Lease Termination and Other Legal Considerations for Lease

The lease contract is an important part of a good leasing arrangement. Seek the advice and counsel of your attorney for answers to specific questions in your arrangement. While oral leases for a term not exceeding one year are enforceable in Iowa, it is recommended that leases be in writing

Migratory Bird Rule Shot Down

In a major decision important to farmers and ranchers with isolated wet areas on their land or private ponds, the U.S. Supreme court, in early January 2001, reversed the opinion of the Seventh Circuit Court of Appeals and held that the federal government’s assertion of jurisdiction over an intrastate wetland pursuant to the so-called “migratory bird rule” exceeded its authority under the Clean Water Act.

Integrating Health Care Planning Into the Estate Plan

The events surrounding the withdrawal of a feeding tube from brain-damaged Terri Schiavo have highlighted the importance of health care planning. The lack of evidence concerning Schiavo’s intent with respect to the continuation or withdrawal of life-sustaining nutrition and hydration, complicated by the fact that she left no signed document or any clear previous oral statement, created a long and arduous legal battle among family members. Aside from the important policy implications of the Schiavo case, the case illustrates that health care planning in the event of incompetency should be a part of every estate plan.

Supreme Court Clarifies Ability of Farmers to Sue Pesticide Manufacturers

There are several situations that a farmer may face that will limit the farmer’s ability to sue a manufacturer on a product liability claim.1 One of these involves damages arising from the use of registered pesticides. The Federal Insecticide, Fungicide, and Rodenticide Act,2 limits the ability of injured parties to sue pesticide manufacturers on either an inadequate labeling or wrongful death claim basis. A significant question has been whether state law damage claims for pesticide-related agricultural crop injury are pre-empted by FIFRA and whether FIFRA pre-emption of damage claims is limited to the specific subjects that the Environmental Protection Agency (EPA) reviews at the time it first approves a pesticide product’s labeling. The recent opinion of the U.S. Supreme Court in Bates, et al. v. Dow Agrosciences LLC3 provides important guidance on how courts are to analyze FIFRA preemption claims in the future

Leasing Arrangements and Self-employment (Social Security) Tax

Self-employment tax is imposed on net earnings derived from self-employment. That phrase is defined as gross income derived by an individual from a trade or business that the taxpayer conducts. However, rents from real estate and from personal property leased with real estate are excluded from the definition of net earnings from self-employment. Likewise, income from crop-share and/or livestock-share rental arrangements for landlords who are not materially participating in the farming operation are not classified as self-employment income subject to Social Security tax (and, thus, do not count toward eligibility for Social Security benefits in retirement)

Pension Protection Act of 2006

Overview. On August 17, President Bush signed into law the Pension Protection Act (Act) of 2006,1 the first comprehensive pension legislation in more than 30 years. The Act is massive, is designed to strengthen traditional pension plans that cover approximately 44 million Americans (primarily in the manufacturing and other non-service industries) and will certainly make retirement planning for businesses and individuals more complex.2 The Act also creates new rules governing charitable donations for businesses and individuals, as well as the operation of charities. In addition, the Act includes numerous miscellaneous provisions and technical corrections

Beef and Pork Check-offs Ruled Unconstitutional; What Does the Future Hold for Agricultural Check-offs?

On July 8, 2003, the United States Court of Appeals for the Eighth Circuit affirmed the Federal District Court for the District of South Dakota and held the beef check-off to be unconstitutional. More recently, on October 22, 2003, the United States Court of Appeals for the Sixth Circuit affirmed the Federal District Court for the Western District of Michigan and invalidated the pork check-off on constitutional grounds. Another case involving the beef check-off is pending in the U.S. Circuit Court of Appeal for the Ninth Circuit. The outcome of that case, along with the recent opinions of the Eighth and Sixth Circuits, will have an important bearing on the future of agricultural checkoffs

Tax Increase Prevention and Reconciliation Act of 2005

On May 17, the President signed into law the “Tax Increase Prevention and Reconciliation Act of 2005” (H.R. 4297).1 On May 9, House-Senate conferees reached an agreement on the bill and the House passed it the next day by a vote of 244 to 185. The Senate passed the bill by a 54-44 margin on May 11. The bill is estimated to reduce taxes by $70 billion over the next decade. The major provisions of the bill extend the current rates for capital gains and dividends as well as the enhanced expense method depreciation amount. Also included is an extension of relief from the alternative minimum tax and a special provision involving conversion of a traditional IRA to a Roth IRA