Agricultural Economics Department

 

Date of this Version

9-5-2001

Comments

Published in Cornhusker Economics. September 5, 2001. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska - Lincoln.

Abstract

Article 8 §12 of the Nebraska Constitution (Initiative 300) establishes several requirements that corporations must meet in order to legally qualify as family farm or ranch corporations. Under one provision, a majority of the family farm or ranch corporation’s shareholders must be family members, “at least one of whom is a person residing on or actively engaged in the day to day labor and management of the farm or ranch.” In Hall v Progress Pig Inc., 259 Neb 407 (2000) the Nebraska Supreme Court ruled that where no family member resides on the farm or ranch, a family member must perform daily physical labor on the farm or ranch for the corporation to legally qualify as a family farm or ranch corporation.
The court ruling in Progress Pig does not require family members to provide all the physical labor on the farm or ranch, but does require that at least one family member provide daily physical labor and management (if no family member lived on the farm or ranch).

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