Tag: Syngenta

Where’s My Syngenta Settlement Payments?

Paul Goeringer, Agriculture Law Legal Specialist
University of Maryland Extension

This article is not a substitute for legal advice. Reposted from the Maryland Agriculture Risk Management Blog

Several of you continue to ask me when you might see checks from the Syngenta corn seed settlement. In late 2018, the court approved the settlement order for the $1.51 billion MIR162 Syngenta settlement. Based on the final order, payments to producers should have started going out in the second quarter of 2019, but this did not happen.  On January 3, 2020, the federal district court in Kansas approved the final settlement. Growers have one last step: provide the claims administrator with an IRS W-9 form either online or by mailing a form into Corn Seed Settlement Program Claims Administrator, P.O. Box 26226, Richmond, Virginia 23260.

The settlement includes all U.S. corn farmers, including those who opted out of the original class-action suit and those who grew Agrisure Duracade corn and Agrisure Viptera corn varieties. The settlement also includes landlords who based rental rates on yield or price, such as a flex-lease based on yield or price or a crop-share lease. Fixed cash landlords are not eligible to participate. The period included in the settlement is September 15, 2013, through the 2018 crop year.

The settlement includes four classes:

  • Class 1: Growers and eligible landlords who did not use Duricade or Viptera,
  • Class 2: Growers and eligible landlords who did use Duricade or Viptera,
  • Class 3: Grain handlers, and
  • Class 4: Ethanol producers.

Claims to three of the four classes will have limited recovery amounts:

  • Class 1 will receive a minimum of $1.44 billion, with the bulk of the settlement going to corn growers and eligible landlords who did not grow Duricade or Viptera corn seeds.
  • Class 2 will be limited to $22.6 million,
  • Class 3 will be limited to $29.9 million, and
  • Class 4 will be limited to $19.5 million.

As a part of the settlement order, the court set aside $503,333,333.33 for attorneys’ fees.

Based on the recent information, producers should be receiving Notice of Determination forms showing the producer’s portion of the settlement. Expects checks to go out later in 2020. How much can you expect to receive in this settlement? That is still not clear and something I cannot accurately answer.

This latest move means this settlement process should be winding up. Many of the ongoing appeals appear to be resolving themselves with this settlement. If the situation changes, I will provide further information.

 

Where Are My Syngenta Settlement Payments: Why Have Checks Not Been Issued Yet?

Paul Goeringer, Extension Legal Specialist, Department of Agricultural and Resource Economics, College of Agriculture and Natural Resources, University of Maryland

A number of you have asked when potential Syngenta settlement checks would be released to growers.  In late 2018, the settlement order was approved for the $1.51 billion MIR162 Syngenta settlement. Based on the final order, payments to producers should have started going out in the second quarter of 2019.  At this time that has not happened due to a number of unresolved appeals which could impact the final settlement. Till these issues are resolved or we have more information, Mid-Atlantic growers should remain patient.

The settlement includes all U.S. corn farmers, including those who opted out of the original class action suit and those who grew Agrisure Duracade corn and Agrisure Viptera corn varieties.  The settlement will also include landlords who based rental rates on yield or price, such as a flex-lease based on yield or price or a crop-share lease. Fixed cash landlords are not eligible to participate.  The period included in the settlement is September 15, 2013, through the 2018 crop year.

The settlement will include four classes:

Class 1: Growers and eligible landlords who did not use Duricade or Viptera,

Class 2: Growers and eligible landlords who did use Duricade or Viptera,

Class 3: Grain handlers, and

Class 4: Ethanol producers.

Claims to three of the four classes will have limited recovery amounts:  

  • Class 1 will receive a minimum of $1.44 billion, with the bulk of the settlement going to corn growers and eligible landlords who did not grow Duricade or Viptera corn seeds.  
  • Class 2 will be limited to $22.6 million,
  • Class 3 will be limited to $29.9 million, and
  • Class 4 will be limited to $19.5 million.

As a part of the settlement order, the court set aside $503,333,333.33 for attorneys’ fees.  A later order clarified that the attorneys’ fees should be divided up by the following percentages:

  • 49 percent to pool Kansas Multi-District Litigation attorneys,
  • 23.5 percent to pool for Minnesota state court attorneys,
  • 15.5 percent to pool for Illinois state court attorneys, and
  • 12 percent to individual retained private attorneys (IRPAs).

This later order invalidates many of the contingent fee agreements, where attorneys would collect a percentage of amounts recovered by their clients in the settlement.

A number of IRPAs are currently appealing the final order, arguing the judge did not have the authority to invalidate the contingent fee agreements.  At the same time, other appeals are on-going from class members claiming the final settlement is not fair to the class members.

These on-going appeals could potentially impact how final settlement checks are distributed to growers.  Appeals regarding the fairness of the settlement will potentially need to be fully settled before the funds can be distributed to growers.  At the same time, the IRPAs’ appeals may need to be settled before funds can be distributed. I will post additional information once that becomes available.

Reminder: Syngenta Settlement Signup Due by Oct. 12

Reminder to eligible corn growers that signup for the Syngenta settlement ends on Oct. 12.  Corn growers and eligible landlords will be able to file claims electronically at www.cornseedsettlement.com, or by calling 1-833-567-CORN (833-567-2676) to request a paper form.

The settlement includes all U.S. corn farmers, including those who opted out of the original class action suit and those who grew Agrisure Duracade corn and Agrisure Viptera corn varieties.  The settlement will also include landlords who based rental rates on yield or price, such as a flex-lease based on yield or price or a crop-share lease.  Fixed cash landlords are not eligible to participate.  The period included in the settlement is September 15, 2013 through the 2018 crop year.  Corn growers and eligible landlords are not required to retain an attorney to assist in collecting on this settlement.

Learn more by clicking here.

Corn Growers and Eligible Landlords Need to File Claims by October 12

Paul Goeringer, Extension Legal Specialist
University of Maryland, College Park

Earlier this year, I wrote on the preliminary approval of the $1.51 billion MIR162 Syngenta settlement. This settlement, reached in September 2017 and officially announced in March 2018, would settle claims by U.S. farmers for Syngenta bringing Viptera and Duracade corn varieties to market before approval in China. Corn growers and eligible landlords will need to file claims electronically at www.cornseedsettlement.com, or by calling 1-833-567-CORN(2676) to request a paper form by October 12, 2018. Corn growers and eligible landlords can expect to see payments being mailed out in April 2019, if the settlement is given final approval later this year.

The settlement includes all U.S. corn farmers, including those who opted out of the original class action suit and those who grew Agrisure Duracade corn and Agrisure Viptera corn varieties. The settlement will also include landlords who based rental rates on yield or price, such as a flex-lease based on yield or price or a crop-share lease. Fixed cash landlords are not eligible to participate. The period included in the settlement is September 15, 2013, through the 2018 crop year. Corn growers and eligible landlords are not required to retain an attorney to assist in collecting on this settlement.

The settlement will include four classes defined as:

  • Class 1: Growers and eligible landlords who did not use Duricade or Viptera,
  • Class 2: Growers and eligible landlords who did use Duricade or Viptera,
  • Class 3: Grain handlers, and
  • Class 4: Ethanol producers.

Claims to three of the four classes will have limited recovery amounts:

  • Class 2 will be limited to $22.6 million,
  • Class 3 will be limited to $29.9 million, and
  • Class 4 will be limited to $19.5 million.

Class 1 will receive a minimum of $1.44 billion, with the bulk of the settlement going to corn growers and eligible landlords who did not grow Duricade or Viptera corn seeds. If a person qualifies in two classes (for example, you grew Duracade seed one year but not in other years), you are permitted under terms of the proposed settlement to collect as long as the recovery is not duplicative. The settlement does not allow for recovery of silage or fed on-farm corn.

Corn growers and eligible landlords in Class 1 and Class 2 will prove the amount they are entitled to recover using USDA’s Form FSA 578. This form determines the corn grower’s or eligible landlord’s corn acreage minus any failed acres and silage acres. Multiply the acreage by the county average yield for the marketing year reported by NASS, deducting the percentage of bushels fed on the farm reported by the corn grower or eligible landlord, multiplying by the marketing year weighted average to get the recovery amount for that marketing year.

The weighted averages for each market year are: 2013/14 – 26%; 2014/15 – 33%; 2015/16 – 20%; 2016/17 – 11%; 2017/18 – 10%

The weighted averages represent damage impact determined by the plaintiffs’ economic experts during the Kansas trial. For example, if a corn grower or eligible landlord seeking recovery had reported 100 acres on her FSA Form 578 with a county yield of 150 bushels per acre and no silage or fed on-farm corn reported in marketing year 2014/15, then the corn grower or eligible landlord is entitled to a 2014/15 compensable recovery quantity of 4,950 bushels for the 2014/15 marketing year. At this time, a dollar value on that compensable recovery quantity is unknown. The recovery method for the other two classes (grain handlers and ethanol producers) will follow a different format. This overview will not cover those recovery methods.

Corn growers or eligible landlords had until August 10, 2018, to file an objection as to why the court should not grant final approval to the settlement, or to opt-out of the settlement. Many growers may have already opted out of the class action but may need to opt-out again based on the language of the proposed settlement agreement. Corn growers or eligible landlords who do nothing will receive no settlement payment and conclude any legal claim once the court grants final approval to the settlement.

The court has set a final approval hearing on the settlement for November 15, 2018, at 1 pm in Kansas City. According to the order granting preliminary approval, payment of settlement claims should happen no later than April 1, 2019.

 

Eligible Corn Growers and Landlords Begin Filing Syngenta Settlement Claims in May

Paul Goeringer, Extension Legal Specialist

Department of Agricultural and Resource Economics, College of Agriculture and Natural Resources, University of Maryland

 

On April 10, 2018, a federal district court judge granted preliminary approval to the $1.51 billion MIR162 Syngenta settlement.  This settlement, reached in September 2017 and officially announced in March 2018, would settle claims by U.S. farmers for Syngenta bringing Viptera and Duracade corn varieties to market before approval in China.  This approval means corn growers in the Mid-Atlantic region will begin to see formal notices hitting their mailboxes in May, and the claims process will begin. Corn growers and eligible landlords will be able to file claims electronically beginning May 11, 2018, at www.cornseedsettlement.com, or by calling 1-833-567-CORN(2676) to request a paper form.  Corn growers and eligible landlords will need to file a claim by October 12, 2018.

The settlement includes all U.S. corn farmers, including those who opted out of the original class action suit and those who grew Agrisure Duracade corn and Agrisure Viptera corn varieties.  The settlement will also include landlords who based rental rates on yield or price, such as a flex-lease based on yield or price or a crop-share lease. Fixed cash landlords are not eligible to participate.  The period included in the settlement is September 15, 2013 through the 2018 crop year. Corn growers and eligible landlords are not required to retain an attorney to assist in collecting on this settlement.

The settlement will include four classes defined as:

Class 1: Growers and eligible landlords who did not use Duracade or Viptera,

Class 2: Growers and eligible landlords who did use Duracade or Viptera,

Class 3: Grain handlers, and

Class 4: Ethanol producers.

Claims to three of the four classes will be limited in the amount that may be recovered:

  • Class 2 will be limited to $22.6 million,
  • Class 3 will be limited to $29.9 million, and
  • Class 4 will be limited to $19.5 million.

Class 1 will receive a minimum of $1.44 billion, with the bulk of the settlement going to corn growers and eligible landlords who did not grow Duracade or Viptera corn seeds.  If a person qualifies in two classes (for example, you grew Duracade seed one year but not in other years), you are permitted under terms of the proposed settlement to collect as long as the recovery is not duplicative.  The settlement does not allow for recovery of silage or fed-on-farm corn.

Corn growers and eligible landlords in Class 1 and Class 2 will prove the amount they are entitled to recover using USDA’s Form FSA 578.  This form determines the corn grower’s or eligible landlord’s corn acreage minus any failed acres and silage acres. Multiply the acreage by the county average yield for the marketing year reported by NASS, deducting the percentage of bushels fed on the farm reported by the corn grower or eligible landlord, multiplying by the marketing year weighted average to get the recovery amount for that marketing year.

The weighted averages for each market year are:

  • 2013/14 – 26%
  • 2014/15 – 33%
  • 2015/16 – 20%
  • 2016/17 – 11%
  • 2017/18 – 10%

The weighted averages represent damage impact determined by the plaintiffs’ economic experts during the Kansas trial.  For example, if a corn grower or eligible landlord seeking recovery had reported 100 acres on her FSA Form 578 with a county yield of 150 bushels per acre and no silage or fed on-farm corn reported in marketing year 2014/15, then the corn grower or eligible landlord is entitled to a 2014/15 compensable recovery quantity of 4,950 bushels for the 2014/15 marketing year.  At this time, a dollar value on that compensable recovery quantity is unknown. The recovery method for the other two classes (grain handlers and ethanol producers) will follow a different format. This overview will not cover those recovery methods.

Corn growers or eligible landlords have until August 10, 2018, to file an objection as to why the court should not grant final approval to the settlement, or to opt-out of the settlement.  Many growers may have already opted out of the class action, but may need to opt-out again based on the language of the proposed settlement agreement. Corn growers or eligible landlords who do nothing will receive no settlement payment and conclude any legal claim once the court grants final approval to the settlement.

The court has set a final approval hearing on the settlement for November 15, 2018, at 1 pm in Kansas City.  According to the order granting preliminary approval, payment of settlement claims should happen no later than April 1, 2019.

 

Syngenta Announces $1.51 Billion Dollar Settlement to MIR162 Class Action Suit

By Paul Goeringer, Legal Specialist, University of Maryland 

The article is not a substitute for legal advice. This article is reposted from the University of Maryland Risk Management Education Blog.

In September 2017, Syngenta agreed to settle claims brought by U.S. farmers for bringing Viptera and Duracade corn varieties to market before approval in China.  On March 12, 2018, Syngenta formally announced that it would be settling all U.S. corn growers, grain handlers, and ethanol plant claims for $1.51 billion.  This settlement, from media reports, will include all U.S. corn farmers including those who opted out of the original class action suit and those who grew Agrisure Duracade Corn and/or Agrisure Viptera corn varieties.  The settlement will be for a period starting after September 15, 2013, and continue through the 2017/2018 crop year.  You are not required to retain an attorney to assist you in collecting on this settlement.

The settlement will include four classes defined as:

1.     Growers who did not use Duricade or Viptera,

2.     Growers who did use Duricade or Viptera,

3.     Grain handlers, and

4.     Ethanol producers.

Claims to three of the four classes will be limited in the amount that can recover.

1.     Class 2 will be limited to $22.6 million,

2.     Class 3 will be limited to $29.9 million, and

3.     Class 4 will be limited to $19.5 million.

A bulk of the settlement will go to the growers who did not grow Duricade or Viptera corn seeds with Class 1 receiving at least $1.44 billion.  If a person qualifies in two classes (for example you grew Duracade seed one year but not in other years) you are permitted under terms of the proposed settlement to collect in multiple classes as long as no duplicative recovery is collected.  The settlement will not allow for recovery on silage or fed on-farm corn.

Producers in Class 1 and Class 2 will prove the amount they are entitled to recover by using USDA’s Form FSA 578.  Form 578 determines the producer’s corn acreage minus any failed acres and silage acres.  This acreage will be multiplied by the county average yield for the marketing year reported by NASS deducting the percentage of bushels fed on the farm reported by the producer, multiplying by the marketing year weighted average to get the recovery amount for that marketing year.

The weighted averages for each market year are:

1.     2013/14 – 26%

2.     2014/15 – 33%

3.     2015/16 – 20%

4.     2016/17 – 11%

5.     2017/18 – 10%

The weighted averages represent damage impact determined by the Plaintiffs’ economic experts during the course of the lititgation.  For example, if a producer seeking recovery had reported 100 acres on her FSA Form 578 with a county yield of 150 bushels per acre and no silage or fed on-farm corn reported in marketing year 2014/15, the producer is entitled in 2014/15 to a compensable recovery quantity of 4,950 bushels.  At this time, a dollar value is unknown on that compensable recovery quantity.  The recovery method for the other two classes (grain handlers and ethanol producers) will follow a different format.  This overview will not cover those recovery methods.

Judge Lungstrum must still approve the settlement.  If approved, a fund will be created to pay claims to farmers (possibly in early 2019).  Ten days after approval of the settlement the first notice will be sent out.  A producer will have 90 days after the first notice is mailed to opt-out of the settlement.  Many growers may have already opted out of the class action, but will potentially need to opt-out again based on the language of the proposed settlement agreement.  Claims are paid within 150 days of the first notice being mailed out.  To notify corn growers, a mailing list of U.S. producers who received corn subsidy payments from USDA from 2013-2017 was obtained from USDA.  The attorneys will also look at buying additional mailing lists of corn growers from ethanol plants and grain handlers.

As additional details are made available, I will work to update this post with the latest information.