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participation specified the maximum number of bushels of corn the
member could be required to produce and deliver to MCP each
processing year,5 and the related UMA set forth the terms
governing the production, processing, and marketing of the corn.
During 1994 and 1995, petitioners were active members of MCP who
owned MCP common stock. As active members, petitioners continued
to have ongoing production obligations to MCP and its membership.
Beginning in 1982 and continuing through and including 1995,
petitioners periodically purchased units of equity participation
as follows:
Richard J. Bot Phyllis Bot
Date Units purchased Date Units purchased
8/26/82 40,000 8/28/82 15,000
12/20/85 20,000
2/1/901 20,000 2/1/90 17,500
10/1/90 30,000 10/1/90 26,250
12/1/91 5,000 12/1/91 20,000
6/1/92 30,000 6/1/92 26,250
3/1/94 10,000 3/1/94 10,000
6/1/94 62,500 6/1/94 62,500
6/1/95 79,000 6/1/95 79,000
9/18/95 16,500 9/18/95 12,750
12/1/95 20,000 12/1/95 20,000
1Petitioners testified they purchased additional units after
1987 because they thought the units would make good investments.
As MCP members, petitioners were required to produce and
deliver corn three times each year as determined by MCP. The
timing of the deliveries was also within MCP’s discretion.
5MCP’s processing year begins Oct. 1 and ends Sept. 30.
MCP’s fiscal year begins Jan. 1 and ends Dec. 31.
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