THE PEOPLE AND THE INSTITUTIONS: AN ECONOMIC ASSESSMENT

Labor and Human Capital,

THE AGE OF CONTRACT AGRICULTURE: CONSEQUENCES OF CONCENTRATION IN INPUT SUPPLY

Dramatic increases in concentration in the seed business, coupled with aggressive efforts to vertically integrate the agricultural sector and to institute contract-based production of commodities, have raised questions about the economic position of producers. Disparate positions of market power by highly concentrated input suppliers on the one hand (particularly seed suppliers because of control over germ plasm and a monopoly position over seed varieties through plant patents or plant variety protection certificates), and producers in nearly perfect competition on the other, suggest that the revenue division from production is likely to be redefined in favor of the party with the greater market and economic power. Possible solutions include aggressive antitrust oversight over further mergers and consolidations, assuring that more germ plasm is in the public domain, and collective action by producers in bargaining for inputs.agriculture, antitrust, barriers to entry, collective action, concentration, contract, seed, vertical integration, Farm Management, Industrial Organization,

History and Unique Features of the Farm Credit System

Agricultural Finance,

Lessons Learned From the Farm Debt Crisis of the 1980'S

A.E. Res. 88-1

Cash Renting Land: Eligibility for 15-Year Installment Payment, the Family-Owned Business Deduction and Special Use Valuation

For several years, the rules governing the cash rental of land to a family-owned entity for purposes of 15-year installment payment of federal estate tax,1 the family-owned business deduction2 and special use valuation3 have been developed and refined with distinctive differences among the three provisions for which guidance is often sought. A private letter ruling, released in May of 2005, has addressed the availability of the three provisions in the context of a unique fact situation4 and, in the process, has introduced some confusion into the fairly clear guidance in existence

Proposed Regulations on Repairs

The stunning defeat of the Internal Revenue Service in Ingram Industries, Inc & Subs. v Commissioner1 and the high profile loss in FedEx Corp. v. United States,2 provoked the Internal Service to mount a major regulatory overhaul in an effort to reshape the legal terrain over which both battles were fought.3 The controversy appears to be of only modest concern to farmers and ranchers other than for handling overhauls of engines and transmissions on tractors, combines and trucks but the 160 pages of regulations issued on August 21, 2006,4 if adopted, would represent a significant shift in the rules governing whether those and similar types of expenditures could continue to be deductible or would have to be capitalized

Bonus Depreciation for Farm and Ranch Houses?

Enactment of so-called bonus depreciation on March 9, 2002,1 allowing a 30 percent extra depreciation amount for regular tax and alternative minimum tax purposes,2 and the boosting of bonus depreciation to 50 percent for eligible property acquired after May 5, 2003 and placed in service before January 1, 2005,3 were not accompanied by a reference to eligibility of residences for bonus depreciation if the property otherwise met the requirements for the additional depreciation. Yet with the re-enactment of bonus depreciation for 2008 only4 at the 50 percent level has focused attention on whether new farm and ranch houses are eligible for the 50 percent additional depreciation amount

Conflicts Between Landlord and Tenant

For well over 700 years, the legal system in the common-law world has been oriented toward preventing the exploitation of land resources by tenants.1 Initially, that orientation was protective of the King with socage tenure assuring tenants the opportunity to lessen the value of the King’s land by waste or poor husbandry but more recently landlords of all types have been the beneficiaries of that position of the law. That feature of the common law is in accord with the public interest inasmuch as the human family is dependent upon the productivity of tillable land for survival

History of Annually Determined Prices for Ownership Interests

For active farms and ranches, one of the most difficult issues in estate and business planning is how to go about setting values for multiple ownership situations if both on-farm heirs and off-farm heirs are involved. Our experience has been that the task can be eased if –(1) the organizational documents (articles of incorporation, bylaws and shareholder agreements for corporations and the same as to partnerships and other organizational structures) have been agreed to by the owners as to how and when the valuation is to occur; (2) the valuation process has been carried out annually without exception; and (3) the results have been agreed to by the designated group, usually those holding an equity interest

Unwarranted Downgrading of “Partnerships and Partners”

The concepts of partners and partnerships have been firmly established in history from ancient times through the twentieth century but the harsh treatment by the United States Government over the past three or so decades has cast a dark shadow over the time-honored contributions that had become solidly anchored in history.1 From ancient times, the partnership has been viewed as a conduit-type entity that has provided flexible and effective service in the developing world.