Legal Education
Written by Tyler Zimpfer, Law Fellow, National Agricultural Law Center
The beginning of a new presidential administration brings heightened awareness to areas of government that Americans don’t always consider, such as federal agencies. Recently, U.S. Senators have been reviewing the President’s nominees in confirmation hearings for leadership roles in federal agencies. These confirmation hearings matter. Nominees – often called a “secretary” or “director” – will oversee federal agencies with billion-dollar budgets and a federal workforce of over three million employees. But why is our government structured this way? Are all federal agencies created the same? What powers do these agencies have? And how might a recent Supreme Court decision impact the future of federal agencies?
These questions are relevant to agriculture, because farmers constantly engage with federal agencies. For example, the USDA administers programs through the Farm Service Agency (FSA) and Natural Resources Conservation Service (NRCS) that provides crop insurance, conservation funding, and financial assistance. The EPA oversees pesticide use, air pollution, and water quality laws that impact chemical use. Food producers and processors comply with health and safety standards set by the Food and Drug Administration and the Food Safety and Inspection Service.
Understanding the laws that establish and guide federal agencies is important for agriculture and is the focus of our third topic in the Principles of Government series.
A Brief History of Federal Agencies
The U.S. Constitution grants Congress the power to establish federal official positions and agencies. The power derives from three sources: the legislative power in Article I §1, the Necessary and Proper Clause in Article I §8, and the Appointments Clause in Article II, § 2. Taken together, these constitutional provisions give Congress authority to create agencies to administer the laws Congress makes. Congress must pass an “organic statute” – a statute that creates the agency and gives it certain responsibilities and power. After the agency is formally created, the Constitution authorizes the President to select and direct the officers that will lead the agency, with the advice and consent of the Senate.
Agencies have therefore been around since the onset of our democracy. The first agency, created in 1789, was called the Department of Foreign Affairs, which estimated debts on any imports into the country. The agency later became what we now know as the State Department. Congress continued to create various agencies including the Department of Treasury, the Department of Justice, and the Department of Agriculture throughout the early to mid-1800s. For the first 150 years of the United States, these agencies had fewer responsibilities and were smaller in size and impact than most modern agencies. The federal government currently maintains a list of agencies, which now number in the hundreds.
Structure of a Federal Agency
Not all agencies are created equal by Congress. The “typical” agency (e.g., USDA, EPA, etc.) is led by a single Presidentially appointed, Senate confirmed official (e.g., Secretary of Agriculture, Administrator of the EPA), who oversees the agency’s programs and employees. These agency officials are removable at-will by the President. In slight contrast, an “independent” agency usually consists of a multi-member body with limits on the number of members from one political party versus another. The members of the independent agency can have reasonable restrictions on their removal from office. The more popular independent agencies are the Securities and Exchange Commission (SEC), the Commodity Future Trading Commission (CFTC), and the Federal Reserve.
The Power of Agency Regulations
The Administrative Procedure Act (APA), passed in 1946, was enacted partially in response to the boom of administrative agencies created during the Great Depression. The purpose of the APA was to promote accountability and transparency of the federal agencies who were beginning to regulate the lives of millions of Americans. The APA established the process by which agencies develop and implement “regulations or rules.”
Regulations are especially important because they have the equal force and effect of a law Congress passes. Agencies cannot simply implement any policy they deem necessary. They must implement rules that carry out laws already passed by Congress and delegated to the agencies. Take the Clean Water Act (CWA) for example. The CWA provides the basic structure for preventing pollution into water sources around the United States. The CWA gave the EPA power to enforce and regulate the law. With the CWA as its legal authority, the EPA uses its technical expertise to write the regulations for the law, such as setting wastewater standards for industries and implementing permit programs for pollution discharges. The CWA is an “enabling statute” – a law that confers new or additional powers on an existing agency. Together with the “organic statute” that creates the agency by law, the EPA has broad authority to enforce the CWA as Congress has delegated.
In making regulations, agencies must follow what is called the “notice and comment” process established by the APA. The agency issues a notice of rulemaking and then provides an opportunity for interested persons to comment before a final rule is made. The notice and comment period can be quick for smaller, less controversial regulations, but can last for more than a year on more comprehensive rules. On average, agencies issue 18 regulations for every one law Congress passes.
Resolving Disputes and Enforcing Regulations
Agencies also have the unique power to “adjudicate” various claims related to their regulations and programs. A government official follows the mandates of the APA and the agency’s own rules to resolve a dispute between a private party and the government or between two private parties arising out of a government program. Just as regulations mirror legislative functions, adjudications and orders function similar to a court system. Administrative Law Judges (ALJs) preside over hearings and agency disputes. However, they are not part of the judicial branch but are considered executive officers and appointed by the head of an agency. After all internal processes of review are exhausted, an ALJ’s final determinations may be appealed to a federal court for review.
Deference to Agency Expertise: Recent Developments
This past June, the Supreme Court of the United States decided a pivotal administrative law case in Loper Bright Enterprises v. Raimondo. The Court expressly overruled the Chevron doctrine, referring to a case that gave significant deference to federal agencies in interpreting ambiguous statutes they were charged with enforcing and implementing. Under the Chevron doctrine, a court would defer to an agency’s interpretation of an ambiguous law as long as the interpretation was reasonable and even if the court would have interpreted the law differently.
In Loper Bright, the High Court reversed this doctrine and determined that a court could question an agency’s interpretation of an ambiguous law, placing more decision-making power for interpreting ambiguous statutes largely in the hands of the judicial branch.
Agriculture is an industry that interacts constantly with statutes that are interpreted and enforced by federal agencies. Pesticide regulations, wetland determinations, PFAS limits, and crop insurance are all areas soaked with uncertainty after Loper Bright. While the regulations do not automatically change, interested parties may be more willing to challenge regulations in the wake of the Supreme Court’s decision. The potential difference between a judge and agency interpretation of an ambiguous law may create new excitement for agricultural groups (and many other industries for that matter) for an opportunity that a court might overrule what they see as undesirable agency rules. Or will Congress be more incentivized to write unambiguous laws that give agencies clear direction in every situation because of Loper Bright? We will wait and see. Both practical and substantive impacts of the Loper Bright decision are still developing, but it could reduce agency authority to some extent.
To learn more about federal agencies
If you are interested, here are additional educational resources on the topics discussed in this post:
Tags: principles of government, agencies, rulemaking, regulations, federal, administrative law
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Written by Tyler Zimpfer, Law Fellow with OSU Ag & Resource Law and the National Agricultural Law Center
Welcome back to our blog series on “Principles of Government,” where we explain key legal doctrines shaping the current public discourse. In this blog post, we’ll cover an action that’s been taken by every U.S. President since our country’s founding – the Executive Order (EO). Oftentimes, EOs are the primary tool Presidents use to “hit the ground running” with their agenda and campaign promises. A President is likely to issue hundreds of EOs over the course of a term in office.
What is an EO and how does it arise?
An EO is a written document signed by the President, typically directed to government officials in the executive branch. A President uses an EO to manage government operations and carry out laws consistent with the President’s policies and wishes. The President can also modify or revoke EOs issued by previous administrations. An EO has the force and effect of law if it is founded on authority given to the President by the Constitution or by statute.
Most of us see the President sign an EO in the Oval Office or hear about it in the media, but the process to write and approve the actual text of the EO is more complex than the signature event indicates. While there are few enforceable EO guidelines, there is a process a President follows to create an EO. Ironically, the process for Eos was established in an EO signed by President John F. Kennedy.
The EO procedure begins with the President who, with assistance of staff, drafts an EO. The President sends the EO to the Office of Management and Budget (OMB) with the explanation of the authority, purpose, and potential effect of the proposed actions in the EO. The OMB can refine the EO and coordinate comments from federal agencies. Once the OMB approves it, the EO goes to the Attorney General who reviews whether the order complies with the Constitution and any related laws. The Attorney General then sends an EO to the Office of the Federal Register. Like a high school English teacher, the Federal Register reviews for any grammar or typing errors. The EO then goes back to the President to be formally signed. Despite this choreography, the President can still sign an EO if anyone in the review process doesn’t approve of the EO. Just like regulations issued by an agency, EOs are numbered and published in the Federal Register, the federal government’s official publication of actions taken each day.
While EOs receive the most media attention, Presidents can also act in other ways to manage the operations of the executive branch, such as through executive memoranda and proclamations. Executive memoranda are similar to EOs but have less stringent requirements. The President is not required to explain legal authority or budgetary impacts of a memorandum. Proclamations are less formal and communicate information on holidays, special observances, trade, and policy, but do not have the force and effect of law.
Does the EO power derive from the U.S. Constitution?
The Constitution does not directly state that the President has the power to issue EOs. The President issues EOs through the inherent authority of the executive power, authority found in Article II of the Constitution. More specifically, Section I of Article II, which states “[t]he Executive Power shall be vested in a President of the United States of America,” is viewed as giving the President the authority to issue EOs and take other executive actions. The Constitution also states in Article II that the President shall “take Care that the Laws be faithfully executed,” which some claim is both authority for and a limitation on a President’s EO powers.
Is there a limit to what a President can do with an EO?
In simple terms – yes, there are limits. A President may assert that an EO holds the “force and effect of law” or the same power as a law passed by Congress. However, Presidents must issue an EO pursuant to legal authority found either in the Constitution or through a delegation of power from Congress. Because Article II’s grant of executive power is broad and many laws are ambiguously written, a President may try to stretch the scope of an EO to the outer limits of the President’s authority. When there is a question of whether a President has exceeded its executive authority in an EO, Congress may choose to support or oppose the actions through its legislative power.
Federal courts have the ability to review the legality of an EO, the same as reviewing a law passed by Congress. Courts examine both the scope of the EO and the Constitutional provision or statute instilling authority for the order. Courts will look at the actual text of the EO, agency interpretations, and any policy and public statements made in relation to the EO. An EO may not be legally enforceable if a court determines that the President did not have the authority to issue the order.
Find the Federal Register compilation of EOs at https://www.federalregister.gov/presidential-documents/executive-orders and learn more about Executive Orders through these resources: Executive Orders: A Beginner’s Guide, Executive Orders: An Introduction, and Executive Orders and Presidential Transitions.
Tags: principles of government, executive orders, president, Constitution
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This article marks the beginning of a new series, Principles of Government, where we explore key legal concepts shaping public discourse. Our goal is to provide a clear, unbiased, and nonpolitical explanation of these issues, allowing readers to form their own opinions on the social, political, and economic impacts. As new developments arise, we will continue expanding this series to keep you informed.
Tariffs have been a widely discussed issue recently, particularly as President Trump considers implementing new or increased tariffs on imported goods. More broadly, tariffs have played a central role in U.S. trade policy for centuries, shaping economic growth, international relations, and domestic industries. While they are often used to protect American businesses from foreign competition, tariffs can also lead to higher prices for consumers and retaliatory measures from other countries.
Agriculture, in particular, has long been sensitive to tariffs. Farmers and agribusinesses rely on imported equipment, fertilizers, and other inputs, meaning tariffs can raise production costs. At the same time, American agricultural products exported abroad can be subject to retaliatory tariffs, making them more expensive and less competitive in foreign markets. Understanding how tariffs work, who pays them, and the legal authority behind their implementation is crucial for assessing their broader economic and political impact. In this article, we will break down the fundamentals of tariffs, their role in U.S. trade policy, and the source of authority to impose tariffs.
What Is a Tariff?
A tariff is a tax or duty imposed by a government on imported goods. Tariffs serve several purposes, including generating revenue for the government, protecting domestic industries from foreign competition, and sometimes serving as a tool in international trade negotiations. When a country imposes tariffs, it raises the cost of imported goods, making domestically produced alternatives more competitive. Tariffs are typically applied as a percentage of the value of the imported goods but can be a fixed amount per unit of goods.
Who Pays the Tax on a U.S. Tariff?
When the U.S. imposes a tariff on imported goods, the tax is paid by the importer of record, typically a U.S. company or individual bringing the goods into the country. The foreign exporter does not pay the tariff directly. Instead, the importer must pay the tariff before the goods clear customs. To offset this cost, the importer may either pass it on to consumers through higher prices or absorb it, reducing their profit margin.
Where Does the Tax Go?
The tariff revenue collected by U.S. Customs and Border Protection is deposited into the U.S. Treasury's general fund. This money is not earmarked for a specific program but becomes part of the government’s overall revenue, which can be used for federal spending, such as infrastructure, defense, or social programs.
Example
U.S. Flour Co. purchases wheat from Canada Wheat Co. for $1 million. The U.S. government imposes a 25% tariff on all Canadian wheat imports. As a result, U.S. Flour Co. must pay an additional $250,000 in tariff duties to U.S. Customs and Border Protection before the wheat can clear customs. This increases the total cost of the imported wheat to $1.25 million, which U.S. Flour Co. may either absorb or pass on to consumers through higher prices.
What is the Purpose of Tariffs?
The U.S. imposes tariffs for several key reasons, each serving different economic, political, and strategic objectives. These include:
1. Protecting Domestic Industries
Tariffs make imported goods more expensive, helping domestic producers compete with foreign competitors. This protection is particularly useful in industries where lower-cost imports might otherwise drive U.S. companies out of business.
2. Generating Government Revenue
Historically, tariffs were a primary source of federal revenue before the income tax was established. While less significant today, tariff revenues still contribute to the U.S. Treasury’s general fund and help finance government operations.
3. Addressing Trade Imbalances
By making imports more expensive, tariffs can reduce reliance on foreign goods and encourage domestic production. This can help address trade deficits by limiting the amount of money flowing out of the U.S. to pay for imports.
4. Retaliating Against Unfair Trade Practices
Tariffs are often used as a tool to respond to unfair trade practices, such as subsidies, dumping (selling goods below market value), or intellectual property theft by foreign nations.
5. Protecting National Security
Certain tariffs are imposed to safeguard industries critical to national security, such as steel, aluminum, and semiconductor manufacturing.
6. Strengthening Foreign Policy and Diplomacy
Tariffs can be used as a foreign policy tool to pressure other countries into trade negotiations or compliance with international agreements. They can also serve as leverage in broader geopolitical strategies.
What is the Legal Authority to Impose Tariffs?
The power to impose tariffs in the United States originates from the U.S. Constitution. Specifically, Article I, Section 8, Clause 1 grants Congress the authority "to lay and collect Taxes, Duties, Imposts and Excises." Additionally, Clause 3 of the same section, known as the Commerce Clause, gives Congress the power to "regulate Commerce with foreign Nations."
While Congress has the constitutional authority to impose tariffs, it has delegated much of this power to the executive branch through legislation. Several key laws provide the legal foundation for U.S. tariff policy:
- The Tariff Act of 1930 (Smoot-Hawley Tariff Act) – This law, originally designed to protect American industries during the Great Depression, set high tariff rates on many imported goods. Although many of its tariffs have been reduced over time, the law remains a foundation for U.S. trade policy.
- Section 232 of the Trade Expansion Act of 1962 – This law allows the President to impose tariffs on imports that threaten national security.
- The Trade Act of 1974 – This legislation provides the President with the ability to negotiate trade agreements and adjust tariffs, particularly in cases involving unfair trade practices by foreign nations.
So, while the authority to impose tariffs is exclusive to Congress in the Constitution, Congress has ceded at least some of its power to the President.
Conclusion
Tariffs play a significant role in U.S. trade policy, serving as tools for economic protection, revenue generation, and international diplomacy. While they can shield domestic industries and address unfair trade practices, they also have broader consequences, such as higher consumer prices and potential trade disputes. Understanding the legal framework behind tariffs helps clarify how and why they are implemented.
As we continue our Principles of Government series, we will explore more fundamental legal concepts that shape national and global policy, providing you with the knowledge to assess their impacts for yourself.
Tags: tariffs, principles of government
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We're building a forum for professionals who meet a critical need: helping farm operations transition to the next generation. The second annual Cultivating Connections Conference is for attorneys, tax professionals, appraisers, financial planners, educators and others who work in farm transition planning. The conference is an opportunity to discuss laws, consider new tools, analyze planning strategies, work through a case study, and meet other professionals. If farm transition planning is what you do, we hope you'll join us for the conference in Cincinnati, Ohio on August 5 and 6. For those who want to attend but can't travel, we also provide a virtual attendance option.
Cultivating Connections Conference highlights include:
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Timely topics. Sessions include preparing for the 2025 tax sunset, utilizing business entity discounts, understanding rural appraisals, drafting prenuptial agreements, divorce impacts on transition planning, implementing the estate plan and estate tax return, communication strategies, organizing client information, and ethical issues in farm transition planning.
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Expert speakers. A faculty of experienced attorneys, accountants, academics, and appraisers will share their knowledge and insights.
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Problem solving. A real-life case study will provide an opportunity for collaborative in-depth analysis of practical farm transition planning techniques, estate planning considerations, and tax implications.
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Relationships. Attendees can meet new peers, share experiences, and build relationships with a network of other farm transition professionals.
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Continuing education credits. We offer Continuing Legal Education credits for Ohio and Iowa, IRS Continuing Education credits, and assistance applying for credits in other states.
The University of Cincinnati College of Law is the site of this year's conference, hosted by the Ohio State University Agricultural and Resource Law Program. Conference co-sponsors are Iowa State University's Center for Agricultural Law and Taxation and the National Agricultural Law Center. The three institutions partnered on the inaugural conference last year, and have since formed the Association of Farm Transition Planners to continue supporting the nation's farm transition planning professionals.
The Cultivating Connections Conference agenda, list of speakers and registration are at https://go.osu.edu/cultivatingconnections. The website also highlights attractions and events for conference attendees, such as the nearby Cincinnati Zoo, Kings Island, the Newport Aquarium, and the Great American Ballpark, where the Cincinnati Reds will host the San Francisco Giants on August 4. Cincinnati is a prime location for those who want to combine farm transition learning with a little summer fun. We hope to see you there!
Tags: farm transition planning, Cultivating Connections, Estate Planning, succession planning
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I'm often asked how an attorney becomes an "agricultural attorney." The answer is simple: through knowledge. The best agricultural attorneys I know have two kinds of knowledge: they know agriculture, and they know the laws that affect agriculture. There are several upcoming events that can help attorneys and law students gain the legal knowledge required to be an agricultural attorney.
The National Agricultural Law Center is currently offering two opportunities for attorneys and law students:
- Research Fellowships for Law Students. NALC employs law students in their second and third years as Research Fellows who help conduct legal research and writing projects. It's an outstanding opportunity to gain research experience and access to the world of agricultural law. As a partner of the NALC, our OSU Agricultural & Resource Law Program usually has one or two NALC Research Fellows working with us. For the upcoming term, specific research topics for NALC Research Fellows might include but are not limited to food safety and food labeling; environmental regulation of agriculture; agricultural finance and credit; other relevant issues such as agricultural data and technology, land use, farm programs, local and regional food systems and agricultural labor; and legal issues of importance to underserved populations, including BIPOC, such as heirs property, access to credit, environmental law/justice and food system equity. Interested law students must act quickly, as the fellowship applications are due April 5, 2024. Application information is available on the National Agricultural Law Center website.
- Agricultural & Environmental Law Conferences. NALC is hosting two legal conferences this June: the Mid-South Agricultural & Environmental Conference in Memphis, Tennessee on June 6-7 and the Western Agricultural & Environmental Law Conference on June 13-14. We've attended the NALC conferences, and they're excellent learning experiences that cover the breadth of topics we face in agricultural law. The conferences also allow attendees to interact with speakers and other attorneys from around the country, and law students are welcomed. Registration is now open for both conferences and is available on the National Agricultural Law Center website.
Two additional opportunities for agricultural attorneys and law students are on the horizon, and include:
- The Cultivating Connections Conference. Our program here at OSU, in partnership with Iowa State University's Center for Agricultural Law and Taxation and the National Agricultural Law Center, is planning to host the second annual Cultivating Connections Conference for attorneys, accountants, appraisers, financial planners, and other professionals interested in farm transition planning. We welcome law students and other young professionals to join us. The conference will be in Cincinnati, Ohio on August 4 and 5, and registration will soon be available on our Farm Office website.
- The AALA Annual Educational Symposium. The American Agricultural Law Association (AALA) will host its annual conference on November 7- 9 in Memphis, Tennessee. The AALA also includes law students in its conference, and offers several activities for the students. The AALA is currently accepting presentation proposals for the conference and registration will open later this Spring on the AALA website.
If you are or want to be in agricultural law, don't miss out on these opportunities to gain the critical knowledge necessary to be an agricultural attorney. Agriculture needs you!
Tags: Agricultural Law, agricultural attorneys, legal education
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Agricultural & Natural Resources Income Tax Issues Webinar
Barry Ward, Director, Income Tax Schools at The Ohio State University
Jeff Lewis, Income Tax Schools at The Ohio State University
Tax practitioners, farmers, and farmland owners are encouraged to connect to the Agricultural and Natural Resources Income Tax Issues Webinar (via Zoom) on December 13 from 8:45 a.m. to 3:20 p.m. The event is sponsored by Income Tax Schools at The Ohio State University.
The webinar focuses on issues specific to farm tax returns related to agriculture and natural resources and will highlight timely topics and new regulations.
The program is an intermediate-level course for tax preparers whose clients include farmers and rural landowners. Farmers who prepare and file their own taxes will also benefit from the webinar.
Tentative topics to be covered during the Ag Tax Issues webinar include:
- Timely Tax Issues Facing Agricultural Producers
- Employee vs Independent Contractor
- Cost-Sharing Exclusion
- Farm Trade or Business
- Farming S Corporations
- Timber Taxation
- Legislative and Regulatory Update
- Form 1099s Requirements for Farmers and Ranchers
- Tax Schemes Targeting the Farm
- Tax Issues Arriving at the Death of a Farmer
- Ohio Tax Update
Other chapters included in the workbook not included in the webinar includes: Material Participation Rules for Farmers, Ranchers and Landowners, Livestock Tax Issues, Depreciating and Expensing Farm Assets, Sale and Exchange of Farm Property, Sample Tax Return.
The cost for the one-day school is $180 if registered by November 29th. After November 29th, the registration increases to $230. Additionally, the course has been approved for the following continuing education credits:
• Accountancy Board of Ohio, CPAs (6 hours)
• Office of Professional Responsibility, IRS (6 hours)
• Supreme Court of Ohio, Attorneys (5 hours)
Registration includes the Agricultural Tax Issues Workbook. Early registration (at least two weeks prior to the webinar) guarantees that you’ll receive a workbook prior to the webinar.
The live webinar will also feature options for interaction and the ability to ask questions about the presented material.
More information on the workshop, including how to register, can be found at: https://farmoffice.osu.edu/tax/2023-ag-tax-issues-webinar
Contact Barry Ward at ward.8@osu.edu or Jeff Lewis at lewis.1459@osu.edu
Tags: tax, Ag Tax, Farm Tax, labor law, tax law, Farm Business
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Income Tax Schools 2023
OSU Extension Announces Two-Day Tax Schools for Tax Practitioners &
Agricultural & Natural Resources Income Tax Issues Webinar
Barry Ward & Jeff Lewis, OSU Income Tax Schools
Tax provisions related to new legislation as well as issues related to trusts and estates, retirement, sales of business property, and income for both individuals and businesses are among the topics to be discussed during the upcoming Tax School workshop series offered throughout Ohio in October, November, and December.
The annual series is designed to help tax preparers learn about federal tax law changes and updates for this year as well as learn more about issues they may encounter when filing individual and small business 2023 tax returns.
The tax schools are intermediate-level courses that focus on interpreting tax regulations and changes in tax law to help tax preparers, accountants, financial planners and attorneys advise their clients. The schools offer continuing education credit for certified public accountants, enrolled agents, attorneys, annual filing season preparers and certified financial planners.
Our instructors are what make the difference in our program. Most have been teaching OSU tax schools for over 20 years and make themselves available long after the class to make sure attendees get through the tax filing season.
Attendees also receive a class workbook that alone is an extremely valuable reference as it offers over 600 pages of material including helpful tables and examples that will be valuable to practitioners. Summaries of the chapters in this year’s workbook can be viewed by visiting:
2023 National Income Tax Workbook Topics
A sample chapter from a past workbook can be found at:
https://taxworkbook.com/about-the-tax-workbook/
This year, OSU Income Tax Schools will offer both in-person schools and an online virtual school presented over the course of four afternoons.
In-person schools:
October 26-27, Ole Zim’s Wagon Shed, Gibsonburg/Fremont
October 30-31, Presidential Banquet Center, Kettering/Dayton
November 2-3, Old Barn Restaurant & Grill, Lima
November 7-8, Muskingum County Conference and Welcome Center, Zanesville
November 16-17, Hartville Kitchen, Hartville
November 20-21, Ashland University, John C. Meyers Convocation Center, Ashland
November 28-29, Nationwide & Ohio Farm Bureau 4-H Center, Columbus
Virtual On-Line School presented via Zoom:
December 1, 4, 6, & 8, 12:30 – 4:45 p.m.
Register two weeks prior to the school date and receive the two-day tax school early-bird registration fee of $425. This includes all materials, lunches, and refreshments. The deadline to enroll is 10 business days prior to the date of each school. After the school deadline, the fee increases to $475.
Additionally, the 2023 Checkpoint Federal Tax Handbook is available to purchase by participants for a discounted fee of $70 each. Registration information and the online registration portal can be found online at: https://go.osu.edu/tax2023
In addition to the tax schools, the program offers a separate, two-hour ethics webinar that will broadcast Monday, December 11th at 1 p.m. The webinar is $25 for school attendees and $50 for non-attendees and is approved by the IRS and the Ohio Accountancy Board for continuing education credit.
A webinar on Ag Tax Issues will be held Wednesday, December 13th from 8:45 a.m. to 3:20 p.m. If you are a tax practitioner that represents farmers or rural landowners or are a farmer or farmland owner that prepares your own taxes, this five-hour webinar is for you. It will focus on key topics and new legislation related specifically to those income tax returns.
Registration, which includes the Ag Tax Issues workbook, is $180 if registered at least two weeks prior to the webinar. After November 29, registration is $230. Register by visiting: https://go.osu.edu/tax2023.
NEW! Introduction to Tax Preparation Course.
New this year, we are offering an introduction to tax preparation course. Our instructors are highly qualified tax professionals presenting a real-world approach to tax preparation. This course is designed for professionals with 0-5 years of experience and seeks to help build a foundation for which all tax professionals can continue to build off of. To read more about our introductory course and the topics covered visit, https://farmoffice.osu.edu/tax/new-introduction-tax-preparation-course.
The introductory course will be held on November 13th and 14th at the Der Dutchman in Bellville, Ohio. The course has been approved for continuing education credits by the IRS, the Ohio Accountancy Board, and the Ohio Supreme Court. Registration is $425 prior to October 30th. Registration fees increase to $475 beginning November 1st. Registration includes a 300+ page workbook created by our instructors to help you throughout the beginning of your career!
Contact Barry Ward at 614-688-3959, ward.8@osu.edu or Jeff Lewis at 614-247-1720, lewis.1459@osu.edu for more information.
Sixty-six undergraduate students just completed our Agribusiness Law class in the College of Food, Agricultural, and Environmental Sciences at OSU yesterday. It’s always a challenge to teach students all I want them to know about agricultural law in the short time I have with them. And it always generates excitement and relief when I can see that they have learned.
In one assignment this semester, students had to consider the property laws we studied and devise three “real life” questions about the laws. Next, they had to write the answers to the questions they drafted. The legal accuracy of their answers is important, of course, and illustrates their comprehension of the laws we studied. But selecting and writing the questions is equally important, as students must predict when and how the law would apply in a “real world” situation they might encounter.
Many of the student works showed that learning had certainly taken place this semester. And some of their questions were so insightful and relevant that they should also be useful in the “real world.” Below are excellent questions and answers from four students. They illustrate what the students learned, but they will likely be helpful for our readers, too. Take a look at what our students are asking and answering about agricultural property laws!
Question 1 comes from Katie Anderholm, a senior from Medina, Ohio majoring in Agribusiness and Applied Economics.
Q: Am I at risk to be sued from my new neighbors who keep complaining about my cows?
A: A farmer is not as risk to be sued, or at least rightfully sued, by their new neighbors because of the Ohio Revised Code 929.04 and 3767.13. Both codes, the Right to Farm defense to civil action for nuisance and Ohio’s “Statutory Nuisance” Law, protect farmers and their operations from complaints regarding farming. The farmer’s neighbors who have been complaining about his cows do not have a strong argument for legal action because the agricultural activities were established before they moved adjacent to the farm. If the farmer is following proper animal care and manure handling and the neighbors moved after the farming began, then the neighbors will not have merit for a civil action. I would advise the farmer to have a conversation with the neighbors to ease tensions and explain that they knowingly moved next to a cattle operation and that there are certain things that come with that. I have learned that people who are not involved in agriculture in their everyday life to not understand the fundamentals, and sometimes education and consideration can go a long way.
Question 2 is from Cori Lee, a senior from Marysville, Ohio, graduating this May with a major in Sustainable Plant Systems Agronomy and a minor in Agribusiness.
Q: Two siblings own ground that was passed on to them by their parents, where one farms, and the other one has no interest in farming. Can one sibling sell the land, even if the other one does not want to? What can be done to prevent losing the ground?
Yes, as co-owners, one sibling can sell their share of the land, even if the other sibling disagrees and is actively using the land for income and farming. This would force the other sibling to either also sell their share of the land or buy the other sibling out. This is explained in Section 5307.01 of the Ohio Revised Code, the partition law. Whether it is considered a “Tenancy in Common” or “Survivorship Tenancy”, they are both subject to partition. The partition process is also explained in Chapter 5307, and is often lengthy and can ultimately result in both owners being forced to sell the land. However, placing the land in an LLC can prevent this situation, as it would remove partition rights completely and the LLC would be treated as the sole owner of the land. This also provides other opportunities to have more control over how the land could be sold and allow terms to be set to buy out other LLC members. In order to avoid a scenario like this, landowners should carefully plan the transition of their estate to avoid any costly mistakes for the next generation.
Question 3 is by Kole Vollrath, a senior from South Charleston, Ohio majoring in Construction Systems Management.
Q: I own a field and the state has contacted me seeking eminent domain for a roadway that they are planning to build cutting directly through my field. I am new to this sort of action and I am wondering what the proper actions will be in this case?
A: Ohio Revised Code Chapter 163 is the eminent domain law that contains the four required procedures the taking entity (the state in this situation) must provide to the landowner. The first is the notice which you have already received, followed by a “just compensation” offer for the land in question, then appraisal of the property, and then finally a hearing in court to decide on or stop the taking if you don't agree to the offer. In the situation of a road as in this case, it is hard to stop the taking, so the fourth option will likely be more about getting fair money out of the deal rather than stopping construction completely. The reason that it will be hard to stop a road construction is because of Ohio Constitution Article 1 Section 19. This explains that eminent domain is allowed to happen when it is for a valid public use of the property, and since this is a road, it will be hard to argue that is not valid. However, it can still be beneficial to the landowner to hold strong in steps 2 and 3 and get an appraisal, then go to court and try to extract fair money for yourself out of the situation.
Question 4 is from Lyndie Williams, a senior from Bucyrus, Ohio majoring in Agribusiness and Applied Economics.
Q: Can I be held accountable for damage to a neighbor’s property that they claim is due to water drainage from my property?
A: In short, yes it is possible to be held accountable for damage to a neighbor’s property if it was caused by water drainage from your property, but not always. While every property owner has the right to reasonably use their land, including water flow and drainage, there can be consequences of this if harm is caused to others. First, determining what is “reasonable” for water drainage when evaluating harm to another is necessary. Courts will look at four factors when determining reasonable drainage: utility of the use, gravity of the harm, practicality of avoiding the harm, and justice. If your purpose for drainage is valid, the harm caused by drainage use is not overly detrimental to others, it is impractical to use an alternative form of drainage, and it is not unfair to require other landowners to bear losses caused by your drainage, then you would not likely be held accountable for damage to their property due to water drainage from your property. However, if some or all of these “reasonable” requirements are not met, then you would need to look into drainage problem resolutions, as you could be accountable for their damages. Drainage problem resolutions include voluntary fix, drainage improvement projects, drainage easements, and litigation. For example, one drainage problem resolution is a drainage easement which is in writing, recorded, and involves an attorney. In a drainage easement you would pay the neighboring landowner for the right to drain your water onto their property for the damages they will incur as a result. Drainage easements are usually perpetual but can be termed and include access and maintenance rights and responsibilities for the easement holder.
Tags: property law, nuisance, Partition, drainage, eminent domain
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Most of us, at some point, will need the services of an attorney. Attorneys seem to be ubiquitous in our society with almost everyone having some idea of what an attorney is or what an attorney does. However, many people may not know what it takes to become an attorney. Understanding the process to become an attorney may help us better understand the legal profession and in turn allow us to make a more informed decision when we need to retain an attorney’s services. The following is a brief summary of the process to become an attorney.
The first step on the path to becoming an attorney is to obtain a four-year undergraduate degree. An undergraduate degree is a minimum requirement to attend law school. Many people who plan to go to law school will obtain an undergraduate degree in history, political science or English. These areas of study are thought to provide a good foundation for law school. However, applicants are accepted to law school with a wide variety of areas of study. From personal experience, law schools will accept an applicant with a B.S. in Dairy Science. Law schools like to have diversity in their student populations. An uncommon degree or atypical degree, like Dairy Science, can make the applicant more attractive by adding diversity to the law school.
There is an exception to the four-year degree requirement. Some law schools may allow someone who has completed 3 years of undergraduate work to complete their fourth year of an undergraduate degree by completing their first year of law school. This is known as the 3+3 program.
Earning a law degree is the next step. It typically takes three years to complete a law degree although some law schools offer a part-time program that takes four years to complete. In the first year or two, students are required to take core law classes such as contracts, constitutional law and criminal law. In the last year of law school, law students take elective courses that match with their interests. The degree awarded upon completing law school is a Juris Doctor (JD). It is possible to go beyond a JD and receive a master’s degree in law (LLM). LLMs are in a focused area of the law such as taxation or agricultural law.
In the last year of law school, students will begin the process of requesting permission to join the state bar. The Ohio Supreme Court oversees the admission of new attorneys. A part of the application process is a character fitness interview. The applicant will meet with two attorneys, usually in their county of residence. The two interviewing attorneys will evaluate whether the applicant has suitable qualities to be an attorney. The evaluation includes a review of prior criminal charges or citations, an analysis of financial stability and an assessment of a demeanor and temperament suitable to practice law. The character fitness review seeks to ensure that new attorneys have the requisite background and character to serve clients.
The next step is to pass a professional conduct exam. Each law student must take an exam that focuses on issues such as conflicts of interest and attorney/client privilege. The professional conduct exam in Ohio is a multiple-choice exam.
After receiving a law degree, passing the character fitness review and successfully completing the professional conduct exam, the law student takes the bar exam. This notorious exam is two days long. Part of the test is multiple choice and part is a written test. The bar exam must be passed before becoming an attorney in Ohio. The exam is taken in person and is available in February and July of every year. The passage rate for the July, 2022 bar exam was 72% for all takers and 80% for first time takers. To put this in perspective, 20% of the people who spent three years in law school and passed all the other requirements were not permitted to be attorneys because they did not pass the bar exam. The bar exam can be taken as many times as needed to pass. Failing a bar exam does not mean the person can never be an attorney, it just means they need to take the bar exam until passed. Upon passing the bar exam, new attorneys are sworn in by a justice of the Ohio Supreme Court.
Becoming an attorney is a long process taking at least seven years of school in total. Law schools ensure each new attorney has achieved certain academic standards and the Ohio Supreme Court confirms that every new attorney has some level of competence in the law and has the character fitness to assist clients in their legal endeavors. The next time you hire an attorney, you can be assured that the attorney has met the academic requirements of a law school and the competency and character fitness requirements of the Ohio Supreme Court.
Barry Ward & Julie Strawser, OSU Income Tax Schools
Dealing with the tax provisions of the COVID-related legislation for both individuals and businesses are among the topics to be discussed during the upcoming Tax School workshop series offered throughout Ohio in November and December.
The annual series is designed to help tax preparers learn about federal tax law changes and updates for this year as well as learn more about issues they may encounter when filing individual and small business 2021 tax returns.
OSU Income Tax Schools are intermediate-level courses that focus on interpreting tax regulations and changes in tax law to help tax preparers, accountants, financial planners and attorneys advise their clients. The schools offer continuing education credit for certified public accountants, enrolled agents, attorneys, annual filing season preparers and certified financial planners.
Attendees also receive a class workbook that alone is an extremely valuable reference as it offers over 600 pages of material including helpful tables and examples that will be valuable to practitioners. Summaries of the chapters in this year’s workbook can be viewed at this site:
https://farmoffice.osu.edu/tax/2021-tax-school-chapters
A sample chapter from a past workbook can be found at:
https://taxworkbook.com/about-the-tax-workbook/
This year, OSU Income Tax Schools will offer both in-person schools and an online virtual school presented over the course of four afternoons.
In-person schools:
November 1-2, Presidential Banquet Center, Kettering/Dayton
November 3-4, Ole Zim’s Wagon Shed, Gibsonburg/Fremont
November 17-18, Ashland University John C. Meyer Convocation Center, Ashland
November 22-23, Christopher Conference Center, Chillicothe
November 29-30, Zane State/Ohio University Zanesville Campus, Zanesville
December 2-3, Nationwide & Ohio Farm Bureau 4-H Center, OSU Campus, Columbus
December 6-7, Hartville Kitchen, Hartville
Virtual On-Line School presented via Zoom:
November 8, 12, 15 & 19, 12:30 – 4:45 p.m.
Register two weeks prior to the school date and receive the two-day tax school early-bird registration fee of $400. This includes all materials, lunches and refreshments. The deadline to enroll is 10 business days prior to the date of each school. After the school deadline, the fee increases to $450.
Additionally, the 2022 RIA Federal Tax Handbook is available to purchase by participants for a discounted fee of $50 each. Registration information and the online registration portal can be found online at:
In addition to the tax schools, the program offers a separate, two-hour ethics webinar that will broadcast Wednesday, Dec. 15 at 1 p.m. The webinar is $25 for school attendees and $50 for non-attendees and is approved by the IRS and the Ohio Accountancy Board for continuing education credit.
A webinar on Ag Tax Issues will be held Monday, Dec. 13 from 8:45 a.m. to 3:20 p.m.
If you are a tax practitioner that represents farmers or rural landowners or are a farmer or farmland owner that prepares your own taxes, this five-hour webinar is for you. It will focus on key topics and new legislation related specifically to those income tax returns.
Registration, which includes the Ag Tax Issues workbook, is $150 if registered at least two weeks prior to the webinar. After November 29, registration is $200. Register by mail or on-line at https://go.osu.edu/agissues2021.
Participants may contact Ward at 614-688-3959, ward.8@osu.edu or Julie Strawser 614-292-2433, strawser.35@osu.edu for more information.
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