Ag Law

1. Ag Law Ag Management Ch 10 (Txt) Ch 11 (Wbk)

2. Objectives • Explain how laws are created and where to locate them • Define contract, the types of contracts and the elements of a contract • Understand what kinds of contracts must be in writing • Express knowledge of the statue of frauds and breach of contract • Identify ways to reduce the risk of non-payment • Explain leases and leasing situations • Understand the importance and use of insurance • Define the legal liabilities of farmers and ranchers with regard to land, people, employees, fencing and animals • Explain the use and importance of livestock pollution laws and agricultural chemical laws • Understand riparian rights • Know the legal aspects of estate planning • Explain property ownership • Identify sources of retirement income

3. Assignment • Complete the Study Guide for the following sections- • Choosing Counsel #1,2,4 and Sources of Law 1-6 p. 162-163 • Answers can be found on textbook pages 10-1 to 10-2 • Leases & Leasing (p.165-168)1-18 • Answers can be found on textbook pages 10-6, 10-7 • Livestock Pollution and Agricultural Chemical Laws and Regulations- 1,2,4,6,7,8(p.174-175) • Answers can be found on textbook page 10-17 • Riparian Rights 1-11 (p.175-177) • Answers can be found on textbook pages 10-17, 10-18 • Due– December 11 end of period.

4. Contracts • A legally enforceable arrangement or agreement between 2 or more parties • 4 elements of an enforceable contract • 2 or more legal parties • Offer and acceptance • Sufficient consideration • Public policy or morals are not offended

5. Types of Contracts • Expressed- parties state the terms of the contract orally or in writing • Inferred-the actions or conduct of the parties indicate an intention to contract

6. Statute of Frauds • Law that requires certain arrangements or agreements to be in writing to be enforceable

7. Contracts that Must be in Writing • Every agreement, promise or contract to pay commission for the sale of real estate • Contracts that are for more than 1 year • Promises to be responsible for debt, default or misdoing of another person • Agreements, promises or undertakings made upon the consideration of marriage, except for the mutual promises to marry • A promise of an executor or administrator to pay debts of the deceased out of their own property • Contracts for the sale of goods above a certain value unless a portion of the price is paid or part of the goods are delivered • Land Leases

8. Breach of Contract • Failure to comply with the terms of a contract • In the event of a contract breach the injured party may • Request completion or payment of compensation (damages) • Be entitled to specific performance of the contract • Agree in advance to the amount of the damages to be paid if the contract is breached. • Request the contract be canceled and whatever has already been provided be returned

9. Situations with a Risk of Non-Payment • Crops or livestock are delivered and sold but payment is not received • Harvested crops or livestock are contracted for later delivery • Harvested crops are delivered for storage only • Because the sale of farm commodities is a contract, in every sale there is a risk of non-payment

10. Packers & Stockyards Act • Requires livestock buyers to pay producers by the close of the next business day after delivery.

11. Safeguards Against Non-Payment • Deal only with licensed warehousemen, brokers or dealers • Don’t be deceived by the size or appearance of the company you deal with • Investigate the financial condition of the buyer before forward contracting • Demand a scale ticket marked sold or storage with each load of grain you deliver • Demand payment immediately by a check drawn on a nearby bank when the delivery is complete • Get a warehouse receipt immediately if you store crops • Be on the lookout for practices that indicate financial instability

12. Insurance For The Farmer or Rancher

13. Insurance • Paying a professional risk taker (insurance company) a small but regular sum of money (premium) to assume the financial burden in the case of the unexpected.

14. Uses for Insurance • Protects you and your family financially and lessens the hardship of unexpected economic loss • Meets your obligation to others who might suffer injury or loss because of something you did • Makes it possible for you to take certain risks you otherwise couldn’t take

15. Kinds of Insurance • Life • Accident & Health • Property • Liability

16. 5 Points to Remember when Buying Insurance • Insure against those losses that may lead to financial disaster. • Insure the irreplaceable or most necessary property first. • Don’t insure anything you can easily afford to replace yourself • Be sure you have adequate coverage. • Property may go up in value so coverage that was adequate 5 years ago may not be so today. • Buy insurance that provides coverage for situation in which you are likely to have a claim.

17. Legal Liabilities of Farmers & Ranchers

18. Legal Liabilities • Laws may affect farmers and ranchers more than they do the average citizen • Property may be seized to pay for damages • Farmers and ranchers net worth is invested in agricultural land, making them more vulnerable

19. Negligence • The omission by an individual to do something which a “responsible” person would do under similar circumstances • OR • Failure to use reasonable care under the circumstances • Examples- Failure to fix a hole in a barn floor, or keeping fences in such poor repair that livestock are able to roam free

20. Liabilities with Regard to Land

21. Adjacent Property • Farmers and ranchers must exercise reasonable care to prevent injury or property damage to a neighbor

22. Invitees • A person who is on your property with your consent and for your benefit or your mutual benefit • Examples- A person who comes to your farm to purchase garden vegetables or eggs or a hunter who pays a fee to hunt. • Responsibilities to an Invite- • Warn them of known hidden dangers • If injuries are suffered from these known hidden dangers you are the liable party. • Inspect your property for hidden dangers • Examples of Invitees • Salesmen, Postman, repairmen, independent contractors and their employees, prospective buyers • Social guest are not considered invitees

23. Licensees • Someone who comes onto your land solely for their own pleasure, benefit or convenience • Responsibilities to a licensee • Warn them of any known hidden dangers • You have no obligation to make the land safe for them nor must you inspect the property to make it safe for them. • Examples of Licensees- Hunters who come onto the property hunt but do not pay a fee.

24. Trespassers • Someone who is neither invited nor desired on your land • You are only liable for injuries to a trespasser if you personally inflict them • You may use reasonable force to remove a trespasser but not deadly force • Deadly force may only be used to remove a trespasser if your life or the lives of your family are being threatened

25. Doctrine of Attractive Nuisance • If you negligently keep an object or condition on your property that is attractive to children and dangerous to children you will be held liable if a child is injured by that object or condition • For this to apply • The landowner must know children trespass where the object or condition is located

26. Liabilities of Employers

27. 3 Legal Classifications of Employees • Employees • Agents • Independent Contractors

28. Employee • A person who is directed and task are controlled by another person • Example- A general farmhand with little training whose work is supervised by the farmer is an employee. • Employers have the greatest amount of control over an employee and also the greatest liability for their actions

29. Laws that Apply to Ag Labor • Fair Labor Standards Act • Migrant and Seasonal Agricultural Worker Protection Act • Immigration Reform and Control Act • Occupational Safety and Health Act (OSHA)

30. Responsibilities of Employers to Employees • Provide a safe place to work • Provide reasonably safe tools, machinery and equipment • Warn and instruct of dangers that the employee couldn’t reasonably be expected the discover • Provide competent fellow employees • Make reasonable rules for conduct of the employee while at work

31. Workers Compensation • Agricultural employees are exempt from this in most states • This is due to workers compensation automatically making the employer liable for injuries to employees suffered in the course of employment weather the employer was negligent or not. • Farm and ranch employers may elect to come under worker’s compensation statutes by purchasing a standard worker’s compensation insurance policy

32. Agents • Have the authority to transact business or manage the affairs of the employer • Employers are responsible for the agents acts while the employee is doing your work

33. Independent Contractor • Person or organization performing a job without control from an employer • Cases where employers are responsible for the negligent acts of independent contractors • Negligence in selecting a competent contractor • Furnishing a contractor with faulty plans or specifications • Interfering with a contractor • Hiring an independent contractor to perform a task which is inherently dangerous • Example: Aerial application of pesticides.

34. Liabilities with Regard to Fencing Animals

35. Laws Regarding Fencing X • No stipulations made for materials used on inside fences • Boundary fence laws vary state to state but most require the following • Fences must be tight enough to turn livestock • Divisions fences between property are paid for by each property owner. The half paid for by each owner is usually the half on their right-hand side as they stand looking at the fence division line from their own property. • State laws regarding fences should be checked first because most states have their own definition of a legally recognized fence. • http://pubstorage.sdstate.edu/AgBio_Publications/articles/ExEx5076.pdf

36. Common Laws Regarding the Use of Livestock Fences • Livestock owners who maintain good fences are not liable for damages caused by livestock • In this case the owner must not be aware that the livestock are in the habit of breaking out and must make an immediate attempt to retake them when they do break out • When animal’s break through an adjoining owner’s part of a division fence, and the fence is not in good repair or is not legally sufficient, the owner of the animals cannot be held liable for their trespass.

37. Owners of Trespassing Animals May Be Held Liable If • Animal’s are in the habit of breaking out, regardless of the condition of the fence • Fences are defective or insufficient • Negligence, such as leaving the gate open, causes the trespass • Animals being driven along the road get out of control and enter adjoining fields, even though the road is not fenced • Owners that are negligent in maintaining their fences are held liable for all damages their livestock cause

38. Laws in Regard to Strays • Landowners or local authorities may confine strays and care for them • A reasonable attempt must be made to locate the owners • Finder is entitled to make reasonable use of the strays while they are in their custody • When the owner comes for strays, the owner must pay the finder for feed, housing, care and other costs

39. Unclaimed Strays • The strays become the property of the finder • The strays are sold at public auction and a reimbursement is made to the finder for expenses and the balance is put into county funds

40. People Injured by Animals • Animal owners are held liable for injuries caused by animals in the following cases • The owner negligently allows or causes the animal to commit injury • The owner is aware that the animal is vicious and the animal inflicts injury upon someone who is not acting negligently • *Examples: Biting dogs, wild animals kept as pets, or any animal capable of inflicting injury that has a known and vicious nature

41. Animal Diseases • Regulatory control groups help stop the spread of disease under the supervision of federal and organizations • State veterinarians direct the livestock sanitary and regulatory programs

42. Branding and Inspection • Brands are used to identify ownership of animals • Branding helps reduce livestock thefts • SD has an ownership inspection area and State Brand Board that regulates Brand Inspections and Rules

43. Property

44. Two Types of Property • Real • Land and permanent improvements on the land • Personal • Moveable items such as livestock, machinery, bank accounts, bonds, stock

45. Methods of Owning Real Property • Fee Simple • Co-ownership • Tenancy in common • Joint-Tenancy • Tenancy by entirety • Life Estate (Life Tenant)

46. Deeds • Documents that show what real property is owned, who owns it and what method of ownership they have • Two types • Warranty • Quit Claim

47. Warranty Deed • Implies at time of delivery of the deed that • The seller owns the property free and clear of legal claims such as liens and mortgages, except those claims specifically mentioned in the deed • Seller has the right to transfer the property • Buyer will have quiet and peaceable possession • Seller will defend the title if anyone lawfully challenges its legality

48. Quit Claim Deed • Imply that • The seller is only conveying the seller’s rights in the property • Seller does not promise he/she owns anything • Often used to clear titles of property

49. Transferring Legal Property Ownership • Wills • Laws of Descent • Contracts • Gifts

50. Retirement