Category: Ag Law

  • Federal Estate Tax and Gift Tax Limits Announced For 2026

    Federal Estate Tax and Gift Tax Limits Announced For 2026

    Introduction

    In October 2025, the IRS announced the revised federal estate tax exemption and gift tax limit for 2026.  The federal estate tax exemption will rise from $13.99 million in 2025 to $15 million in 2026.  The federal gift tax exclusion will remain at $19,000 per recipient.  Whether the value of a person’s estate falls above or below that limit, it is critical to develop an estate plan to assist in transitioning the farm to the next generation. Understanding the potential for estate and/or gift tax liability should be part of this planning process.

    Federal Estate Taxes

    For 2026, the federal estate tax exemption increases to $15 million for an individual and $30 million for a couple.  This increase is not due to inflation but, instead, to the passage of the One Big Beautiful Bill Act, P.L. 119-21, July 4, 2025. This made permanent the existing estate tax exemption passed initially in 2017.

    One last note on federal estate taxes: a surviving spouse has an unlimited marital deduction.  This means a predeceasing spouse can transfer assets to the surviving spouse estate tax-free.  Additionally, the surviving spouse can include the predeceasing spouse’s unused federal estate tax limit in their federal estate tax limit. This concept is known as portability.  It is important to consult qualified estate planning attorneys and accountants to ensure that the surviving spouse satisfies the requirements for portability.

    Federal Gift Tax Limit

    Federal tax law allows each taxpayer to gift up to $19,000 per year to one individual without incurring federal gift taxes. The federal gift tax limit will remain at $19,000 in 2026. This exemption is tied to inflation but can only increase by $1,000 per year.

    How Does This Impact Producers?

    Benjamin Franklin once wrote, “In this world, nothing can be said to be certain, except death and taxes.” With that in mind, farm families concerned about an estate exceeding the federal estate tax exemption need to begin working on farm succession and estate plans to limit potential estate taxes down the road. Working with a tax advisor early on can help limit taxes and devise a tax plan to keep the farm in operation for future generations. Failure to properly plan can force surviving family members to sell family assets to pay taxes. Along with a tax advisor, producers should consider working with additional team members, such as an attorney and a financial planner, to begin developing a succession plan for their operation.


    Goeringer, Paul. “Federal Estate Tax and Gift Tax Limits Announced For 2026.” Southern Ag Today 5(51.5). December 19, 2025. Permalink

  • California Defines Ultra-processed Foods

    California Defines Ultra-processed Foods

    This month, California Governor Gavin Newsom signed AB 1264 into law. This legislation creates the first statutory definition of ultra-processed foods (UPF) and makes California the first state in the nation to ban certain UPFs from being served in schools. This is particularly noteworthy because there is no universally accepted definition of UPF, whether in law or in science. AB 1264’s enactment is also important because it follows recent announcements from the US Department of Agriculture (USDA) and the Food and Drug Administration (FDA) that the federal agencies are collaborating to create a definition for UPFs. 

    California’s AB 1264 

    With a goal of making school meals healthier, California enacted AB 1264. This law, along with creating a legal definition for UPFs, prohibits certain foods meeting the definition from being served in California’s public schools. Specifically, the law bans “restricted school foods” and “UPFs of concern” from being served in elementary, middle, or high schools after July 1, 2035. The classification of foods as being “restricted school foods” or “UPFs of concern” depends on whether the foods meet the definition of UPFs laid out in the California law. 

    Under the law, UPFs are defined as food or beverages that contain: 

    • A substance available in FDA’s Substances Added to Food database that has a FDA-defined technical effect, and 
    • Either 1) high amounts of saturated fat, sodium, or added sugar, or  2) a non-nutritive sweetener

    FDA’s Substances Added to Food is a searchable database that includes FDA regulated ingredients such as food additives, color additives, and Generally Recognized as Safe substances that are listed in FDA regulations. California’s new UPF definition applies to substances that can be found in the database and are designed with certain technical effects, such as stabilizers and thickeners or colors and coloring adjuncts. The definitions of these technical effects can be found in 21 CFR § 170.3(o)

    To meet the UPF definition, a food or beverage must contain one of the substances with a defined technical effect and contain either 1) high amounts of saturated fats, sodium, or added sugar or 2) a nonnutritive sweeter. Specifically, the law defines a product with a high amount of saturated fat as a food or beverage deriving 10 percent or greater of its total energy from saturated fat. Similarly, high sodium food or beverages contain a ratio equal to or greater than 1:1 milligrams of sodium to calories. Finally, added sugar products meeting the definition include food or beverages with at least 10 percent of total energy derived from added sugars. Thus, under California’s UPF definition, a food containing a substance with a defined technical effect that derives 12 percent of its total energy from added sugars would be a UPF. 

    Further, California’s definition would also include a food that contains 1) a substance with a defined technical effect and 2) a non-nutritive sweetener. A non-nutritive sweetener is defined as a substance with less than 2 percent of the caloric value of sucrose per equivalent unit of sweetening capacity. 21 CFR § 170.3(o)(19). California lists several examples of a non-nutritive sweetener including sucralose, steviol glycosides, and lactitol. 

    Prohibiting specific UPFs from schools 

    Along with creating a definition for UPFs, the California law also prohibits “restricted school foods” and “UPFs of concern” from being served in schools. UPFs of concern include food that 1) meets the law’s outlined UPF definition and 2) is classified as “of concern” through regulations adopted by the California Department of Public Health (CDPH). Restricted school foods are defined very broadly by the law as a food or beverage that contains one or more of the listed substances with a defined technical effect and is also restricted from service or sale in schools via CDPH regulations. The law directs the CDPH to define both UPFs of concern and restricted school foods after considering several factors. CDPH’s consideration of the listed factors must be completed by June 1, 2028. By July 1, 2029 schools must begin to phase out both restricted school foods and UPFs of concern, and by July 1, 2032 a vendor shall not offer restricted school foods or UPFs of concern to a school. 

    Significance of California’s UPF definition

    The timing of the enactment of AB 1264 is significant because the USDA and FDA are currently collaborating to establish a definition of UPFs. On July 23, 2025, the agencies published a press release announcing a joint Request for Information to “gather information and data to help establish a federally recognized uniform definition for UPFs.” The agencies have not indicated that they plan to prohibit UPFs in school meals, as California has done, but they have stated a uniform definition will “allow for consistency in research and policy.” California’s law might influence the definition USDA and FDA create. Further, as other state legislatures begin their 2026 sessions in the upcoming months, they might model California’s law in their own UPF definitional attempts. To read more about the California UPF definition, click here to read NALC article ‘MAHA’ Movement: Defining Ultra-processed Foods. 

  • Does Agritourism Hinder or Promote Farmland Preservation?

    Does Agritourism Hinder or Promote Farmland Preservation?

    In Wineries of the Old Mission Peninsula Association v. Peninsula Township (U.S. District Court for the Western District of Michigan, 2025), a group of local wineries sued Peninsula Township, Michigan, claiming that the township’s zoning laws unfairly restricted their ability to operate and grow. The wineries are located on the Old Mission Peninsula, a picturesque region north of Traverse City known for vineyards, fruit farms, and views of Lake Michigan. 

    Many of the wineries are located on agricultural land, where the township allowed them as “special uses” under its zoning ordinance—but only under strict conditions. These included limits on hours, food service, events, and even the use of outdoor spaces. The township said the rules were meant to preserve rural character, reduce traffic and noise, and protect residents from excessive commercialization.

    The wineries saw it differently, arguing that the rules were overly harsh and inconsistent with modern wine tourism. Some rules, like requiring that all wine be made from grapes grown within the township, or that officials pre-approve advertising and events, struck them as both unfair and unconstitutional. The wineries sued under several legal theories, including violations of the First Amendment (free speech and expression), the Commerce Clause (prohibiting discrimination against out-of-state goods), and the Fourteenth Amendment (due process and equal protection). 

    After years of litigation and an 11-day trial, the federal court largely sided with the wineries. The judge found that the township’s rules on advertising and event approval unlawfully restricted free speech, and that the local-grape requirement violated the Commerce Clause by discriminating against wines made with out-of-state fruit. While the township could still regulate land use to manage traffic and protect farmland, the court said it must do so in ways that respect constitutional rights and avoid economic protectionism.

    The expert witness for the township, University of Pennsylvania Professor and nationally known writer on farmland preservation, Dr. Thomas Daniels, submitted an expert witness report that essentially argued that agritourism (in this case, wine tastings, weddings, and events) hindered farmland preservation by converting land to commercial operations. The court took the extraordinary step of finding Dr. Daniels’ testimony not credible. 

    The court particularly questioned the testimony that farmland preservation should keep the value of farmland low so that young farmers and others could easily enter the industry. The expert witness for the wineries challenged that principle, opining that land values need to be sufficient to fund the producers’ retirement.

    The court also labeled an intervening group as a Not in My Backyard (NIMBY) group, and the motivations of the township as NIMBYism. The court granted the wineries $50 million in damages. The township’s insurance carrier has filed suit, denying coverage for the judgment.

    The Wineries case carries national importance because it reflects a growing struggle across the country: how to balance local land-use control with modern agricultural and tourism economies. Communities across the country face similar tensions as small farms and wineries expand into venues for tastings, weddings, and events. In addition, Dr. Daniels’ position that agritourism hinders farmland preservation may become part of other litigation and policy discussions.


    Richardson, Jesse, and Tiffany Lashmet. “Does Agritourism Hinder or Promote Farmland Preservation?Southern Ag Today 5(49.5). December 5, 2025. Permalink

  • Court Asked to Overturn Registrations for Enlist One and Enlist Duo

    Court Asked to Overturn Registrations for Enlist One and Enlist Duo

    Environmental plaintiffs are seeking summary judgment in a lawsuit they filed in 2023 to challenge the Environmental Protection Agency’s (“EPA”) 2022 decision to register the pesticides Enlist One and Enlist Duo for use through January 2029. Specifically, the plaintiffs have asked the court to revoke the labels for both Enlist products, a move that would make both products unavailable for use.

    Both Enlist One and Enlist Duo are herbicide products manufactured and sold by Corteva Agriscience LLC. Both products contain as an active ingredient the choline salt of 2,4-dichlogophenoxyacetic acid, otherwise known as 2,4-D. Enlist Duo also includes glyphosate as a second active ingredient. Enlist One and Enlist Duo have both been approved for use on 2,4-D resistant corn, soybean, and cotton crops in 34 states. 

    A pesticide may not be sold or distributed in the United States until EPA registers the pesticide for use under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). To register a pesticide, FIFRA requires EPA to determine that using the pesticide for its intended purpose will not cause “unreasonable adverse effects on the environment” which is defined as “any unreasonable risk to man or the environment, taking into account the economic, social, and environmental costs and benefits of the use of the pesticide.” In other words, FIFRA requires EPA to register a pesticide for use only if the agency has determined that the costs of using the pesticide in its intended manner do not outweigh the benefits.

    When EPA registered Enlist One and Enlist Duo for use in 2022, the agency concluded that one of the main benefits of using Enlist products was the products’ effectiveness against herbicide-resistant broadleaf weeds in cotton and soybean crops. EPA also identified certain environmental risks such as potential harm to pollinators, pollinator host plants such as milkweed, and other wildlife species. To address those risks, EPA included additional application requirements on the Enlist labels to reduce the amount of 2,4-D that could travel off target via spray drift or runoff. Those measures included a 30-foot spray drift buffer and a requirement that Enlist applicators select mitigation measures from a “pick list” developed by EPA for the purpose of limiting pesticide exposure to wildlife. Each mitigation measure is assigned a point value, and to apply Enlist One or Enlist Duo, applicators will need to achieve four to six points of runoff mitigation depending on their location. To learn more about EPA’s mitigation “pick list” for herbicides, click here.

    The plaintiffs in Ctr. For Food Safety v. Envtl. Protection Agency filed a motion for summary judgment with the court in late August.  In that motion, the plaintiffs argue that EPA did not satisfy FIFRA’s “unreasonable adverse effects on the environment” standard when registering Enlist One and Enlist Duo because EPA (1) understated or ignored important costs to the environment; (2) overstated alleged benefits; and (3) improperly relied on ineffective mitigation.

    First, the plaintiffs argue that EPA’s 2022 registration failed to fully analyze the environmental costs posed by use of Enlist products. According to the plaintiffs, when EPA drafted its 2022 registration decision it failed to evaluate current usage data for Enlist products. Instead, EPA relied on Enlist use data from 2018 and 2019 which the plaintiffs claim was before the widespread adoption of Enlist products. Additionally, the plaintiffs argue that EPA failed to consider the future use of Enlist which the plaintiffs claim will continue to increase during the seven-year registration period. By failing to consider the actual amount of Enlist products that would be applied during the registration period, the plaintiffs claim that EPA understated the environmental costs posed by Enlist. 

    Next, the plaintiffs argued that EPA overstated the benefits of using Enlist One and Enlist Duo by exaggerating the effectiveness of Enlist products on herbicide-resistant weeds. The plaintiffs claim that although EPA suggests using Enlist with other pesticides or weed management tools to avoid contributing to the likelihood of increased herbicide resistance, evidence indicates that many applicators use Enlist products as their sole method of controlling glyphosate-resistant weeds. According to the plaintiffs, this increases the likelihood that weeds will grow more resistant to herbicides, which EPA failed to address when registering the pesticides.

    Lastly, the plaintiffs claim that the mitigation measures that EPA added to the Enlist labels fail to effectively mitigate the adverse effects that Enlist One and Enlist Duo have on the environment. The mitigation measures stem from a new policy that EPA has adopted to limit the impacts of pesticide exposure to species of wildlife protected by the Endangered Species Act. Enlist One and Enlist Duo were some of the first products to have new mitigation measures added to their labels as a result of this policy. The mitigations for Enlist include a 30-foot spray drift buffer and a requirement that applicators achieve four to six points of runoff reduction by selecting one or more mitigation activities from a “pick list” developed by EPA. 

    According to the plaintiffs, EPA’s reliance on a 30-foot drift buffer is contrary to evidence showing that 2,4-D can drift further off target. The plaintiffs also argue that the runoff mitigation measures identified by EPA do not effectively reduce pesticide runoff. They claim that most farmers that use Enlist products would not have to make any changes to their applications to achieve the required number of runoff points. Therefore, the plaintiffs argue that the spray drift and runoff mitigation measures do not effectively reduce the adverse effects that Enlist One and Enlist Duo have on the environment.

    In filing a motion for summary judgment, the plaintiffs have asked the court to overturn the 2022 Enlist labels. If the court does so, it would likely result in neither product remaining available for use. Additionally, the court’s ruling in this case could have broader implications for EPA’s new mitigation policy. If the court agrees with the plaintiffs that the spray drift and runoff mitigations do not satisfy FIFRA, that could impact other pesticide labels that include mitigation measures based on EPA’s policy. However, should the court disagree with the plaintiffs and find that the mitigation measures meet the FIFRA “adverse effects on the environment” standard, that would suggest that other pesticide labels with similar mitigation measures could also survive a legal challenge. Ultimately, the outcome of this court case could have effects that are felt throughout the agricultural industry. To learn more about this lawsuit, click here.


    Rollins, Brigit. “Court Asked to Overturn Registrations for Enlist One and Enlist Duo.Southern Ag Today 5(45.5). November 7, 2025. Permalink

  • Land, Power, and Computing

    Land, Power, and Computing

    Somewhere between land use issues and clean energy initiatives lies a growing battleground for land, power, water, and innovation. Just west of Washington, D.C., Virginia’s Prince William County aims to lay claim to the world’s largest data center corridor. Known as the Digital Gateway project, over 2,000 acres of rural, agricultural, and undeveloped land are proposed to host 37 data centers, spanning a total of 22 to 23 million square feet. In early August, a decision from Prince William County’s Circuit Court Judge voided three rezonings for the proposed project for failure to comply with Virginia’s public hearing notice requirements. The Court has also since denied a stay pending the county’s appeal. Oak Valley HOA v. Prince William County Board of Supervisors, CL24000375-00 (Op. Aug. 7, 2025).

    Just south of the proposed Prince William project, another data center project is well underway north of Richmond in Caroline County. This 650-acre project valued at $8.8B is planned on the site of a shuttered indoor/outdoor flea market. While this project seems to have cleared land use hurdles, it is facing water usage concerns as a result of a plan for surface water withdrawal and an interbasin transfer of water from the Rappahannock River to the Mattaponi River via two existing wastewater treatment plants and discharging into the York River Basin. Caroline County Board of Supervisors. (n.d.) Statement on Caroline County Board of Supervisors’ Approval of Economic Development Performance Agreement with CleanArc. Development Updates, Caroline County VA. https://co.caroline.va.us/215/Development-Updates.

    Meanwhile, neighboring West Virginia’s legislature has pursued policy efforts aimed at attracting data center developers. “The Power Generation and Consumption Act of 2025” (the “Act”), enacted in July of this year, shifts the governance of data centers away from counties and municipalities to centralized state control, positing that national security and economic growth are fundamental grounds for state control. The Act emphasizes that data center projects, along with their accompanying microgrids, are the prerogative of the state. Furthermore, it asserts that West Virginia is the best candidate state for data center development in the U.S., citing low tax rates, few regulatory restrictions, and abundant energy resources. 

    Days after Governor Patrick Morrisey signed West Virginia’s Act into law, Virginia’s Governor Glenn Youngkin vetoed identical bipartisan bills that would have required developer applicants to perform sound level assessments on data centers proposed in close proximity to communities. Additionally, the bills granted localities the ability to require that new development applicants assess potential effects on the nearby public resources. S.B. 1449, H.B. 1601, 406th Gen. Assemb., Reg. Sess. (Va. 2025) https://lis.virginia.gov, Vetoed (May 2, 2025). Governor Youngkin asserts that the proposed legislation “limits local discretion and creates unnecessary red tape.” Virginia. Governor. May 2, 2025. Veto Explanation for S.B. 1449https://lis.virginia.gov/bill-details/20251/SB1449/text/SB1449VG.

    In Youngkin’s veto, he also declared Virginia to be the “data center capital of the world,” urging Virginia to not restrict local governments from “developing data centers based on their community’s specific circumstances.” Id. Youngkin’s veto, following the landmark Act passed in West Virginia, suggests an arms race for data center development between the two Virginias. 

    A 2024 report from Virginia’s Joint Legislative Audit and Review Commission (JLARC) found that data center demand would drive an “immense increase” in Virginia’s energy needs, resulting in a 183% increase in unconstrained demand. JLARC (2024) “Data Centers in Virginia.” Commonwealth of Virginia. https://jlarc.virginia.gov/landing-2024-data-centers-in-virginia.asp. The report found that meeting the Virginia Clean Economy Act (VCEA) requirements while meeting the forecasted energy demand of data centers is not a likely outcome. Virginia would need to add twice the number of new solar facilities added on an annual basis compared to 2024, which comes with its own host of land use challenges, both socially and legislatively. The Commonwealth would also need to increase large natural gas plants at equal or faster rates than the peak build period of 2012 – 2018, and necessary new wind generation would exceed the potential capabilities of all existing and forthcoming offshore wind sites. Id. While states struggle to compete for innovative industries with rewarding economic incentives, land use and resources remain a common hurdle. 


    Friedel, Jennifer S.. “Land, Power, and Computing.Southern Ag Today 5(44.5). October 31, 2025. Permalink