Agricultural Economics Department


Date of this Version



Cornhusker Economics, January 28, 2015.


Copyright 2015, University of Nebraska-Lincoln.


A 2014 Nebraska Court of Appeals decision illustrates that when parents and a son or daughter share ag equipment and labor, they may be considered to be in an implied farm partnership. This can lead to legal problems if one of the parties can’t pay back their loans.

What was this case about? A Howard County family had separate farming operations for the parents and their son. They were very careful to have separate operating loans, no loan cosigning by the parents, separate banking accounts, separate property insurance policies, and they filed separate tax returns. But they shared equipment and labor.