The Eighth Circuit Court of Appeals reversed. According to the appeals court, the statutory definition of income for purposes of homestead protection is gross income, not gross profits. The court reasoned that because homestead protection is normally sought by financially distressed farmers, limiting the protection to profitable farmers would run contrary to the purpose of homestead protection. The Tenth Amendment grants states the right to pass laws that promote the general safety and well-being of the public. Because courts have found that agricultural production and consumption directly affect public health and safety, states are free to enact their own agricultural laws, provided those laws do not conflict with federal laws and regulations.
Many state laws provide for financial assistance to farmers.
By issuing loans or providing emergency aid, states are able to ensure the survival of family farms and continued agricultural production. The states also have the power to impose agricultural liens, which are claims upon crops for unpaid debts. If a farmer is unable to make timely payments on loans for services or supplies, the state may sue the farmer to gain a security interest in the farmer's crops. States also enact laws to supervise the inspection, grading, sale, and storage of grain, fertilizer, and seed. Municipalities can also set regulations that ostensibly control agricultural production.