Dillon Law PC

But you promised!  Published in NE Iowa Farmer Dec 2011

                How many times do parents hear the clarion call of children demanding justice for a promise made.  The world of agricultural law can take a page from the parent to consider the recent activities of our government.

                First, as a recap, the EPA promised that it would not regulate dust created by  farm operations. Now, the House proposed a bill to  cement that pledge into law. Now the Executive branch is welching and threatening to veto because, essentially, “we already told you that we weren’t going to regulate that.” In the shifting sands of Washington politics, I will take a code section over a promise any day.

                Closer to home we make promises all the time. Some promises are so important, they have to be reduced to writing, like the promise to sell land. With the Des Moines Register reporting  $20,000 per acre land prices in western Iowa, a promise made when the leaves were on the trees now looks like a bad bargain when the snow kisses the ground. A dissatisfied land owner (or perhaps her heirs) may try to wiggle out of  a previous commitment to sell at a set price. The buyer who invests enough in his operation to have an Iowa ag lawyer involved form the get go will be in a better position to fend off the seller’s remorse. No contract is air tight, but when the seller’s options are limited to bankruptcy, being declared incompetent or claiming fraud, it is a far better position to be in than arguing over what the hand written contract on the back of last week’s grocery receipts means.

                Insurance agents also make promises. They often promise to cover your property in the event of a loss. This is why the are agents, meaning they have a special relationship with you as a customer, called a fiduciary duty.  Some times they fail in this duty. The failure can take many forms, such as a failing to tell the bank that the new pick up truck is covered with insurance (which could result in a repossession), falsely certifying a seed type is planted for crop insurance (which can mean non coverage in the event of a crop loss), or even failing to actually insure a piece of property  (which could leave you on your own when your combine head hits the school bus). The best way to ensure an insurance agent’s promises are kept are to review exactly what is written down and what the agent is actually covering. Failing to tell an agent about a new piece of equipment timely (usually with in 30 days) could mean trouble when the brand new grain cart has a tree fall on it.

                Promises happen in estate planning too. I am familiar with a neighbor of a family friend who has promised his farm at his death to at least four young farmers in the area. One night over drinks, they found out about the promise each had been made.  All were in the same boat, and the boat  wasn’t making port anytime soon. Many times, children of farm operators remember promises to parcels of ground long since sold or exchanged by the growing operation.  These promises cannot be enforced,  hurt feelings aside.  Documentation and written estate plans with clear guidance and communications can prevent  misunderstandings and litigation.