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agriculture and farming

Megan McArdle says the judge seems to have dreaded only Type A and not Type B error when it comes to compensating discriminated-against farmers, and quotes more from the great Times piece:

“It was the craziest thing I have ever seen,” one former high-ranking department official said. “We had applications for kids who were 4 or 5 years old. We had cases where every single member of the family applied.” The official added, “You couldn’t have designed it worse if you had tried.” …

Accusations of unfair treatment could be checked against department files if claimants had previously received loans. But four-fifths of successful claimants had never done so. For them, “there was no way to refute what they said,” said Sandy Grammer, a former program analyst from Indiana who reviewed claims for three years. “Basically, it was a rip-off of the American taxpayers.” …

In 16 ZIP codes in Alabama, Arkansas, Mississippi and North Carolina, the number of successful claimants exceeded the total number of farms operated by people of any race in 1997, the year the lawsuit was filed. Those applicants received nearly $100 million.

At Prawfsblawg, Paul Horwitz notes that legal scholars active in areas like reparations and discrimination law have up to now said little or nothing about the high quantum of fraud in the much-publicized Pigford settlements and asks (perhaps a bit rhetorically?) whether they will soon be taking note of the “public interest graft” revealed in the Times piece. And Hans Bader wonders whether the Obama administration might have avoided going down the embarrassing settlement route had it taken more seriously the Supreme Court’s 2001 decision in Alexander v. Sandoval. More: Ted Frank, Point of Law; Daniel Foster, NRO. Joel Pollak: “Even the Kinko’s guy knows about Pigford.” Earlier here, etc.

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This seemed like a big story to me at the time, and it’s gratifying that it also seems like a big story to the editors of the New York Times. Sharon LaFreniere’s above-the-fold story today breaks vital new details about how career government lawyers opposed Obama appointees’ insistence on reaching a gigantic settlement for claims of bias against female and Hispanic farmers in the operation of federal agriculture programs.

On the heels of the Supreme Court’s ruling [adverse to claimants and favorable toward USDA], interviews and records show, the Obama administration’s political appointees at the Justice and Agriculture Departments engineered a stunning turnabout: they committed $1.33 billion to compensate not just the 91 plaintiffs but thousands of Hispanic and female farmers who had never claimed bias in court.

The deal, several current and former government officials said, was fashioned in White House meetings despite the vehement objections — until now undisclosed — of career lawyers and agency officials who had argued that there was no credible evidence of widespread discrimination. What is more, some protested, the template for the deal — the $50,000 payouts to black farmers — had proved a magnet for fraud.

According to the Times report, the settlement drive became “a runaway train, driven by racial politics, pressure from influential members of Congress and law firms that stand to gain more than $130 million in fees.” On the earlier, “magnet for fraud” Pigford settlement, see our coverage here, here, here, here, here, here, etc.

P.S. Plenty of coverage of this story at other blogs, including tributes to Lee Stranahan and the late Andrew Breitbart, whose investigations helped crack the story open. Useful background from Daniel Foster:

As in the original Pigford settlements, the government has literally given plaintiffs and their lawyers more money than they know what to do with. In the case of a $760 million settlement with Native Americans, which career DOJ lawyers argued was more than the government would have to pay even if they lost in court, only $300 million worth of (ridiculously easy to fake) claims were actually filed, leaving the rest of the money to be distributed to “nonprofit organizations serving Native American farmers.” As the story points out, it is not even clear how many such organizations exist — though you can bet any enterprising NGOers reading this are at this very moment pulling a clean copy of the 501(c)(3) application from their files.

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Land use regulations “seem to be the bane of their existence.” Shouldn’t they perhaps draw a wider lesson? [Prof. Bainbridge]

P.S. “Also their bane includes the estate tax and attempts in DC to repeal LIFO accounting” [@sggunase]

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Food and farm roundup

by Walter Olson on April 10, 2013

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March 22 roundup

by Walter Olson on March 22, 2013

  • $10 million judgment “won’t hit Albuquerque property owners on their tax bills because it’ll come out of [city's] self-insurance fund” Say what? [Albuquerque Journal via Ed Krayewski, Reason]
  • Latest Bloomberg scheme: ban display of tobacco products [Jacob Sullum, Patrick at Popehat, Patrick Basham/Daily Caller, Ira Stoll, Elie Mystal/Above the Law]
  • Female? Hispanic? Planted a backyard garden between 1981-2000, while wishing you could have gone bigger with the hobby? Feds’ ag-bias settlement may have bucks for you [James Bovard/WSJ, earlier on Pigford black-farmer settlement here, here, here, etc.]
  • Newly published, includes blurb by me: Mark White, The Manipulation of Choice: Ethics and Libertarian Paternalism [Amazon]
  • “NYC adopts nation’s toughest law against refusing to hire unemployed” [AP, earlier here, etc.]
  • Estate of judge is suing prominent Philadelphia class action lawyer over fall at party in home [Legal Intelligencer]
  • For Wisconsin’s left, Roggensack/Fallone judicial contest might be the last hope for derailing Gov. Walker’s labor reform [Rick Esenberg]

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Max Boot, who has written a new book on the history of guerrilla movements, tells how Shamil, firebrand leader of a celebrated 19th-century Muslim insurgency in Chechnya and Dagestan, began to lose the allegiance of “many ordinary villagers who balked at his demands for annual tax payments amounting to 12 percent of their harvest.” Instead, they switched their allegiance instead to the rival Russian czar, whose demands were more modest.

Compare the pending case of Horne v. U.S. Department of Agriculture, where, as my Cato colleague Ilya Shapiro explains,

the USDA imposed on the Hornes (long-time California raisin farmers Marvin and Laura Horne) a “marketing order” demanding that they turn over 47% of their crop without compensation. The order — a much-criticized New Deal relic — forces raisin “handlers” to reserve a certain percentage of their crop “for the account” of the government-backed Raisin Administrative Committee, enabling the government to control the supply and price of raisins on the market. The RAC then either sells the raisins or simply gives them away to noncompetitive markets—such as federal agencies, charities, and foreign governments—with the proceeds going toward the RAC’s administration costs.

The U.S. government denies that it owes anything to the Hornes under the Takings Clause, and also says that to contest the legality of what has been done to them, the Hornes are obliged to pay the USDA what it demands — $438,000 for the raisins not handed over, plus $200,000 or so in penalties — and then sue in the Court of Federal Claims to get it back. The Supreme Court has granted certiorari and will hear oral argument March 20.

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Expensive corn

by Walter Olson on January 12, 2013

A federal energy mandate takes its toll on bystanders:

Now that the United States is using 40 percent of its crop to make biofuel, it is not surprising that tortilla prices have doubled in Guatemala, which imports nearly half of its corn.

In a country where most families must spend about two thirds of their income on food, ‘the average Guatemalan is now hungrier because of biofuel development.’ … Roughly 50 percent of the nation’s children are chronically malnourished, the fourth-highest rate in the world, according to the United Nations.

[New York Times via Bader]

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ASPCA reactions

by Walter Olson on January 11, 2013

The head of the ASPCA writes to the New York Post about my op-ed piece. To recap the particular assertion to which he’s responding, if you want to support local shelter and rescue work, you’re much better off giving locally than you are writing a check to this national group and hoping a little trickles down through grants, special projects and the like.

Another reaction: Andy Vance, Farm Progress.

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After decades, farmers in western Canada are finally free to decide for themselves how and to whom to sell their crop, the result of a long political campaign led by free-market prime minister Stephen Harper with key help from Saskatchewan premier Brad Wall. I’ve got a new, celebratory post at Cato giving details. Next: getting our own Supreme Court to reconsider Wickard v. Filburn, the decision that laid out a charter for federal supervision of wheat growing and so much else besides? [Name screwup fixed now]

P.S. Milk still a big problem (although the U.S. is hardly free of cartel-like regulations in that sphere).

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Restaurants’ dodges to get around the new California foie gras ban. [Chris Morran, Consumerist via Alkon] Earlier here, etc.

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  • EPA continues crackdown on older-home renovation in the name of lead paint caution [Angela Logomasini, earlier, see also re: lab testing]
  • Solyndra’s many enablers: 127 in House GOP just backed federal energy loan guarantees [Tad DeHaven/Cato]
  • “In defense of genetically modified crops” [Mother Jones, no kidding] “How California’s GMO Labeling Law Could Limit Your Food Choices and Hurt the Poor” [Steve Sexton, Freakonomics]
  • “EPA fines oil refiners for failing to use nonexistent biofuel” [Howard Portnoy, Hot Air]
  • Consultant eyed in Chevron-Ecuador case [PoL] Radio campaign targets conservatives on behalf of trial lawyers’ side [Fowler/NRO] Lawyer suing Chevron: “We are delivering a bunch of checks to [NY Comptroller] DiNapoli today” [NYP]
  • Getting taxpayers off the hook: Congress might curb flood insurance subsidies [Mark Calabria/Cato]
  • “Lessons from British Columbia’s Carbon Tax” [Adler]

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SFGate has details here and here. More on California’s crise de foie: earlier, Ann Althouse, more.

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Food roundup

by Walter Olson on July 3, 2012

  • Why eating local isn’t necessarily good for the environment [Pierre Desrochers and Hiroko Shimizu, The Locavore's Dilemma via David Boaz/Cato, BoingBoing]
  • “Can Behavioral Economics Combat Obesity?” [Michael Marlow and Sherzod Abdukadirov, Cato Regulation mag, PDF] Get cranberry juice out of the schools. Must we? [Scott Shackford]
  • Portland might deem you a subsidy-worthy “food desert” even if you’re six blocks from a Safeway [City Journal]
  • “Policemen eying giant iced-coffee I bought near 96th and Broadway. I’m imagining a future of ‘stop and sip.’ ‘Is that sweetened, sir?’” [Conor Friedersdorf]
  • Crise de foie: California’s ban on livers of overfed fowl results in evasion, coinage of word “duckeasy” [Nancy Friedman]
  • In defense of policy entrepreneur Rick Berman [David Henderson]
  • The federal definition of macaroni [Ryan Young, CEI]
  • How food safety regulation can kill [Baylen Linneken, Reason] We’ve got a nice little town here, don’t try to grow food in it [same] And the prolific Linnekin is guest-blogging at Radley Balko’s along with Ken and Patrick from Popehat, Maggie McNeill, and Chattanooga libertarian editorialist Drew Johnson.

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Food law roundup

by Walter Olson on May 31, 2012

  • Bloomberg’s petty tyranny: NYC plans ban on soft drink sizes bigger than 16 oz. at most eateries, though free refills and sales of multiple cups will still be legal [NBC New York]
  • Will Michigan suppress a heritage-breed pig farm? [PLF] NW bakers cautiously optimistic as state of Washington enacts Cottage Food Act [Seattle Times]
  • Hide your plates: here comes the feds’ mandatory recipe for school lunch [NH Register] School fined $15K for accidental soda [Katherine Mangu-Ward] Opt out of school lunch! [Baylen Linnekin]
  • Losing his breakfast: court tosses New Yorker’s suit claiming that promised free food spread at club fell short [Lowering the Bar, earlier]
  • Amid parent revolt, Massachusetts lawmakers intervene with intent to block school bake-sale ban [Springfield Republican, Boston Herald, Ronald Bailey]
  • Interview on farm and food issues with Joel Salatin [Baylen Linnekin, Reason]
  • “Nutella class action settlement far worse than being reported” [Ted Frank]
  • Under political pressure, candy bar makers phase out some consumer choices [Greg Beato] Hans Bader on dismissal of Happy Meal lawsuit [CEI, earlier]

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As I relate in a post at Cato at Liberty, the Obama Labor Department has withdrawn a far-reaching proposal that would have banned much or most work done by kids on farms, even work for their own family members (a narrow exemption would have remained in cases where parents were the sole owners of a farmstead). The proposals drew a huge outcry from rural America (earlier here and here).

According to the American Farm Bureau Federation (PDF),

For approximately a decade, activists have attempted to pass legislation amending the Fair Labor Standards Act (FLSA) to restrict the ability of youth under the age of 16 to work in agriculture. The legislation has never been scheduled for a vote or even a hearing, and the DOL-proposed rule change is [was] apparently an effort to restrict youth employment in agriculture through regulation.

If it seems impossibly extreme to forbid 15-year-olds from feeding chickens at a neighboring farm owned by their aunt, be aware that many groups organized around the fine-sounding mission of ending “child labor” would like to institute bans that go even further. For example, an NGO by the name of Global March Against Child Labor (represented in Washington, D.C. here) supported the DoL rules and declares itself “of the view that child labour in agriculture should not be allowed in any part of the world and in any form- whether as family labour or as hired labour.”

P.S. For more pro-ban sentiment, see this piece by AP labor correspondent Sam Hananel stenographizing the views of groups like Human Rights Watch.

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April 3 roundup

by Walter Olson on April 3, 2012

  • In time for Easter: egg prices soar in Europe under new hen-caging rules [AP]
  • For third time, the Environmental Protection Agency backtracks on claims of harm from gas “fracking” [Adler; U. Texas study on drinking water safety, CBS Dallas] Yes, there’s a plaintiff’s lawyer angle [David Oliver] Don Elliott, former EPA general counsel, on why his old agency needs cutting [Atlantic] Blow out your candles, coal industry, and so good-bye [Pat Michaels/Cato, Shikha Dalmia]
  • Following the mad logic wherever it leads: “State Legislators Propose Mandatory Drug Testing of Judges and Other State Officials” [ABA Journal]
  • Proposal: henceforth no law may run to greater length than Rep. Conyers’s copy of Playboy [Mark Steyn]
  • Creative American lawyers: “Carnival cruise ship briefly seized in Texas” [AP]
  • “Overlawyered” is the title of a new commentary in The New Yorker, not related to a certain website [Kelefa Sanneh]
  • Repressive Connecticut “cyber-harassment” bill [Volokh, Greenfield, Popehat] And now, not to be outdone, Arizona… [Volokh]

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Creative application #95,724 of international human rights law: maybe it turns out to ban U.S.-style factory farming. Activists are urging the Derbyshire county council in England to deny planning permission to a large hog facility on the grounds that it violates local residents’ protected right to private and family life [Guardian]

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March 2 roundup

by Walter Olson on March 2, 2012

  • Transportation Secretary Ray LaHood, who crusades against distracted driving, worsens the problem by honking at motorists he sees using phones [WTOP via Mike Riggs, Reason] Expensive new mandate for back-up cameras in cars may be delayed until after election [Ira Stoll and more, Ann Althouse]
  • With reporter Lee Stranahan, the late Andrew Breitbart shone an investigative spotlight on the USDA’s billion-dollar settlement with lawyers representing black farmers, and there was indeed much to investigate [Big Government]
  • Substance on floor may have been own baby oil: “Oiled Stripper Loses Slip and Fall Lawsuit” [Erik Magraken; B.C., Canada; related on-the-job pole-dance injuries here and here]
  • Honeywell’s new thermostat design deserves high marks, its patent litigation maybe not so much [Farhad Manjoo, Slate]
  • Socialism takes too many evenings: @ChadwickMatlin live-tweets Park Slope Food Co-op meeting [The Awl]
  • Auto bailout a success? Really? [Mickey Kaus, Todd Zywicki, Ted Frank, Prof. Bainbridge]
  • Way to go Maryland: proud of my state for enacting law recognizing same-sex marriage, signed by Gov. O’Malley yesterday [WaPo]

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