AFM Legal & Regulatory Compliance in Agriculture 4 — Questions and Answers
Question 1: Under the Right-to-Know provisions of EPCRA (Emergency Planning and Community Right-to-Know Act), farms must report releases of extremely hazardous substances above threshold quantities to which entities?
- Only the EPA National Response Center
- State emergency response commission, local emergency planning committee, and the National Response Center (Correct answer)
- The USDA Farm Service Agency and state department of agriculture only
- The nearest fire department and county health department only
Correct answer: State emergency response commission, local emergency planning committee, and the National Response Center
EPCRA Section 304 requires facilities to immediately notify the State Emergency Response Commission (SERC), Local Emergency Planning Committee (LEPC), and the National Response Center for emergency releases.
Question 2: When a farm hires a worker through a farm labor contractor, which federal law requires the contractor to be registered with the Department of Labor?
- Fair Labor Standards Act
- Immigration and Nationality Act
- Migrant and Seasonal Agricultural Worker Protection Act (Correct answer)
- National Labor Relations Act
Correct answer: Migrant and Seasonal Agricultural Worker Protection Act
MSPA requires farm labor contractors to obtain a Certificate of Registration from the Department of Labor before recruiting, hiring, or transporting migrant or seasonal agricultural workers.
Question 3: A farm sells raw milk directly to consumers at the farm gate. Which level of government primarily regulates the sale of raw milk for human consumption?
- Federal government through FDA regulations
- State government through state dairy laws (Correct answer)
- County health department under federal delegation
- USDA Agricultural Marketing Service
Correct answer: State government through state dairy laws
The sale of raw milk for human consumption is primarily regulated at the state level, with states having widely varying rules ranging from outright prohibition to licensed direct sales.
Question 4: Under IRS rules, a farm qualifies for cash accounting (rather than accrual) if it is not a 'tax shelter' and its average annual gross receipts do not exceed which threshold (as of recent tax law)?
- $1 million
- $5 million
- $27 million (Correct answer)
- $50 million
Correct answer: $27 million
Under the Tax Cuts and Jobs Act, businesses including farms with average annual gross receipts of $27 million or less (indexed for inflation) may use the cash method of accounting.
Question 5: A farm manager applies anhydrous ammonia as a fertilizer. Under OSHA's Process Safety Management (PSM) standard, the threshold quantity that triggers PSM requirements for anhydrous ammonia is:
- 500 pounds
- 1,000 pounds
- 10,000 pounds (Correct answer)
- 100,000 pounds
Correct answer: 10,000 pounds
OSHA's PSM standard triggers for anhydrous ammonia when a facility has 10,000 pounds or more on-site, requiring a comprehensive safety management program.
Question 6: Which provision allows a landowner to exclude the public from farmland posted with signs, even when state law otherwise permits public access for hunting or recreation?
- The Takings Clause of the Fifth Amendment
- The farm's right to post under state trespass law (Correct answer)
- The Swampbuster provision of the Farm Bill
- The Right-to-Farm Act exemption
Correct answer: The farm's right to post under state trespass law
State trespass laws give landowners the right to exclude others by posting 'No Trespassing' signs, which supersedes any general public access rights for recreational purposes.
Question 7: Under the Farm Bill's Swampbuster provision, a farmer who converts a wetland to crop production after a specified date risks losing eligibility for which benefits?
- Tax deductions for farmland depreciation
- Commodity program payments and most USDA program benefits (Correct answer)
- Section 179 equipment expensing
- Agricultural water rights allocations
Correct answer: Commodity program payments and most USDA program benefits
Swampbuster (Food Security Act of 1985) makes farmers ineligible for USDA commodity program payments, crop insurance premium subsidies, and other USDA benefits if they drain or fill wetlands for crop production.
AFM Legal & Regulatory Compliance in Agriculture 4
Under the Right-to-Know provisions of EPCRA (Emergency Planning and Community Right-to-Know Act), farms must report releases of extremely hazardous substances above threshold quantities to which entities?