Washburn Law WALTR

10/11/2026

RED-DYED DIESEL AND KANSAS WATER RIGHTS

In a recent blog article I discuss what the President’s October 5 Executive Order means for farmers who use dyed diesel fuel. I examine the legal implications, what has changed, and what questions remain unanswered.

Also, the Kansas Farm Bureau is challenging the Greater GMD 4 Local Enhanced Management Area (LEMA). The case raises important questions about groundwater regulation, statutory authority, and the protection of property rights.

Both developments have practical implications for agricultural producers. One concerns the fuel they use in their operations; the other concerns the water rights that can be critical to their land and livelihoods.

I'll be talking about both of these matters tomorrow morning shortly after 6:00 a.m. with host Greg Akagi on WIBW 580AM.
Read both articles for the latest analysis of these important agricultural law developments!

https://www.lexblog.com/2026/10/09/red-dyed-diesel/
https://www.lexblog.com/2026/10/11/kansas-farm-bureau-challenges-greater-gmd-4-lema/

This week's topics on my national daily radio show are: 1) IRC §1062 Regulations; 2) Federal Government Interference with Water Rights; 3) PSA Prompt Payment Provision; 4) Shooting Trespassing Dogs: 5) Utilizing the Home Sale Exclusion When Selling the Farm
Later in the week you can find me on RFD-TV. I don't know the interview time yet.

I am off the road this week in preparation for the mad dash that will take me to just before Christmas. It's good to not have to travel for a few days.

10/10/2026

Kansas Ag Report

Today's edition of the Kansas Ag Report is now available online. Welcome Brityne Knackstedt (Rucker) back to the anchor chair! On this week's show Brityne headlines an important water hearing coming up in Kansas, Darrell Holaday on the markets, and Paul Neiffer and I discuss cash balance plans as a retirement planning option for farmers.

This week on the Kansas Ag Report, we cover immigration enforcement...

10/06/2026

Access to Landlocked Property; Feds and State Water Rights; and Shooting Trespassing Dogs

There's always a lot going on in ag law and tax. The issues are numerous and seemingly never ending. My three most recent blog articles address the topics mentioned in the header. All important issues that come around occasionally for a rural landowner. I trust that you will find them informative and helpful. You may access my articles here: https://agriculturallaw.lawprofessorsblogs.com/

Tomorrow, I return to Kansas for a few days after wrapping up a seminar series that ended with two stops in Indiana. I took the picture of the Bridgeton Grist Mill on my route in between seminar locations in Indiana. It's been a continuously working grist mill since 1823.

This week you can hear me on KSU radio tomorrow morning and see me on RFD-TV on Thursday at 11:30 a.m. (central) as well as hear me on SiriusXM 143 at the same time.

The topics for this week's national daily radio program are: 1) Access Rights to Landlocked Property; 2) Water Rights and State Power; 3) FSA Disputes; 4) Common Estate Planning Mistakes of Farmers; and 5) Health Care Power of Attorney

In case you missed the Kansas Ag Report last weekend, here's the link to it on YouTube: https://www.youtube.com/watch?v=Nt60Ae7Q8Kw

I trust that you all have a good week.

10/01/2026

Deducting Residual Soil Fertility

One of the big issues in ag tax surrounds claiming a deduction for residual soil fertility. In the latest issue of my Rural Practice Digest, the article addresses the topic in-depth largely based on a compilation of questions that I field on the topic. Of course, there's still tremendous uncertainty about the deduction, but we do know the basic framework. This article is a deep dive into the topic, covering 14 pages.

The second part of the Digest covers recent annotations involving court decisions and IRS developments.Deducting Residual Soil Fertility

09/28/2026

The Week Past in Ag Law and Tax, and a Look Ahead

The past week found me speaking two days for CPAs in Grand Forks, ND. At that event, it was great to see a former law student, Stacey Gleason, that is now in practice in the area. That's a great success story for her and I am very proud of Stacey's accomplishments. A picture of us is below.

On this past weekend's episode of the Kansas Ag Report, we cover the week's biggest ag news stories, and Darrell Holaday breaks down what happened and what it could mean for cattle markets in the week ahead. Plus, we cover the latest movement on the Farm Bill, sit down with K-State’s Terry Griffin to discuss GPS disruptions and precision agriculture, and Paul Neiffer and I explain how charitable remainder trusts could play a role when farmers retire and sell highly appreciated farmland. Here's the link to this most recent episode: https://www.youtube.com/watch?v=9m4ptYsc0BE&t=339s

My most recent blog article asks the question of whether the FSA can exclude a farmer from a County Committee election based on an internal handbook provision that isn’t actually supported by a regulation? A recent federal court decision says there’s an important distinction between candidate eligibility and restrictions that apply only after election. I address what the court's decision means for FSA County Committee elections - and for anyone challenging an agency decision that appears to go beyond its regulatory authority. You may read the full article here: https://agriculturallaw.lawprofessorsblogs.com/2026/09/fsa-cannot-create-county-committee-candidate-disqualifications-through-handbook-provisions.html

Tomorrow morning you can listen to Greg Akagi and I talk about a recent Kansas Supreme Court opinion involving the computation of oil and gas royalties and a recent Tax Court case involving whether a transaction is really a loan or taxable income. That show starts shortly after 6:00 a.m. (central) on WIBW 580AM. At 11:00 a.m. (central), you can find me on RFD-TV (as well as SiriusXM 143) talking ag law and tax. Also, the topics of this week's national daily radio show are: 1) Pesticide Litigation; 2) Oil and Gas Royalties; 3) Drought Sale Rules for Livestock; 4) Conservation Easements; and 5) How Long Can a Train Block a Crossing?

Tuesday I'll be in Champaign, IL, doing a farm tax seminar for the University of Illinois Tax School. On Friday you can find me in Manhattan, Kansas, speaking at a seminar for the Kansas Bar Association.

Make it a good week. See less

09/20/2026

Three new articles on the Agricultural Law and Taxation Blog

Three recent developments with important implications for farmers, ranchers, landowners and agricultural businesses:

🔹 Kansas Oil & Gas Royalties: The Kansas Supreme Court has clarified how the marketable condition rule applies to natural gas royalties and post-production costs. The decision emphasizes the importance of the specific language in the oil-and-gas lease - and could have significant implications for royalty disputes involving thousands of Kansas leases.

🔹 Greenhouse-Gas Deregulation: What does the rollback of federal greenhouse-gas regulation mean for agriculture? The implications reach beyond environmental regulation to farm machinery, electricity, transportation, production costs and the economic health of rural America.

🔹 When Is a Loan Not a Loan? A recent Tax Court case involving a $16.5 million art transaction provides a valuable warning for farmers and ranchers: calling a transfer a “loan” does not necessarily make it one for tax purposes. Contemporaneous documentation and the parties’ actual conduct matter.

Three different subjects - but one common theme: the details matter.

Read the latest articles on my Agricultural Law and Taxation Blog here: https://agriculturallaw.lawprofessorsblogs.com/

Also, this week on the Kansas Ag Report, John Jenkinson looks at what’s driving the surge in fuel costs, how higher energy prices are affecting agriculture and whether there could be any silver lining for grain markets.

We also sit down with Mark Dikeman, Executive Director of the Kansas Farm Management Association, to discuss why strong financial records and farm management are increasingly important as producers navigate tighter margins.

Then, Darrell Holaday breaks down the latest grain and cattle markets, including pressure in wheat and corn, soybean movement, cattle supplies and what the latest Cattle on Feed report could mean for the market.

Plus, on Ag Advisors, Paul Neiffer and I explain Family Limited Partnerships (FLPs) - how they can be used in farm succession planning, potential tax considerations and why families need to start with their long-term goals before deciding whether an FLP makes sense.

If you missed the episode on TV, you can find it here: https://www.youtube.com/watch?v=x2TY9i-8LAw&t=1466s

Last week I had speaking engagements in Scott City and Dodge City, Kansas, and this week I am in Grand Forks, North Dakota for a two-day seminar and then on to Indiana later in the week. You can find me this week on KSU radio on Wednesday morning and on RFD-TV (not sure which day or time yet). The topics for the national daily radio program this week are as follows: 1) Section 45Z Development and Implications for Farmers; 2) Application of the PSA to Local Livestock Auctions; 3) Farm Assessment for Property Tax Valuation Purposes; 4) Modifying an "Old" GST Trust; and 5) Offer in Compromise.

May your week be a good one.

Record-high diesel prices are hitting farmers at a critical time as...

09/16/2026

It's Still the Wild, Wild, West of Tax

09/12/2026

This weekend's Kansas Ag Report

In our latest episode, John Jenkinson guest hosts for Brityne Rucker and covers the latest ag headlines. He also interviews Sophie Westbrook of KSU Agronomy during the KSU Spotlight feature and Darrel Holoday with a look at the markets after Friday's WASDE report. In the Ag Advisors segment John interviews Paul Neiffer and I about the use of IRC Sec. 2032A in an ag estate as a tool to help avoid selling family land to pay estate taxes.

We trust you find the information helpful to your operation.

Could a smaller crop finally shake up the markets?Hot, dry weathe...

09/10/2026

The "Right to a "Healthy Environment"?

What if “the human right to a healthy environment” becomes the next vehicle for restricting private property rights? It sounds harmless. Who could possibly oppose a clean and healthy environment?

But once something is declared a “human right,” the harder questions begin: Who defines it? Who pays for it? What happens to private property? Can courts impose environmental obligations that legislatures never enacted? And could the tax code eventually be used to enforce those obligations?

For farmers and ranchers, this isn't merely an academic debate. It could affect how agricultural land is used, what production practices are permitted, the cost of farming, and ultimately food security.

My latest blog article takes a skeptical look at the academic movement for a “right to a healthy environment” and argues that good environmental policy requires good law - not vague slogans that invite judicial policymaking.

Is this environmental protection - or “rights inflation”?

You can read the full article here:

The Myth of a "Healthy Environment"

09/07/2026

The August Jobs Report - Some Genuinely Good Economic News for This Labor Day - But What Explains It?

Payroll employment increased by 162,000, the labor force grew by 683,000, and goods-producing employment posted solid gains. Those are encouraging numbers.

But the more important question is why.

In my latest analysis, I look at the August report through the lens of work incentives, the One Big Beautiful Bill Act (OBBBA), capital investment, and regulatory reform. The OBBBA improved the after-tax reward to work and investment, while regulatory reforms are reducing some of the uncertainty and costs that can discourage businesses from expanding and hiring.

I also take a hard look at the counterfactual: What might the jobs report have looked like if the OBBBA had never passed?
The answer isn't that we can assign a specific number of jobs to the law. We can't. The more important point is that economic incentives matter—and millions of individual decisions to work, invest, hire, and expand can add up to a stronger economy.

Read my full analysis at mceowenaglawandtax.substack.com