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Carbon Capture Pipeline Considerations for Landowners

Iowa Court Affirms District Court’s Discount of Farm Corporation Shares During Buyout

USDA Making Payments for Thousands of Borrowers with Delinquent FSA Direct or Guaranteed Loans

On October 18, 2022, the USDA announced that it had already provided nearly $800 million in assistance to distressed borrowers to help cure delinquencies and resolve uncollectable farm loan debts.

Federal Court Finds USDA’s Bioengineered Food Text Message Disclosure Method Insufficient

The National Bioengineered Food Disclosure Standard law requires all bioengineered food to disclose its bioengineered status to consumers through “text, symbol, or electronic or digital link.” 7 U.S.C. § 1639b(b)(2)(D). The USDA, through the Agricultural Marketing Service (AMS), promulgated the National Bioengineered Food Disclosure Standard rule in 2018 .A group of retail stores and food advocacy groups brought suit in the Northern District of California claiming that the regulations violated the Administrative Procedure Act. A federal judge agreed and found that the USDA failed to comply with the disclosure statute’s directive to “provide additional and comparable options” to ensure that consumers could access the electronic disclosure.

Iowa Court of Appeals Says “Suspicion and Surmise” not Enough to Show Undue Influence

Iowa Court of Appeals Affirms Division of Two Farms Properties in Partition Action

Federal Court Finds Another Iowa Farm Trespass Law Unconstitutional

On September 26, 2022, a federal judge in the Southern District of Iowa again found an Iowa farm trespass law to be unconstitutional. Under Iowa Code § 727.8A (the “Trespass Surveillance law”), anyone who trespasses and “knowingly places or uses a camera or electronic surveillance device that transmits or records images or data while the device is on the trespassed property” is guilty of an aggravated misdemeanor. This is Iowa’s third farm fraud and trespass law found to be in violation of the First Amendment by this court.

Iowa Court Says Distributions Held by Spendthrift Trust are Protected from Creditors

On August 31, 2022, the Iowa Court of Appeals held that a creditor cannot collect distributions from a spendthrift trust until the funds are in the beneficiary’s control. A creditor attempted to garnish funds of two spendthrift trusts which were being held by a trustee for the debtor’s benefit. The district court denied the debtor’s motion to quash the garnishment. Because the debtor had not yet received the distributions, the Court of Appeals reversed the district court’s order.

Iowa Court Affirms Jury Verdict against Landowner in Erosion Dispute

On August 31, 2022, the Iowa Court of Appeals affirmed the denial of a motion for a new trial in an erosion lawsuit. Landowners claimed that their neighbor’s construction caused erosion damage on their farmland. Because there was sufficient evidence that the landowners’ failure to maintain the waterway contributed to the damage, the court affirmed the denial. 

Iowa Court Says Fence Used to Contain Livestock, not as a Boundary Marker

On August 3, 2022, the Iowa Court of Appeals settled a boundary dispute between two neighboring family members. Because neither party established their allegations of boundary by acquiescence or easement by prescription, the court affirmed the denial of their claims.

Iowa Court Says No Contract Existed between Farmland Owner and Son

On August 17, 2022, the Iowa Court of Appeals affirmed that two sisters could not have interfered with their brother’s alleged contract with their parents to become the sole owner of an 80-acre parcel of farmland. The brother claimed to have an oral contract with their mother. Because the farmland was owned by the siblings’ father, the brother did not have a contract with the owner of the property.

IRS Issues Broad 2019 and 2020 Failure to File Penalty Relief

Remember, Farm Lease Termination Notices Must be Sent Before September 1

Failure of Jesup Grain Dealer Opens Window for Grain Indemnity Fund Claims

Congress Passes Extensive Climate, Tax, and Health Care Bill

Court Affirms No Undue Influence Occurred in Farm Inheritance

On August 3, 2022, the Iowa Court of Appeals affirmed that the plaintiff failed to prove that his sibling exercised undue influence over their father. For personal reasons, a farmer intentionally left two of his three children out of his will and trust. The court concluded that it was unlikely the farmer was susceptible to coercion; thus, no undue influence occurred.

Iowa Court Upholds Piercing Corporate Veil in Fraud Case

Iowa Court Declines to Void Farmland Transfer to Son

On July 20, 2022, the Iowa Court of Appeals affirmed the dismissal of a petition to void the transfer of a farm. A farmer filed for divorce five months after the couple gifted two-thirds of their farm operation to their son. His ex-spouse brought this lawsuit for fraudulent misrepresentation and sought to void the farm transfer. The Court of Appeals concluded that the circumstances surrounding the farm transfer did not indicate an intent to defraud, but instead supported a finding that the farmer desired to keep the farming operation in the family.

Discovery Rule Inapplicable to Revocable Trust Contests, But Equitable Estoppel Claim May Extend Statute of Limitations

On July 20, 2022, the Iowa Court of Appeals ruled that the statute of limitations to set aside a trust established by a decedent during his lifetime cannot be tolled using the discovery rule. The applicable statute, Iowa Code § 633A.3108, unambiguously states that any such claim must be brought within one year of death. The court found, however, that a claim of equitable estoppel could extend the statute of limitations if the petition was filed within a reasonable time after alleged fraud was discovered. The court ruled that it was for a fact finder to decide whether that happened.

County Board of Supervisors Has Broad Discretion Controlling Noxious Weeds

On July 20, 2022, the Iowa Court of Appeals affirmed the denial of a petition asking for a writ of mandamus to compel the Madison County Board of Supervisors to destroy noxious weeds on a neighbor’s land. While the county Weed Commissioner can destroy the weeds and charge the expense to the landowner, that is not the exclusive remedy available for a landowner’s noxious weed violation. Instead, a county weed commissioner can work with a landowner over extended periods of time to address noxious weed violations. The Court further reasoned that a writ of mandamus is an inappropriate legal remedy in this circumstance since the landowner could file a nuisance lawsuit against the neighbor.