Legal Definitions - farming operation

A farming operation refers to a business primarily engaged in agricultural activities. This includes cultivating land, raising crops, dairy farming, ranching, and breeding or raising poultry or other livestock. It also encompasses the production of raw, unprocessed products derived from these animals, such as milk, eggs, or wool.

Here are some examples to illustrate what constitutes a farming operation:

• Example 1: Large-Scale Grain Production

  A company owns thousands of acres in the Midwest, where it systematically plants, cultivates, and harvests corn and soybeans using advanced machinery. The harvested grains are then sold in bulk to food manufacturers and ethanol plants.

  This is considered a farming operation because the business is actively involved in the "tillage of soil" and the "raising of crops" (corn and soybeans) on a commercial scale.

• Example 2: Family-Owned Dairy Farm

  A multi-generational family business manages a herd of dairy cows, milking them daily and selling the raw milk directly to a regional dairy cooperative for pasteurization and bottling.

  This qualifies as a farming operation due to its engagement in "dairy farming" and the "production of livestock products in an unmanufactured state" (raw milk) as its primary business activity.

• Example 3: Free-Range Egg Farm

  A business operates a facility where thousands of free-range chickens are raised specifically for egg production. The fresh eggs are collected daily, sorted, and then sold directly to grocery stores and restaurants.

  This is a farming operation because it involves the "raising of poultry" and the "production of poultry products in an unmanufactured state" (fresh eggs) as its core business.