In a complex case dealing with nonprofit ownership of farm and ranch land for the purpose of wildlife and habitat conservation, Judge James Bekken of North Dakota’s Southeast Judicial District found in favor of the state in their efforts to force Crosslands, Inc. to divest ownership of farmland in Griggs and Cavalier Counties. Judge Bekken also held that North Dakota’s corporate farming law does not violate the so-called “dormant” commerce clause.

Judge Bekken’s analysis considered the 8th Circuit Court of Appeals cases that struck down South Dakota’s Amendment E and Nebraska’s Initiative 300, namely South Dakota Farm Bureau v. Hazeltine and Jone v. Gale, respectively. He rejected the idea that either precedent is conclusive in this case and sided with the state of North Dakota in finding that North Dakota’s corporate farming law (N.D.C.C 10-06.1-10) “does not discriminate against interstate commerce because of any discriminatory affect on corporations such as Crosslands.”

Attorney General Wayne Stenehejm presented the court with a report by Dr. Curtis Stofferahn (http://www.und.edu/org/ndrural/Lobao%20&%20Stofferahn.pdf) on the effectiveness of corporate farming laws in preserving the rural economy and family farming and ranching. Judge Bekken concurred with the state in their contention that the state has a “legitimate purpose” in preserving family farms and ranches and rural communities and that those interests are furthered by North Dakota’s corporate farming laws.

We read the decision, Stofferahn’s report and testimony and could not agree more with him, Judge Bekken and Attorney General Stenehejm.

After a federal district court jury found the meatpacking company Tyson to have violated the Packers and Stockyards Act by holding down cattle prices and awarding cattle producers $9.25 billion in damages, an appellate court overturned the award and verdict and allowed Tyson to go after plaintiff Herman Schumacher, a South Dakota cattleman, for court costs. As a result, U.S. Marshals seized Schumacher’s home, requiring him to pay Tyson nearly $16,000.

In June, RCALF-USA urged Tyson to abandon the judgment against Schumacher. The company responded that, “Tyson intends to donate the proceeds extracted from Schumacher to local food banks in South Dakota.” We could not say it better than RCALF CEO Bill Bullard, “Only in the ivory tower boardroom of a multibillion dollar company where corporate executives are completely disconnected from cattle producers and food consumers, could a strategy like this be concocted.”

Contact: John Crabtree, johnc@cfra.org or call 402.687.2100 x 1010 for more information on Corporate Farming Notes.