Miller Farms fined

[Ken]

As far as I can tell this case has nothing to do with people growing their own food to put in their own bodies. It has to do with people growing food and selling it to other people to put in their bodies.

It was a private coop structure, people knew exactly what they are getting into, and had to sign up first.

When one person builds or grows something, then sells it to another person, we call that "Commerce." How do you figure, Josh, that this food isn't being sold commercially? Do you think it's just a hobby?

It's not being sold commercially, in bulk, at auctions, etc.

What's next? The USDA comes and regulates your back yard because you aren't running your backyard garden like a commercial regulated operation? Did you ever share one of your tomatoes with a neighbour? Whoops, that's "commerce". Better make sure to get USDA stamps on everything.

REI is a co-op. And Costco, which is now the nation's largest retailer of organic food is structured as a private membership food club. You pay for your Costco Card annual membership and show it at the door. People know exactly what they are getting into there too and you can't just walk in without being a member. Being a private food club doesn't get them out of following food safety regulations and standards.

This Amish farm was running a business, not some non-profit community garden. This is their actual online storefront: https://www.millersorganicfarm.com/ It is functionally identical to Costco. You pay for your $35 "farm club membership" and then you can place your online order and they will FedEx/UPS it to your door.

[steve-in-kville]

Maybe I'm late to the party but I thought the idea of a co-op was to avoid regulation? Must be different in other states perhaps?

[Szdfan]

So this is a co-op? Missed that memo... that changes the rules a bit.

But there are still rules and health and safety regulations with co-ops, right?

[steve-in-kville]

What I do know about food co-ops is they have to apply for a tax ID number. You can't make up a name and call yourself a co-op.

[Josh]

REI is a co-op.

Yes, REI is a co-op, and actually sells both to owners and non-owners, but the owners get better pricing. If you want to, you can go to shareholders' meetings if you're an "owner"; joining them is fairly simple (basically just buy something and sign a piece of paper agreeing to join).

And Costco, which is now the nation's largest retailer of organic food is structured as a private membership food club. You pay for your Costco Card annual membership and show it at the door. People know exactly what they are getting into there too and you can't just walk in without being a member. Being a private food club doesn't get them out of following food safety regulations and standards.

Costco isn't a private food club; they're a normal commercial retail establishment that limits sales to members, just like Sam's Club does.

This Amish farm was running a business, not some non-profit community garden. This is their actual online storefront: https://www.millersorganicfarm.com/ It is functionally identical to Costco. You pay for your $35 "farm club membership" and then you can place your online order and they will FedEx/UPS it to your door.

Costco isn't a co-op. It's a publicly traded company.

What stock ticker symbol is Millers Organic Farm?

[Josh]

Maybe I'm late to the party but I thought the idea of a co-op was to avoid regulation? Must be different in other states perhaps?

My grandfather started a co-op grocery store along with other founders. They were not trying to "avoid regulation" but rather wanted to have a store in their towns which were poorly served, and to try to get better prices than the big chain grocery stores in the nearest city.

[Ken]

Maybe I'm late to the party but I thought the idea of a co-op was to avoid regulation? Must be different in other states perhaps?

But Miller Farms isn't running an actual co-op.

This isn't some jointly-owned cooperative and democratically-operated venture where a group of local people bought a plot of land and cooperatively raised vegetables and chickens and shared in the costs and distributed the produce amongst themselves. Or a co-op grocery where people own a stake of the co-op and then go do their volunteer time.

This is an ordinary for-profit business that is solely-owned by the Miller family. There is nothing cooperative about it. They structured it as a "private membership club" same as Costco to try to avoid regulation. But that isn't the same as a co-op which would be a legal entity jointly-owned and democratically operated by its members.

[Josh]

What I do know about food co-ops is they have to apply for a tax ID number. You can't make up a name and call yourself a co-op.

Anyone can apply for a tax ID number in about 5 minutes on the IRS's website; Miller's Organic Farm is indeed registered with the state of PA as an "Unincorporated Association" and presumably has a tax ID number associated with it.

If you really want to know more information, go to https://www.corporations.pa.gov/search/corpsearch and pay $3 for the filing.

[Josh]

Maybe I'm late to the party but I thought the idea of a co-op was to avoid regulation? Must be different in other states perhaps?

But Miller Farms isn't running an actual co-op.

That's your (incorrect) opinion.

This isn't some jointly-owned cooperative and democratically-operated venture where a group of local people bought a plot of land and cooperatively raised vegetables and chickens and shared in the costs and distributed the produce amongst themselves. Or a co-op grocery where people own a stake of the co-op and then go do their volunteer time.

Incorrect. Miller's Family Farm is an "Unincorporated Association", not a for-profit business.

This is an ordinary for-profit business that is solely-owned by the Miller family. There is nothing cooperative about it. They structured it as a "private membership club" same as Costco to try to avoid regulation. But that isn't the same as a co-op which would be a legal entity jointly-owned and democratically operated by its members.

Incorrect. It is not a for-profit business and it is not solely-owned by the Miller family. It has no similarity at all to Costco's legal structure.

Costco Wholesale Corporation is registered as a "Business Corporation" with PA.

[Szdfan]

Several years ago, there was a listeria outbreak here in Colorado with melons that killed 33 people:

https://www.cbsnews.com/news/feds-charg ... -outbreak/

Jensen Farms made headlines in 2011 when its sweet Rocky Ford cantaloupes were linked to a deadly listeria outbreak.

Now the farm's owners are facing federal charges for their role in the outbreak that killed 33 people and was linked to one miscarriage, in addition to sickening 147 people nationwide. The company, based in Colorado, later filed for bankruptcy.

On Thursday, owners Eric and Ryan Jensen turned themselves in to U.S. Marshals in Denver where they were taken into custody and brought up on charges, according to a press release issued by John Walsh, U.S. Attorney of the District of Colorado. They are charged with allegedly introducing cantaloupes containing the poisonous listeria monocytogenes bacteria. Also, the cantaloupes were "prepared, packed and held under conditions which rendered it injurious to health," the complaint added.

The farmers were found guilty, but did not get any jail time.
https://www.usatoday.com/story/news/nat ... s/4958671/

Two Colorado cantaloupe farmers will not go to prison but were sentenced Tuesday to probation and home detention for their role in a listeria outbreak that killed 33 people in 2011. The Food and Drug Administration called it the deadliest foodborne illness outbreak in the USA since 1924

Eric and Ryan Jensen, the two brothers who owned and operated Jensen Farms in Holly, Colo., were sentenced in federal court in Denver.

Each received five years probation and six months home detention. Each also was ordered to pay $150,000 in restitution and perform 100 hours of community service.

The Jensens apologized for the listeria outbreak, which was traced to their farm. They had asked for probation, saying justice has been served because federal regulations have been put in place that will reduce the likelihood of a repeat tragedy.

The listeria outbreak caused significant damage to the reputation and livelihoods of farmers who sold "Rocky Ford melons," even though the melons came from a farm ninety miles away. Along with new federal regulations, the Rocky Ford Growers Co-Op Association took steps to protect their brand name and added additional melon washing equipment to prevent another outbreak.

Only one Colorado farm supplied cantaloupes contaminated with the listeria bacteria that killed 33 people and sickened at least 147 more in 28 states in 2011.

But that farmer sold his fruit as coming from Rocky Ford, Colo., and the longtime family farmers there, and the whole town, took a huge hit.

"The whole community is very proud of the cantaloupe. The Rocky Ford high school mascot is the 'Meloneer,'" says Mike Hirakata, a fourth generation melon grower here, "very proud to be Meloneers."

The tainted fruit came from a farm 90 miles away, but Rocky Ford farmers had never trademarked their local name and couldn't keep others from using it. That had never been a problem until 2011. The area's farmers have now legally protected their name, and they're taking other measures to convince the public that the cantaloupe they've built a 100-year reputation on are safe.