There was no shortage of legal challenges impacting cattle producers across the country in 2025. Here is a look at several of the biggest cases of the year.
Congress passed permanent increase to lifetime exemption limit for estate taxes
In July, the One Big Beautiful Bill Act included a provision increasing the lifetime exemption for an individual person to $15 million and, for a couple, $30 million. This is particularly important when it comes to estate taxes, as a person with a taxable estate value of less than the lifetime exemption may pass assets tax-free at death. Without this action by Congress, the 2026 estate tax limit was set to be only $5 million per person and $10 million per couple. The $15-million-per-person exemption has no expiration date and is set to increase for inflation annually.
Court upheld livestock and poultry exemption from air emissions reporting
The U.S. District Court for the District of Columbia upheld an exemption to air emissions reporting that exempts livestock and poultry operations from filing such reports under federal law. This litigation has been ongoing for nearly a decade. Congress expressly excluded livestock and poultry farms from reporting requirements under the federal Comprehensive Environmental Response, Compensation and Liability Act, but did not include similar express language to exempt these operations from similar reporting requirements under the Emergency Planning and Community Right-to-Know Act.
The district court held that livestock and poultry operations are exempt under both statutes and, as such, no air emissions reporting is required. Many agriculture groups applauded this ruling based on concerns over the proper methodology and costs to measure and report emissions from these type of operations. In October, plaintiffs filed a notice of appeal of this decision, but no action has been taken by the court at this point.
Lawsuit challenging e-ID eartag requirement to go forward
A federal judge in South Dakota denied a motion to dismiss a lawsuit filed by R-CALF and other agricultural groups challenging the USDA mandate requiring electronic eartags for certain cattle and bison crossing state lines. Plaintiffs claimed the regulation, which went into effect in November 2024, was unnecessary and burdensome on the cattle industry. The court held that the facts alleged by the plaintiffs were sufficient to survive a motion to dismiss. This means the lawsuit will proceed with discovery.
Challenge to 'Product of the USA' labeling pending
A lawsuit involving the rules related to labeling beef as “product of the USA” is currently on appeal before the U.S. Court of Appeals for the 8th Circuit. The lawsuit was filed by South Dakota ranchers against the largest beef-packing companies in the U.S., claiming that defendants’ labeling of products “product of the USA” is misleading for animals not born, raised and slaughtered in the U.S. The trial court denied the defendants’ motion to dismiss, and they appealed to the 8th Circuit. Eleven states filed an amicus brief in support of the plaintiffs.
Litigation continues over lesser prairie chicken listing
The listing of the lesser prairie chicken under the Endangered Species Act continues to be litigated in court. In August, the U.S. District Court for the Western District of Texas issued an order vacating the listing of the lesser prairie chicken under the Endangered Species Act. The order came after the U.S. Department of Fish and Wildlife admitted to failing to follow proper procedures and consider required information in listing the species. In September, two environmental groups filed a Notice of Appeal of the district court decision. No action has been taken on that appeal at this time.
Court upheld Massachusetts animal confinement law
The U.S. Court of Appeals for the 1st Circuit recently upheld Massachusetts Question 3, an animal confinement law nearly identical to California’s Proposition 12, which requires pork, eggs and veal sold in Massachusetts to meet certain animal confinement standards. Opponents challenged the constitutionality of the law, claiming that it violated several constitutional principles including the dormant commerce clause. As the U.S. Supreme Court did with Prop 12, the 1st Circuit upheld the constitutionality of Question 3.
Corporate Transparency Act not enforced against U.S. companies
We kicked off 2025 with a slew of lawsuits, injunctions and confusion about the applicability and deadline to report beneficial ownership interests in certain legal entities like LLCs and corporations. That confusion ended when the U.S. Department of Treasury announced it would no longer enforce the reporting requirements against U.S. companies earlier this year.
