Looking Back: The Smithfield Lawsuits

It was three years ago this month when the nuisance lawsuits against Smithfield and Murphy-Brown were settled. It came on the same day that an appeals court upheld the questionable rulings of a biased judge and the exorbitant awards of a Wake County jury located far away from North Carolina hog farms.

A lot has changed since then, and a lot has remained the same. Here are some of the highlights:

What’s Changed

• The NC General Assembly has passed legislation that preserves and protects the Right to Farm. This includes updates to the Farm Act that clarify who can sue farms for nuisance (neighbors who live within a half-mile of the farm); when they can sue (within one year of any substantial changes to farm operations); and how much they can recover (no more than the fair market value of their property). The legislation also states that punitive damages cannot be awarded if a farm has not violated their permit within the past three years. Challenges to these laws were rejected by the NC Supreme Court.

• A trial lawyer at the heart of the Smithfield litigation is currently running for the Republican nomination for Governor of North Carolina. Bill Graham is a partner at Wallace & Graham, the Salisbury law firm that spearheaded the Smithfield lawsuits and originally filed lawsuits against individual family farmers in North Carolina. “This is not just a case. This is a cause,” Graham said of the lawsuits, which sought no changes to our farms — only money.

• An increasing number of North Carolina hog farms are now covering lagoons to capture methane emissions and generate renewable natural gas. The lagoon covers reduce greenhouse gas emissions, reduce odors, and minimize the potential for flooding. Predictably, activist groups who frequently complain about odors and flooding are staunchly opposed to these biogas projects.  

 What Hasn’t Changed

• Attacks against the pork industry haven’t stopped. The Southern Environmental Law Center (SELC) and the Duplin County chapter of the N.C. NAACP filed a Title VI complaint with the U.S. Environmental Protection Agency in 2021, alleging that DEQ is violating the civil rights of minorities in Duplin and Sampson counties by issuing biogas permits on hog farms. (Activist groups filed a similar complaint in 2014 regarding the issuance of  hog farm permits. That complaint was settled in 2018 with no finding of discrimination.)

• The Attacks Continue, Part II: Activist groups continue to spread false and misleading information about NC hog farms, including studies designed to raise health concerns. One example — a “study” by a Duke University professor that alleges residents who live near NC hog farms have elevated risks of disease and death. Despite the lack of  any evidence that ties health claims to hog farms — even the study’s authors acknowledge that there’s no causation or correlation — the media continues to reference flawed studies like this.

• The Attacks Continue, Part III: NC hog farms were at the center of another lawsuit against Smithfield Foods. This suit alleged that animal waste and associated odors and dust from a Duplin County farm traveled beyond the property line and were “trespassing” on the neighbors’ property. The creative attempt to get around the restrictions on nuisance lawsuits was dismissed in September 2023.

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 We know that those who are opposed to animal agriculture will continue to attack our hog farms. But, rest assured, one thing that won’t change is that NC Farm Families will stand up and speak out for our farm families. We’ll continue to sound the alarm about the legal and political threats facing our industry and work to educate residents about the positive steps being taken on our farms.

General Permit 101 | What is the general permit and why is it important?

The NC Department of Environmental Quality will soon issue a new draft Swine Waste Management System General Permit. This permit regulates how hog farms in North Carolina are allowed to operate.

 With the upcoming release of the draft permit, here are some important facts about the permit:

• Who needs a permit?

  A General Permit is required for all North Carolina farmers who raise more than 250 pigs a year and aren’t already covered under a federal water quality permit. There are currently more than 2,000 permitted hog farms across North Carolina.
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• How often do you need to renew your permit?

  Farmers need to obtain a new permit every five years. Hog farmers will need to apply for a new permit in 2024.

• What does the permit require hog farmers to do?

  The General Permit includes several provisions designed to protect public health and the environment. Among the provisions:
  — Farms must be personally inspected each year by state officials.
  — Farms may not discharge any waste into local streams or rivers.
  — Lagoons are required to maintain enough available storage space to withstand severe floods. This includes adequate storage for a 25-year, 24-hour storm event, plus one additional foot of structural freeboard.
  — Farms must develop a detailed waste management plan and keep comprehensive records every time manure is applied to fields. Allowable levels of land application are based on a detailed analysis of the farm’s soil and the nutrients in the lagoon.
  — Waste must be managed in a way that protects public health and the environment. The permit includes extensive regulations regarding lagoon design, construction and operation; land application of manure; mandatory setbacks from neighbors and waterways; and more.
  — Each farm must have a designated “Operator in Charge” responsible for waste management. This individual must take a class, pass a test, and receive continuing education to maintain the license.
  

• How does the state decide what to put in the permit?

  The Department of Environmental Quality has been holding stakeholder meetings across the state with a variety of interested groups, including major integrators, the NC Pork Council, NC Farm Bureau, and NC Farm Families, as well as groups that are opposed to our industry, including Riverkeepers, SELC, REACH, and other activist groups that want to make it more difficult for us to raise animals. These stakeholders provide suggestions and feedback on what changes, in any, should be included in a new permit. DEQ will also consider public comments provided in response to the draft permit.

• What changes might be included in a new permit?

  The 2019 General Permit included three new provisions that are currently being challenged in court. The requirements:
  — Farms must electronically file an annual report each year detailing its management
  — Farms located in the 100-year floodplain must conduct groundwater monitoring
  — Farms must conduct tests using the NC Phosphorus Loss Assessment Tool (PLAT)
  
  The NC Farm Bureau and others appealed these provisions in the 2019 permit, claiming that adding new conditions like this must go through the rulemaking process with the NC Environmental Management Commission. Although the case remains unresolved in the courts, it is likely that DEQ will once again include these provisions in the General Permit.
  

• When will the new permit take effect?

  The new permit takes effect on October 1, 2024.

• How do North Carolina’s permits compare with other states?

  North Carolina has the most stringent regulations in the nation for hog farms. The Department of Environmental Quality agrees, stating on its website that “North Carolina has the strongest permit program for concentrated animal feeding operations in the country and is one of the only states that requires annual inspections of every facility.”

• When was the general permit last updated?

  The State of North Carolina is required to issue a General Permit every five years. The last permit was issued in 2019. Read the 2019 General Permit.

• When was the General Permit first established?

  The State of North Carolina has regulated animal operations, including swine, since 1992.

The 2024 draft permit is expected to be released in early August. Public comments will be accepted for 90 days after the draft permit is issued and a series of public hearings will be scheduled. We’ll discuss the public hearing process and the importance of making your voice heard in future communications.

What is Contract Farming?

In the world of agriculture, you often hear terms like “contract farming” and “integrators,” but many people don’t have a good understanding about what these words mean or how these farms operate.

 In North Carolina, most farms are operated by family farmers. Many of these families have been growing crops and raising livestock for generations.

 Beginning in the late 1980s and early 1990s, the concept of “contract farming” began to gain popularity. This is a system where family farmers sign an agreement to raise animals — typically pigs, chickens and turkeys — for companies such as Smithfield, Prestage Farms, or Butterball. These are typically larger companies, known as “integrators.” The name stems from the fact that the entire process of raising animals and selling the final product is integrated and controlled by the company that owns the animals.

For larger companies that sell nationally to large supermarket or retail chains, they have to provide a product that is consistent and uniform. It’s hard to do that if each farmer is feeding their animals different diets or using different breeds of pigs. So these companies are integrated in that they own the pigs and control the genetics, diet, and veterinary care to ensure that the final product is a consistent one for customers.

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 How Contract Farming Works

Although the integrator owns and controls the big aspects of production, it’s the contract farmers who make the process work. In the simplest terms, integrators provide the animals and the resources they need, while farmers are entrusted to raise the pigs, chickens, and turkeys in a safe and responsible way until they are ready to go to the processing plants.  

The family farmers provide the land, the barns, and the labor needed to properly care for the animals. The integrators provide feed, access to veterinary care, and guidance on how to raise animals most efficiently. 

Contract farming is a team effort, with both sides operating under more predictable conditions while sharing the benefits and risks associated with livestock production.

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 Why Choose Contract Farming?

Many family farmers choose the contract farming model because it provides a predictable income regardless of changing market conditions. The farmers are free to focus on what they do best — raising healthy animals in a safe and responsible way — without worrying about the buying feed, accessing veterinary care, or issues unrelated to raising the animals.

When market conditions are volatile — like when corn prices are high and market prices are low — it can be a stressful time for independent farmers. Contract growers don’t have to worry about those type of market fluctuations. They raise the animals, and the integrator takes it from it there.

Integrators benefit from greater predictability, too. They take comfort in knowing that their animals are being raised in a similar environment, consistently receiving the same feed and benefiting from expert veterinary care.

While integrators may have preferences in how animals are raised, family farmers still enjoy flexibility in how they operate their farm. The farmer has the ultimate responsibility for managing the farm and raising the animals.

The contract farming model has worked well in North Carolina for decades, but it is not without risk. Challenging market conditions have forced some integrators to reduce their operations or cancel contracts. That can create challenges for farmers who have grown accustomed to a predictable cycle of raising animals.

Contract farming has led to great strides in how we raise livestock through the years. While we don’t know exactly how this system will continue to evolve, North Carolina’s farm families are resilient. Our love for the land and our commitment to the animals we raise remain the foundation on which North Carolina’s agriculture industry stands.