Attorney General's News Release

July 29, 1999

Giant hog farm to invest $25 million to protect environment; pay largest CAFO fine in history

Kansas City, Mo. — Missouri Attorney General Jay Nixon announced today that Premium Standard Farms, the country's third largest hog producer, has agreed to invest $25 million in waste treatment technology to control odor and pollution on its farms in Missouri and will pay the largest penalty ever recovered by Missouri or any state against a confined animal feeding operation. The settlement, which has been filed in Jackson County Circuit Court, will be ruled on Tuesday by Judge Edith Messina.

The company will pay a $1 million fine $650,000 up-front plus $350,000 on condition of future compliance to resolve Nixon's lawsuit alleging water pollution from manure spills and other violations of state and federal environmental laws on its farms in Putnam, Mercer and Sullivan counties.

"A settlement of this nature is unprecedented. It requires the industry to move to the next generation of waste treatment," Nixon said. "PSF and Continental Grain operations will be required to make major technological advances in the treatment of waste and they are ordered to research, develop and implement environmental control technologies to service their Missouri operations. In addition to leveling a significant penalty, we are attempting to fix the problem and to provide relief for the hundreds of Missourians whose lives have been disrupted by the stench of these giant factory farms."

Nixon is demanding that the implementation be placed on a fast track and that at least half of the $25 million investment be made in three years and the remainder be spent within five years. The settlement does not limit the Environmental Protection Agency in a recently filed federal lawsuit and it does not limit the state in any future enforcement or legal actions against the company should additional violations occur.

The settlement also requires that a team of outside experts approve the treatment technology and that PSF provide the team a first year work plan within 90 days. The independent experts will be selected by the Office of the Attorney General and PSF and approved by the court. An administrative representative from the Department of Natural Resources shall serve as a member with no voting rights.

"Next generation technology designed to actually treat the waste is a giant step forward for this industry," Nixon said. "The team of nationally recognized experts will provide oversight, which is essential to ensure the money is spent in a manner that will solve the problems of odor and pollution."

As an added precaution, Nixon is requiring the company to pay the state any portion of the $25 million that is not used within five years, unless the team of experts acknowledges the appropriate technology has been established for less than $25 million.

The team shall seek input from the community through semiannual public meetings, including one to be held within 60 days of the submission of PSF's first work plan. The company is also required to submit to the team of experts an annual report outlining the work for the past year and proposals for the upcoming year.

The settlement penalties will be distributed as follows: A total of $185,000 will be made payable to the school funds in each of the three counties Putnam, Mercer, and Sullivan where PSF farms are located and an additional $45,000 will be directed to the school fund in Jackson County, where PSF is headquartered. In addition, Continental Grain, the parent company of PSF, agrees to pay $50,000 to the Daviess County School Fund to resolve claims of violations in Daviess County. Unlike other environmental penalties, the money from CAFO violations can be used directly by the local school districts and does not need to be redistributed through the foundation formula as is allowed under other environmental fines.

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.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818