Telematch, Inc. v. U.S. Dep't of Agric.

TELEMATCH, INC., Plaintiff, v. UNITED STATES DEPARTMENT OF AGRICULTURE, Defendant.

Civil Action No. 19-2372 (TJK)

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

November 27, 2020

MEMORANDUM OPINION

Telematch, Inc. (d/b/a Farm Marked iD) ("FMID"), collects, maintains, and analyzes agricultural data from various sources, including the federal government. It has regularly submitted FOIA requests for USDA records for over a decade. From December 2018 to March 2019, FMID submitted seven FOIA requests to USDA for specific records. These seven requests sought records that include what USDA calls "Farm Numbers," "Tract Numbers," and "Customer Numbers." USDA's FOIA office denied those requests either in part or in full. Not satisfied with the documents USDA did provide, FMID administratively appealed, but that process blew past FOIA's statutory deadlines. So FMID sued in this Court. FMID seeks release of the remaining records they requested, as well as relief from USDA's alleged policy of delaying its processing of FOIA requests. FMID also alleges that a now-superseded USDA FOIA regulation contradicts the FOIA statute and is arbitrary and capricious under the Administrative Procedure Act. The parties have cross-moved for summary judgment. For the reasons explained below, including that the records at issue are exempt from disclosure, the Court will grant USDA's motion and deny FMID's.

I. Background

A. The Records at Issue

Although FMID's requests, detailed below, encompass various types of files maintained by the Department of Agriculture (USDA), the dispute between the parties—at least as to the question of whether USDA has improperly withheld any records—boils down to its treatment of Farm Numbers, Tract Numbers, and Customer Numbers. USDA creates Farm Numbers and Tract Numbers and assigns them to land enrolled in USDA programs. ECF No. 9-2 ("Pl.'s Stmt. Facts") ¶ 5; ECF No. 13-2 ("Def.'s Stmt. Facts") ¶ 22. As part of its internal operations, USDA creates a map of enrolled land that outlines farm or ranch boundaries with acreage figures. Def.'s Stmt. Facts ¶ 23. USDA then creates digitally drawn polygons on aerial photos or maps to depict these boundaries. Id. Farm and Tract Numbers correspond to these polygons. Id. The Farm Number refers to the entire farm, and Tract numbers refer to the tract units of contiguous land within that farm. Id.

USDA uses Farm and Tract Numbers in various ways. USDA may use the numbers, for example, to identify the number of acres planted with a particular crop in a farm program. Id. ¶ 24. For other programs, USDA may use the numbers to identify the location of conservation practices or geographical features. Id.

Customer Numbers are unique identifiers USDA assigns to individuals or entities in USDA databases. Id. ¶ 37; Pl.'s Stmt. Facts ¶ 5. USDA uses the numbers to identify program participants and to help provide and administer farm loans, crop insurance, and disaster assistance compensation. Pl.'s Stmt. Facts ¶ 5. A Customer Number, like Farm and Tract Numbers, can be used to connect other USDA data. Id. ¶¶ 5-6; Def.'s Stmt. Facts ¶¶ 27, 34.

B. Plaintiff's FOIA Requests

1. Request 2019-FSA-01467-F

FMID submitted FOIA request 2019-01467-F in December 2018 for two Farm Reconstitution data files consisting of Farm Numbers and Customer Numbers, as well as state and county codes. Def.'s Stmt. Facts ¶¶ 1-3; ECF No. 13-3 ("Buchan Decl."), Ex. 4. A reconstitution occurs when a farm or tract is either divided or combined with another farm or tract. Def.'s Stmt. Facts ¶ 2. Farm Reconstitution data files show which farms or tracts underwent reconstitution and provide information on the newly constituted farms or tracts. Id.; Pl.'s Stmt. Facts ¶ 16.

In March 2019, USDA provided the statistical version of the file that contained the State Code, County Code, Reconstitution Date, and Reconstitution Type. Def.'s Stmt. Facts ¶ 3. But USDA withheld the Parent Farm Number, Resulting Farm Number, Customer Number, and Resulting Customer Number as exempt under FOIA Exemptions 3 and 6. Id.

2. Request 2019-FSA-01492-F

FMID submitted FOIA request 2019-FSA-01492-F in December 2018. Def.'s Stmt. Facts ¶ 4. The request sought the 2018 Conservation Reserve Program (CRP) Active Contract Names and Addresses file. Id.; Buchan Decl., Exs. 6, 7. In March 2019, citing FOIA Exemptions 3 and 6, USDA provided a statistical file with no matching name and address information. Def.'s Stmt. Facts ¶ 5. USDA also provided Name, Address, and actual CRP Payment amount information. Id. ¶ 6; Buchan Decl., Exs. 6.

3. Request 2019-FSA-01497-F

FMID submitted FOIA request 2019-FSA-01497-F in December 2018 for the Business Party Share File. Def.'s Stmt. Facts ¶ 7. The Business Party Share File shows all businessrelationships within a farming operation by linking Parent and Member Tax-ID or Core Customer ID, which are distinct from Customer Numbers. Id. ¶¶ 8, 37-38.

In March 2019, USDA instead provided the Business Party Statistical Share File. Id. ¶ 9. The Statistical file does not include Parent Customer Number and Member Customer Numbers. Pl.'s Stmt. Facts ¶ 43. USDA did not explain its decision to provide the statistical file rather than the requested file. Id. ¶ 45.

4. Request 2019-FSA-01539-F

FMID submitted FOIA request 2019-FSA-01539-F for the 2018 Direct and Countercyclical Payment Program (DCP) Tract Crop File in December 2018. Id. ¶ 46. The DCP Tract Crop File, which USDA now calls the Farm Tract File, contains records that include Farm Numbers and Tract Numbers. Id. ¶ 47-48; Def.'s Stmt. Facts ¶ 11. In April 2019, citing 7 U.S.C. § 8791 ("Section 8791"), USDA instead provided the Farm Tract Crop Statistical File, which does not include Farm and Tract Numbers. Def.'s Stmt. Facts ¶ 12; Buchan Decl., Ex. 11.

5. Request 2019-FSA-01562-F

FMID submitted FOIA request 2019-FSA-01562-F for the 2018 Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) Program Election files, including all constituent data elements, in December 2018. Pl.'s Stmt. Facts ¶ 56. This file contains State Code, County Code, Customer Number, Farm Number, Crop Name and Program Election data. Def.'s Stmt. Facts ¶ 14. The file shows how each producer elected to enroll their land in specific programs. Id.

In March 2019, USDA responded by noting that it identified two responsive records, the "Name and Address" and "Crop Election" Files. Buchan Decl., Ex. 13. The Name and Address File contains the State Code, County Code, and Customer Number fields. Buchan Decl. Ex. 13. The Crop Election File contains the State Code, County Code, Customer Number, Farm Number,Crop Code, and Program Election fields. Id. USDA withheld both files, citing FOIA Exemptions 3 and 6, but asked whether it could meet FMID's needs by providing the statistical version of the Crop Election File, which does not include Customer Numbers or Farm Numbers. Id. USDA instructed FMID to contact it immediately should the Statistical file meet FMID's needs and committed to reopen the FOIA request and process it. Id. There is no Statistical version of the Name and Address File. Id.

6. Request 2019-FPAC-BC-03020-F

FMID submitted FOIA request 2019-FPAC-BC-03020-F for the 2018 Farm Producer File including the State and County Codes, Status Code, FSA Customer Number, Farm Number, and the Reconstitution Pending Indicator in March 2019. Def.'s Stmt. Facts ¶ 16. On March 28, 2019, USDA noted that FMID had already requested the 2018 Farm Producer File and that the agency had provided the 2018 Farm Producer Statistical File, which included the State and County Codes, Status Code, and the Reconstitution Pending Indicator. Buchan Decl., Ex. 15. USDA continued to withhold the FSA Customer Numbers and Farm Numbers in full, citing FOIA Exemptions 3 and 6. Id.

7. Request 2019-FPAC-BC-03064-F

FMID submitted FOIA request 2019-FPAC-BC-03064-F in March 2019 for 2018 Compliance Data, including State and County Codes, Status Code, Farm Number, Tract Number, Field Number, Subfield Number, Planting Period Code, Crop Field Determined Quantity, Determined Acreage Indicator, Official Measurement Code, Certification Date, Plant Pattern Type Code, Concurrent Planting Code, Disapprove Acre Indicator, Perennial Crop Year Expired, NAP Unit number, Creation Date, and Last Changed Date information. Def.'s Stmt. Facts ¶ 19.

In April 2019, USDA provided the 2018 Compliance Data Statistical File which did not include the Farm Number, Tract Number, or Subfield Number, citing Exemption 6 and Section 8791. Id. ¶ 21.

C. Procedural History

FMID administratively appealed all seven FOIA requests in May 2019. Pl.'s Stmt. Facts ¶ 100. Throughout the summer, FMID sought status updates on its pending appeals. Id. ¶¶ 106-110. Unsatisfied with USDA's response to FMID's inquiries, and because USDA had not adjudicated FMID's appeal, FMID sued in August 2019. Id. ¶ 112.

FMID alleges three counts. In Count I, FMID alleges USDA violated FOIA by unlawfully withholding Customer Numbers, Farm Numbers, Tract Numbers, and all associational data between those data figures. ECF No. 1 ("Compl.") ¶¶ 64-69. In Count II, FMID alleges USDA is violating FOIA by following an unlawful policy or practice of systematically failing to adhere to FOIA deadlines. Id. ¶¶ 70-75. In Count III, FMID alleges USDA violated the Administrative Procedure Act (APA) by promulgating an earlier version of 7 C.F.R. § 1.14(a). Id. ¶¶ 76-84.

Pending before the Court are cross-motions for summary judgment. ECF No. 9-1 ("Pl.'s MSJ Br."); ECF No. 13 ("Def.'s MSJ Br."); ECF No. 14 ("Def.'s Opp'n"); ECF No. 15 ("Pl.'s Reply"); ECF No. 16 ("Pl.'s Opp'n"); ECF No. 20 ("Def.'s Reply"). FMID argues that USDA improperly invoked Exemptions 3 and 6 to withhold the information at issue. In FMID's view, Section 8791, the statute USDA cites to invoke Exemption 3, does not apply because USDA—not agricultural producers or owners—creates the Customer, Farm, and Tract Numbers. Pl.'s MSJ Br. ...