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A. Owen M. Cook and Cook Farms Partnership
Owen M. Cook (Owen) conducted farming operations in the
Willamette Valley of Oregon for many years. Owen and his wife
Mildred had five children.
Owen initially retired from farming in 1972 when he was 62
years old. Owen then leased his wheat farm to two of his sons,
Bob and Byron, who with Byron’s wife, Ann, formed a farming
partnership known as Cook Farms. Cook Farms initially was
successful and leased or purchased additional land to expand its
business.
Cook Farms’ business suffered in the latter part of the
1970s because of events beyond its control, such as adverse
weather, higher fertilizer costs, and lower wheat prices. From
1979 to early 1981, Cook Farms (with Bob, Byron, and Ann as
coobligors) borrowed nearly $1 million (the farm loans) under
programs administered by the U.S. Department of Agriculture (the
Agriculture Department). Cook Farms remained unprofitable, and
the farm loans were not repaid as they came due. By June 1982,
the Agriculture Department suggested that Cook Farms, Bob, Byron,
and Ann should sell their assets and use the proceeds to repay
the farm loans. In May 1983, Cook Farms offered to pay $5,000 to
the Agriculture Department in compromise of the unpaid farm
loans. In a letter to the Agriculture Department dated May 9,
1983, Bob, Byron, and Ann indicated they might file for
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