Richard J. and Phyllis Bot - Page 3




                                                - 3 -                                                  
            retire from daily farming and entered into a written farm                                  
            agreement (the 1987 farm agreement) with two of their sons,                                
            Richard F. Bot and Bennett Bot (hereinafter referred to as the                             
            sons).  This agreement was renewed orally each year.  The 1987                             
            farm agreement required the sons to operate petitioners’ farm “in                          
            a good and husband-like manner, and according to the usual course                          
            of husbandry” and required petitioners to compensate the sons by                           
            paying them with a “one-half part or share of all grains,                                  
            vegetables, corn, soy beans and other crops so raised and secured                          
            upon said farm”.                                                                           
                  The 1987 farm agreement required petitioners to pay for half                         
            of the costs of seed, fertilizer, and weed sprays and to provide                           
            land and machinery for the farming operation.  The 1987 farm                               
            agreement also gave petitioners the option of making major                                 
            repairs to or replacing equipment, when necessary, but did not                             
            require them to do so.  The 1987 farm agreement required the sons                          
            to pay for half of the costs of seed, fertilizer, and weed                                 
            sprays; to furnish all labor and pay all operating costs; to haul                          
            and deliver crops for petitioners; and to keep petitioners’ farm                           
            implements in good repair.  Under the 1987 farm agreement,                                 
            petitioners and the sons were supposed to divide all Government                            
            program aid equally.                                                                       
                  The arrangement between petitioners and the sons during 1994                         
            and 1995 followed the basic parameters of the 1987 farm agreement                          
            but was broader.  Under the arrangement in effect for 1994 and                             




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