Nebraska Farm Business Law

The short answer

A farm business attorney sets up and maintains the legal structure behind your operation. That usually means an LLC or corporation, an operating agreement, and a buy-sell plan for when an owner leaves or dies. The goal is to protect what you’ve built and make the rules clear before anyone needs them.

Is this you?

• “We farm with my brother on a handshake. Nothing is in writing.”
• “We formed an LLC online, but we don’t have an operating agreement.”
• “Should the land and the operation be in the same company?”
• “A partner wants out. How do we buy him out?”
• “We’re hiring our first employees and need agreements.”

Forming a Nebraska LLC: the paperwork versus the plan

Filing a certificate of organization with the Nebraska Secretary of State takes a few minutes. That’s the easy part. The hard part is the operating agreement, which answers questions like these:

• Who makes decisions, and how are votes counted?
• What happens if an owner dies, divorces, or wants out?
• Can an owner sell to an outsider?
• How is a share valued in a buyout, and how is it paid?
• Who can sign for loans and land deals?

Without these answers, Nebraska’s default rules decide for you. They may not match what your family wants.

What Nebraska law means for your farm business

Nebraska LLCs follow the Nebraska Uniform Limited Liability Company Act (Neb. Rev. Stat. 21-101 to 21-197). Your operating agreement can change many of the default rules.

LLCs file a report every two years. The biennial report is due between January 1 and April 1 of each odd-numbered year, starting the first odd year after formation (Neb. Rev. Stat. 21-125). Missing it can cost the LLC its good standing.

The old corporate farming ban is gone. Nebraska’s Initiative 300 limited who could own farmland through a company. A federal court struck it down in 2006 (Jones v. Gale). Farm LLCs and corporations are now common.

Foreign ownership rules are strict. Nebraska bars nonresident aliens and foreign corporations from owning Nebraska land or leasing it for more than five years. A 2024 law (LB1301) rewrote these rules. If anyone in your company is not a U.S. citizen, or your company has outside investors, check before buying land.

An LLC doesn’t avoid the inheritance tax. An ownership share in an LLC is still property when an owner dies. See our Nebraska Inheritance Tax Guide.

What we handle

• LLC, corporation, and partnership formation
• Operating agreements, partnership agreements, and bylaws
• Buy-sell agreements with clear price formulas
• Splitting land and operation into separate entities
• Ownership transfers, buyouts, and restructuring
• Ending a partnership or closing a company by agreement
• Employment, contractor, and confidentiality agreements
• Farm and ag business contracts
• Co-op and nonprofit formation and governance
• Buying or selling an ag business
• Ongoing general counsel. See Fractional General Counsel.

We also help non-farm small businesses when the work fits our practice.

What we don’t handle: lawsuits or court fights between owners. We help owners negotiate and settle. If it goes to court, we’ll help you find a trial lawyer.

Flat fees, no surprises

Every business project is a flat fee. You get the price in writing before we start. Ongoing counsel is available on a monthly plan.

How it works

1. Free 30-minute call. Tell us about your operation, owners, and goals.
2. Your flat-fee quote. We recommend a structure and give you one price.
3. We draft and explain. Every agreement in plain words.
4. We file and finish. State filings, transfers, and a checklist so nothing gets missed.

Where we serve

We serve farms and ag businesses in every Nebraska county, mostly by phone, video, and email. Main office: 2308 E 5 Rd, Henderson, NE 68371.

Why owners work with Kole

Kole Pederson has an MBA as well as a law degree (JD/MBA, Drake University Law School). He has more than 15 years of hands-on farm work and runs an ag aviation business. He knows how farm businesses make money, borrow, and grow. He is licensed in Nebraska and Minnesota. About Kole

 
 
 
 
  
 
 
 Midwest Ag Law, Estate Planning & Probate Attorneys of Nebraska
  
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 Sandramere Seed & Supply Co. 
 
 
 
 Trustindex verifies that the original source of the review is Google. 
Kole helped us develop HR documents and create some customer forms for our business.  Kole really helps put legal language in understandable form.  We really appreciate his thorough nature and ability to ask the right questions to uncover issues we had not considered.  His agricultural knowledge is extremely valuable.  Thanks Kole!  We really appreciate you!
  
 
  
 
 
 
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 James Jensen 
 
 
 
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Working with Kole was easy and convenient. He answered all our questions and helped us get our trust established quickly.
  
 
  
 
 
 
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 Brandon Boardman 
 
 
 
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Kole's personal experience and understanding in agriculture makes him a great attorney for all of your farms estate planning. He's very prompt, professional and he really cares about your needs. What a great guy.
  
 
  
 
 
 
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 Mary Mollenhauer 
 
 
 
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Working with this firm feels less like hiring a lawyer and more like bringing on a strategic partner for your legacy. They truly understand the complexity of multi-generational farming operations and approach every plan with both precision and long-term vision. For families managing significant agricultural assets, this is exactly the kind of counsel you want in your corner.
  
 
  
 
 
 
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 Mitch Mender 
 
 
 
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Kole is a bright and compassionate attorney. He knows what he is doing!
  
 
  
 
 
 
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 Pooja Vasudev 
 
 
 
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Kole Pederson walks the walk and talks the talk! As a former aerial applicator, he has fully lived the agricultural life so he is qualified to assist farmers, ranchers, and agricultural business owners with their estate planning/probate, business law, and real estate legal needs. Kole is diligent, resilient, and down to earth with a genuine commitment to help clients. In this day and age, when everything has become less tangible and very technological - Kole is the kind of attorney agricultural folks can benefit from having on their side!
  
 
  
 
 
 
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 Matt Snoberger 
 
 
 
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Kole was easy to work with and has vast knowledge of agriculture and a lot of common sense.  One of the easiest people I’ve ever worked with.
  
 
  
 
 
 
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 Flynn Baker 
 
 
 
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I have worked with Kole on a legislative and policy committee for a non profit organization. Kole's input was incredibly valuable; especially navigating legal jargon and procedures as well as his attention to detail and timeliness. I am glad to have worked with him and trust his recommendations and actions in legal matters.
  
 
  
 
 
 
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 Becky 
 
 
 
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I was doing an online search for an attorney and ran across Midwest Ag Law. I called and Mr. Pederson actually answered the phone himself, which Never happens these days! Unfortunately, he doesn't do Guardianship cases, but was very kind and went out of his way to give me some referrals!
  
 
  
 
 
 
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 Curt Friesen 
 
 
 
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Legal work made simple. Very professional firm that delivered everything I needed, when I needed it, and at a reasonable price. Great to work with and will use them again.
  
 
  
 
 
 
   
 
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Frequently asked questions

Should my farm be an LLC?

Often, yes. An LLC can limit personal liability, keep land together, and set rules for owners. It also adds paperwork and can affect taxes, so it should fit your plan.

What are the downsides of a farm LLC?

There are filings to keep up, separate books to keep, and possible tax changes. A poorly written operating agreement can also lock in problems. Most of these can be managed with good setup.

Do I need an operating agreement in Nebraska?

The state doesn’t require you to file one. But without one, Nebraska’s default rules decide what happens when an owner leaves, dies, or disagrees.

How does a buy-sell agreement work?

It sets who can buy an owner’s share, at what price, and on what payment terms. It kicks in at events like death, disability, or retirement.

Should land and equipment be in the same company?

Many farms keep them separate. Land often goes in one entity and the operation in another. This can protect the land and make succession easier.

Next steps

Related pages: Farm LLCs and Partnerships · Farm Succession Planning · Farm Real Estate · Fractional General Counsel

Ready to put it in writing? Book a free 30-minute call. We’ll recommend a structure and give you a flat fee.

Book a Free 30-Minute ConsultCall (816) MW-AGLAW

Last updated: October 27, 2026. This page is general information, not legal or tax advice for your situation.