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ScreenShotPg1 Ohio State University Extension and the Ohio State Bar Association will again partner to host the fifth annual Ohio Agricultural Law Symposium on June 23 and 24, 2013.

The focus of this year's program is representing Ohio's farm and agri-business clients.  Two nationally respected  practitioners will teach for the Symposium.   Allen Olson from Albany, Georgia, who has farm clients throughout the southern states, will provide guidance on representing farmers in crop insurance disputes and will also share his outlook on federal farm bill policies.   Cari Rincker of Rincker Law Office in New York, NY,  whose client base is spread around the country, will speak on protecting the farm client’s business by managing contracts, intellectual property and employment concerns.

The program will also include Ohio legal experts on labor, trucking, food safety and estate and business planning.   Leah Curtis from Ohio Farm Bureau and Roxi Liming with Adams, Liming & Hockenberry, LLC in Columbus will use a case study approach to discuss advising farm clients on trucking and labor regulations.   Russell Cunningham and Jeff Easterday of Barrett, Easterday, Cunningham & Eselgroth, LLP will present on estate and business planning for farm clients, and advising clients on recent food safety regulations will be presented by our own OSU Extension Agricultural & Resource Law Program.  An update from the Ohio Department of Agriculture will feature Deputy Director John Schlichter.

New this year are changes to the location and timing of the Symposium.  The  conference will be held at Cherry Valley Lodge near Newark, Ohio, and will begin on Sunday evening with a bonus 2.5 hour CLE session on Ethics, Professional Responsibility, and Substance Abuse.   Ethics and substance abuse topics will be delivered via video replay and speakers Allen Olson and Cari Rincker will cover the professionalism component with strategies for developing and retaining farm and agri-business clients.  The Sunday session will conclude with a social reception. Also new this year, the Ohio State Bar Association Agricultural Law Committee will meet on Monday morning.

Law students interested in attending the Symposium may apply for student scholarships provided by the Paul L. Wright Chair in Agricultural Law Endowment Fund at Ohio State.  Contact Peggy Hall at farmoffice.osu.edu for scholarship information.

To register for the Symposium, visit the Ohio State Bar Association Continuing Legal Education website at www.ohiobar.org. View the complete Symposium brochure on the OSU Extension Agricultural & Resource Law website.

Posted In: Legal Education
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SPCC Rule will not be enforced against farms until September of 2013

Peggy Kirk Hall, Asst. Professor, OSU Extension Agricultural & Resource Law Program

Many farms are scrambling to meet the upcoming May 10, 2013, deadline for having an oil spill containment plan (SPCC plan) as required by EPA regulations,  but Congress has quietly delayed the U.S. EPA's ability to enforce the regulation.   Amendment 29 to the recently enacted funding bill, H.R. 933, states that the U.S. EPA may not use any of its funds to enforce the SPCC rule against farms for a period of 180 days, until after September 26, 2013.

The purpose of the U.S. EPA's Spill Prevention Control and Countermeasures (SPCC) program is to help facilities and farms prevent a discharge of oil into navigable waterways.  Program regulations affect farms that store more than 1,320 gallons of oil or oil products in aboveground containers or more than 42,000 gallons in completely buried containers--those farms are required to develop, maintain and implement an oil spill prevention plan by May 10, 2013.

The recent action by Congress, however, prevents the EPA from enforcing the plan until late September.  In the meantime, congressional efforts will focus on revising the SPCC rule as it applies to farm SPCC plans.  Senator Inhofe (OK), who sponsored the amendment to delay enforcement, has already co-sponsored a bill (S. 496)  with Senators Pryor (AR) and Boozman (AR) to provide more exemptions for small farms and help farms reduce compliance costs.

What should farmers do now about SPCC plans?  The future of the SPCC rule is uncertain, but we do know that the current deadline of May 10 can't be enforced by the EPA.  Farmers who are currently subject to the regulation must decide whether to proceed with compliance and be prepared for a possible September deadline, or wait and see if Congress changes SPCC requirements before the end of September.  If a farmer is subject to an attempted enforcement action after the May 10 deadline, contact legal counsel right away.  For those who have already developed SPCC plans, be assured that the plan may still be required in the future and could also be a useful tool for  reacting to an oil spill that could contaminate a waterway and reducing your environmental liability risk.   For more information about the SPCC rule, visit here.

Posted In: Environmental, Property
Tags: farm oil spill plans, SPCC plan
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Peggy Kirk Hall, Asst. Professor, OSU Extension Agricultural & Resource Law

It’s the time of year when farmers clear fields and fence rows of corn stalks, branches and other debris and use a common management practice--piling the debris and burning it in the field.  Because outdoor fires such as this create air emissions and wildfire concerns, Ohio has laws that regulate open burning activities.   Burning certain materials at certain times in certain places may violate the open burning laws and cause a health or safety issue.  It’s important to know when open burning of crop debris and field residue is permissible, and to take precautions to minimize risk and liability.

There are several areas of law in Ohio that address open burning.  The Ohio Environmental Protection Agency (OEPA) oversees regulations on the open burning of materials that may produce harmful air emissions that affect human and environmental health.  Ohio also has laws that regulate open burning to minimize the danger of wildfires; these laws may be enforced by the Ohio Department of Natural Resources (ODNR) Division of Forestry or local law officials.   Additionally, a local government might have local ordinances that regulate open burning.

In regards to crop debris in farm fields, it is typically permissible for a farmer to burn the debris.  However, the law creates duties to conduct the burn responsibly and imposes some conditions on what, where and when to burn.  Violating the laws can lead to criminal charges, fines and civil liability to harmed parties.

What can you burn?

Ohio law allows the burning of “agricultural wastes” under certain conditions.  The definition of agricultural waste includes materials such as crop debris, as well as other materials.   According to Ohio law, agricultural waste includes:

  • Waste material generated by crop, horticultural, or livestock production practices, landscape wastes that are generated in agricultural activities and woody debris and plant matter from stream flooding.
  • Bags, cartons, structural materials and containers for pesticides, insecticides, fungicides, rodenticides, miticides, nematocides, fumigants, herbicides, seed disinfectants and defoliants, if the manufacturer has identified open burning as a safe disposal procedure.  Farmers may add seed bags and cartons to the burn pile as long as the label states that open burning of the materials is safe.

Agricultural waste does not include:

  • Standing or fallen buildings, building materials, food waste, dead animals, materials made from petroleum or containing plastic, rubber, grease or asphalt.   A farmer may not add these materials to the burn pile.
  • Debris resulting from the clearing of land for new agricultural, residential, commercial or industrial development—this type of waste is defined as “land clearing waste.”  Open burning of land clearing waste requires prior written notification to Ohio EPA.

Where can you burn?

Several regulations determine acceptable locations for burning crop debris and other agricultural waste:

  • Agricultural waste may only be burned on the property where the waste is generated; the waste may not be taken to a different property for burning and a farmer cannot receive and burn waste from another property.
  • If the burning is inside a “restricted area,” then prior written notice to Ohio EPA must be provided at least ten days in advance of the burning.  A “restricted area” is an area where there is higher population density.  The law defines a restricted area as:
    • Any area inside city or village limits.
    • Any area within the 1,000-foot zone outside of a city or village with a population of 1,000 to 10,000.
    • Any area within a one-mile zone outside of a city or village with a population of more than 10,000.
    • The fire must occur in a location where it will not obscure visibility for roadways, railroad tracks or air fields.
    • The fire must be more than 1,000 feet from any neighboring building inhabited by people, such as homes, stores, restaurants, schools, etc.

When can you burn?

There are definite times when burning of crop debris and other agricultural waste is not permitted unless certain conditions are met.

  • Ohio’s wildfire laws limit open burning in rural areas during the months of March, April, May, October and November, when wildfire risk is highest due to dry vegetative conditions and dry winds.  During these months, open burning in rural areas is completely prohibited between the hours of 6 a.m. and 6 p.m., when volunteer fire departments are not well-staffed.  An exception to this prohibition applies to farmers under the following conditions:
    • Open burning may occur in a plowed field or garden, if the burn pile is at least 200 feet from any woodland, brush land or field containing dry grass or other flammable material.  If a farmer can’t meet this 200 foot buffer zone requirement, the farmer should wait until after 6 p.m. to conduct the burn.
    • Open burning should only occur when atmospheric conditions will readily dissipate any smoke and potential contaminants.  If weather conditions are foggy, rainy or causing air inversions, smoke and contaminants will not readily disperse and the farmer should not burn the materials.
    • Even if all other legal requirements for open burning are met, open burning is not allowed when air pollution warnings, alerts or emergencies are in effect.

What about prescribed burning?

Both the ODNR and Ohio EPA have authority over prescribed burning—intentional burns for horticultural, silvicultural, range or wildlife management practices.  Prescribed burning requires prior written permission from Ohio EPA and--if taking place during March, April, May, October or November--the burn must be conducted by a Certified Prescribed Fire Manager with permission by the Chief of ODNR’s Division of Forestry.  See the Division of Forestry’s website for more information on becoming a Certified Prescribed Fire Manager and requesting permission for prescribed burns.

Prior notice to Ohio EPA

For burns that require advance notice to the Ohio EPA, farmers may use the notification form on the Ohio EPA website at http://www.epa.ohio.gov/dapc/general/openburning.  The form seeks information about what will be burned and when and where the burn will take place; this allows the EPA to ensure that the burn is permissible.

Legal duties for conducting open burning

Ohio law also imposes duties for managing open burns.   Ohio Revised Code 1503.18 establishes a duty to prevent fire escape.   The law requires any person who starts a fire near trees, woodland or brush land to take steps to prevent the fire from escaping.  All leaves, grass, wood and inflammable material surrounding the place must be removed to a safe distance and all other reasonable precautions must be taken to keep the fire under control.   The law also states that a person should extinguish or safely cover an open fire before leaving the area.

Ohio EPA’s regulations impose several other duties for managing burns.  As mentioned above, burning of agricultural waste should take place at least 1,000 feet from any neighbor’s inhabited buildings. The wastes should be stacked and dried to provide the best practicable condition for efficient burning and weather conditions should not prevent dispersion of the smoke and emissions.  If the size of an agricultural waste pile exceeds 20 feet in diameter by 10 feet in height (or 4,000 cubic feet),  the farmer must provide written notification of the burn to the Ohio EPA at least ten days before burning.

Local laws

The above analysis explains Ohio’s laws on open burning; remember that the local government might have a local law that also regulates burning activities.  Check with your local fire department to know whether any local regulations apply to the situation.

What if a farmer violates open burning laws?

Violation of the open burning laws creates several risks for farmers.  Ohio EPA has the authority to issue fines of up to $1,000 per day per offense.  The EPA states that it takes enforcement action against repeat offenders or violations that cause significant harmful emissions.  Otherwise, EPA enforcement officers prefer to issue warnings to first-time offenders and educate on how to conduct open burns that minimize pollution impacts.  EPA enforcement officers regularly patrol their districts, investigate fires they see and investigate complaints from neighbors or others who report burning activities.  According to the EPA, the most common violations by farmers include burning substances that are not “agricultural wastes” such as tires and plastics, failing to meet the 1,000 foot setback requirement and burning waste from another property.

Conducting open burns that violate Ohio’s wildfire prevention laws can result in third degree misdemeanor charges, which carry penalties of up to $500 and 60 days of jail time per violation.   Any person may report a potential illegal burn that creates wildfire risks to the local law enforcement or Division of Forestry.

Equally and perhaps more important is the risk of civil liability from an open burning incident.  We all know that the “burn police” can’t observe everyone all the time, but civil liability doesn’t require intensive monitoring—it requires harm.  Where an open burn causes harm to people or property, civil liability may arise.  An open burn that reduces roadway visibility and results in an auto accident, escapes the property and harms neighbors or neighboring property or significantly interferes with other owners’ property use could result in a negligence or nuisance lawsuit.  The farmer who violated open burning laws or failed to properly manage the fire could be liable for all harm resulting from the fire.

For more information on Ohio’s open burning laws, visit the websites of the Ohio EPA Division of Air Pollution Control and ODNR Division of Forestry.

Catharine Daniels, Attorney, OSUE Extension Agricultural & Resource Law Program

With the arrival of spring, many agricultural businesses may be looking to hire additional employees. Before putting those new employees to work, employers should take time to ensure a "legal" workforce.  One important step is following the Form I-9 Employment Eligibility Verification process.  And with the recent release of a new Form I-9, close attention to Form I-9 compliance is extremely important.

What is the purpose of Form I-9?  The form aims to verify the identity and employment of every person hired to perform labor or services in return for wages or for anything of value that is given in exchange for labor or services, including food and lodging.

Why worry about Form I-9?  Because correct completion of Form I-9 is both a legal mandate and a legal defense.  Federal law requires every employer to complete an I-9 form upon hiring an employee.    Filling out the form is not optional.  Even if the employer knows the new employee, knows of the employee or knows the employee's family--the employer must do a Form I-9 for the employee.    Once properly completed, a Form I-9 is the employer's defense against a potential claim of knowingly employing an unauthorized worker.

How does an employer complete Form I-9?  Form I-9 compliance requires completion of three sections, as follows:

  • Employers must have every newly hired employee complete Section 1 of the form no later than the first day of work for pay.  Section 1 requests personal employee information such as name, address, e-mail, phone number, date of birth and social security number and requires the employee to attest to his or her citizenship status.
  • No later than the third day of employment, the employer must complete and sign Section 2 of the form. Section 2 requires the employer to physically examine documentation presented by the employee showing identity and employment authorization.    There are three lists of acceptable documents; employees may present one document from List A or a combination of one document from List B and one document from List C.  Examples of documents include U.S. passports, driver's licenses, social security cards and employment authorization from the Department of Homeland Security.
  • Section 3 applies to re-verification and rehires.  An employer must complete Section 3 only if the employee is not a U.S. citizen or lawful permanent resident and his or her employment authorization documentation has expired.  An employer may complete Section 3 for employees rehired within three years of the date that a Form I-9 was originally completed, or the employer  may choose to complete a new Form I-9 for the rehired employee.

What does an employer do with completed I-9 forms?  An employer must keep all completed  I-9 forms for all current employees and make the forms available to federal officials in the event of an inspection.  An employer must keep I-9 records for a certain period of time after employees stop working.  This period of time varies; the government provides a chart to help employers identify the appropriate period of time.

Are there penalties for non-compliance?  Yes.  An employee may be subject to civil penalties for failing to properly complete, retain or make the I-9 forms available for inspection.

When is the new Form I-9 effective?  On March 8, 2013, a new Form I-9 was released with revisions. The revised Form I-9 is now two pages long, includes expanded instructions, and has new fields for e-mail addresses, phone number, and foreign passport. Employers should be using this revised form now, but may continue to use the previous Form I-9 until May 7, 2013.

The importance of document inspection.   To avoid liability, the employer should properly inspect the employee's documents.   The documents must reasonably appear to be genuine and relate to the person presenting them.  The employer's duty is to verify the documentation; the job of fully "investigating" whether the employee is authorized to work rests with U.S. Immigration Customs Enforcement.  If an employee provides a document that does not appear to be genuine or relate to the employee and the employee cannot present other documentation, then the employer may terminate employment.

Avoiding discrimination liability.  Employers should make sure they do not engage in any discriminatory practices when it comes to the Form I-9.  At the pre-hire stage, an employer may not ask an applicant their citizenship, nationality, immigration status, type of work authorization, or green card status. After hiring the employee, an employer may not request a particular document for the employee to provide to complete the Form I-9; it is the employee’s decision as to what documents they will provide. An employer also may not request more documents than what are required by Form I-9.   Such actions by the employer might result in a discrimination claim.

For complete information about I-9 compliance, check out the "Handbook for Employers - Guidance for Completing Form I-9" on the  U.S Citizenship and Immigration Services I-9 Central website.

Peggy Kirk Hall, Asst. Professor, OSU Extension Agricultural & Resource Law

Spring planting season brings increased agricultural traffic on Ohio's rural roads, including the use of All-Purpose Vehicles (APVs), All-Terrain Vehicles (ATVs),  Gators, Mules and other four-wheeled utility vehicles.   Laws on these vehicles have changed in recent years and there is still confusion over the new provisions.  Farmers who plan to use an APV, ATV or utility vehicle on the roadway for farm work  should take a few minutes to review the applicable laws and ensure compliance.    Consider these provisions of Ohio law:

  • Licensing and registration.  A license is not required for a "utility vehicle," which is a self-propelled vehicle with a bed designed for transporting materials, such as  a Gator or Mule.  A 2009 law required registration for APVs and ATVs, defined as "self-propelled vehicles designed primarily for cross-country travel"--but the law exempted  APVs and ATVs used for farming.  As long as used primarily for agricultural purposes and the owner qualifies for current agricultural use valuation (CAUV), the APV or ATV does not require registration or a license.  If stopped by law enforcement for failure to display registration, the farmer should explain that the vehicle is being used for agricultural purposes and the vehicle owner qualifies for CAUV.
  • Operating on roadways.   The local jurisdiction has authority over the operation of a utility vehicle, APV or ATV on or near roadways.  A farmer may operate one of these vehicles on a roadway and to travel from one farm field to another if the county sheriff (or township police, if applicable) allows it.  This requires the farmer to know whether the county or township allows APVs on the road.  We checked with several county sheriff offices and learned that each allows farm-use APVs and utility vehicles on the roadways as long as operated safely.  Ohio law provides guidance on safe operation for APVs in addition to ordinary traffic rules--the vehicle may not interfere with the movement of vehicular traffic approaching from any direction and the operator must yield the right-of-way to any approaching traffic that presents an immediate hazard.   If the local jurisdiction does not allow APVs on the road or the farmer is operating the vehicle in an unsafe manner, the farmer could receive a traffic citation.
  • Operating on berms or in rights-of-way.    A farmer may drive an APV or utility vehicle on the berm or shoulder of a roadway if the terrain permits such operation to be undertaken safely and without entering a traffic lane.   If the farmer cannot operate on the berm without entering a traffic lane, the farmer should operate entirely on the roadway.
  • Child operators.  A child who does not hold a driver's license may not operate an APV or utility vehicle on a roadway or on any portion of the right-of-way.  A child under the age of 16 may operate an APV on the family's farm, and may also operate on another's farm or private property if accompanied by a person who is at least 18 and holds a driver's license.
  • Other rules of operation.    Ohio law has several prohibitions regarding APV and utility vehicles.  A person may not operate the APV or utility vehicle on a limited access highway or its right-of-way,  on another's private property without permission, on land or waters controlled by the state except where permitted, on the tracks or right-of-way of an operating railroad, while transporting a firearm, bow, or other implement for hunting that is not unloaded and securely encased or for the purpose of chasing, pursuing, capturing, or killing an animal or wildfowl or during the time from sunset to sunrise, unless displaying lighted lights as required by4519.20 of the Revised Code.
  • Slow-moving vehicle emblems.    Farmers should be aware that there is confusion over whether an APV or utility vehicle must display a Slow-Moving Vehicle (SMV) emblem.  Ohio law requires display of an SMV emblem on any farm machinery designed for operation at 25 miles per hour or less and defines "farm machinery" as all machines and tools used in the production, harvesting and care of farm products, including farm trailers, agricultural tractors, threshing machinery, hay-baling machinery, corn shellers, hammermills, and machinery used in the production of horticultural, agricultural, and vegetable products.  But Ohio law also prohibits the use of an SMV emblem on any other vehicle.  Is an APV or utility vehicle a piece of "farm machinery" that requires an SMV, or a vehicle that should not display an SMV?  Because there is not a clear answer to this question, farmers should check with local law enforcement for its interpretation of the law.  While asking local law enforcement whether it allows farm-use APVs or utility vehicles on the roadways, also ask whether the vehicle must display an SMV sign.  Several of the law enforcement officers with whom we spoke stated that their county wanted farmers to display an SMV, but others may view that as a prohibited use of the SMV emblem.
  • Mud and manure.   Ohio law prohibits the placement of any earth,  mud, manure or other injurious materials on a public highway.  Farmers should take care to clean up the road if the APV or utility vehicle leaves mud, manure or other debris on the roadway.  Violation of the law may result in criminal misdemeanor charges as well as civil liability for accidents or injuries resulting from the road debris.
Posted In: Roadway Laws
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Fruit and Vegetable Producers Should Consider New Voluntary Approach to Food Safety Certification

Fruit and vegetable producers of all sizes now have the option of participating in a voluntary food safety certification program in Ohio.   The Ohio Produce Marketing Agreement (OPMA) offers producers food safety standards and an opportunity to attain food safety certification through third party inspections.   Born from growing concerns about fruit and vegetable contamination outbreaks, the OPMA takes an aggressive yet voluntary approach to addressing food safety risk. 

The OPMA is the first "agricultural marketing agreement" developed under a new law in Ohio.   The agricultural marketing agreement law allows agricultural commodities to create voluntary marketing programs to expand or improve the market for their commodity.   Marketing programs may promote the sale and use of products, develop new uses and markets for products; improve methods of distributing products to consumers or standardize the quality of products for specific uses.  To create a voluntary marketing program, the commodity group must obtain the approval of both the Ohio Department of Agriculture and producers within the commodity group.  A summary of the agricultural marketing agreement law is available here.    

The voluntary advisory board that governs OPMA is preparing the program for final approval, which should occur within the next few months.  Producers may begin participating in the program now, however.

OPMA offers producers three levels or "tiers" of food safety certification based on types and scale of produce sales.  All tiers require membership in OPMA, annual training and demonstration of the core food safety standards via an inspection.  The core standards address  water quality, inputs and composting, traceback and good handling practices.   A farm that completes the certification process may market itself as an OPMA certified farm and use the OPMA logo for marketing purposes.   

While OPMA will certainly provide marketing advantages, fruit and vegetable producers should consider the  program's legal benefits.  Adopting the recommended research-based food safety standards, participating in regular training and passing an OPMA inspection will reduce the risk of a food safety incident and resulting liability.  Given recent outbreaks resulting in sickness and deaths from produce consumption, food safety is a serious issue for produce farmers.  OPMA certification gives producers an opportunity to minimize exposure to food safety liability.

Another benefit for producers is the voluntary, self-regulating nature of the program.  High participation in OPMA indicates commodity willingness to address food safety practices and ensure safe food products.  A sound voluntary program with high participation rates may negate the need for regulatory action or meet requirements of the still-evolving federal Food Safety Modernization Act.   

For more information the Ohio Produce Marketing Agreement, visit www.opma.us.

Peggy Kirk Hall, Asst. Professor, OSU Extension Agricultural & Resource Law Program

A written lease is a valuable tool to use in a farm lease situation, but many farm lease arrangements never progress beyond a conversation and a handshake.    A written lease brings certainty to the farming arrangement by laying out important terms such as lease duration, notice of termination, payment provisions and conservation practices. Verbal farm leases are risky; problems can arise with legal enforceability and disputes over rights and obligations.  For those dealing with a verbal lease agreement, here are a few strategies for protecting interests in the verbal farm lease situation.

Put the verbal lease in writing.  The first recommendation is no surprise; attorneys have long encouraged farmers to use written farmland leases rather than relying on verbal agreements.  But many landowners and tenants are uncomfortable using a written lease, for a variety of reasons.  Consider the following concerns and recommendations for addressing them:

  • “We’ve always operated on a verbal agreement and a handshake.”  Transitioning from a long-time verbal agreement to a written lease can be awkward and uncomfortable, and the landowner or tenant farmer who wishes to make the change may be uncertain about how to introduce the change.  To address an awkward transition, consider using a third party to “intervene” and facilitate the process of converting to a written agreement.  Have a farm manager, attorney or accountant explain the reasons for moving to a written agreement and begin the process of discussing lease terms.  Provide the other party with ample time to respond and to consider its own concerns and suggested lease terms.
  • “We don’t want everyone to know the terms of our lease.”  Landowners and tenants often express concern that a written farm lease must be recorded in the county recorder’s office, thus revealing private terms such as the price paid for the lease.  In this case, the parties may utilize a provision under Ohio law referred to as the “memorandum of lease.”  Ohio Revised Code section 5301.251 allows the parties to record a shortened form of the farmland lease.  The only provisions the parties must include in a recorded memorandum of lease are the names and addresses of the landowner and tenant, the date of executing the agreement, a description of the leased property, the starting date and duration of the lease and any rights of renewal or extension.   With the recorded memorandum of lease, there is public notice that the lease exists but key terms remain confidential between the landowner and tenant.  The parties can include a term in the written lease verifying their agreement to execute and record a memorandum of lease rather than recording the entire lease.
  • “A written lease is overwhelming or too much detail.”  It is true that farmland leases can be lengthy and detailed, although attorneys usually have sound reasons for drafting detailed leases.   Note that the parties can make a gradual transition.  Even a simple lease or a checklist can bring certainty to the relationship by outlining key obligations or providing resolutions if problems arise in the future.  Additionally, there are many good resources that simplify and explain farm lease provisions, and a few good “model” leases for reference.  For helpful resources, visit the website http://aglease101.org .

Pay attention to lease payments and possession.  If the parties can’t convert a verbal lease to a written lease, be aware that one problem with a verbal lease is that it’s not clear when the lease agreement actually begins.  In the event of a dispute, Ohio courts often look to factors such as possession and lease payments to determine the term of the lease.  Two indicators that a farm lease agreement is in place are possession of the property by the tenant coupled with acquiescence by the landowner, or a lease payment made by the tenant and accepted by the landowner.  Both parties should be mindful of these important actions and should maintain records to document these occurrences.

Address financial fairness.  Determining the payment amount for a farm lease is a challenging task, particularly when the farm economy is in flux.  Disagreement over the lease price can quickly end a verbal farm lease relationship.   Thorough research and equitable approaches can maintain the lease relationship by ensuring a financial arrangement that is responsive to the market and fair to both parties.   OSU’s Farm Management website at http://aede.osu.edu/programs-and-research/osu-farm-management contains data on farmland values and cash rental rates.  Consider a flexible cash lease to accommodate economic changes; information on flexible cash leases is also available through OSU’s Farm Management website and at http://www.aglease101.org.

Maintain records of the lease relationship.  Good records that document the leasing history can help establish a “course of dealing” between the parties.  While a written farm lease is preferable, a record of how the parties managed the lease or handled issues in the past can be a useful point of reference for ensuring consistency in the relationship.  If there is litigation over the lease, a court might rely on proof of the parties’ course of dealing to help resolve an issue.  Both parties should maintain thorough records of payments, agreements, farm management practices, soil sampling, nutrient applications, improvements and any other facts or data that establish the details of the leasing relationship.

Maintain communication.   Don’t underestimate the power of good communication between the leasing parties.  A landowner can provide a tenant with valuable certainty by keeping the tenant informed on potential changes with land ownership or financial management.  Tenants can keep a landowner apprised of the condition of the farm property by providing reports on a regular basis, especially in the case of an absentee landowner or a crop share lease.  A report that includes pictures and a brief summary of improvements made,  management practices adopted or crop share calculations may go a long way toward ensuring a solid leasing relationship.

A written and comprehensive farm lease is a valuable tool for farmland owners and tenant farmers alike; those who still rely on verbal farm leases should carefully consider making a transition to a written lease.  Parties that continue to use a verbal farm lease face legal and financial risks, but can adopt some practices to help protect the verbal farm lease situation.  For resources and examples of written farm leases, see http://aglease101.org.

Informing landowners who are dealing with shale development is the goal of a day-long workshop offered in Mahoning County by OSU Extension.   "Shale and You:  A Workshop for Landowners" will take place on Saturday, February 23, 2013 at the Mill Creek MetroParks Farm, 7574 Columbiana-Canfield Road, Canfield, Ohio.   OSU Extension's Agricultural and Resource Law Program is sponsoring the workshop with grant assistance from the USDA's North Central Risk Management Education Center and host support from OSU Extension Mahoning County.

Educators in OSU Extension's Shale Education Program will provide an update on shale development in Ohio and address the topics of taxation of shale development income, wealth management, pipeline construction, oil and gas leasing issues and water testing.   In addition to presentations on each topic, the team will also provide information displays and the opportunity to speak individually with educators.  A discussion with a family who recently  experienced shale development on their farm will conclude the workshop.

Registration is $15.  Materials and refreshments are guaranteed to those who register by February 18.  Session and speaker listings, a registration form and other details are available at  http://serc.osu.edu/events/shale-and-you-workshop-landowners.   For shale development resources, visit the OSU Extension Shale Education Program website at http://shalegas.osu.edu.

A new rule establishing general regulations for improving the traceability of U.S. livestock moving between states became final on December 20, 2012 and will become effective on March 11, 2013.  The USDA has established the animal disease traceability rule to help target when and where animal disease occurs and to facilitate a rapid response that should reduce the number of animals involved in a disease investigation.  According to USDA Secretary Tom Vilsack, “The United States now has a flexible, effective animal disease traceability system for livestock moving interstate, without undue burdens for ranchers and U.S. livestock businesses. The final rule meets the diverse needs of the countryside where states and tribes can develop systems for tracking animals that work best for them and their producers, while addressing any gaps in our overall disease response efforts.”

The animal disease traceability rule differs from the National Animal Identification System launched by the USDA in 2006 and later discontinued for lack of voluntary participation by producers.   An important guiding principle for the new rule is that it is state-driven. The traceability framework will be owned, led and administered by the States and Tribal Nations with federal support. The rule proposes to provide maximum flexibility for the States, Tribal Nations and producers to work together to find identification solutions that meet their local needs and to maintain traceability data at their discretion. The intent of the rule is to address only those animals moving interstate and to encourage the use of low-cost technology.

We will take a closer look at the rule in the next few months, but for now will share a few important notes about the rule:

  • Unless specifically exempted, livestock moved interstate must be officially identified and accompanied by an interstate certificate of veterinary inspection or other documentation, such as owner-shipper statements or brand certificates.
  • The use of brands, tattoos and brand registration will be accepted as official identification when accepted by the shipping and receiving States or Tribes.
  • Backtags remain an alternative to official eartags for cattle and bison moving directly to slaughter.
  • All livestock moved interstate to a custom slaughter facility are exempt from the regulations.
  • Chicks moved interstate from a hatchery are exempt from the official identification requirements.
  • Unless moved interstate for shows, exhibitions, rodeos, or recreational events, beef cattle under 18 months of age are exempt from the official identification requirement (traceability requirements for this group will be addressed in separate rulemaking)

USDA will work with states to implement the rule in the coming months.  For more information on the new rule, visit http://www.aphis.usda.gov/traceability/.

The second Ohio Oil and Gas Law Symposium will take place on Friday, May 25 at Longaberger Golf Club in Nashport, Ohio.  The day long program, hosted by OSU Extension's Agricultural & Resource Law Program, aims at enhancing legal education for attorneys--particularly attorneys working with landowners.  The agenda addresses current legal issues in shale energy development and consists of:

  • Preemption of Authority over Oil and Gas Development John K. Keller; Vorys, Sater, Seymour and Pease LLP, Columbus
  • Water Law Considerations for Oil and Gas Development Brian P. Barger; Brady, Coyle and Schmidt, Ltd., Toledo
  • Accommodation of Split Estates William J. Taylor; Kincaid, Taylor and Geyer, Zanesville Alan Wenger; Harrington, Hoppe and Mitchell, Ltd., Youngstown
  • Negotiating Pipeline Easements and Managing the Threat of Eminent Domain Craig Vandervoort, Sitterley and Vandervoort Ltd , Lancaster Steven A. Davis; Crabbe, Brown and James LLP, Lancaster
  • Recent Changes in Oil and Gas Leases and Leasing Richard Emens; Emens and Wolper Law Firm, Columbus
  • The Current State of Ohio Injection Well Regulation Tom Tomastik, Ohio Dept. of Natural Resources
  • Panel Discussion:  Emerging Issues in Ohio Oil and Gas Law Eric Johnson; Johnson and Johnson Law Firm, Canfield Matt Warnock; Bricker and Eckler LLP, Columbus Jonathan Airey; Vorys, Sater, Seymour and Pease LLP, Columbus

To register and learn more about the Symposium, visit http://regonline.com/OilandGasLaw2012.    

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