Written leases make and break you.
In a case out of Clayton County: The tenant had 85 acres of farmland owned Strawberry with a written lease […]
Blog
Blog
Blog
Coming to a field near you, Ag Drones.
By 2022 (which isn’t really all that far away), drones or UAVs(unmanned aerial vehicles) sales could be up to $3.69
Blog
Legislation impacting Iowa Farmers
Laws are designed to generate revenue of the crown, provide for the common good, and make us behave or not
Blog
Big Data Is A Big Headache
Thanks to Todd Janzen, @janzenlaw, for pointing out these data related issues in ag:
Feel Free to Hack your Tractor John Deere’s claim to US Copyright Office cl: aiming that it licenses tractor software to farmers caused WIRED magazine claim that John Deere owns your tractor. The US Copyright Office decided that farmers should be able to repair and modify their tractor’s software, in spite of copyright protection. SO WIRED got it wrong along with John Deere.
On the bigger issue of ag data ownership:
Companies are forming now to advise landowners on the best possible rental rates for their investment based on yield, soil and other data. It is commonly referred to as Ag Data. Having access to that data will be the difference between a company that provides value and one that only provides snake oil and herbal based remedies.The concept of ag data “ownership” is not recognized by United States law. Farmers like to say “I own my ag data.” Ag technology companies like to say “the farmer owns their data.” And you need a release to get it. And the industry representatives like to say “the farmer should down their data.” But the reality is that “ownership” is a legal principle that must be recognized by courts or a law, and that has not yet happened in the United States for ag data.
Ownership-the right of possession, use, control, and to exclude others of the same-has long been classified different ways in the United States depending on what type of property is being “owned.” The courts recognize three forms of property.
Real Property. As much as I don’ t like anything English, the Courts in England granted an owner of real property a number of rights, such as the right to exclude others, and the right grant others a lesser estate (such as tenancy) in land. That is where the term landlord comes from, though I am on a mission to replace it with landowner.
Personal Property. Personal property can be more easily transferred or shared than real property. Things like cars, horses, cattle and paper are personal property. So might be a chicken shed on skids. Should a shed stay when a lease ends or should the tenant be allowed to take it with him? The answer depends on whether it is “real” or “personal” property. Personal property is generally movable while real property is not.
Blog
Year in Review
Some of the major ag issues in Iowa were not resolved.
Clean Water or WOTUS rule is facing several challenges by farm and industry groups and environmental groups. No stake holder appears to be happy with the EPA’s proposed interpretation and rules. Those rules are on hold while the litigation take place. It is likely a dispute that will fall at the feet of the United States Supreme Court before it is all said and done.
Iowa Water Works. Not to be left out of the conversation, the Des Moines Waterworks sued upper Iowa Counties alleging nitrate discharges are damaging the Des Moines Water Works ability to supply clean water. The parties are waiting on a ruling from a Polk County Judge regarding portions of the case.
Dakota Pipeline: The crude oil pipeline that is proposed to cut through the state of Iowa needs court authority to get the last 25% of the land it needs to complete its project. It is asking the court to force the sale of those last parcels through a process called eminent domain. Iowa does not have much case law on the value to the public of a private oil line so this court ruling will not likely be the end of the matter.
Rock Island Clean Line: This is a proposal for a an energy line that cuts through Iowa. Like the oil line above, it needs help from the courts to take the land it needs to complete the project. Infact, last count it would appear greater than 80% of the land required has not be voluntarily purchased or obtained.
Blog
“Hooked on A Feeling…”
While death is the ultimate tax dodge, Congress recently provided some long term fixes to some rather helpful provisions of
Blog
Technology and Farming
Six years ago, I had to be convinced to get a smart phone so I could check email while away from the office. Now I rarely don’t have the phone in pocket, whether I am in the office or on the farm. Toddlers get frustrated when the encounter TVs that don’t respond to touch like IPADS. The world is changing. As I hear from time to time, “I saw on the internet that if it is on the internet it must be true.”
Ag is no exception. Online and televised auctions for livestock are becoming all the rage. Unfortunately, just because it looks like an auction, doesn’t always mean it is conducted like the auction at the sale barn. Basically, an auction is a series of offers (will you buy at this price) followed by a rejection (any other bidders) followed by a counter offer (okay your price is agreeable to me). Auctions are covered by federal regulation if they take a commission of the sale, those who are regulated can be found at www.gipsa.usda.gov . Auctions that take a flat fee per animal may not be covered or regulated by the federal rules at all. Which makes it hard to deal with. As always, it is good to do a little back ground work and check the owners of the web site and auction company.
To report a problem you’ve encountered buying livestock, or to file a complaint, call 1-800-998-3447.
Blog
Terminate that Lease!
It is not too early to consider sending notice to terminate the land owner tenant relationship, but it will be
Blog
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.
Blog
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.”