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Some Nebraska swine producers may wish to consider entering into joint production operations with other producers. This might be to physically separate the farrowing, nursery and feeding operations. Some industry observers believe that networking may allow smaller producers to collectively achieve economies of scale and other production advantages often available only to larger producers.
Producers considering entering into joint livestock production arrangements should consult an attorney. Liability and income tax considerations, and Initiative 300 must all be considered in legally structuring joint livestock production operations to meet the special needs of each group of producers. This article provides a brief overview of some legal issues involved in structuring joint livestock operations, particularly the role of a family farm limited liability company in networking. This information does not constitute legal advice but is provided for educational purposes only.