Tarrant County Farm and Ranch Law Attorney

Lawyer Helping Farms and Ranches Address Legal Concerns in Tarrant County

Owning and operating a farm or ranch will involve much more than managing crops and/or livestock. Owners may need to address multiple types of matters that can affect how they do business. They may encounter concerns related to business law, real estate, taxes, environmental regulations, and major transactions. Each of these issues will involve legal requirements and potential risks.

Whether you run a cattle ranch, lease grazing land to other operators, manage a small farm, or operate another agricultural business, the legal issues that you may encounter can be complex. Failing to address them correctly could have costly consequences. At Acker Warren P.C., we work with farm and ranch owners in Tarrant County and the surrounding region to make sure they will be able to handle these challenges the right way and protect what they have built.

Choosing the Right Business Structure

One of the first and most important legal decisions a farm or ranch owner will face is how to structure their business. Operating as a sole proprietor may seem like a simple solution, but this will provide the owner with no protection if the business is sued or runs into financial trouble. A formal business entity can shield personal assets and make sure the right framework is in place to handle concerns related to ownership, management, and succession plans.

Agricultural businesses may have several options for structuring their companies, including:

• Limited Liability Company (LLC): This is a popular choice for farms and ranches, because it offers liability protection while allowing for flexible management and tax treatment. A single-member LLC may work well for a business with one owner, while a multi-member LLC can be used for family co-ownership or partnership arrangements.
• General or Limited Partnership: When multiple parties contribute land, capital, or labor to a business, a partnership can define each partner's role, ensure that profit-sharing is addressed correctly, and establish a formal agreement for how the business will be managed.
• Family Limited Partnership (FLP): This option may be used to consolidate agricultural assets and make sure they can be transferred correctly to the next generation while reducing potential estate taxes.

Our law firm can provide guidance on the advantages and drawbacks of each type of business. structure. We will work with clients to prepare formation documents, operating agreements, and partnership agreements that will provide an agricultural business with the protection it needs.

Financing Farm and Ranch Operations

Agricultural businesses may require significant capital to cover costs related to land, equipment, livestock, seed, and infrastructure improvements. Our team can provide guidance on the financing options that are available, and we can make sure deals are structured correctly before our clients sign any loan documents.

Our attorney can review financing agreements before clients sign them, identify terms that could lead to issues in the future, and negotiate modifications where possible. We can assist with:

• Drafting and reviewing promissory notes and security agreements
• Addressing liens on agricultural equipment and livestock
• Providing guidance on the use of lines of credit and agricultural loans
• Representing clients in negotiations with lenders

Agricultural Real Estate Transactions

Land is the foundation of any farm or ranch. During real estate transactions involving agricultural land, farm or ranch owners may need to address a variety of complex legal issues. Our legal team can assist with purchases, sales, or leases of agricultural property.

Buyers of farm and ranch property need to understand exactly what they are acquiring. Surveys will need to be reviewed carefully, addressing issues like mineral rights, easements or encumbrances that may affect their ability to use land, and water rights associated with the property.

Our team can help conduct thorough due diligence, draft and review purchase agreements, and provide representation throughout an entire transaction to protect our client's rights. We can also help clients understand the agricultural tax exemptions that may be available while working to minimize their tax burdens.

Land Use and Zoning

Land use can vary in different areas across Tarrant County and the surrounding region. Depending on where they are located, farms or ranches may be subject to zoning restrictions that could place limits on certain types of agricultural activities. Our team can help clients understand the restrictions that may apply to them, and we can help them take steps to ensure that they will be able to continue operating as planned.

Our attorney advises farm and ranch owners on issues related to:

• Zoning and land use restrictions
• Permit requirements for agricultural structures, feed lots, and processing facilities
• Compliance with environmental regulations that may affect issues such as water discharge and waste management
• Resolving neighbor disputes and nuisance claims

Hunting and Grazing Leases

Hunting leases may provide an important source of income for many Texas landowners. These leases will need to be structured correctly to provide owners with the proper legal protections. A poorly drafted hunting lease can expose a landowner to liability for injuries that occur on their property. If questions about access, permitted activities, and repairs or improvements to fences or other structures are not addressed correctly, disputes may arise.

Grazing leases may involve different issues, including fencing responsibilities, water access, and liability related to livestock that stray onto neighboring land or public roads. Our team can help prepare hunting and grazing agreements that will fully address these concerns, clearly define permitted activities and access rights, and protect landowners from liability.

Water Rights in Texas

Water is one of the most valuable resources for farm and ranch owners. They may need to address issues related to:

Groundwater Rights

Landowners generally have the right to pump and capture water from beneath their land. They can use this water for agricultural purposes or sell or lease it to other parties. Our team can help clients understand the rules for using groundwater and the steps they can take to avoid any potential violations or legal issues.

Surface Water Rights

Surface water in Texas, including rivers, streams, ponds, and lakes, is considered to be owned by the state. Property owners can generally use surface water for livestock purposes. However, they will need to obtain permits to use surface water for irrigation or certain other agricultural purposes. However, the "stock tank exception" under Texas law allows landowners to build a 200-acre-foot stock tank on their property and use the water in this reservoir for livestock purposes. Our lawyer can help clients understand their surface water rights, obtain the proper permits, and negotiate agreements related to the transfer or sale of water rights.

Livestock Sales and Consignments

The buying and selling of livestock will typically involve commercial contracts and other legal concerns that can affect all parties involved in a sale. Our attorney can assist with:

• Drafting and reviewing livestock purchase and sale agreements
• Advising sellers on consignment arrangements and making sure they understand the legal protections that are available if they do not receive payments
• Addressing disputes over the condition of livestock, failure to pay, or other issues

Other Legal Matters Affecting Farm and Ranch Operations

Our legal team can also assist farm and ranch owners with issues related to:

Employment and Labor

When hiring and employing workers, owners will need to make sure they comply with federal and state employment laws, including wage and hour laws and regulations that apply to agricultural workers. We can provide guidance on employment agreements, independent contractor arrangements, and other issues to help ensure that our clients comply with the applicable labor laws.

Estate Planning and Succession

Passing a farm or ranch down to the next generation will require thoughtful planning. Without a proper succession plan, disagreements between family members, estate taxes, and expenses related to probate or ownership transfers can threaten a farm or ranch's ability to continue operating. Our law firm works with agricultural families to develop succession plans that will help them achieve their goals for succession while minimizing taxes and other expenses.

Contact Our Tarrant County Farm and Ranch Lawyer

When addressing legal issues and business-related concerns, the stakes for farm and ranch owners are high. The failure to address these issues correctly can have lasting consequences for an entire family, the employees of a business, and others. At Acker Warren P.C., we can provide practical legal support to help our clients maintain ongoing success. Contact our Tarrant County agricultural law attorney at 817-752-9033 to set up a consultation and learn how we can help protect your land, your business, and your livelihood.