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)

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

Top Ten Agricultural Law Developments of 2007

We begin 2008 with our annual look at the most significant agricultural law developments of the previous year. Legal issues continue to be at the forefront of developments that are shaping the present and future of American agriculture, and it is very likely that the involvement of the legal system in agriculture will continue to grow. The following is my list of what I view as the top ten agricultural law developments of 2007 based on their impact (or potential impact) on U.S. agricultural producers and the sector as a whole

Country of Origin Labeling

The Country of Origin Labeling (COOL) provisions in the 2002 Farm Bill require, beginning September 30, 2004, that retail sellers of several food commodities inform consumers of certain product’s country of origin. As required by the statute, the USDA promulgated guidelines in the fall of 2002 designed to assist retailers and their suppliers in facilitating voluntary labeling. By September 30, 2004, however, the USDA is to have in place regulations implementing mandatory COOL. COOL raises important questions concerning what commodities are covered, how the labeling requirement is satisfied, and anticipated costs and benefits