Skip to main content

%1

Minnesota Ag Department Urges Farmers to File Claims in Pipeline Foods LLC Bankruptcy

Submitted by ckanon@abi.org on
A major Minnesota-based organic grain processor’s bankruptcy reorganization filing earlier this month has shocked farmer-suppliers from Canada to the U.S. South, and left them wondering who will get paid and who will pick up the pieces, AgWeek reported. The Minnesota Department of Agriculture held an online meeting this week with creditors and others to describe how Pipeline Foods LLC’s federal bankruptcy in Delaware might mesh with state laws for payment for grain. Minnesota Agriculture Commissioner Thom Peterson assured that the department saw the bankruptcy as a “serious issue that we’re looking at all angles on.” Nick Milanowski, supervisor for the department’s fruit, vegetable and grain programs, urged people to file now against the company’s $500,000 bond, which might partially compensate producers. Milanowski and Minnesota Assistant Attorney General Oliver Larson told farmers they should also consider filing claims against the bond, and in the federal bankruptcy, but noted that unsecured creditors get paid last.Unfortunately, money through either process is unlikely to make producers whole, and could take months or years. Pipeline Foods LLC was formed in 2017. It filed for chapter 11 reorganization in Delaware, where it was incorporated. Pipeline estimated funds “will be available for distribution to unsecured creditors.” They estimated 200 to 999 creditors. They estimated $100 million to $500 million of both assets and debts. The bankruptcy filing lists just 20 top creditors the company estimates it owes a total of $20.7 million. In addition to U.S. creditors, it also has companies in Dubai, India and China.
Article Tags

China Is Buying Up American Farms; Washington Wants to Crack Down

Submitted by ckanon@abi.org on
The push to drain China’s influence from the U.S. economy has reached America’s farm country, as congressional lawmakers from both parties are looking at measures to crack down on foreign purchases of prime agricultural real estate, Politico reported. House lawmakers recently advanced legislation to that effect, warning that China’s presence in the American food system poses a national security risk. Key Senate lawmakers have already shown interest in efforts to keep American farms in American hands. The debate over farm ownership comes amid broader efforts by Congress and the Biden administration to curb the nation’s economic reliance on China, especially in key industries like food, semiconductors and minerals deemed crucial to the supply chain. The call for tighter limits on who owns America’s farms has come from a wide range of political leaders, from former Vice President Mike Pence to Sen. Elizabeth Warren (D-Mass.), after gaining momentum seeded in farm states. “America cannot allow China to control our food supply,” Pence said during a speech, urging President Joe Biden and Congress to “end all farm subsidies for land owned by foreign nationals.” Chinese firms have expanded their presence in American agriculture over the last decade by snapping up farmland and purchasing major agribusinesses, like pork processing giant Smithfield Foods. By the start of 2020, Chinese owners controlled about 192,000 agricultural acres in the U.S., worth $1.9 billion, including land used for farming, ranching and forestry, according to the Agriculture Department.
Article Tags

New U.S. Rules to Protect Animal Farmers Expected Soon

Submitted by jhartgen@abi.org on

The Biden administration plans to issue a new rule to protect the rights of farmers who raise cows, chickens and hogs against the country’s largest meat processors as part of a plan to encourage more competition in the agriculture sector, the Associated Press reported. The new rule that will make it easier for farmers to sue companies they contract with over unfair, discriminatory or deceptive practices is one of several steps that the White House plans to announce in the next few days. The U.S. Department of Agriculture is also expected to tighten the definition of what it means for meat to be labeled a “Product of USA” to exclude when animals are raised in other countries and simply processed in the United States. Farmer advocacy groups have pressed for change for years but Congress and the meat processing industry have resisted. A USDA official familiar with the White House’s plan said an executive order is expected to be announced this week that will clear the way for the new rules. White House press secretary Jen Psaki said Tuesday that the rules are designed to “increase competition in agricultural industries to boost farmers’ and ranchers’ earnings, fight back against abuses of power by giant agribusiness corporations, and give farmers the right to repair their own equipment how they like.” The regulation will make it easier for farmers to bring complaints under the Packers and Stockyards Act and is similar to one the Trump administration killed four years ago. That rule was first proposed in 2010.

Judge Suspends Debt Relief Program for farmers of Color After Conservative Law Firm, White Farmers Sue

Submitted by jhartgen@abi.org on

A federal judge halted payments for a loan forgiveness program that provides relief to agricultural producers of color, the Milwaukee Journal Sentinel reported. A temporary restraining order was handed down Thursday afternoon by Judge William Griesbach of Wisconsin's Eastern District, in response to a lawsuit filed by the conservative Wisconsin Institute for Law and Liberty in April. The group alleged that the Biden administration used an unconstitutional program in an effort to end systemic racism and should make the relief available to white farmers, too. Since the filing of the lawsuit, the U.S. Department of Agriculture officials have continued to implement the program and is currently reviewing what the restraining order means for the program. "We respectfully disagree with this temporary order and USDA will continue to forcefully defend our ability to carry out this act of Congress and deliver debt relief to socially disadvantaged borrowers," said a USDA spokesperson. "When the temporary order is lifted, USDA will be prepared to provide the debt relief authorized by Congress.” The Biden administration created the loan forgiveness program for socially disadvantaged farmers and ranchers earlier this year under the American Rescue Plan Act. The program paid up to 120% of direct or guaranteed farm loan balances for producers who are Black, American Indian or Alaskan native, Hispanic or Latino, and Asian American or Pacific Islander.

America Is Running Low on Chicken. Blame COVID-19, a Sandwich Craze and Huge Appetite for Wings

Submitted by ckanon@abi.org on
It’s not like we weren’t warned. The doomsayers predicted this months ago: “A MASSIVE CHICKEN WING SHORTAGE IS BREWING,” blared the headline of one trade publication in early February. But it turned out to be so much worse, The Washington Post reported. In other words, not just wings, but chicken in general. It seems the poultry paucity has arrived, heralded by a series of fast-food executives describing in earnings calls their stores’ struggles to stock enough chicken — nuggets, tenders, wings, patties, all shapes and sizes — to keep pace with legions of peckish Americans. “Demand for the new sandwich has been so strong that, coupled with general tightening in domestic chicken supply, our main challenge has been keeping up with that demand,” said David Gibbs, CEO of Yum Brands, whose KFC restaurants recently rolled out a new fried-chicken sandwich. Charles R. Morrison, chairman and CEO of Wingstop, said that “Suppliers are struggling, just as many in our industry are, to hire people to process chicken, thus placing unexpected pressure on the amount of birds that can be processed and negatively affecting supply of all parts of the chicken in the U.S., not just wings.” Chicken has for years been the most popular meat in the U.S. and experts and analysts have cited several reasons for the current deficit. Some are related to the coronavirus — pandemic-spurred disruptions in the market and supply chain and an increased demand for a comfort food that is takeout- or delivery-friendly. Others, industry watchers say, include increased competition, volatile feed prices and even the deadly winter storms that swept over the South in February, halting the work of chicken processors.
Article Tags

Biden Administration Ramps Up Debt Relief Program to Help Black Farmers

Submitted by jhartgen@abi.org on

The Biden administration, which has made combating racism a centerpiece of its agenda, is pledging to reverse decades of discriminatory agricultural lending and subsidy policies that have left Black farmers at an economic disadvantage and is racing to deploy $5 billion in aid and debt relief to help them, the New York Times reported. At the center of this initiative is the Agriculture Department, an agency that has long been derided by Black farmers as the United States’ “last plantation.” Now the department is in the middle of a drastic overhaul, both of its personnel and of policies that it acknowledges have perpetuated inequality in rural America for years. President Biden’s agriculture secretary, Tom Vilsack, yesterday said that he would work to root out the vestiges of racism at his agency and to redress “systemic discrimination” that Black farmers had faced.

Texas Farmers Tally Up the Damage From a Winter Storm ‘Massacre’

Submitted by jhartgen@abi.org on

Texas farmers and ranchers have lost at least $600 million to the winter storm that struck the state last month, according to an assessment issued this week by economists at the Texas A&M AgriLife Extension Service, the New York Times reported. Damage and disruption from the bitter blast of cold and snow, which farmers are calling “the St. Valentine’s Day massacre,” is likely to cause some gaps on grocery shelves in the eastern part of the country and push prices higher, especially on crops like sweet Texas onions that were just about to be harvested, leafy greens that would have headed for the East Coast and even cabbage, which this year might not be the St. Patrick’s Day sale item it often is. The storm also caused a severe shipping and processing bottleneck that continues to challenge the food-supply chain. Truck drivers were stuck for days waiting to load or unload produce. Processing plants had no power. Dairies were forced to dump 14 million gallons of milk, said Sid Miller, the Texas commissioner of agriculture. In a state that sells $25 billion worth of agricultural products each year and has more farms and ranches than any other, the damage is spread far and wide.