Indiana Supreme Court Upholds Indiana Right to Farm – Himsel v Himsel

by | Jun 23, 2020 | Agriculture, Agriculture Law

Shoutout to Brianna Schroeder for a great summary of the Indiana Supreme Court case Himsel v Himsel, decided on February 21, 2020.  Please check out her well-written and very readable article via the link, below:

Modern Livestock Farms Are within the Right to Farm Despite Size and Scope

This is a case involving the Indiana Right to Farm Act, and particularly, the Indiana Supreme Court makes clear that modern agriculture practices – including contemporary livestock farming – is consistent with historic agriculture use.  Quoting from the article:

“The farmers and the amici argued—and the Court agreed—that the Act preserves farmland by protecting farmers against nuisance lawsuits even if the modern farm arrives after the neighbors built their homes in the area. The change from cropland to livestock farming is not a statutorily “significant change” that would remove the Act’s protections. The farm was used for agricultural purposes in general at least as early as 1941, and neighbors’ non-farming land use began well after 1941. The neighbors knowingly built their homes in an agricultural area. That was enough for the Act to apply. The Court also rejected neighbors’ attempt to “repackage” their nuisance claim as one for “trespass” or “negligent siting.” ”

The Indiana Supreme Court ruled on several other principles of law which support the Indiana Right to Farm Act in general, and as applies to this case.

All farmers should (continue to) be considerate and compassionate toward residential neighbors, However, residential neighbors need to be aware of modern farming practices, now, and in the future.

Indiana State Fair – Modified 2020 State Fair Livestock Show

by | Jun 6, 2020 | Agriculture

Unfortunately, the community and state effects of COVID have changed the way the Indiana State Fair will be presented for 2020.  We will not see the traditional state fair with activities, concerts, and wall-to-wall people enjoying 4H exhibits, shows, food, concerts, and the midway, but there will be 4H livestock and exhibits honoring the agriculture and youth focus of the Indiana State Fair.

Read the press release here:  2020_Indiana_State_Fair_Cancellation_Release.FINAL

The History of Coffee

by | May 14, 2020 | Coffee Break, Insights, Voices

Because Lawlatte.  History of coffee from the very beginning.  What it is and how it shaped society and the high human and environmental cost.

Did you know that the UK was a coffee nation before it was a tea nation? That fun fact and a lot of other interesting tidbits are found in the video.

Do Farm Kids Need to File a Tax Return?

by | Apr 21, 2020 | Agriculture Law, Agriculture Law Articles, Tax Tips, Taxes

In many farm families, children help their parents with chores, caring for the animals, or tending the crops.  When they’re young, they often just want to help and “do what mom and dad do.”  But once they get old enough (and experienced enough) to perform more skilled or “grown-up” tasks, many farmers want to pay their children for their labor at a rate more in line with the fair market value of their labor.  When farmers start paying their children for work on the family farm, one general question invariably comes to mind:  “Do my kids need to file a tax return?”

Here are some frequently asked questions about when your children need to file taxes and paying them for work on the farm:

  • Q:  When do my children need to start filing taxes?
  • A:  Generally, you can assume that your child needs to earn the “standard deduction amount” before you must file taxes.  The standard deduction amount is $12,400 for a single person in 2020.  However, if your children have W2 income they might want to run the numbers to see if they qualify for a refund of the withheld taxes from that W2 income, in which case filing a tax return would be a good idea.
  • Q:  What if my child is an owner in the family farm and receives income through the family farm operation, or has income from dividends or interest on investments?
  • A:  If a minor has “unearned income” in excess of $1,100, then they will need to file a tax return, regardless of earned income.  A minor is taxed at their parents’ rate on any taxable unearned income.  For farm kids, this becomes an issue if they have an ownership interest in a pass-through farm entity and receive a K1.  If a child’s unearned income is only on bank account income, then filing a tax return is usually not necessary unless they approach the standard deduction amount in earned income.
  • Q:  How should I report my children’s’ farm income that I pay to them for their work on the family farm?
  • A:  It depends, based on how much that farm income is.
    • If your children’s total earned income for the year is under $600, then you don’t need to do anything.
    • If your children will likely be well within the $12,400 mark for their 2020 income but over $600, a 1099 is a good idea.  If their income is within the standard deduction amount then they won’t owe any income tax on earned income, and with a 1099 they won’t have to go through the process of filing a return to get a refund of withheld income.  On the other hand, YOU will be able to deduct the amount that you pay them as a legitimate farm expense.
    • If your children will be earning close to $12,400 mark and you are already issuing W2’s to other employees, then consider adding your children to the payroll system and issuing them a W2 as well. [NOTE – if you put your children on your payroll, remember that they are also subject to consideration in worker’s comp and unemployment reporting].
  • BONUS:  If you pay your child through normal payroll, your child has the opportunity to start funding an IRA.  While retirement years seem far, far, away for a minor, a small investment in a tax-deferred account can grow significantly over your child’s working life.

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