FOOD & AGRICULTURE QUARTERLY | SEPTEMBER 2026 shield a new property owner from CERCLA liability for pre-existing contamination. A typical Phase I ESA reviews historical aerial photographs, fire insurance maps, regulatory databases, environmental records, available permits, and other historical sources, as well as a site inspection and interviews with current or former owners or operators.
Phase I does not include soil or groundwater sampling. If it identifies potential concerns, a purchaser may elect to conduct a Phase II investigation which typically includes soil, groundwater, or other environmental sampling to better evaluate the nature and extent of potential contamination. For agricultural acquisitions, however, a Phase I ESA should be viewed as a starting point rather than the end of environmental diligence. Buyers should also review permits, inspection histories, notices of violation, consent orders, outstanding corrective measures, and other records that may reveal environmental obligations associated with the operation.
Spotlight on Ohio: Environmental history can follow agricultural operations
Ohio’ s agricultural industry provides a real-world example of why environmental due diligence should extend beyond a traditional property assessment. In the early 2000s, Ohio Fresh Eggs, LLC, acquired commercial egg-production facilities formerly operated by Buckeye Egg Farm. Buckeye Egg Farm had an extensive history of environmental compliance problems, including permit violations and obligations under a state consent order.
Following the acquisition, those environmental issues did not simply disappear. A 2004 federal settlement required more than $ 1.6 million in pollution-control improvements at the facilities and imposed an $ 880,598 civil penalty on Buckeye Egg Farm. While Buckeye Egg Farm sold its facilities to Ohio Fresh Eggs, the settlement required Buckeye to bind the purchaser to implement the environmental improvements required under the consent decree. In 2011, Ohio Fresh Eggs entered another consent order resolving 71 alleged violations and requiring a $ 625,000 civil penalty, $ 300,000 in supplemental environmental projects, and $ 10,000 in enforcement costs.
Ultimately, Buckeye Egg Farm sold Ohio Fresh Eggs an expensive lesson: The environmental history of an agricultural operation is a critical part of the asset being acquired.
Where environmental risks are most often found
Agricultural properties often present environmental concerns that differ from traditional industrial sites. Because many agricultural operations have been in continuous use for decades, historical practices may not meet today’ s regulatory standards.
Chemical and petroleum storage
Pesticides, herbicides, fertilizers, diesel, gasoline, and waste oil are common at agricultural operations. Historical mixing areas, spills, underground storage tanks, and abandoned tanks can leave residual contamination in soil and groundwater, even when the original activities ended decades ago. Identifying these features before closing allows purchasers to evaluate cleanup obligations, coordinate removal, and negotiate appropriate contractual protections.
Livestock operations
Livestock facilities present additional considerations, including manure storage and transfer systems, wastewater management, mortality disposal, silage areas, nutrient-management practices, and related permits. Purchasers should review the condition and compliance history of this infrastructure, as well as notices of violation and prior enforcement actions.
A recent Ohio case illustrates the point. In State ex rel. Yost v. Hastings Dairy, L. L. C., a manure-storage pit at a Geauga County dairy breached, discharging manure into neighboring waters. Ohio EPA and the Ohio Department of Agriculture identified additional alleged violations involving manure storage, freestall barns, silage, animal mortality, and discharges to waters of the state. The resulting proceedings required substantial corrective measures, including work on manure storage structures and a Comprehensive Nutrient Management Plan, and resulted in a $ 30,000 civil penalty.
Historical waste disposal practices
Many older agricultural properties contain legacy disposal areas that predate modern environmental regulations. Burn pits, buried debris, abandoned drums, dry wells, or former dumping areas may still exist even if they are no longer visible. While these practices may have been common decades ago, they
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