2026 Legal Checklist for Michigan Farmers

As Michigan farmers enter 2026, they face a rapidly evolving landscape with new legal challenges and opportunities. Regularly reviewing the following checklist can help you spot issues early, minimize risks, and strengthen your farm’s financial health.

Create or Update Your Farm’s Succession Plan

One of the most important legal matters for any business but particularly for farmers is succession planning. Business owners, regardless of industry, often put it off because they think retirement is a long way off.  The reality is the earlier one starts, the better chance you have of meeting your financial targets when you pass the business to its new owner. Additionally, a documented succession plan will reduce chaos should something unexpectedly happen to you.

The passage of the One Big Beautiful Bill (OBBB) earlier this year introduced sweeping changes to estate and succession planning. Whether you're planning to pass your business to family, sell to a partner, or want to ensure your assets are preserved, the changes from the OBBB create new opportunities to protect your wealth, transfer ownership efficiently, and minimize tax burdens.

A good succession plan involves your CPA/tax advisor, your lawyer, and your financial advisors to create a plan that fits your goals. Owners should be reviewing their plan at least every two to three years as circumstances frequently evolve.

Review Risk Minimization Strategies

1. Review your insurance policies. Weather patterns and market prices are more unpredictable than ever. Legal issues related to crop insurance and contracts can make a big difference in how you manage risks. Don’t forget to double check your equipment and property insurance policies too.
2. Have your legal counsel review contracts before you sign. Have your contracts reviewed by your legal counsel to make sure your contracts with buyers and suppliers are clear and fair. This will help to minimize disputes and make sure you are aware of any potential problematic clauses which can be re-negotiated before you sign.
3. Upgrade from a handshake to a written contract. While a handshake agreement works great when there are no complications, it gets “muddy” very fast when there are. In an industry where a handshake has long been considered as binding as a contract, the industry has grown, people move from organization to organization, and a written contract is one of the best tools to minimize risk. Written contracts give both parties a chance to review and negotiate the terms before signing, helping to avoid confusion, provide protection and add a level of enforceability. It is always a good idea to have your attorney review contracts. 

Maintain and Review Your Farm’s Business’ Records

Many farms operate through multiple entities. The start of the year is an ideal time to ensure your business records are up to date. Michigan law requires corporations to keep books and records at their registered office, including meeting minutes for shareholders, directors, and executive committees. Consider the following:

1. Have you prepared notices and minutes for required annual meetings?
2. Are all major company actions documented in your records?
3. Have you recorded any changes in management or ownership, such as office location, resident agent, or new officers/directors?
4. Have you filed your annual reports?
5. Do any changes require updates to your organizational documents? Always have your attorney draft these changes to avoid unintended consequences.
6. Note: Please have your farm’s attorney draft any changes to your farm’s organizational documents to avoid unintended consequences.

Understand Updates in Employment and Labor Law

Employment laws affecting farms are changing, especially regarding wages, worker safety, and immigration. In 2025, the Michigan Earned Sick Time Act (ESTA) required significant attention from employers. For 2026, ensure you’re current on both federal and state laws, including rights of seasonal workers, overtime, and safety regulations. Accurate recordkeeping and compliance are essential for a strong, legally sound farm.

Monitor Environmental Regulations

Environmental rules are continually evolving. A current focus is the Michigan Department of Environment, Great Lakes, and Energy (EGLE) Director’s Opinion on waste management and CAFO monitoring. New regulations may affect water use, pesticide application, and soil conservation. Failure to comply can result in significant fines.

For 2026, keep a close eye on the legal considerations, stay informed on employment and environmental issues and collaborate regularly with your trusted advisors to make informed decisions for peace of mind and a stronger farm in 2026.