Several Midwestern states limit the ability of corporations and limited liability companies (LLCs) to control farmland. The statutes laying out these rules are commonly referred to as “anti-corporate farming” laws. Although the laws vary, they generally prohibit LLCs and corporations from owning or leasing farmland, although many exceptions are available for family-owned or -controlled entities. Iowa, Kansas, Minnesota, Missouri, North Dakota, Oklahoma, and South Dakota and Wisconsin all have anti-corporate farming laws on the books, so if you are in one of these states, it’s a good idea to review the laws in your state before you form an LLC or corporation! Get the details in Anti-Corporate Farming Laws, which is Chapter 10 of the Farmers’ Guide to Business Structures. It includes written narrative and detailed flowcharts for every state to help you understand whether setting up your farm as a corporation or LLC will present any obstacles.
What are anti-corporate farming laws and should I be concerned?
If you're thinking of creating an LLC or corporation and are in the Midwest, it's critical that you first learn about anti-corporate farming laws.