An agribusiness lawyer provides legal services to agribusinesses that include chemical suppliers, farm equipment manufacturers and distributors, animal health innovators, fertilizer manufacturers, food and fiber processors, wholesalers, transportation firms, and energy producers.
Agricultural law covers a wide range of legal issues from contract to environmental, import/export compliance to tax, insurance, intellectual property, labor and employment, equity funding, legislation, and business formation. It also involves assisting clients to influence the creation of policy and to navigate existing regulations administered by federal, state, and local agencies.
Taxes
Taxation affects many aspects of an agribusiness operation. Whether it be state or federal taxes, the sale of farmland or the purchase of equipment, farmers need to be aware of the impact of these changes.
The Internal Revenue Code, as well as local and state laws, provides guidance on the taxation of agribusiness activities. It is important that agribusiness owners work with a qualified tax and legal advisor to ensure they understand their rights and obligations.
As for business income, there are a variety of deductions and tax credits available. These include the Agricultural Production Credit, the Agricultural Land Easement Credit, the Conservation Reserve Program and the Biofuels Tax Credit.
In addition, farm owners can take advantage of the new Section 199A Qualified Business Income Deduction. This new deduction for pass-through entities includes payments from cooperatives, commodity wages and farmland rental income.
Licensing
Licensing is a business relationship where a company (licensor) agrees to allow someone else to manufacture, sell, market and distribute its product. This can be a great way for a small company to get into the market quickly with an existing product or to expand its manufacturing and distribution capabilities without the costs of developing a new one from scratch.
Typically, the licensor pays the licensee a royalty or a percentage of sales. The licensor may also require warranties, public liability protections and other rights in return for licensing.
The agribusiness lawyers have extensive experience in this industry and handle a wide range of issues. This includes water, environmental, agricultural labor, marketing and land use as well as federal and state laws affecting seed issues and pesticide use.
Contracts
Contracts are an important part of the agribusiness industry. They provide farmers and ranchers with a way to manage risk and control expenses, and they are a major tool used by agricultural businesses to acquire supplies for their production processes.
There are a variety of different types of contracts, ranging from formal agreements between a producer and a buyer to informal transactions between local to regional suppliers and buyers. Each type of contract has a unique set of legal implications and variations in terms and language that make each one distinct.
A production contract is an agreement between a farmer and a supplier for the sale of a commodity at a predetermined price and quantity. Often, the contract also requires the supplier to supply inputs and provide technical support to the producer.
While these contracts are generally beneficial, they can have disadvantages too. For example, they can disproportionately favor one party over another, particularly if one party lacks bargaining power. Social differences and market fluctuations can also influence the terms of a contract.
Disputes
Whether your business is a small, family-owned farm or a large, national operation, disputes with government entities, neighbors, other businesses and even competitors can occur. Agribusiness lawyers are experienced in helping agribusiness clients address these issues and resolve them quickly and efficiently to protect their business and assets.
Agribusinesses face a variety of unique legal issues, including regulatory compliance and environmental issues relating to water use, pesticides, chemicals, and waste disposal. These issues can lead to significant penalties, costly compliance changes and potential lawsuits.
Farmers and agribusinesses may also need to deal with employment contracts, new labor laws and wage and hour claims. Agribusiness lawyers are experienced in preparing and negotiating these contracts to prevent litigation down the road.
Another type of dispute that can affect agribusinesses is a product recall or false claims. Our lawyers have experience with a wide range of products, from meat to dairy to corn and soybeans.
Agribusiness disputes include those with employees, contractors, vendors, brokers, suppliers, buyers, insurance companies, equipment companies, landowners, and processors. They can also involve zoning claims from new neighbors and condemnation by local governments.
Disputes in the agricultural industry are complex, and require an understanding of scientific issues that influence farming practices. These include issues related to food safety, pesticide use, antibiotic use, international standards, GMO seeds, data collection and usage of farm data, hydrology, and much more.
