Farm Law and Ag Law Blog

               Crop insurance plays an ever increasing role in modern farming.  However, like any safety net, crop insurance can be wrought with holes.   Over the years I’ve seen producers have their claims denied for many different reasons.   Often times these reasons are really no fault of the producer.   Simply stated, the federal crop insurance rules are very complex and can be unforgiving.                  Generally, when a producer believes they have a claim, they call up their agent.   The agent then submits a claim and at some point an adjuster is assigned to the case.   The adjuster comes out to the farm and evaluates the crop, measures bins, and so forth.   Although the adjuster should be well versed in the procedures, sometimes such is not the case.   We had a case a few years ago where the producer had frost kill the corn before it reached maturity.   The producer wanted to have the corn salvaged for silage.   The adjuster informed the producer that strips would hav

FARMING AS A SOLE PROPRIETOR PUTS YOUR FARM AT RISK From time to time, non-farm friends of mine will invite me to a casino.    Casinos really are not my cup of tea, and I remind them that my gambling each year is putting seed in the planter, and I have far more money at stake than I could ever take to the casino.                If you think about it, we as farmers each year have, just to name a few, the following risks:   weather, weeds, prices, plant disease, etc.    These are referred to as “production risks” and, simply stated, each year we take on these risks that we accept are just part of farming.    As to these risks, farming as a sole proprietor, S-corp, C-corp, or other entity, has no bearing on these risks.                Now, let’s consider other risks that are what I would call “operational” risks.    These risks exist as part of a secondary layer of risk.    For example, injury or death to an employee, accidents occurring on roads that cause injury or death, che

John is the only attorney in Indiana and Michigan that has been trained though the International Farm Transition Network (IFTN).   The IFTN is a network of service providers from different professional backgrounds, such as accountants, lawyers, farm managers, ag lenders, etc, working to assist farm businesses with their successful transition to an identified successor.  Find out more:   https://www.farmtransition.org/

The following is from the Arkansas University School of Law By  Susan Schneider  · May 15, 2015 · 2015 Ark. L. Notes 1686  In categories:  Administrative Law ,  Agricultural Law ,  Alternative Dispute Resolution ,  Bankruptcy ,  Business Law ,  Debtor/Creditor ,  Financial Institutions Law This overview of Chapter 12 Bankruptcy is written to provide an introduction to the basic Chapter 12 process, highlighting some of the issues that distinguish it from other types of bankruptcy and explaining how it may be useful to family farmers and family fisherman who are experiencing financial distress. There are many complex issues that extend far beyond the scope of this short overview. For more information, attorneys should consult the Bankruptcy Code and Rules as well as the relevant case law from your jurisdiction. I. Historical Perspectives Chapter 12 was added to the Bankruptcy Code in 1986 during a deep financial crisis in the farm economy. It was designed to provide a speci

It goes without saying that the past few years have been very difficult from a financial standpoint.  Simply stated, for many of us, the cost of production is above the cost we are receiving for our crops.  In fact, it has been said that net farm income is down 50% since 2012.    Farmers facing financial difficulty have not done anything wrong or bad.  Rather, they are merely a victim of the current times.  Many farmers who have had no debt at all for years if not decades are finding themselves taking on large amounts of debt. I have first hand experience with farm restructure.  My family had to perform some restructure on our own farm, and some hard decisions had to be made.  So, I have sympathy for fellow farmers that experience financial difficulties in these difficult times.  I will be there for you in helping you through the financial difficulties that you may be facing.  Together, we can work on getting you through the current financial issues.  I know full wel

What to look for in A Farm Bankruptcy Attorney.   First and foremost, understanding the business of agriculture is very important.  If the attorney has a solid understanding of the business of agriculture, it will be much easier for the farmer to educate the attorney on his farming operation rather than needing to teach the attorney the basics of farming.  Being raised on a farm and having studied agriculture are indispensable attributes for an attorney representing the financially troubled family farmer.  We have extensive farm experience through our families' farms.  You can rest assured you will not be needing to explain your farming operation to us. Experience in the tax implications of a farm restructuring both inside and outside of bankruptcy is essential.  Failure to fully consider the tax consequences when negotiating with creditors can result in the farmer incurring unexpected income taxes that can cripple their farming operation. Questions abound regarding hand