention, it is not a continuing violation, and the statute of limitations does not reset when a municipality continues to add and provide service to customers in a subdivision it already serves. View "Public Water Supply District No. 1 of Greene Co v. City of Springfield, Missouri" on Justia Law

Plaintiffs filed suit challenging Iowa Code Sec. 717A.3A(1)(a)-(b), which makes it a crime for a person to gain access to an agricultural production facility by false pretenses and to make false statements on an employment application to such a facility, on First Amendment grounds. The district court ruled that both provisions were unconstitutional and enjoined their enforcement.The Eighth Circuit concluded that the provisions providing that a person is guilty of agricultural production facility fraud if they obtain access to the facility by false pretenses is consistent with the First Amendment because it prohibits exclusively lies associated with a legally cognizable harm - namely trespass to private property. The court explained that the proscription of the Employment Provision does not require that false statements made as part of an employment application be material to the employment decision. Therefore, the statute is not limited to false claims that are made "to effect" an offer of employment; it allows for prosecution of those who make false statements that are not capable of influencing an offer of employment. The court concluded that, given the breadth of the Employment Provision, it proscribes speech that is protected by the First Amendment and does not satisfy strict scrutiny. Accordingly, the court affirmed in part and reversed in part, vacating the injunction against enforcement of the access provision. View "Animal Legal Defense Fund v. Reynolds" on Justia Law

The Eighth Circuit reversed the district court's order granting summary judgment to the Commissioner, in an action brought by Farm Wineries seeking a declaration that the Minnesota Farm Wineries Act's in-state requirements violates the dormant Commerce Clause. The court held that the Farm Wineries had Article III standing, because they established an injury in fact by alleging that they were presently injured by the Act because they cannot plan for and expand their businesses. Furthermore, the Farm Wineries' injuries were fairly traceable to the in-state requirement, because the Commissioner has the authority to enforce the Act against the Farm Wineries. Finally, Farm Wineries' injuries can be redressed by a declaratory judgment. Accordingly, the court remanded for further proceedings. View "Alexis Bailly Vineyard, Inc. v. Harrington" on Justia Law

The Eighth Circuit denied a petition for review of the USDA's 2017 orders withdrawing an interim final rule and two proposed regulations promulgated under the Packers and Stockyards Act (PSA). The court held that the USDA actions were not arbitrary nor capricious where the USDA provided legitimate regulatory and substantive concerns. In this case, the USDA explained that it was withdrawing the interim final rule and taking no further action on the proposed regulations because the proposed regulatory change of course would generate protracted litigation, adopt vague and ambiguous terms, and might prevent innovation and foster vertical integration that would hinder new market entrants. The court held that the USDA did not unlawfully withhold action by failing to comply with an absolute congressional deadline in Section 11006 of the 2008 Farm Bill. View "Organization for Competitive Markets v. U.S. Department of Agriculture" on Justia Law

The Eighth Circuit affirmed the district court's grant of summary judgment deferring to an insurance policy interpretation made by the FCIC and a determination regarding the FCIC's authority made by the RMA. The court held that the clear language of the Federal Crop Insurance Act indicated that Congress intended the Corporation to have extensive and broad authority; given the FCIA's broad grant of authority to the Corporation, and the specific authority over the provisions of insurance and insurance contracts found in 5 U.S.C. 1505 and 1506, substantial deference was given to the FCIC's interpretation of the special provision; and, considering the plain language of the insurance contract and the deference given to the RMA in its role of supervisor of the FCIC, the RMA's determination that the FCIC was required to provide an interpretation of the special provision to the arbitrating parties was not clearly erroneous. View "Bottoms Farm Partnership v. Perdue" on Justia Law