Terry F. and Carol J. Zdun - Page 14

                                       - 14 -                                         

          find that petitioners' apple orchard activity is an activity                
          carried on in a manner substantially similar to other activities            
          of the same nature which are profitable.                                    
               Petitioner testified that he made several changes in the               
          manner of operating the orchard.  For example, he discontinued              
          spraying ground-up insects on the trees as a method of pest                 
          control because it was too labor intensive.  He also changed his            
          ground cover from a fescue type to a clover type because the                
          clover returns more nitrogen to the ground, allowing him to forgo           
          chemical fertilization.  Finally, he replaced the overhead-                 
          irrigation system he had installed previously with a ground-level           
          system.                                                                     
               Although these changes may have reduced petitioners' labor             
          burden, there is no evidence that the changes were made so that             
          the activity would become more profitable, or that the changes              
          were the abandonment of unprofitable methods.  For instance,                
          petitioner testified that the ground-up insect method is an                 
          effective method of pest control, but he abandoned it because it            
          was too much work.  Petitioner did not provide any evidence of              
          the cost effectiveness of his present method of pest control                
          compared to the abandoned method.  Nor did petitioner proffer any           
          evidence that he was actually using chemical fertilizers before             
          he changed the type of ground cover; therefore, there is no                 
          evidence that the change was an abandonment of an unprofitable              





Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next

Last modified: May 25, 2011