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The year before Smithfield sued Iowa, the South Dakota Farm Bureau Inc. led a lawsuit to challenge a similar law approved by South Dakota voters. A federal judge found that state's law violated the U.S. Constitution. A decision striking down a similar Nebraska law was upheld by the 8th Circuit Court of Appeals in 2006. Missouri and North Dakota have successfully fought back challenges to their laws. Kansas, Minnesota, Oklahoma, and Wisconsin
-- the only other states with such laws -- haven't faced challenges. Eric Tabor, Miller's chief of staff, said Iowa is the only state that resolved the conflict with the meatpacking industry by signing consent agreements. He said it avoids lengthy and costly litigation, gives hog producers protections, and maintains at least some competition. It also gives meatpackers access to Iowa, which as of March 1, had more than 20 million hogs and pigs on farms
-- nearly a third of the nation's total inventory. "We think that this is fair for both sides," Tabor said. "The processors can come in and take advantage of the benefits we have for pork production in Iowa
-- a lot of grain and a lot of talented producers -- but at the same time the folks who are feeding hogs out there are treated fairly." Contract farming in the pork industry spread rapidly over the past two decades as the major pork suppliers in the United States consolidated and sought a reliable supply of pork and price stability. The industry has increasingly turned to contract production in which farmers sign multi-year contracts to provide a specified number of animals to a buyer at a specified price. Iowa legislative leaders agreed in writing to allow Miller to sign the consent agreement with Smithfield, Tabor said. In turn, Smithfield dropped its legal challenge and agreed to the contract provisions that offer farmer protections. Before each of the subsequent agreement were signed with other meatpackers, Miller's staff informed legislative leaders and the governor's office and they've agreed to continue the arrangement, Tabor said. The agreements with the meatpackers expire in 2015. Tabor said a decision on how to deal with the industry hasn't yet been made. "We're thinking that through. We'll need to talk to legislative leaders and we'll need to talk to the industry," he said. "I can't say for certain but I think our hope would be to extend the agreements."
[Associated
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