Quarterly Update March 2017

Extension Legal Specialist Paul Goeringer spoke to groups in Washington, Carroll, Cecil, Montgomery, and Queen Anne’s Counties about pesticide drift liability. While no Maryland court has yet considered the issue of liability from pesticide drift, courts in other states have. These decisions provide some guidance on how a Maryland court might handle the issue. Depending on the facts of the drift case, pesticide applicators and farmers could owe damages for nuisance or trespass, or for uses inconsistent with the pesticide label. To learn more about pesticide drift liability, check out the ALEI factsheet on the topic.

In Harford County, Legal Specialist and research associate Sarah Everhart discussed the key legal concepts to understand when buying and selling farmland with a large group of Maryland farm producers.

Everhart, drawing on her background in real estate and land use law, explained the roles of realtors, lawyers, surveyors, and title companies in a land transaction; the meaning of pertinent real estate contract provisions; and the purposes of financing documents and title insurance. Everhart emphasized that farmers should never sign any paperwork that they don’t understand and they should consider hiring professionals, such as an attorney, to protect their interests. Everhart gave a similar presentation for the Mid-Atlantic Women in Agriculture webinar series, which can be accessed here.

Goeringer and Everhart also presented to groups in Dorchester, Cecil, and Queen Anne’s counties on the hot topic of solar energy leasing on the farm.  Many farmers have been recently approached by solar developers about using their farmland for the installation of solar energy production. This has created an increased interest in the legalities surrounding solar leasing contracts. ALEI has responded with a series of educational presentations and webinars on the topic. Listen to a recording of Goeringer’s presentation on the legal considerations of solar leasing and a recording of Dr. Sebastien Houde’s presentation on the economics of solar leasing.

ALEI legal specialists relish the opportunities over the winter season to connect with the farm community and hear about the legal issues affecting their operations. The legal specialists use these interactions to direct their legal research and publications priorities for the coming year.

By Sarah Everhart

Ellixson and Goeringer led the “Preparing to Manage the Crisis Before the Crisis” session, discussing ways to prepare for different crisis-like situations on the farm, such as hiring an undercover activist, environmental contamination, or a major farm accident. The session focused on farm employee management, including performance training, hiring, firing, and examined relevant regulations. As with many ALEI educational materials, the presentation was designed to help farmers manage their risk while keeping them informed about the legal dimensions of the topic.

Everhart and Suri conducted a session on using business organizations in a farm business to manage personal risk and plan for the future. The majority of farms are owned as sole proprietorships, which exposes farmers and their personal assets to liability risk. Everhart and Suri walked attendees through the various types of business structures, detailing advantages and disadvantages of each. Everhart emphasized that utilizing a business organization structure can, not only liability risk but also ease transitional and estate planning and allow for off-farm investors.

Several conference participants commented that the ALEI presentations were well-organized and informative. While at the convention, the ALEI team members enjoyed attending other sessions, supporting friends from Maryland Farm Bureau who were competing in convention events and keeping up-to-date on the issues facing America’s farmers.

ALEI’s presentations on crisis management, business organizations, and estate planning can be found at: https://umaglaw.org/videos and publications at: https://umaglaw.org/publications-library/
By Mayhah Suri