Attorney General's News Release

December 20, 1999

Nixon asks Smithfield to explain why proposed Murphy purchase would not violate state corporate farming law

Jefferson City, Mo. — Attorney General Jay Nixon today challenged Virginia-based Smithfield Foods Inc. to explain why its proposed acquisition of Murphy Family Farms would not violate Missouri's corporate farming law. In a letter to Smithfield's vice president and general counsel, Nixon called on the nation's largest pork producer to explain the details of the transaction before Dec. 27. According to media reports, Smithfield Foods will purchase Murphy Family Farms next month.

"Missouri law prohibits corporate farming," said Nixon. "Based on the information we have now, it appears that Smithfield Foods will violate Missouri law if it goes forward with its purchase of Murphy Family Farms. Smithfield officials need to explain how they intend to comply with Missouri law."

Missouri law provides that no corporation, other than a family farm corporation, shall engage in farming or hold title to agricultural land. Murphy Family Farms qualifies as a family farm corporation under Missouri law and thus has been allowed to operate swine production facilities in Barton and Vernon counties. Smithfield Foods Inc. would be considered a corporation under Missouri law.

"Corporate farming laws have been in existence for decades," said Nixon. "They grow out of a desire to see that Missouri's agricultural lands are not tended to by absentee landlords and that Missouri's agricultural decisions need to be made by Missourians, not on Wall Street."

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

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