Corporate Farm Compliance

Stay Compliant Under Anti-Corporate Farm Law

Nebraska and Minnesota corporate farm law compliance — keep your entity structure on the right side of state agricultural regulations.

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Nebraska’s Initiative 300 and Its Legacy

Nebraska has a long history of restricting corporate ownership of agricultural land. While the original Initiative 300 was struck down by federal courts in 2006, Nebraska replaced it with legislative restrictions that remain among the most stringent in the nation.

Under current Nebraska law, only “qualified” entities — those meeting strict family ownership, membership, and reporting requirements — can legally own or operate agricultural land. Non-qualifying entities face penalties including forced divestment of the land.

Minnesota has similar restrictions under its corporate farming law, though the exemptions and structure differ.

This is why you cannot use a generic entity template for a Nebraska or Minnesota farm. We ensure every entity we create meets all requirements and we maintain annual filing compliance.

gavelCompliance Risks

  • warning
    Forced Divestment
    Non-compliant entities ordered to sell ag land.
  • warning
    Annual Reporting Penalties
    Failure to file can trigger investigations and loss of exemption.
  • warning
    Void Transfers
    Transfers to non-qualifying entities may be declared void.
Kole reviewing state compliance filings at his desk

What Qualifies as a “Family Farm” Entity?

In Nebraska, a family farm LLC or corporation must meet specific criteria to qualify under the family farm exemption. These include requirements about the degree of family relationship between members, the percentage of income derived from farming, and the residency of members.

If a non-family member joins the operation — an employee who earns ownership, a neighbor who buys in, or even a divorce that introduces a non-family spouse — the entity may fall out of compliance. When that happens, the state can force the entity to divest its agricultural land.

We structure ag business entities to meet current requirements and anticipate future changes in ownership. We also handle the annual reporting that maintains compliance year after year. Many farm families don’t realize these reports exist until the state sends an inquiry.

The Midwest Ag Law Process

We don’t do hourly billing, and we don’t hand you a stack of paper and wish you luck. Our process is designed to be transparent, thorough, and completely finished when we’re done.

1

Compliance Audit

We review your existing entity structure against current Nebraska and/or Minnesota corporate farming laws. We identify any compliance gaps or risks.

2

Restructuring (If Needed)

If your entity doesn’t comply, we restructure it — amending operating agreements, adjusting ownership, or creating new entities that meet all legal requirements.

3

Ongoing Compliance

We set up annual reporting systems and handle the recurring filings that maintain your entity’s compliance with state agricultural ownership laws.

Compliance Services

Full compliance support for Nebraska and Minnesota farm entities.

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Entity Compliance Review

We review your existing entity structure to ensure it meets all state-specific agricultural ownership requirements. If it doesn’t, we fix it.

assignment

Annual Reporting

We prepare and file the required annual reports with the Nebraska Secretary of State and equivalent Minnesota filings.

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Entity Restructuring

If your current entity structure is non-compliant, we restructure it to meet all requirements without disrupting the farming operation.

What Our Clients Say
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Sandramere Seed & Supply Co. profile picture
Sandramere Seed & Supply Co.
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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 profile picture
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 profile picture
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 profile picture
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 profile picture
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 profile picture
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 profile picture
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 profile picture
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 profile picture
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

Can my LLC own farmland in Nebraska?expand_more
Yes, but only if it qualifies under one of the statutory exemptions — typically the family farm LLC exemption. All members must be related within certain degrees of kinship, and annual reporting is required.
What happens if my entity is non-compliant?expand_more
The state can order forced divestment of the agricultural land. This means you could be forced to sell the land your family has owned for generations. We can review your structure and fix compliance issues before they become problems.
Does Minnesota have the same restrictions?expand_more
Minnesota has its own corporate farming law with different exemptions and requirements. The restrictions apply to corporations, LLCs, limited partnerships, and trusts that own or operate agricultural land. We ensure compliance in both states.

Is Your Farm Entity Compliant?

If you’re not sure whether your LLC or corporation meets state agricultural ownership requirements, let us review it. Free consultation.