- 7 - Hillside Dairy was to receive all of the gross proceeds from the sales of crops grown on the farm, as well as all payments received under Federal conservation programs (or any other Federal, State, or local governmental programs). Hillside Dairy supplied all of the fertilizer, chemicals, and seed necessary to plant and treat the crops.5 Mr. Schmidt agreed (1) to farm the land; (2) to protect the crops from injury and waste; (3) to till the land after harvesting the crops; and (4) to rotate the crops from year to year. Hillside Dairy agreed to furnish all tools, farm implements, machinery, and hired help necessary to cultivate and manage the farm. Hillside Dairy agreed to furnish all necessary materials, and the Schmidts agreed to supply all necessary labor, to maintain all fences and other improvements. Mr. Schmidt was permitted to use the corporation’s combine and tractor on the land he owned individually. He also had use of one of the pastures. D. Mr. Schmidt’s Separate Farming Activity During the years at issue, Mr. Schmidt individually (and not as an employee of Hillside Dairy) farmed land that was not owned by Hillside Dairy. He kept his personal grain separate from that 5Although a contradictory provision required Mr. Schmidt to “provide all seed, labor, and other expenses of producing, harvesting, and marketing crops”, Hillside Dairy in fact paid all those expenses and deducted the costs in computing its income.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011