- 16 -
Petitioners argue that Omega was financially unable to make
changes to its farming methods and that property liens kept them
from obtaining loans to improve the farm and its profitability.
Petitioners’ argument does not ring true. Omega’s net income,
after accounting for farming losses was $217,787, $483,949, and
$660,375 for 1993, 1994, and 1995, respectively. Therefore,
Omega was capable of acquiring livestock, providing irrigation
for the almond orchard, and/or purchasing new trees to replace
unproductive ones.
Omega’s profitable business activity was hauling and
recycling rubbish, and petitioner admits that he had little
experience with farming. He argues, however, that his
consultations with experts demonstrate petitioners’ ongoing
effort to bring Omega’s farming activity into profitability.
Petitioners did present evidence that advice was sought and
received concerning increasing herd sizes and replacing trees in
or expanding the orchard. Petitioner also attended a 1-day olive
growers convention and sought other related advice regarding
Omega’s farm operation. Finally, petitioner met with the
accountant to discuss the financial statements and the high
expenses and paucity of income. In spite of the advice sought
and/or received, nothing was done to change the farming activity
of Omega. Although petitioner testified that he spent extensive
time engaged in Omega’s farming activity, there is little in the
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011