The Journal of Rural Sociology is publishing a study that may be of interest to you - co-authored by our very own Loka Ashwood of RRRA, myself, and Dr. Kendall Thu. It examines how factory farms in Illinois skirt liability by forming layers of Limited Liability Corporations (LLCs). The layering of LLCs allows CAFO investors to keep their identities hidden to escape public scrutiny and responsibility for their environmental impacts. See more details in the press release below and attached. Our hope is that the study will be of use to you in your CAFO advocacy efforts. Many of you may recognize the name Professional Swine Management in the article. The online version is available now at this link: onlinelibrary.wiley/doi/10.1111/ruso.12026/abstract and we can provide a copy upon a specific request. If you would like a copy, please contact Tina Empey at: [email protected]. Danielle Diamond Danielle Diamond, Attorney Illinois Citizens for Clean Air & Water 815.403.0278 [email protected] Press Release Contact: Loka Ashwood Community and Environmental Sociology University of Wisconsin-Madison 608-262-1515 STUDY DEMONSTRATES HOW FACTORY FARMS SKIRT LIABILITY BY FORMING LIMITED LIABILITY CORPORATIONS October 24, 2013 – A study published in the peer-reviewed journal, Rural Sociology, documents the pollution and financial liability displaced on rural communities by factory farms through Limited Liability Corporations (LLCs). The study traces the rise of a business organizational strategy that Midwest industrial livestock producers use to sidestep regulatory mechanisms, pollution control, and civil liabilities. “Where’s the Farmer? Limiting Risk and Liability in Midwest Industrial Hog Production,” explores a growing trend in livestock production where business management firms bring together hog farmers to form LLCs. In this management system, farmers from different states pool their money together to form massive, concentrated animal feeding operations. The management system uses layers of LLCs to protect these farmer/investors from various risks associated with industrial food production, such as hog diseases, manure pollution, variable markets, and civil liabilities. The authors call these LLCs “folding corporations,” because they form and collapse to protect investors’ assets around the components of swine production. The paper details how these creative LLC structures deflect the farmers’ and the management firm’s risks and liabilities onto rural communities. Because LLCs limit liability, investors can preserve their profits and hide their names behind corporate veils, even if a costly environmental violation occurs. This provides little incentive for investors to change poor management practices. In addition, because it is difficult to ascertain the identities of LLC investors, they can escape social pressure from the communities in which they operate. The authors recommend additional research on how widespread these business organizational structures are in the livestock industry on the national level, and urge for reform of state LLC laws so that factory farms are required to be responsible for the pollution they create. The study was authored by Loka Ashwood, Sociology PhD Candidate at University of Wisconsin, Madison; Danielle Diamond, Attorney and Research Associate at Northern Illinois University (NIU), and Dr. Kendall Thu, Department of Anthropology Chair and Professor at NIU. The authors are available to discuss their findings at the contact information provided above. An online version of the article is available at the Wiley Online Library at: onlinelibrary.wiley/doi/10.1111/ruso.12026/abstract Copyright © 2013 Illinois Citizens for Clean Air and Water, All rights reserved. You have received this email because you opted to be placed on our contact list.. Our mailing address is: Illinois Citizens for Clean Air and Water 22514 W. Claysbaugh Rd. Elmwood, IL 61529
Posted on: Sat, 26 Oct 2013 14:24:32 +0000
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