Buffalo River Watershed Alliance
Newton County Times
Posted: Friday, July 10, 2015 12:00 pm
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JBS USA Pork has entered into an agreement with Cargill to acquire the company’s U.S.-based pork business for $1.45 billion. Completion of the acquisition is subject to regulatory review and approval. C&H Hog Farm located at Mt. Judea is a Cargill contracted grower.
A press release on Cargill’s websit dated July 1 states, “Today’s announcement of our agreement to purchase the Cargill pork operations is a strategic investment in the long-term growth of our domestic and global pork business and demonstrates our continued commitment to the U.S. livestock sector,” said Martin Dooley, president and COO of JBS USA Pork. “This transaction will strengthen our position as a producer and supplier of all major animal proteins around the world, and provide increased opportunities for our producer partners and key customers. The strength and success of Cargill’s pork team and hog suppliers, as well as its industry leadership in areas such as animal welfare, exports, bacon production and innovation, were significant and compelling factors that led us to pursue this acquisition and enhance our ability to serve our diverse, global customer base.”
Included in JBS’ acquisition of Cargill’s pork business are two Midwest meat processing plants, one in Ottumwa, Iowa, and the other at Beardstown, Ill. Both plants were acquired by Cargill in 1987, and in 2014 they processed a total of 9.3 million hogs. The purchase by JBS also includes five feed mills (two in Missouri, and one each in Arkansas, Iowa and Texas), and four hog farms (two in Arkansas and one each in Oklahoma and Texas).
“The strengths of the JBS and Cargill pork businesses are complementary. Together, they promise to offer enhanced service to customers and more opportunities for employees and hog producers while providing an important source of protein to consumers around the world,” said Todd Hall, Cargill senior vice president. “The professional and focused manner in which JBS approached Cargill demonstrated to us that they place a great deal of value on growing this part of their company to better compete in the marketplace and are willing to invest in its future. JBS is acquiring a business with excellent people and fixed assets, and an established track record of success.”
JBS first entered the U.S. pork market with the acquisition of Swift & Company in 2007 and has steadily improved performance ever since. The company has more than 6,000 team members and the total daily capacity to process more than 50,000 hogs at processing facilities in Marshalltown, Iowa; Worthington, Minn.; and Louisville, Ky. JBS USA Pork offers a wide selection of well-known brands including Swift® and Swift Premium®. The announced transaction will enhance JBS USA Pork’s ability to meet increasing global demand for high-quality, innovative fresh and frozen pork products.
Cargill spokesman Mike Martin said the Minnetonka-based company was not actively looking to sell the business. “JBS approached us with an offer we had to consider,” he said, adding this was a move by JBS to better vertically integrate itself into the U.S. pork industry. Specifics of the acquisition were only recently formulated after JBS approached Cargill with a deal in June.
JBS introduced itself to the U.S. pork market in 2007 with the purchase of Swift & Company, a Colorado meatpacker. The company currently employs 6,000 workers and processes more than 50,000 hogs daily at facilities in Worthington, Marshalltown, Iowa and Louisville, Kentucky.
JBS will assume 5,100 Cargill employees following the transaction with no plans to remove or replace any workers. “Part of the attraction JBS had was of the people component,” said Martin.
President and COO of JBS USA Pork, Martin Dooley, called the purchase a “strategic investment” in a statement, adding that “the strength and success of Cargill’s pork team and hog suppliers were significant and compelling factors that led us to pursue this acquisition and enhance our ability to serve our diverse, global customer base.”
“The strengths of the JBS and Cargill pork businesses are complementary,” said Todd Hall, senior vice president at Cargill, in a statement. “JBS is acquiring a business with excellent people and fixed assets, and an established track record of success.”
According to the U.S. Department of Agriculture, the U.S. is the third largest global pork producer, trailing China, who produces half of the world’s pork, and the European Union. The same rankings apply in terms of total domestic consumption. Hog processing numbers are up 6.4 percent this year in the U.S., a surprising recovery considering the death of approximately 9 million pigs last year to the porcine epidemic diarrhea virus.
Cargill remains a top meat producer in the U.S. market. The agribusiness behemoth still maintains a foothold in beef, poultry, and other production areas.
“Fresh pork will all go to JBS,” Martin stated, but Cargill will preserve its production of pork products such as hot dogs and cooked ham meats.
Although Cargill does not disclose exact figures, Martin confirmed that their pork production numbers were “considerably smaller than the beef business but larger than the turkey business in the U.S.”
—By Tom Philpott
| Wed Jul. 8, 2015 6:00 AM EDT
While Americans celebrated Independence Day last weekend, the meat industry was partaking of another time-tested tradition: concentration. That's the economists' term for when one big company buys another, resulting in an industry dominated by just a handful of players. And that's what happened when Brazilian meat giant JBSplunked down $1.45 billion to buy the US pork interests of global agribusiness behemoth Cargill.
Sure, the US pork market was already pretty top-heavy before that deal, which won't be consummated until US antitrust authorities approve it. As things stand now, even before the proposed merger, the big four pork packers (including JBS, through its Swift subsidiary) control a hefty 64 percent of the US pork market.
If the deal goes through, the combined JBS/Cargill operation will push out Tyson for the number two slot, Hormel will slide into fourth place, and the new Big Four will slaughter 71.5 percent of the hogs raised in the US. That's a significant concentration of an already-concentrated market.
Phil Howard, a Michigan State University researcher who studies corporate control of the food system, says the deal is "bad news," because "JBS will have even more power to drive down the prices it pays to farmers, and drive up the prices it charges to consumers." He notes that just two companies, Smithfield and JBS, would together own 45.5 percent of the pork market, "moving closer to the Coke/Pepsi model of domination by just two giant firms."
He also notes that Smithfield and JBS are both foreign-owned—JBS, the globe's largest meat company, is based in Brazil, while Smithfield has been owned by the Chinese meat conglomerate Shuanghui since 2013. So why are outside firms muscling into the US pork market? After all, US demand for "the other white meat" isn't exactly cooking. The opposite, in fact.
So, rather than making a play for the domestic pork market, these foreign players are likely aiming to cash in on a rising trend: exports of US-grown pork.
Now, you may note that exports soared through the 2000s and have leveled off more recently. That's why the National Pork Producers Council, the industry's trade group, has been promoting the Trans-Pacific Partnership (TPP), the vast proposed trade pact that President Obama and his GOP Congressional allies have been hustling to pass. In a post last year, I laid out why the US meat industry loves the TPP: Namely, it would open the floodgates to lucrative markets in Japan, Vietnam, and Malaysia, all of which limit imports of US meat to protect domestic farmers. "A good TPP agreement ... would result in exponential growth in US pork exports," the Pork Producers Council declared in a June press release. It is perhaps not a coincidence that JBS made its lunge for Cargill's pork operations just two weeks after the TPP process took a major leap forward, when Congress voted to give Obama "fast track" authority to negotiate trade deals.
So, why shouldn't US farm country emerge as the globe's pork-export powerhouse? As the Pork Producers Council puts it, the US is "one of the lowest cost producers of pork in the world." Indeed, a 2012 USDA report found that it's cheaper to produce pork here than it is in China. But we should remember what it means to be the low-cost producer of a commodity like pork—as muckraking books like Ted Genoways'The Chain and Barry Estabrook's Pig Tales shows, the industry abuses labor, fouls the air and waterways, and hollows out rural towns as a matter of course. "Exponential growth in US exports" would be great for our ever-growing pork behemoths; but it's hard to see what's in it for the rest of us.
By Mike Masterson
Posted: July 7, 2015 at 2:57 a.m.
Well, slice my pork chops thick and fry my bacon crispy, a Brazilian-based protein producer has agreed to purchase Cargill's U.S.-based pork business for $1.45 billion.
The news story appeared in the paper late last week.
And yes, that would be the same Cargill based in Minnesota that supplies and supports the controversial C&H Hog Farms at Mount Judea, which operates smack in the middle of the Buffalo National River watershed.
JBS USA Pork, a unit of Sao Paulo, Brazil's JBS SA, made the offer, which still has to leap regulatory hurdles before being finalized. JBS already is majority owner of Pilgrim's in the U.S., and owns Tyson poultry operations in Mexico and Brazil.
The news account also said JBS USA will gain two Midwestern meat-processing plants, one in Iowa and the other in Illinois. It also would gain four hog farms (what say we call them what they truly are, swine factories). Two are in Morrilton and Umpire in Arkansas, and one each in Oklahoma and Texas. There also are five feed mills involved in the deal: Two in Missouri and one each in Arkansas, Iowa and Texas.
Curiously, there was no mention in this sale of that hog factory perched on a hill above Big Creek, a major tributary of the Buffalo flowing just six miles downstream. I presume that means the good folks at Cargill could be holding onto that operation.
Should JBS inherit this factory, many out here naturally wonder what it will do to resolve the legitimate concerns of folks across the country who cherish the purity of our country's first national river.
Meanwhile, in their press release, JBS executives sounded practically tickled pink by their mega acquisition: "This operation is in line with JBS' strategy to grow its portfolio of prepared and value-added products, expanding the company's customer base both in the domestic market and internationally."
Todd Hall, senior vice president of Cargill, seemed equally enthused. "The strengths of the JBS and Cargill pork businesses are complementary," he's quoted saying. "Together they promise to offer enhanced service to customers and more opportunities for employees and hog producers while providing an important source of protein to consumers around the world."
Hall continued: "The professional and focused manner in which JBS approached Cargill demonstrated to us that they place a great deal of value on growing this part of their company to better compete in the marketplace and are willing to invest in its future. JBS is acquiring a business with excellent people and fixed assets, and an established track record of success."
Martin Dooley, president and COO of JBS USA Pork, which processes more than 50,000 hogs daily at facilities in Iowa, Minnesota and Kentucky, said, "This transaction will strengthen our position as a producer and supplier of all major animal proteins around the world, and provide increased opportunities for our producer partners and key customers. The strength and success of Cargill's pork team and hog suppliers, as well as its industry leadership in areas such as animal welfare, exports, bacon production and innovation, were significant and compelling factors that led us to pursue this acquisition ..."
Another aspect to this deal is Cargill's pledge never to place another of its potentially polluting hog factories in the hallowed Buffalo watershed. Are the men from Brazil, if it applies, ready and willing to honor that pledge? Gov. Asa Hutchinson's proposed amendment to two regulations that would create a five-year ban on hog factories in our watershed looks better than ever to me.
Mike Masterson's column appears regularly in the Arkansas Democrat-Gazette. Email him at mikemasterson10@hotmail.com.
Editorial on 07/07/2015
By Emily Walkenhorst
Posted: July 7, 2015 at 4:45 a.m.
11
A joint meeting of the Legislature's Public Health, Welfare and Labor committees reviewed with no objection Monday a proposal to ban new medium or large hog farms in the Buffalo National River watershed for the next five years.
The joint committee, which met Monday morning on state Capitol grounds, declined twice in 2014 to declare the hog farm ban "reviewed." Review is a required part of the rule-making process.
The issue faces a few more steps before the rule can be adopted.
The initial rule proposed a permanent ban on medium and large hog farms in the watershed as a means of protecting the area's environment and was supported by former Gov. Mike Beebe.
But legislators criticized the rule for not accounting for the University of Arkansas System Division of Agriculture study of the effect on water quality of C&H Hog Farms in Mount Judea -- the hog farm that spawned criticism, changes to public notice on hog-farm applications in the watershed and the proposal of the rule being considered Monday.
Gov. Asa Hutchinson's staff met with sponsors of the permanent ban -- the Arkansas Public Policy Panel and the Ozark Society -- and suggested reducing the ban to five years with the option to make it permanent later.
After the hearing, an attorney for the rule-making groups, Sam Ledbetter, said he believed the governor's support was instrumental in making the review finally happen.
"That's been very helpful," he said. Ledbetter is an attorney at McMath Woods.
Before the rule went to a hearing Monday, legislators suggested that the rule be changed further to require the Arkansas Department of Environmental Quality director to initiate rule-making procedures in five years to either delete the ban entirely from agency regulations or to adopt it permanently. The change essentially ensures lawmakers will have decision-making power on the rule five years after its adoption instead of now.
On Monday, after asking a few questions, legislators raised no objections to reviewing the rule.
Both changes to the rule were key factors in getting it reviewed, said Sen. Cecile Bledsoe, R-Rogers.
"We have paid for a report from the University of Arkansas, and I think it's really important that we look at the report to see what the science is before making decisions," she said after Monday's meeting.
Bledsoe also said legislative oversight of the rule down the road was important for accountability in the rule-making process and with Arkansans who voted for last fall's ballot initiative requiring legislative review of agency rule-making.
"I think it went well," she said of Monday's meeting.
The review means the rule can now go before the Rules and Regulations Committee. The committee will consider the rule for review and then report its decision to Legislative Council, which would then accept the report.
Should the rule be successfully reviewed, it would move back to the Arkansas Pollution Control and Ecology Commission for final adoption.
The commission is made up of state agency and gubernatorial appointments and is the Arkansas Department of Environmental Quality's appellate body. It approved the initiation of the rule in April 2014 and subsequently approved three six-month bans on hog-farm permits in the watershed until the rule-making was resolved.
Banning medium and large hog farms means no new facility can have more than 750 swine weighing 55 pounds nor more than 3,000 swine weighing less than 55 pounds.
C&H Hog Farms along Big Creek, 6 miles from where it meets the Buffalo River, is permitted to hold up to 2,500 sows and 4,000 piglets at a time. It was awarded an expedited general permit in late 2012 with little public input.
Although approval of the hog farm became a flash point for change at the state level, the farm would not be affected by the rule, even if it falls out of compliance with its permit, because it is in active permit status at the time of the rule-making, said Department of Environmental Quality Deputy Director Ryan Benefield.
In the five years of the rule being in place, however, the facility would not be able to expand.
Rep. Kim Hammer, R-Benton, asked if recent heavy rains had led to failures of the hog waste ponds at the farm, referencing concern from environmental groups that severe weather could cause the lagoons to fail.
Benefield said the lagoons had not failed.
After the meeting, Ledbetter reiterated that catastrophic lagoon failures haven't happened in Arkansas but that they have happened in other states, damaging waters.
Environmental groups are also concerned that hog manure applied to fields in the watershed would run off or filter into nearby waterways and accumulate in too-high levels, damaging the river.
The University of Arkansas System Division of Agriculture study is measuring runoff, in addition to the effect of rainfall on the hog farm's lagoons.
The study has been funded for the next four years as a part of the state budget approved by the Legislature this spring.
The Buffalo National River -- the country's first national river -- is a popular tourist spot, with more than 1.3 million visitors in 2014 who spent about $56.6 million at area businesses, according to National Park Service data.
Since the debate began over C&H Hog Farms in 2013, pork producers have not applied for permits for medium or large hog farms in the watershed, with Cargill -- involved with nearly all of the state's hog farms -- instituting a self-imposed permanent ban on hog farms in the watershed. Cargill owns the C&H Hog Farms' hogs.
Metro on 07/07/2015
US - Cargill and JBS USA decided to launch some fireworks this week when they announced that JBS would buy Cargill’s pork business, write Steve Meyer and Len Steiner.
This was a very well-kept secret as we have found no one that saw this coming. JBS will pay $1.45 billion for all of Cargill’s current pork business including packing plants, feed mills and hog production facilities.
Included in the sale:
So why is is this deal being done and what happens next? JBS has been aggressively buying meat and poultry assets all over the world the past few years so the fact that they are buying is no surprise.
This will be, to our knowledge, their first foray into primary hog production — at least on any scale as significant as this. According to Successful Farming’s 2014 Pork Powerhouses listing of the nation’s largest pork producers, Cargill ranked 8th with 161,000 sows.
JBS is already quite familiar with vertical integration, though, as it is the majority shareholder in Pilgrim’s Pride, a major US chicken producer.
Cargill did not say why it is exiting the pork business. Its press release did say it was not looking to sell but JBS made an offer that demanded consideration. Cargill has long been the fourth largest US pork slaughter firm, trailing Smithfield, Tyson and JBS.
At least one analyst speculated that the inability of moving to one of the top two spots in the industry — the General Electric philosophy, we think — might have been a factor in accepting JBS’s offer.
Pork margins were record high last year on robust domestic demand and PEDv shortened hog and pork supplies.
They have fallen back to more normal levels so far in 2015 but it could well be that Cargill’s management believed that these assets might never have this much value again, especially given the recent completion of the Texas production facility.
The sale is subject to regulatory review and approval and will likely get some close scrutiny from the Department of Justice (DOJ). Putting together the 3rd and 4th largest pork packers will increase the industry’s four-firm concentration ration (CR-4) by 8.2% to 63.0% by moving Hormel to the #4 spot in the rankings.
More importantly, combining these high-ranking companies will drive up the Herfindahl-Hirschman Index (HHI) by about 190 points. The HHI is a measure of concentration computed by summing the squares of each company’s market share.
The pork packing sector has been classified as moderately concentrated for several years due to its HHI of around 1300. We say “around” because our calculations are based on rated capacity and not actual slaughter since we do not know what actual slaughter was for each company.
This merger will move the HHI to about 1500, still well short of DOJ’s 1800 demarcation of a highly concentrated industry. But any increase of 100 points or more in a moderately concentrated sector “raises significant competitive concerns” according to DOJ merger guidelines.
JBS and Cargill are direct competitors for hogs in eastern Iowa for their Marshalltown and Ottumwa plants and in southern Illinois when procuring hogs for their Louisville and Beardstown plants.
The merger does not change concentration in hog production but will almost certainly become a political football for presidential candidates desperately seeking attention in Iowa.
This article was published today at 2:04 a.m
State pork units part of $1.45B JBS sale
JBS USA Pork has agreed to purchase Cargill's U.S.-based pork business for $1.45 billion, an acquisition that includes a feed mill and two hog farms in Arkansas.
Martin Dooley, president and chief operating officer of JBS USA Pork, called the acquisition a "strategic investment in the long-term growth" of the company's global pork business.
"This transaction will strengthen our position as a producer and supplier of all major animal proteins around the world, and provide increased opportunities for our producer partners and key customers," Dooley said in a statement.
The purchase includes two Midwest meat-processing plants, acquired by Cargill in 1987 and 2014, that process 9.3 million hogs. Five feed mills and four hog farms -- including the Arkansas locations -- are part of the agreement, which remains subject to regulatory review and approval.
A JBS USA spokesman said in an email that the Arkansas feed mill is located in London, while the hog farms are in Morrilton and Umpire. The spokesman declined further comment on the acquisition.
A Cargill spokesman said the three locations, along with the company's business and administrative offices in Russellville, employ about 130 people.
JBS USA is an indirect, wholly owned subsidiary of Brazilian-based JBS SA, which also is the majority owner of Pilgrim's Pride. Springdale-based Tyson Foods Inc. agreed to sell its poultry operations in Mexico and Brazil to JBS SA for $575 million last year.
-- Robbie Neiswanger
Cargill has agreed to sell its U.S. pork business to JBS USA Pork for $1.45 billion, a deal that would combine two of the country’s largest pork processors.
With the sale, Minnetonka-based Cargill would exit a business it has been in since 1971, while Brazilian meat giant JBS would get more vertically integrated in U.S. pork, becoming a significant owner of sow farms and feed lots.
The companies announced the deal Wednesday, though the sale is subject to regulatory review and approval.
Included in the transaction are Cargill’s meat processing plants in Ottumwa, Iowa, and Beardstown, Ill., which last year together processed 9.3 million hogs. JBS will also get five Cargill feed mills and four hog farms. Two feed mills are in Missouri; one each is in Iowa, Arkansas and Texas. Two of the hog farms are in Arkansas, the other two in Oklahoma and Texas.
“We were not looking to sell our pork business, however JBS approached us with an offer that we had to consider,” Cargill spokesman Mike Martin said in an e-mail. “We remain committed to our remaining animal protein businesses around the world and continuously evaluate opportunities that could provide long-term, profitable growth.”
Cargill is a major force in the U.S., Canadian and Australian beef business, and is big in chicken processing in Asia, Europe and Latin America. The agribusiness giant isn’t a player in the international pork business.
Cargill’s fresh pork operation employs 5,100 people, primarily at the processing plants in Iowa and Illinois, both of which Cargill bought in 1987. The company’s Dalhart, Texas, sow farm covers 22 acres and can house over 60,000 hogs.
Smithfield, JBS, Tyson and Cargill are known as the largest U.S. pork processors, with Smithfield being the biggest sow owner in this country and the world’s pork juggernaut.
Cargill was the nation’s eighth largest “Pork Powerhouse” in 2014 when measured by number of hogs, according to an annual ranking by Successful Farming. Cargill had 161,000 sows at the end of 2014. JBS didn’t appear in Successful Farming’s 2014 ranking.
JBS entered the U.S. pork market by acquiring Swift & Co. in 2007. The company has three major pork processing facilities, including a plant in Worthington, Minn.
“The strengths of JBS and Cargill pork businesses are complementary,” Todd Hall, Cargill’s senior vice president, said in a press statement. “Together, they promise to offer enhanced service to customers and more opportunities for employees and hog producers.”
This article was published June 30, 2015 at 3:13 a.m.
Now comes an amended proposal from Gov. Asa Hutchinson and Arkansas environmental groups that would turn a ban on all future medium and large hog factories in the Buffalo National River into one lasting five years.
To this point, the Pollution Control and Ecology Commission already has approved three consecutive six-month bans on such factories in the watershed of our country's first national river. Unfortunately, those restrictions came well after our state's Department of Environmental Quality (cough) hurriedly and quietly approved a General Permit for the Cargill-sponsored C&H Hog Farms with up to 6,500 swine.
That factory and its fields where millions of gallons of raw waste get regularly sprayed are at Mount Judea and Big Creek, a major tributary of the Buffalo. The creek flows six miles upstream from this national treasure that brings tens of millions of tourism dollars annually to Arkansas.
Under the latest proposal, Department of Environmental Quality officials will be able to analyze and review the longer-reaching results of University of Arkansas geoscientists who have been studying the environmental impact of this hog factory.
The governor, who supported the three temporary bans, says he doesn't consider the amendment to be a deviation from his desire to have enough data from the study to analyze before making any decision about a permanent ban on future hog factories in the Buffalo watershed.
It's better I'm not governor (or a politician being lobbied and treated generously by certain special interests) because I'd have asked Cargill nicely long ago to remove and relocate their swine from this precious and sensitive region and made it clear we were never going to ever again needlessly put this national jewel at risk for contamination.
Sam Ledbetter, an attorney with McMath Woods who represents the Arkansas Public Policy Panel and the Ozark Society, said a five-year ban would provide the governor and legislators with some data they have been wanting before taking action on a permanent ban. "With the governor's support on this it gives it a better chance of being not controversial," he is quoted as saying in a news account.
Well, Sam, I say it's a pipe dream to believe this whole mess hasn't been (and won't remain) deeply controversial among those who love the Buffalo River and want to see its purity protected.
I'd also say the volunteer studies by Dr. John Brahana, a noted geoscientist emeritus from the UA and an expert in karst geology who's been gathering water-quality and subsurface-flow data with his team in a purely objective manner for two years, have to be considered. The National Park Service is conducting its own such studies as well after it was mysteriously being left out of the permitting process for this factory in the watershed it manages.
A Hutchinson spokesman said the amended proposal isn't really considered a "substantive change." It was submitted to the Bureau of Legislative Research and sent to the House and Senate chairmen of the public health committees. The plan is to hopefully have the amendment heard July 6 in a joint meeting of those committees. They are the only legislative bodies necessary.
One can never assume anything when it comes to our beloved river. Just last September at a joint meeting of these same committees, elected lawmakers declined to vote on permanently banning additional hog factories, instead requesting that members of the agricultural committee be included at their next meeting in December.
Well, "that meeting lasted three hours, with legislators leaving and preventing a quorum before a vote could take place," the news story by reporter Emily Walkenhorst said, adding the joint committees haven't met on the matter since.
In my view (which has remained unchanged since word leaked out of the Cargill-sponsored factory being allowed into the Buffalo watershed), the extension of this ban must be approved. Our sacred river is the worst possible place to be playing political payback to special-interest supporters or politics in any way, shape or form.
Emily Walkenhorst
This article was published today at 2:28 a.m.
Gov. Asa Hutchinson and environmental advocates have amended a proposal banning all future medium and large hog farms in the Buffalo River watershed, suggesting a five-year ban instead.
After five years, the Arkansas Department of Environmental Quality director would be required to decide whether to extend the ban to a permanent rule or to do away with the ban altogether.
Since 2013, University of Arkansas System Division of Agriculture scientists have been studying the impact of C&H Hog Farms in Mount Judea -- the hog farm that prompted the rule-making -- on the Buffalo River and its watershed.
The Arkansas Public Policy Panel submitted the rule-making in April 2014, after which the Pollution Control and Ecology Commission approved the first of three six-month bans on awarding permits to new medium or large hog farms in the watershed while the rule-making took place.
Sam Ledbetter, a McMath Woods attorney representing the Arkansas Public Policy Panel and the Ozark Society, said the new rule would allow for the Department of Environmental Quality to review the results of that research, something legislators lamented several times was not factored into the rule during the rule's last legislative hearing.
"Then with the governor's support on this it gives it a better chance of being not controversial," Ledbetter said Friday.
"I think it's a good compromise."
Hutchinson has supported the temporary ban until the UA research concludes, but he has not supported a permanent ban without consideration of the study, spokesman J.R. Davis said.
"So it's not a substantive change," Davis said, referring to the new rule.
The amended proposal will not have to be resubmitted to the Department of Environmental Quality. Ledbetter said it was filed with the Bureau of Legislative Research and sent to the chairmen of both the state House and Senate public health committees, requesting inclusion on their joint hearing agenda for July 6.
"Public health is the only legislative committee required to review this," Ledbetter said. "So we're just following the procedures."
In September at a joint meeting of the public health committees, lawmakers declined to vote on the permanent ban and requested that agriculture committee members be included for consideration at a December hearing with the public health committees.
That meeting lasted three hours, with legislators leaving and preventing a quorum before a vote could take place.
Legislators have not met on the matter since.
The temporary ban would be on Arkansas Department of Environmental Quality regulations five and six, which are the two regulations under which a person can obtain a permit for a hog farm.
The rule being proposed is otherwise the same; the change is just one sentence at the bottom of the proposal. The Regulation 5 change states:
"Five years from the effective date of this regulation the Director may initiate rule-making or either delete this paragraph, Reg. 5.901(E), or delete the entirety of Reg. 5.901."
The sentence is repeated on the Regulation 6 amendment, exchanging "Reg. 6.602" for "Reg. 5.901."
The issue of hog farms in the watershed arose after C&H Hog Farms received a general permit for a large hog facility in Mount Judea along Big Creek, 6 miles from where it meets the Buffalo National River. A general permit allows for an expedited permitting process, if certain requirements are met. The facility can hold up to 2,500 sows and 4,000 piglets at a time.
Environmental groups have feared runoff from hog waste on the rough karst terrain will pollute Big Creek and eventually the river. They are also concerned about a major weather event causing hog waste pond failure, leading to even greater pollution in the watershed.
The Buffalo National River -- the country's first national river -- is a popular tourist spot, with more than 1.3 million visitors in 2014 who spent about $56.6 million locally, according to National Park Service data.
Since the debate began over C&H Hog Farms, pork producers have not applied for permits for medium or large hog farms in the watershed, with Cargill -- involved with nearly all of the state's hog farms -- instituting a self-imposed permanent ban on hog farms in the watershed. Cargill owns the C&H Hog Farms' hogs.
Posted on June 23 2015 by Maia Raposo
Today, the United States Geological Survey (USGS) released a thorough, multi-yearstudy addressing impacts from concentrated animal feeding operations (CAFOs) on water quality in North Carolina. The results of the study, conducted cooperatively with NC Department of Environment and Natural Resources (DENR), show yet again that industrial swine and poultry operations are polluting our waterways.
DENR has recently been dismissive of other peer-reviewed scientific evidenceof pollution from these facilities, calling the results “inconclusive.” Now, with their own evidence in hand, it is time for state officials to step-up and enforce the law to prevent illegal discharges of pollution into North Carolina’s waterways.
It is also abundantly clear that the antiquated lagoon and sprayfield system of waste disposal is hazardous to North Carolina’s waters, which residents and the economy depend on for drinking water, recreation, and tourism. The time for this industry to modernize waste management is long overdue. The often multi-national corporations that dictate the practices of local contract growers should invest in our communities by adopting superior waste treatment technologies, treating animal waste the same as we do human waste.
Contacts:
Gray Jernigan | Waterkeeper Alliance | gjernigan@waterkeeper.org | 919.839.6011
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