Pelaez and Sons, Inc. - Page 4




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               Innovations in citrus growing permitted accelerated growing            
          experiences.  Some of the innovations include:  Improved                    
          irrigation, fertigation systems, higher density planting, virus-            
          free trees, disease control, pesticides, intensive fertilization,           
          and genetic development.  Fertigation is a technology that                  
          combines fertilization and irrigation to permit continuous                  
          fertilizer application and thereby promote more rapid growth.               
          The corporation invested in and employed the above-described                
          technologies.  The corporation invested extensively in land                 
          preparation, water management, fertilization, and other measures            
          to maximize tree growth and fruit production.  Generally, the               
          corporation exploited techniques that would accelerate the growth           
          of its citrus crop and maximize its crop output.  The corporation           
          employed Henry Hooker, educated in mechanized agriculture and               
          experienced in fertigation, to assist in its citrus growing                 
          activities.                                                                 
               Most citrus trees are grafted trees that consist of two                
          parts, the scion or variety which is grafted or “budded” onto the           
          rootstock, which comprises the tree’s root system.  In the citrus           
          industry, it is customary to measure a tree’s life from the date            
          it is permanently planted, and prior development is disregarded.            
               During May through July 1989, 39,382 citrus fruit trees                
          (1989 trees) were planted.  Eight varieties of citrus were                  
          acquired from a commercial nursery and planted by a commercial              






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