BISMARCK, N.D. -- A new federal lawsuit over North Dakota's anti-corporate-farming law is getting criticism from family-farm advocates.
The North Dakota Farm Bureau is asking a federal judge to declare the 84-year-old law unconstitutional, just days before North Dakotans vote on ballot Measure 1, which would allow corporate farms in the state. The North Dakota Farmers Union has opposed the measure since it was introduced last year.
Kayla Pulvermacher, director of member advocacy at the North Dakota Farmers Union, said the timing of the lawsuit could be seen as a last-ditch effort by the Farm Bureau to allow non-family corporations to set up hog and dairy operations.
"Basically, we see this a threat that's being given to North Dakota voters," she said. "The timing is interesting. If this wasn't about the measure, why now?"
In a statement, Farm Bureau President Daryl Lies said the lawsuit isn't connected to Measure 1. His group believes the current anti-corporate-farming law is outdated and forces North Dakota to operate at an economic disadvantage.
Pulvermacher is concerned that Measure 1 would consolidate many farms into the hands of just a few large corporations. Considering that some farms have been run by local families for generations, she said, the idea could have long-term negative effects.
"We believe it will be terrible for our state," she said. "We believe that there'll be a lack of investment in local economies, because farmers buy local and they're the fabric of our communities. Corporate farming does not have the same loyalty to the communities that our family farms have."
Ballot Measure 1 gets a public vote on June 14. North Dakota is one of nine states that has limits on corporate farming.
Information on ballot Measure 1 is online at vip.sos.nd.gov.
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A bipartisan law set to take effect this summer prohibits foreign adversaries from buying Hoosier farmland. The signature of Gov. Eric Holcomb was the final step for House Bill 1183.
The landmark legislation bans China, Cuba, Iran, North Korea, Russia and Venezuela from owning or leasing farmland within the state. It also imposes restrictions on real estate transactions within a 10-mile radius of military installations.
Sen. Blake Doriot, R-Goshen, is a staunch supporter of the bill and echoed the concerns of many lawmakers about potential vulnerabilities posed by extensive foreign ownership of farmland.
"Forty million acres, is twice the size of the state of Indiana, is in foreign ownership. So, maybe we need to be looking a little more before we sell the whole country," Doriot said.
Opponents argue the bill goes too far and punishes people who fled the targeted countries. Canada owns about a third of America's 1.3 billion acres of farmland. China owns 400,000 acres in the U.S., and 2.2% of Indiana's farmland has foreign owners.
The new law goes into effect July 1. The law won't apply to people who have dual citizenship in the U.S. and one of the restricted countries, or who are lawful permanent residents.
Sen. James Tomes, R- Wadesville, stressed the importance of asserting local control over Indiana farmland.
"I think we need to stand up for what goes on in our country. We talk about local control - the local control I think we're under right now is the federal government. Because what's happening right now, the feds are really making it difficult. I'm glad the states are stepping up to do it on their own," Tomes said.
Some 24 states have passed legislation restricting property sales to foreign entities. Proponents say the law is a proactive measure to safeguard Indiana's agriculture industry from undue foreign influence, and to bolster the state's national security posture.
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Backers of a new federal rule said it will increase fairness for livestock and poultry producers, in North Carolina and across the country.
The U.S. Department of Agriculture has finalized its Inclusive Competition and Market Integrity rule, under the Packers and Stockyards Act this month. Advocates said it is a big step in addressing discrimination and even deception smaller livestock and poultry producers have faced for decades, from corporations they contract with to bring their products to market.
Aaron Johnson, policy co-director for the Rural Advancement Foundation International-USA, explained some of the long-standing concerns the rule addresses.
"One thing that we have documented in past reports is the tendency of integrators to present the terms and the potential benefits of the contracts they're offering during the recruitment process with growers in what we would assess to be deceptive terms," Johnson explained.
In addition to misleading contract terms, he noted some farmers were recruited within months of a plant being closed. He contended with the new rule, such issues can be prevented. It will go into effect 60 days after it is published, and producers will be able to use a Farmer Fairness Portal to submit their concerns to the Packers and Stockyards Division.
North Carolina poultry farms produce almost 8 million turkeys annually. Johnson emphasized the rule will work in tandem with another recent rule giving poultry farmers a more accurate estimate of the income they will receive with a contract. He believes even more could be done to strengthen protections for livestock and poultry producers in the performance-based payment system known as the "tournament system."
"One thing that hasn't been addressed by these two rules, as of yet, is really robust and targeted reform of the tournament system itself," Johnson stressed. "One thing I would highlight is that the tournament itself is one of the systemic facilitators of retaliation."
By "retaliation," he asserted some farms have had their contracts cut short and have even been driven out of business. He predicted more rules addressing issues in the tournament system and manipulation of cattle prices are expected.
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New agricultural census data show a significant increase in production value for New England farms over the past five years. There are nearly 31,000 farms and ranches operating in the region - a 5% decline from 2017. But those remaining farms grew their production value by nearly 32% to more than $3.5 billion.
Pam Hird, USDA state statistician, said the growth stems from more than just consolidation or an increase in food prices.
"We're using new technologies and new methods and learning things from our universities and our extension services. We're becoming more efficient at farming," she explained.
Hird added the census finds New England farms ranging in size from one to nine acres suffered the greatest losses and are part of the more than 20 million acres of American farmland lost to development and other factors over the past five years.
U.S. Agriculture Secretary Tom Vilsack called the decline in operational farmland "a wakeup call" for America and noted that a majority of America's farmers still rely on second incomes unrelated to farming to make ends meet. Hird said the census reveals an increasing number of young farmers with less than 10 years of experience are helping sustain the region's farm sector.
"What we do is very important," Hird contended. "We're high on the list for organics. We produce hay and hay forage. We have cattle. We have cut flowers. We have honey and bees. Maple, of course, is very critical."
While the number of organic farm numbers declined by nine-percent from 2017, the value of organic sales increased slightly. Hird says more than 67% of regional farmers responded to the census, providing critical data that determines farm programs and services, disaster assistance and technology development.
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