CORPORATE FARMING NOTES

North Carolina approves a permanent ban on swine waste lagoons; livestock market reforms largely absent from House farm bill

- In Raleigh, North Carolina, state legislators approved a bill on July 25, 2007, that permanently bans new swine waste lagoons and orders state environmental regulators to create environmental standards for all new waste systems.

Representative Carolyn Justice (R-Hampstead) called the measure “momentous” and added, “Farmers are going to advance this technology, and we’ll be thrilled with the results. And we will be pleased that we have a permanent moratorium on new lagoon systems.”

North Carolina enacted a “temporary” moratorium on new lagoon construction in 1997 following a series of catastrophic spills and lagoon failures, including two spills that each spilled over 25 million gallons of liquid hog waste into North Carolina waterways.

The moratorium was hotly debated at the time, opposed by Smithfield Foods, the nation’s largest pork packer and pork producer, and became a national media story. Then the moratorium was extended four times and was most recently set to expire September 1, 2007.

Reflecting a clear change in temperament surrounding this issue, the permanent moratorium that was debated in July passed both the North Carolina Senate and House of Representatives unanimously.

- The U.S. House of Representatives farm bill did nothing to address livestock market competition reforms. Although Representative Leonard Boswell (D-IA), Chair of the Livestock Subcommittee, introduced a version of Senator Tom Harkin’s livestock market competition bill in the House several months ago, he never offered that proposal as an amendment to the farm bill. He did secure passage of one provision from that legislation in his subcommittee. That was a prohibition of mandatory arbitration clauses in livestock and poultry contracts.

Mandatory arbitration clauses force producers facing “take it or leave it” contract offers to agree to give up their rights to go to court to settle disputes with processors and packers and instead submit to binding arbitration.

House Agriculture Committee Chairman Collin Peterson (D-MN) and a handful of other Democratic committee members joined Ranking Member Bob Goodlatte (R-VA) and the Republican members of the committee in passing an amendment written with the help of the Chicken Council and Turkey Federation that gutted Representative Boswell’s amendment.

Contact: John Crabtree, johnc@cfra.org or 402.687.2103 x 1010 for more information on Corporate Farming Notes.

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