Agribusiness  

Helping Agribusinesses Stay Protected and Profitable

Persistent and emerging challenges to the agriculture industry are increasing risk and lowering profit margins with increasingly complicated litigation, corporate, regulatory, and environmental challenges having long-range impacts on productivity and profitability. Bailey Glasser lawyers have deep experience helping agribusiness companies navigate these challenges and when disputes arise, we’re ready to fight.

We handle high-stakes disputes on behalf of both plaintiffs and defendants — in state and federal courts, before arbitrators and mediators, and across the country. Whether an agribusiness faces a breach of contract claim, a fractured business relationship, fraud, tortious interference, or a bet-the-company lawsuit, our trial lawyers are prepared to take matters all the way through verdict. Opposing counsel have included some of the largest commercial law firms in the United States, and we've emerged victorious.

Our attorneys regularly represent clients across agribusiness, chemical supply, and related industries in high-stakes contract disputes, crop loss claims, chemical liability matters, and premises liability actions. We defend agricultural chemical retailers, suppliers, applicators, and manufacturers against negligence and products liability claims, including crop damage and spray drift cases. We also handle business and employment disputes, including non-compete and non-solicitation matters. 

Our team is led by litigators in our Boise, Idaho office with decades of agriculture experience, backed by the full resources of a nationally recognized commercial litigation and corporate firm. Our team lead, partner Benjamin Schwartzman, is Chambers-ranked for his litigation work, alongside other nationally ranked litigators and corporate lawyers with deep experience across related sectors, including energy, renewables, mergers & acquisitions, bankruptcy, and more. 

Our agribusiness lawyers draw on the full depth of the firm's capabilities to serve clients across every stage of their business and every type of dispute. We represent a wide range of agriculture clients, from multinational institutional agribusinesses to small family operations, and everything in between.

Our work includes: 

• Commercial Litigation & Dispute Resolution — Breach of contract, breach of fiduciary duty, fraud, fraudulent transfer, and tortious interference claims handled in state and federal courts and before arbitrators and mediators nationwide.
• Environmental Litigation — Defense of regulatory enforcement actions, Clean Water Act and Clean Air Act matters, nuisance claims, and environmental permitting disputes that affect farming and processing operations.
• Banking & Financial Services — we handle all legal issues in banking including lending, collecting, debt restructuring, bank mergers and acquisitions, and regulatory demands. This includes our extensive experience structuring and resolving deals between lenders and farming entity borrowers. 
• Corporate & Transactional — Contracts, financings, joint ventures, and entity formation for agribusiness companies at every scale.
• Mergers & Acquisitions — our M&A lawyers have extensive experience representing all categories of participants in Mergers & Acquisitions (M&A) transactions, including buyers, sellers, special committees, major stockholders, management/founders, individual investors, lenders, and investment bankers.
• Bankruptcy & Business Restructuring — we represent the complete range of parties in complex business restructurings, reorganizations, and corporate bankruptcies. Whether working for debtors, banks and other secured creditors, creditors’ committees and unsecured creditors, lessors, equity holders, regulatory agencies, or buyers, we offer superior strategic and pragmatic advice in Chapter 11 bankruptcy cases, workouts, and liquidations.
• General Counsel Services — fractional General Counsel services for companies needing legal guidance but without a full-time GC hire.
• Energy Litigation & Corporate Representation —  for over 25 years, Bailey Glasser has been a trusted partner for energy companies navigating the legal complexities of the modern energy landscape
• Real Estate & Land Use — Farmland acquisitions and dispositions, lease negotiations, water rights, easements, and land use disputes, as well as comprehensive legal services related to the acquisition, sale, financing, development, and leasing of real estate. Our services include: the representation of sellers and buyers in the purchase and sale of commercial, office, industrial, mixed-use and residential real estate; the representation of developers in land use and governmental permitting issues.
• Intellectual Property — Protection and enforcement of patents, trademarks, and trade secrets, including seed technology, proprietary crop traits, and ag-tech innovations.
• Tax Planning & Disputes — Strategic tax planning for complex agricultural operations alongside representation in tax controversies and disputes with federal and state authorities.
• Employee Matters —  we handle the full range of employee-related issues, which can include workplace injuries, hiring and firing matters, even subcontractor disputes. We know the unique landscape of the agriculture industry and its personnel. 
• Appellate & Supreme Court Practice — When cases go up on appeal, our appellate lawyers have the experience to protect trial court wins and reverse unfavorable decisions at courts across the country, including before the U.S. Supreme Court. We also seamlessly parachute into appeals (or trials) to assist in ongoing litigation and to protect the record for appeals. 
• Electronically Stored Information & Technology — our nationally-recognized ESI team handles information management, data collection, and document production with speed and precision, keeping clients litigation-ready from day one no matter the case size.

We also recognize that not every dispute needs to go to trial. Our demonstrated willingness to try cases gives clients leverage throughout the litigation process — but we're equally skilled at negotiating favorable resolutions efficiently and privately when that serves our clients' goals better.

From hard-fought courtroom battles to financings, acquisitions, and everything in between, Bailey Glasser helps agribusiness clients navigate the full complexity of modern agricultural production.

     

Related Practices

Key Contacts

Our Team

Experience

• Obtained mid-eight figure settlement on behalf of agribusiness in contract dispute. Settlement represented approximately 90 percent of prelitigation demand.
• Obtained a settlement in crop loss case on behalf of agricultural chemical retailer and sales personnel. Grower claimed loss to corn crop in the mid-six figures. Settlement resulted in five-figure payment by grower to retailer.
• Obtained a second settlement in a different crop loss case involving rice on behalf of agricultural chemical retailer and sales personnel. Grower also claimed crop loss in the mid-six figures. Settlement resulted in five-figure payment by grower to retailer.
• Obtained voluntary dismissal of claims brought by soybean grower against agricultural chemical retailer. Grower claimed mid-six figures in damages and received nothing.
• Obtained settlement for less than 20 percent of demand on behalf of agricultural chemical supplier, chemical applicator, and pesticide control advisor, who were sued by grower of snap peas for a mid-six figure sum. Grower brought claims for negligence and products liability. 
• Obtained settlement for less than 10 percent of demand on behalf of agricultural chemical supplier sued by grower of corn for a mid-six figure sum. 
• Defended owner of industrial facility in premises liability/workplace injury action brought by injured subcontractor. Obtained settlement for less than 40 percent of demand.
• Defended agricultural chemical applicator in suit alleging permanent injury resulting from spray drift. Obtained settlement for less than 10 percent of demand.
• Defended chemical manufacture and research and development company in suit alleging various claims related to defective product. Obtained settlement for approximately 5 percent of demand.
• Obtained a zero-dollar settlement on behalf of a healthcare worker in a dispute with a former employer who claimed six figures in damages. Employer alleged breach of non-compete and non-solicitation provisions within an employment contract. Settlement included nullification of the non-compete and non-solicitation provisions. 

News & Insights

FAQs

Agricultural producers deal with high input costs, narrow margins, and the uncertainty of weather, pests, regulatory changes, and market disruptions. Profitability in this sector requires pursuing economies of scale where small mistakes can quickly multiply into large financial losses. High financial stakes require diligent protection of legal interests. Whether that means defending baseless claims, managing the cost of a valid claim, or pursuing a claim as a plaintiff, Bailey Glasser’s agribusiness attorneys can help.

Below please find some of the most common questions we see related to agribusiness litigation.

 

What is agricultural litigation, and when does it apply to an agribusiness?

Agricultural litigation covers lawsuits and disputes that arise specifically out of farming, ranching, and agribusiness operations. Common examples include tort claims based on crop or equipment damage. Contract disagreements involving commodity buyers and agricultural input suppliers as well as disputes over land, equipment, insurance, or partnerships. It applies any time a disagreement in the agriculture industry can't be resolved through ordinary negotiation and moves toward a formal legal claim. Because agricultural operations often involve long-standing relationships, seasonal timing, the use of pesticides and other chemicals, and significant capital investment, these disputes tend to carry higher stakes than a typical commercial disagreement.

What are the most common types of lawsuits agribusinesses face?

The disputes that come up most often involve disputes about responsibility for crop damage, contract disagreements over price, quality, or delivery of agricultural products, disagreements between business partners, employee-related litigation, disputes with input suppliers or equipment manufacturers, insurance claim denials after weather or crop loss, and disagreements between neighboring landowners over boundaries, drainage, or water use. Larger operations also see disputes tied to mergers, financing arrangements, and regulatory enforcement actions.

How does agricultural litigation differ from general commercial litigation?

In rural settings where agribusinesses flourish, communities are tightknit and preserving relationships and reputation are vital to an effective operation. Understanding how to balance protecting legal interests while preserving business relationships is an essential part of effective agricultural litigation.

Agricultural litigation often requires industry-specific knowledge that a general commercial litigator may not have. Understanding the industry and its unique risk environment allows Bailey Glasser attorneys to know what evidence to look for and where.

In an environment where delay can result in increased damages or the loss of potential evidence, expertise in crop damage evidence, commodity markets, pesticide use restrictions, and the applicable standards of care for pesticide applicators, consultants, cooperatives, and contractors help Bailey Glasser attorneys act quickly to protect their clients’ interests.

When should an agribusiness bring in a litigation attorney rather than trying to resolve a dispute internally?

We recommend involving counsel as soon as a dispute has real financial stakes or potential exposures, employee-related disputes which can rebound across an organization, involves a long-term business relationship the company wants to preserve, or touches on land, water, or contract terms that could affect future operations.                                                                  

In addition, moving fast when a supplier or other vendor appears to be in financial straits is imperative so that your company can be in a good position in the event of bankruptcy. 

Waiting until a disagreement has already escalated, or until a demand letter arrives, often means fewer options are available.  In addition, the proper treatment and handling of electronically stored information is imperative (including demands to be made to opposing parties related to preserving all electronic data, including text messages). Early legal input tends to lead to better outcomes, whether the matter ultimately settles or goes to court. And our lawyers at Bailey Glasser routinely handle all of these complicated types of issues – including our award-winning Electronically-Stored Information & Technology team which assist across all our matters.

What should an agribusiness do when a key vendor or supplier shows signs of financial trouble?

Time in these types of situations can be of the essence. Acting early matters more in this situation than almost any other. Once a vendor or supplier is heading toward bankruptcy, an agribusiness that waits to see how things shake out often ends up as one more unsecured creditor in a long line, with far less leverage than it had before the filing. Getting legal counsel involved as soon as warning signs appear, missed deliveries, delayed payments, sudden changes in ownership or terms, gives an agribusiness the chance to renegotiate contracts, secure collateral, shift to alternative suppliers, or at minimum understand its exposure before a bankruptcy filing limits those options. Companies that wait until a bankruptcy notice arrives are typically reacting to a process already in motion rather than shaping the outcome.

Our team includes bankruptcy practitioners with decades of experience in preserving and protecting assets.   

It's also worth knowing that payments received from a supplier or buyer in the months before a bankruptcy filing can sometimes be clawed back as preference payments, so an agribusiness that gets paid down right before a counterparty collapses shouldn't assume that money is safe. Understanding this risk ahead of time, and structuring payment terms with it in mind, is one more reason early legal involvement pays off.

Which parts of the agriculture industry tend to see the most litigation?

Bankruptcy-related litigation is on the rise in all sectors, including Agribusiness. Disputes regarding the price, quality, or quantity in sales of commodities, crop inputs, or equipment are also a frequent subject of litigation for Agribusiness companies of all sizes.

Because of their transaction volume and perceived “deep pockets,” large and mid-sized agricultural input companies are frequently made defendants in litigation involving damage to growing crops. Commercial pesticide applicators are frequently sued when damage appears on the crop they sprayed or where a plaintiff alleges that pesticide drift damaged a neighboring field. Employment disputes are also a frequent source of litigation for companies with a significant number of employees.

A primary area of litigation impacting smaller agribusiness organizations is business succession or control over family-owned or closely held operations.

Can agribusinesses reduce litigation risk before a dispute happens?

Yes, and we regularly resolve these types of issues. Most agricultural litigation traces back to a handful of preventable issues: contracts that don't clearly address weather, price, or quality disputes, informal handshake agreements that were never put in writing, and succession or ownership questions that go unaddressed until a disagreement forces the issue. Agribusinesses that review contracts, ownership documents, and insurance coverage on a regular basis, rather than only after something goes wrong, tend to face fewer surprises.

How does insurance factor into agricultural litigation?

Insurance coverage often plays a central role, whether the dispute is a crop insurance claim denial, a liability claim tied to equipment or chemical use, or a dispute over what a policy actually covers.

Bailey Glasser has an award-winning insurance recovery team that helps our clients maximize their return, claims, and protection, particularly when insurance carriers try to shirk their obligations.

What should an agribusiness look for when choosing litigation counsel?

Experience with the agriculture industry specifically matters more here than in most areas of business law, since the practical realities of farming and agribusiness operations shape how a case should be handled and negotiated. Bailey Glasser has decades of this exact experience.

Moreover, having lawyers and a law firm who can handle and evaluate all the myriad issues that can arise – bankruptcy, insurance recovery, product liability matters, mergers & acquisitions, banking and finance – also ensures full protection and consideration.

Bailey Glasser has represented some of the largest agribusiness entities in the world, and we look forward to being of service to yours – no matter the size. 

When should you collect evidence from damaged fields?

Prompt investigation of alleged field damage is essential to defending or prosecuting a claim for damage to a growing crop. The cause of damage and the degree of damage are key issues in nearly every crop loss case. Patterns of chemical residues and plant damage in the field or on each plant often provide crucial evidence about the cause of crop damage, this evidence disappears as the plants continue to grow and eventually die with the season. Bailey Glasser’s attorneys can help you effectively collect evidence about field damage that may prove essential to a desirable outcome when the case eventually resolves.

How serious are investigations by agricultural regulators?

Agriculture is one of the most heavily regulated industries in the world. Myriad state and federal agencies are empowered with investigative and enforcement authority related to ag industry practices. When one of these agencies targets a business for investigation, the potential consequences are not always immediately apparent. Enforcement actions pursued by these agencies can involve relatively modest fines that might appear insufficient to justify the expense of counsel. But adverse agency findings can impact licensing essential to business operations. Additionally, such findings can potentially be later used by a plaintiff in a civil case, transforming potential exposure of a few thousand dollars into a few hundred thousand dollars.  Bailey Glasser attorneys can help you evaluate the risks posed by an agency inquiry so you can address it with confidence.