Terminate that Lease!
It is not too early to consider sending notice to terminate the land owner tenant relationship, but it will be […]
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Thats no farm… its HOBBY
Those who are just beginning the farm operation or those who are slowly withdrawing from it would do well to familiarize themselves with the Internal Revenue Code § 183 “Activities Not Engaged in for Profit”, occasionally referred The “Horse Shelter” or Hobby Loss Rules.
This code section is designed to prevent tax payers from claiming business losses (and thereby reducing income available for taxation) on activities that the tax payer primarily engages in for recreation, entertainment and personal enjoyment rather than a legitimate business purpose. Specifically, horse farms and cattle operations of small sizes are eyed with greater scrutiny.
The IRS has historically found this a difficult area to litigate in, but has developed training manuals and policies to help examiners who may have no knowledge of farm operations, in order to ensure compliance with the Internal Revenue Code. A review of the training manual shows the IRS attempts to familiarize its agents with the world of competitive show animals, but also the distinction between registered herds of cattle and commercial herds of cattle. The manual advises examiners to consider calculating the volume of feed purchased versus animals sold to ensure no under reporting of income, such as cash sales.
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The Dog Got Me Sued
Animals are at the core of many, many farm operations, but even the grain farmer is likely to have a few animals or a farm dog around, and most anyone who farms is bound to encounter wild animals that impact the operation. The rules that affect animals cover a swath of farm life as varied as the animals themselves and the activities that involve them.
A dog owner is liable for the action of his dog. Don’t post “Beware of Dog” signs; believe it or not, if your dog was to injure someone, such signs might be used against you in court, as an admission that you knew you were dealing with a problem animal. Your best advice is to control your animals. You may kill a dog that is attacking or attempting to bite a human being.
Every dog must have a rabies vaccination. Any dog, cat or other animal which has bitten or attacked a person must be reported. If rabies is suspected, animal-control officials can order the owner to confine the animal or it can be impounded by animal-control officials, who can hold the dog for ten (10) days and may then humanely destroy it. If the dog is returned to its owner, the owner must pay fees for impoundment.
Note: If you confine a non-livestock animal for suspected rabies (or any other reason), be aware that the Iowa Code makes it unlawful to “to fail to supply the animal during confinement with a sufficient quantity of food or water, or to fail to provide a confined animal with adequate shelter, or to torture, deprive of necessary sustenance, mutilate, beat, or kill such animal by any means which causes unjustified pain, distress or suffering.”
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The War on Ag Continues
Ag in America is not comprised of slack-jawed yokels wearing overalls and carrying pitchforks. It is driven by satellite guided
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Unpleasant conversation with the IRS or brush up on Farm Labor Law
Now is the time to brush up on farm labor laws to avoid long unpleasant conversations with IRS agents, lawyers, and more your own lawyer.
Records
You can run into problems by not keeping/maintaining records of the names and permanent addresses of temporary agricultural employees, dates of birth of minors under age 19, or hours worked by employees.
Working Hours:
Under State Law: 14-15 year olds can work upto 4 hours per day when school is in session, for 28 hours a week, but school cannot be missed. Working in agriculture this is cut in ½.
16 year olds just need to avoid hazardous occupations list. (including for farm operations: Operating power driven wood working machines, power driven hoists, power driven metal forming machines, meat slicers, or balers, band saws or chain saws, demolition roofing and excavation).
Before my young readers get too excited, a child of any age may work in any occupation or business at any time doing any type of work in a business operated by child’s parents if parent is on premises.
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Vetting the Veterinarian Case
It is easier to use a vet you trust or find somebody who can give you a referral to a good vet than it is to sue a poorly performing vet. If the animal is valuable enough to sue over, insure it. When considering a lawsuit against a veterinarian, here are some things you should consider:
Veterinary malpractice cases are difficult for plaintiffs for two main reasons:
1) It is hard to find a veterinarian who will testify against another veterinarian; and
2) Animals are personal property. You can’t usually cannot recover pain & suffering or damages based on the sentimental value. That takes the wind out of most plaintiff’s cases right away.
The burden of proof in a veterinary malpractice action is always on the plaintiff.
The plaintiff must prove:
1) A veterinarian’s acts or omissions failed to meet the standard of care;
2) Acts or omissions were negligently performed;
3) Negligently performed acts or injuries caused the animal’s injury or death; and
4) As a result, the plaintiff was damaged.
The professional duty of a veterinarian usually begins with obtaining a history of the animal (which assistants can be used to develop) and a physical examination. The veterinarian is required to use professional leaning, skill, and care, beginning with the initial contact, the diagnosis of the problem, the decision and execution of treatment and follow-up care.
In obtaining permission for treatment, there should be disclosure of the risk of the treatment or drugs. However, in one case where a horse died within fifteen minutes of being injected with a drug, the court held that there was no duty to disclose or warn when the odds of a lethal out come were 1 in 25,000. I think people bet on horses to win races with worse odds.
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Way out West or Way out of Power?
In the early 1990’s, a long time Nevada cattle rancher refused to pay grazing fee permits payable to the Federal Government. He claimed he had rights to the ground predating the federal government. Two decades of lawsuits have ensued and continue. Legally, I believe the rancher never had have a good case.
Personally, I like the approach offered by Texas Lawyer Zach Brady
“I would like to see a serious effort to privatize most federal land. Not Yosemite or Yellowstone or Glacier, not Gettysburg, not Mt Rushmore. Garden variety range land could be sold. Get it appraised. Give current tenants first shot, maybe even at a discount if they have been grazing it for 10 years and are paid up on fees. Only American citizens who file taxes each of the last ten years can submit bids.” Why does the federal government have to own scrub land anyway?
This battle was spurred by a 1993 decision of the Federal government to impose restrictions on grazing specified land which was inhabited by a federally protected desert tortoise on the endangered species list. Ironically, a 23 year long refuge for tortoises is now being cut for lack of funding and the tortoises in that protected facility are slated to be killed.
The action has heated up again because the feds have taken steps to remove the rancher’s 900 head of cattle. Protesters are being restricted to “freedom of speech zones”, out of the way of the government forces. Freedom of speech zones sounds like something out of Orwell’s 1984, not something the founding fathers envisioned. However, our desire to protect abortion clinic users from upfront confrontation with protesters, has spawned this concept of limiting free speech to “zones”, which are often times ineffective at having an audience with access to hear them.
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We are here from the government to help you.
We are here from the government to help you, and arbitrarily penalize your ability to take part in government programs….
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Taking your land away—A few words on Eminent Domain
Sometimes, the greater good trumps individual’s rights. Case in point, when in my house, two kids want to see the movie downtown and one doesn’t, the protesting party is drug along to the theater with promises of popcorn to smooth over hard feelings for having to participate in an activity they don’t want to, because the rest of the clan does in fact want to see whatever is on the big screen. Eminent domain is kind of the same thing, if the government wants to use your land for the public good (i.e go to the movies) and you can’t agree to let them take it or agree on how much the land is worth (i.e not go to the movies), then a compensation system in set up to determine what size of popcorn you get.. er I mean…how much money you will receive for your property.
First, if you voluntary agree to let some government authority take control of your property or some private person do the same, you are avoiding eminent domain, not participating in it. In this piece, read government to include whatever private company (like a utility) is trying to use the eminent domain power.
Interestingly enough, if you voluntarily give up the easement, you should ensure that in the event of non use or abandonment, you get the property back. That is the way it works if the government takes it from you, but if you voluntarily give it up, you may not have this protection unless you work it into your agreement. If the agency is offering you 130% of whatever value is derived from the appraisal they order in addition to paying a portion of your fees, it is doing so to meet a “good faith” requirement that is required to be met before it can forcibly take your land.
Iowa Code Chapter 478 outlines how we play and share well with society in eminent domain situations. First, you need to remember that private property can be taken for the public use if it has a demonstrated public purpose and you are paid “just compensation”.
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Taking your neighbors Ground…Legally
Every year, in the spring, another farm publication runs a story about how to take land from your neighbor via adverse possession based on the idea that a fence moved a while back. It always generates interest and discussion, but when the facts and the law are pealed back far enough, rarely does the back 40 become the back 42. So, let us peal back Iowa Adverse Possession cases and take a look.
Iowa Adverse Possession
In Iowa, adverse possession determines acquisition of title (not use) to property by possession. The doctrine of adverse possession is based on the 10-year statute of limitations for recovery of real property in Iowa Code § 614.1(5). A party claiming title by adverse possession must establish hostile, actual, open, exclusive, and continuous possession, under claim of right or color of title for at least ten years. Proof of these elements must be “clear and positive.” Because the law presumes possession is under regular title, the doctrine of adverse possession is strictly construed. That means it is not going to be something the court wants to find.