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transaction to acquire 584 breeding sheep on March 20, 1983.
Presumably, an important incident of breeding flock ownership is
the right to benefit from any lambs produced by that flock.18
However, the above 1981, 1982, and 1983 flock recap sheets
intentionally omitted and failed to provide such material
information concerning a partnership's alleged breeding sheep
during that partnership's first year of operations.
Further, while the bills of sale reflect the eight
partnerships (excluding OGT 90) as having also acquired some rams
from Barnes Ranches, the annual flock recap sheets show each
partnership to have always owned only breeding ewes. The Court
does not find convincing Mr. Hoyt's attempted explanation of this
discrepancy. He claimed that the partnerships initially had
acquired these rams for various short-term breeding projects that
were terminated by the end of each partnership's first year of
operations. However, the flock recap sheets do not reflect these
partnerships to have later "exchanged" for ewes these rams they
initially "acquired". Further, the sharecrop agreement each
18Although the sharecrop agreements provided that Barnes
Ranches, as compensation for its services, was to receive all
lambs a partnership's breeding flock produced, a partnership was
still to retain the breeding value certificates as to any male
lambs. See, however, infra, the discussion regarding breeding
value certificate transactions whereby the partnerships later
"sold" some of these "certificates" to the Barnes family.
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