As 2024 comes to a close, let’s take a look back at some of the biggest agricultural law stories impacting beef producers across the U.S.
New electronic identification rule goes into effect
The USDA finalized a new rule requiring certain cattle and bison crossing state lines to have electronic identification tags. The rule, which went into effect on Nov. 5, 2024, applies to all sexually intact cattle and bison over 18 months old, all dairy cattle of any age and all cattle or bison of any age used in rodeos, exhibitions or recreational events. Livestock tagged prior to Nov. 5, 2024, without an electronic tag will not have to be retagged and, instead, their nonelectronic tags will be considered valid for the lifetime of the animal. The electronic tags will be provided at no cost to producers through their state veterinarian’s office.
USDA finalizes 'Product of the USA' labeling rule, effective 2026
In March, the USDA announced its final “Product of the USA” rule for meat and poultry products. The rule, set to go into effect on Jan. 1, 2026, will allow producers to make a voluntary "Product of the USA" claim on their label only if the product is derived from animals born, raised, slaughtered and processed in the U.S.
U.S. Supreme Court overturns Chevron deference
The U.S. Supreme Court overturned Chevron deference in its opinion in Loper Bright Enterprises v. Raimondo. This means when agency actions are challenged and a court finds Congress’ instructions to the agency were unclear or ambiguous, the courts will no longer defer to the agency when considering the legality of the agency action. This could have implications on a number of existing rules and on agency rulemaking going forward including at the USDA, the EPA, U.S. Fish and Wildlife Service and more.
Beef-related lawsuits filed
There have been a couple of major beef-related lawsuits filed this year. In September, the Environmental Working Group filed suit against Tyson Foods seeking an injunction to stop Tyson’s claims related to Tyson’s climate-smart beef program. The plaintiffs claim these statements are false and misleading to consumers. In October, McDonalds sued the “big four” packers, (Tyson, JBS, Cargill and National Beef) alleging the companies conspired to inflate beef prices from 2015 to the present.
Court issues injunction on ERP payment method
In June, a federal judge in Texas issued an injunction prohibiting the USDA from continuing to make payments for the Emergency Relief Program (ERP) 2022 using a formula that increased benefits for “socially disadvantaged farmers or ranchers.” ERP is a program offering financial assistance for producers impacted by wildfires, droughts, hurricanes, winter storms and other eligible disasters. The court found this calculation approach was arbitrary and capricious, and ordered the USDA to stop making payments in this matter during the continuation of the litigation. The lawsuit remains pending. In August, the USDA announced it would continue issuing ERP 2022 payments, but it would do so without factoring in the “socially disadvantaged” category per the court’s order.
Corporate Transparency Act requires beneficial ownership reporting
The Corporate Transparency Act is a federal law requiring entities created by filing documents with the secretary of state to file a beneficial ownership report providing information about the entity and its beneficial owners. This will apply to agricultural entities including LLCs, corporations and limited partnerships. For entities created prior to 2024, the reporting must be completed by Dec. 31, 2024. The reporting site and additional information can be found at the Financial Crimes Enforcement Network portal. Failure to meet these reporting requirements can result in both civil and criminal penalties. A number of lawsuits have been filed challenging this law, including a recent suit R-CALF filed in Utah federal court.
There are a number of these issues that remain pending, meaning that 2025 looks to be another exciting year for those of us interested in agricultural law.
