“Hooked on A Feeling…”
While death is the ultimate tax dodge, Congress recently provided some long term fixes to some rather helpful provisions of […]
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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.
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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….