Robert and Joyce Dirkse - Page 5

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          (Based upon their research, and consultation with members of the            
          Macadamia Society, petitioners calculated that once the macadamia           
          trees reached maturity (which took between 5 and 7 years), each             
          tree would produce approximately 150 pounds of marketable nuts.)            
          The advice petitioners received proved to be erroneous; many of the         
          trees failed to fully develop during the first year.  In order to           
          restore their crop, petitioners planted new saplings using a                
          technique that, in the prior year, petitioners’ consultant had              
          recommended against using.                                                  
               In 1985, petitioners installed a gravity water irrigation              
          system on the Corona property.  Notwithstanding the installation of         
          the irrigation system, the macadamia trees failed to produce the            
          quantity of marketable nuts that petitioners expected.  Moreover,           
          in 1991 petitioners lost 50 of their trees due to frost damage.             
          (Only a portion of the number of trees lost were ever replanted.)           
               As a hedge against the poor yields of macadamia nuts,                  
          petitioners decided to plant Fuyu persimmon trees on the Corona             
          property.  In 1986, petitioners planted 300 persimmon trees on a            
          portion of the unused land at their Corona property.                        
               Following a 3-year gestation period, the persimmon trees               
          yielded a marketable crop of fruit.  As the trees and crops grew,           
          they required more attention. Petitioners hired a part-time                 
          laborer, Carlos Ramirez (Mr. Ramirez), in 1988.  On several                 
          occasions, petitioners hired migrant workers to assist Mr. Ramirez.         

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