The U.S. Department of Justice intervened last week in a price-fixing lawsuit against some of the nation’s biggest poultry companies. The Fern Dot Org website says that could signal that the department’s own grand jury investigation into the chicken sector might result in criminal indictments.
The Justice Department asked the U.S. District Court in northern Illinois to stop discovery in a class-action lawsuit brought by food distributor Maplevale Farm, saying in a motion that a “limited stay is needed to protect the grand jury’s investigation.” The stay applies to all “defendant employee and former employee depositions” and was granted on a temporary basis.
There will be a hearing later this week on the DOJ request for a six-month stay. A professor at the University of Wisconsin-Madison law school calls the development “significant.” The investigation signals that the DOJ feels “there are serious violations here that require the grand jury inquiry and the potential for criminal indictments.”
The lawsuit alleges that the companies colluded on price hikes by relying on Agri Stats, a secretive information sharing service used by poultry companies. The suit also says those companies manipulated prices up to artificially high levels.
President Donald Trump’s trade war seems to be pushing the rural economy closer and closer to a meltdown. Politico says economic challenges in agriculture are weighing heavier on banks that lend to farmers and ranchers. Farmers are getting slammed on all sides by retaliatory tariffs, unusually bad weather, as well as a five-year drop in farm incomes.
The National Biodiesel Board sent a letter to Environmental Protection Agency Administrator Andrew Wheeler highlighting the economic damage caused by small refinery waivers. The biodiesel and renewable diesel industry have been hit hard by the retroactive small refinery exemptions under the Renewable Fuels Standard that the EPA has given out in recent years.
The pesticide industry is asking the Trump administration to exempt its chemical imports from China from the potential $300 billion in new 25 percent tariffs the president is threatening to impose next month on Chinese goods.
Democratic Representative Mike Thompson of California introduced the Taxpayer Certainty and Disaster Tax Relief Act of 2019. The bill is designed to extend several biofuel and bioenergy-related tax credits. “For far too long, Congress has not extended important tax provisions on a forward-looking basis, resulting in confusion and uncertainty for taxpayers,” Thompson says, “We just took the first step toward untangling this mess.”
Bee colony death numbers are continuing to climb. The Bee Informed Partnership released its latest survey last week, saying U.S. beekeepers lost 40 percent of their colonies last winter. That’s the largest number of overwintering hive losses since the survey began more than a decade ago. The total annual loss in 2018 was estimated to be above average.
U.S. Trade Representative Robert Lighthizer talked trade during an appearance before the House Ways and Means Committee last week. He told committee members that he’s hopeful the U.S. and Japan are close to a deal on agricultural tariff cuts. He says the key to reaching a bilateral trade agreement with Japan is resolving those differences over Ag tariffs.