Michigan Right to Farm Law, what does it mean?

[shadygrovefarm]

I am with Askelfarm on this one. We will be going for our 4th "hearing" in January. If this one doesn't work, it's time to play hardball. I know that I have more knowledge on this topic than the board members, I just haven't presented most of it yet in hopes that we can get the vote without the battle. I found out yesterday that we have 2 new members on the zoning board as of last week in place of 2 people that voted against us last time and one of them I believe has chickens. Things are looking up for us, but not getting my hopes up yet. I am just jumping through the hoops right now while continuing to educate them a little at a time. I say keep on farming too! If you are practicing environmentally conscious and healthy farming, then why stop because of narrow minded people that can't accept change? They are the ones that should stop what they are doing, not us!!!! I plan on continuing what I am doing no matter what the outcome, but would rather have their mindset be that we are in "compliance". No matter how it pans out, the MRTFA will be brought to their attention at some point!!!! Stick w/ it Jefpaul!!! If they are adament that you stop and they get a court order to have your animals removed, I would most certainly contact your local media and make the public aware of the township's attempts to ignore state law! My belief is that they don't want to foot the bill for a legal battle.

 

[AskelFarm]

Well, it just seems to me that you have done all you can from your end.

If I was driving the posted speed limit for a given area, I would have no expectations of getting pulled over and cited. It wouldnt matter how many cops with radar guns pointed at me that I pass. If I wasnt doing anything wrong, then I would continue down the road, obeying all the pertinent traffic laws. Heck, I might even give a few of the cops a friendly wave.

Isnt this the same thing (in a way)? You are not breaking the laws. You are following all the laws as to raising and keeping your farm in order. Myself, I would just continue farming and ignore them. Do you need a lawyer?.....why?.....you are not doing anything illegal! They need a lawyer to set them straight. I guess, from an armchair view, the burden of proof is on them, not you! If they did try and take your farm animals, it seems to me they would be depriving you of a part of your income. I guess they may not understand this unless you sue them in the aftermath.

I myself would go about my daily farming business, and forget the tin horns. You have done your best attempting to educate them. You dont need to get them to change any laws or local zoning etc.What they are doing is illegal. What local law needs to be changed? MRTFA clearly spells it out. The law is on your side. Oh, and I really dont feel as though the burden of legal explanation is the duty of the farmer, or the one being 'threatened' to the local powers. You should not have to tell them, show them, or explain the law to locally elected officials, or those who are sworn to uphold the law.

You are doing nothing wrong. Enough already...............go farm!

 

[Sonoran Silkies]

Quote:
Gotta agree here. My only concern is if they seize your animals, so I recommend locking gates that access your yards and coops and posting No Trespassing signs. You might also want to post a sign with the name of your farm at the driveway entrance.

 

[AskelFarm]

Here is another link every farm should have:

http://www.irs.gov/businesses/small/article/0,,id=102767,00.html

You can apply for and receive your EIN (Federal Tax Number) on line and get it as soon as you complete the app.

You are in business and it didnt cost you a thing!

 

[AskelFarm]

Here is the IRS page to help you determine if you have a business or a hobby. I think if you can answer the basic questions and then get your EIN, it pretty much answers the requirement of MRTFA as you are a business for profit. According to the IRS, if you have an EIN you are a business and intend on making a profit. Plus, you will have documentation to prove this:


Business or Hobby? Answer Has Implications for Deductions


FS-2007-18, April 2007

The Internal Revenue Service reminds taxpayers to follow appropriate guidelines when determining whether an activity is a business or a hobby, an activity not engaged in for profit.

In order to educate taxpayers regarding their filing obligations, this fact sheet, the eleventh in a series, explains the rules for determining if an activity qualifies as a business and what limitations apply if the activity is not a business. Incorrect deduction of hobby expenses account for a portion of the overstated adjustments, deductions, exemptions and credits that add up to $30 billion per year in unpaid taxes, according to IRS estimates.

In general, taxpayers may deduct ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer’s trade or business. A necessary expense is one that is appropriate for the business. Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.

In order to make this determination, taxpayers should consider the following factors:

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Does the time and effort put into the activity indicate an intention to make a profit?
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Does the taxpayer depend on income from the activity?
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If there are losses, are they due to circumstances beyond the taxpayer’s control or did they occur in the start-up phase of the business?
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Has the taxpayer changed methods of operation to improve profitability?
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Does the taxpayer or his/her advisors have the knowledge needed to carry on the activity as a successful business?
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Has the taxpayer made a profit in similar activities in the past?
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Does the activity make a profit in some years?
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Can the taxpayer expect to make a profit in the future from the appreciation of assets used in the activity?

The IRS presumes that an activity is carried on for profit if it makes a profit during at least three of the last five tax years, including the current year — at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses.

If an activity is not for profit, losses from that activity may not be used to offset other income. An activity produces a loss when related expenses exceed income. The limit on not-for-profit losses applies to individuals, partnerships, estates, trusts, and S corporations. It does not apply to corporations other than S corporations.

Deductions for hobby activities are claimed as itemized deductions on Schedule A (Form 1040). These deductions must be taken in the following order and only to the extent stated in each of three categories:

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Deductions that a taxpayer may take for personal as well as business activities, such as home mortgage interest and taxes, may be taken in full.
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Deductions that don’t result in an adjustment to basis, such as advertising, insurance premiums and wages, may be taken next, to the extent gross income for the activity is more than the deductions from the first category.
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Business deductions that reduce the basis of property, such as depreciation and amortization, are taken last, but only to the extent gross income for the activity is more than the deductions taken in the first two categories.

Link:

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Further information is available in IRS Publication 535, Business Expenses

 

[eldenbrady]

While being recognized by the IRS as a for profit pretty well means that you meet the MRTF requirement of being commercial, it is not strictly necessary. MRTF requires producing farm products commercially. Under current case holdings even a non-profit organization would be protected so long as they are producing the products in order to introduce them into the stream of commerce. So you can be a commercial failure and probably still be protected. Nonetheless, the IRS recognition could help you show a skeptical local government that you are serious as a business.

 

[AskelFarm]

Quote:
Thank you sir for your reply. I guess what I was thinking was that with this document (EIN), you could provide a copy to the 'powers that be' to show you are in business and intend to make a profit. It seems unless you provide something in writing, for them to put in their hands, they may start to take the farmer seriously. Also I have found that most banks require this to open a 'business account'. Another document to show you are serious about your farm. An added advantage is most places I have encountered like to have this number on file if you intend on purchasing items for the farm, sale tax exempt. And believe it or not, its free to apply (online). This document can be printed out and used immediately from home.

Just my thoughts on it anyway!

 

[shadygrovefarm]

Well, another "urban agriculture hearing" tonight. The fourth one now!! 2 new members on the board that are pro chickens, etc. Sounds like they may just want us to meet some of the ridiculous setbacks that they have set forth in the outdated zoning. I will most likely agree to certain conditions just to appease them and then just continue doing what I'm doing. I will be mentioning the MRTFA just so that it is on record. If tonight doesn't work, I will give them the letter I already have drafted with all of the MRTFA info as well as other literature I have prepared for them. As I stated before, I want their mindset to be that I am "in compliance" with their current zoning. Then, I would still like to take part in changing that outdated BS. Hoping for closure w/o having to continue battling for my rights!!!

 

[angelb]

Can anyone help me find a good lawyer to represent us? Our homeowners association is taking us to court over our 11 chickens. We are complying with city ordinances, but the homeowners association claims that we can't keep "livestock." We're in Oakland County and need a lawyer that specialized in MRTFA if anyone knows of one. Also, I haven't been able to find other examples of cases where the homeowners association is the one with the issue. Does anyone have any examples?

 

[AskelFarm]

My first reply to the "Homeowners Assn" would be write a letter simply stating that you are in compliance with MRTFA and will continue with your chickens. Provide copies of MRTFA in the letter. Demand they cease their illegal action, they are in violation of state law, and threaten them with a law suit if they continue.

Most will back down quickly, tuck tail, and run. A home owners assn isnt even a law enforcement group. Call them out on this with copies of the law (sent certified for your records), and let them figure it out. If you are close to the court date, request a continuance. As a farmer I have the confidence of the law on my side, I, representing myself, would go to court with copies of MRTFA as well as copies of the cases that have been decided in favor of the farmer and request a dismissal. But, thats just me.

State law trumps local law, and certainly a homeowners assn.

YOU ARE NOT DOING ANYTHING ILLEGAL!

Just my opinion!