PATRICIA J. RYNN, Attorney, Rynn & Janowsky

When Patricia Rynn was a girl, her family would drive to the beach from San Bernardino on roads lined with orange groves and packing houses. The Orange County landscape has changed, but Rynn and her partner, Lewis Janowsky, can still make a living representing agricultural interests from their offices in Newport Beach. The work now takes them across the country and abroad to South America, Europe and Mexico. Rynn spoke about her little-known legal specialty with free-lance writer Anne Michaud.

In a county where agriculture is diminishing, how does a law firm like yours go about planning its future?

We have developed a niche in enforcing PACA (Perishable Agricultural Commodities Act) trust rights. We have a client base that extends far beyond the county borders. If we had to rely on our local client base, we wouldn’t be nearly the firm that we are. There are not very many firms in the country that do what we do, maybe four or five.

But you started out in this area in 1980. What was your case load like then?

When I started in practice, there was a lot of work in labor relations. I was very heavily involved in assisting growers and shippers throughout the state who were being subject to union organizational campaigns.

This was when the United Farm Workers and Cesar Chavez were quite a bit more active. We had a lot more unfair labor practice hearings and claims of unfair discharge. Now, a lot of the labor activity has diminished, other than back pay calculation cases and similar work. Whether it’s that the United Farm Workers have lost faith in the current Administration’s Agricultural Labor Relations Board or not, I’m not sure.

Many growers don’t want to talk about their business much. Why do you think that is?

Well, California agriculture is probably the most heavily regulated industry. It’s more heavily regulated than agriculture in any other state. I think it’s because (the growers have) gotten burned a few times just being candid.

The growers also get really paranoid about the scares recently, like the salmonella scare in cantaloupe and the (poinsettia) whitefly. They have perishable produce; it’s not like they can close down their chair factory for a week until the furor dies down and facts are gathered.

The scares cause enormous damage to an industry, whether the information is reliable or not.

Sometimes when you over-regulate, you see trends that are not good. For example, you see very few farm labor camps left. Not that there weren’t some atrocious labor camps, but the majority of them were very livable places.

Who will be affected most by a free trade agreement with Mexico?

It all comes down to when their season comes in. If it doesn’t really conflict with Mexican season production, there isn’t a problem. The Florida people are pretty much hard-hit because the tomatoes and onions are (brought to market) around the same time.

What about Orange County?

For our strawberry season (the county’s second-largest cash crop after nursery plants), there isn’t too much of a conflict.

Half of your business is debt collection, is that right?

Yes, under the federal trust amendments (passed in 1984) under the Perishable Agricultural Commodities Act. It is a very effective tool that shippers can use to collect receivables that they previously couldn’t collect in the event that a produce buyer went bankrupt. Now we can go into bankruptcy court and claim top priority (over other creditors).

What changes has that power brought to the industry?

One of the changes is that the banks certainly are more wary about lending money to produce companies in the business of buying product. That is because, if the bank represents a seller, we can name the bank as a defendant. The PACA trust gives us the right to claim first priority over the bank, so we can recapture any monies (the bankrupt seller) made as repayments on loans.

Are there other industries that have such a protection?

No. The meat-packing industry has a similar trust, but as far as I know, we’re the only ones. It’s an incredible tool.

What is special about the produce industry that it needs that kind of protection?

The produce business has so much trust involved. You have a guy picking up a telephone in New York and buying on trust tens of thousands of dollars’ worth of merchandise. They just send an invoice and cross their fingers. Well, if this guy ends up being a crook in New York and going belly up, the bank comes in and has all the security.

This had a real snowball effect on the farming community because then it was hard for them to pay their suppliers, such as fertilizer companies. As diminishing as agriculture is in Orange County, it’s still the state’s No. 1 industry, and there are a lot of secondary industries that rely on the viability of agriculture. That’s fortunate for us, too, we’re one of those secondary industries.

But other people find themselves as unsecured debtors, and it’s their tough luck. Why do farmers have special legislation?

I guess it’s just political pull.

As agriculture diminishes in Orange County, who’s going to be left?

The trend I am seeing lately--and this doesn’t apply just to Orange County--I see the Sun Worlds and the Sunkists and Doles buying up the small, independent farms right and left. What I see in the ‘90s is that those will be the companies that can market with economies of scale, they have the wherewithal and the manpower and the expertise to be able to export to all parts of the world. And the smaller independents cannot compete.

On the future of Orange County agriculture. . . .

“You will see the little growers marketing through a bigger concern. The real players in the future are going to be those that are tied in with the larger food conglomerates--the Sun Worlds, the Sunkists, the Doles.”

On agriculture and the recession. . . .

“Agriculture is one of the industries that is relatively recession-proof because everybody still has to eat. However, our clients who sell Christmas trees say sales were way down.”

On free trade with Mexico. . . .

“A free trade agreement is here to stay. We’ll see something by 1993.”

On who could benefit from free trade. . . .

“We represent some Mexican national agricultural operations as well as some people who invest and have operations in Mexico. They are thrilled with the prospect of not having to pay 17.5% tariffs.”