Industry: Agribusiness

Dougherty, Molenda, Solfest, Hills & Bauer P.A. provides legal counsel for family farms and agricultural businesses in Minnesota. Our attorneys help clients buy and lease farmland, structure business relationships, arrange financing, plan ownership transitions, and resolve disputes. Based in Apple Valley, we bring together the firm's real estate, business law, estate planning, and litigation practices to address the legal issues that affect agricultural operations.

A farm or agribusiness decision often involves several connected questions. A land purchase can affect access, financing, and future expansion. A family transition can change both ownership and management. We help clients evaluate those connections and prepare documents that fit how the operation works.

Agribusiness Legal Services

Farmland Purchases Sales and Leases

We assist with purchases, sales, and leases of agricultural land and related facilities. A transaction may require review of title, surveys, access rights, existing leases, and easements. We also help clients address restrictions that could affect their intended use, including conservation easements and other recorded agreements.

Farm leases should explain rent, permitted uses, maintenance responsibilities, and renewal or termination terms. Depending on the arrangement, the parties may also need to address drainage improvements, soil conservation, and the right to harvest crops after the lease ends. We prepare and review cash rent and crop share agreements and help resolve disagreements about their terms.

Farm Business Structures and Ownership Agreements

The choice of business structure affects management, financing, and ownership transfers. We help clients evaluate entities and prepare agreements addressing decision-making authority, contributions, distributions, and buyouts. For operations owned by several family members, clear terms can address what happens when an owner retires, dies, or wants to sell.

Minnesota's corporate farm law restricts certain entities from farming or holding interests in agricultural land unless statutory requirements or exceptions are satisfied. Before transferring land to a company or trust, the proposed structure should be reviewed for eligibility and applicable certification and reporting requirements.

Agricultural Contracts and Commercial Relationships

We prepare and review contracts for agricultural operations and the businesses that supply or purchase their products. These can include production and supply agreements, equipment purchases and leases, storage arrangements, and service contracts.

A useful agreement identifies the product or service, delivery obligations, quality requirements, and payment terms. It should also address how the parties will respond to nonperformance or a disagreement. We help clients identify provisions that could affect a season's revenue or leave important responsibilities unclear.

Agricultural Financing and Debt Issues

We assist with financing transactions involving agricultural land, equipment, and business operations. Our attorneys review loan documents, collateral arrangements, and guarantees, and help clients understand how financing terms affect their obligations and future transactions.

When a loan is in default, the available options depend on the debt and the proposed enforcement action. Certain agricultural debts are subject to Minnesota's Farmer-Lender Mediation Act. We help clients evaluate notices, applicable requirements, and opportunities to negotiate a resolution.

Land Use Water and Environmental Requirements

A new facility or expansion can require review of local zoning and state environmental requirements. We help clients address land use approvals and legal issues involving irrigation, drainage, feedlots, and other agricultural activities.

The requirements depend on the location and the proposed operation. Water withdrawals may require Minnesota Department of Natural Resources authorization. Feedlot requirements can involve the Minnesota Pollution Control Agency and a delegated county program. Buffer and wetland rules may also affect land use. Identifying the relevant requirements before committing to construction can help clients plan the project and its approval process.

Farm Succession and Estate Planning

A farm transition should address both who will own the assets and who will operate the business. We help families coordinate estate planning with business agreements, land ownership, leases, and financing obligations. A plan may involve wills, trusts, ownership transfers, or buyout arrangements, depending on the family's goals.

Planning is especially useful when some family members work in the operation and others do not. We help clients address management authority, the owner's retirement needs, and how transfers or buyouts will be funded. Tax consequences and valuations should be considered with the family's accounting and financial advisers.

Processing Cooperatives and Agricultural Ventures

Agribusiness includes enterprises that process, store, distribute, or add value to agricultural products. We assist with the business and real estate questions involved in forming, acquiring, expanding, or selling these operations, including contracts and ownership arrangements.

Our agribusiness services are available to crop producers, dairy operations, livestock and poultry businesses, feedlots, cooperatives, food processors, wineries, and ethanol businesses. The legal work is tailored to the transaction, operating concern, or dispute.

Agricultural Disputes and Litigation

We represent clients in disputes involving contracts, property rights, and agricultural business relationships. A matter may involve a lease disagreement, access or boundary conflict, ownership dispute, or a claim concerning equipment, delivery, or payment.

We assess the documents and evidence, explain the available options, and consider the effect of the dispute on the operation. Depending on the circumstances, a response may involve negotiation, mediation, or litigation. When timing affects planting, harvest, or access to property, identifying the issue promptly can be particularly important.

Working With Our Agribusiness Attorneys

Our attorneys coordinate the legal work around the client's immediate concern and longer-term plans. Useful materials may include deeds, leases, ownership agreements, loan documents, permits, and relevant correspondence. We work with clients and their other advisers to understand the operation and identify the documents, approvals, or decisions needed to move the matter forward.

Frequently Asked Questions

Can an LLC or Trust Own Farmland in Minnesota?

In some circumstances, yes, but the proposed owner must satisfy applicable Minnesota law. The corporate farm law includes restrictions and exceptions for entities holding interests in agricultural land. Other ownership restrictions can also apply. Review eligibility and any certification or reporting obligations before transferring title or committing to a purchase.

Should a Farm Lease Be in Writing?

A written lease helps document rent, responsibilities, permitted uses, and the process for renewal or termination. It can also address improvements and crop harvest rights. Even when the parties know each other well, clear written terms can reduce disagreements. The validity and enforceability of a particular arrangement depend on its terms and applicable law.

When Should We Begin Planning a Farm Transition?

Begin when retirement, a change in management, or an ownership transfer becomes a realistic possibility. Planning early gives the family time to address financing, valuations, and the needs of participating and nonparticipating family members. Review the plan when ownership, family circumstances, or the operation changes.

Do Farm Expansions or Irrigation Projects Need Permits?

They may. Requirements depend on the project, location, water use, and other operational details. Local land use approval does not necessarily satisfy state water or feedlot requirements. Review the applicable rules and existing permit conditions before construction or changing the operation.

What Should We Do After Receiving a Farm Debt Mediation Notice?

Preserve the notice and obtain advice promptly. A mediation request generally must be filed within 14 days after receiving a mediation notice under Minnesota's Farmer-Lender Mediation Act. Coverage and exceptions matter, and failing to respond can affect mediation rights. Review the notice, the loan documents, and the response deadline before deciding how to proceed.

Can We Sell or Develop Farmland That Is Already Leased?

The answer depends on the lease, recorded interests, and applicable law. A sale does not necessarily end a tenant's rights. Before signing a purchase agreement or promising possession, review the lease, any options or rights of first refusal, and the requirements for ending or transferring the arrangement.

Contact Our Minnesota Agribusiness Attorneys

For help with an agricultural land transaction, business agreement, farm transition, financing issue, or dispute, contact Dougherty, Molenda, Solfest, Hills & Bauer P.A. Call 952-432-3136 or contact us online to discuss your matter.

Our office is located at 14985 Glazier Avenue, Suite 525, Apple Valley, MN 55124. We serve agricultural clients throughout Minnesota.