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materially in the production by JJ & P Farms, Inc., of agricul-
tural commodities by performing petitioners’ farm-related activi-
ties with respect to, inter alia, processing hogs through that
barn.20 As we understand their position, petitioners contend
(1) that the 1995 claimed rent for petitioners’ 800-head capacity
hog barn represented fair market rent and (2) that petitioners
received compensation, which did not include such rent, for
20We note that in McNamara I there is no indication that the
parties advanced, and the Court did not address, any argument
that, because the taxpayer-owners of the farmland in that case
materially participated within the meaning of sec. 1402(a)(1) in
the production of agricultural commodities as employees of their
wholly owned corporation and not in their individual capacities,
the analysis under sec. 1402(a)(1) should be different from the
analysis in Bot I and Hennen I, where the taxpayer-owners of the
farmland involved in those two cases materially participated
within the meaning of sec. 1402(a)(1) in the production of
agricultural commodities in their individual capacities. In
McNamara II, there is no indication that the taxpayers appealing
McNamara I advanced, and the Court of Appeals for the Eighth
Circuit did not address, any argument that the analysis under
sec. 1402(a)(1) with respect to such taxpayers should be any
different from the analysis with respect to the taxpayers appeal-
ing Bot I and Hennen I.
In the instant case, neither petitioners nor respondent
advances any argument that the analysis under sec. 1402(a)(1)
should be different from the analysis in McNamara II because
petitioners materially participated within the meaning of sec.
1402(a)(1) in the production by JJ & P Farms, Inc., of agricul-
tural commodities as employees of JJ & P Farms, Inc., and not in
their individual capacities. Indeed, petitioners rely solely on
the analysis in McNamara II to support their position in the
instant case. Consequently, we shall not address whether our
analysis would be different in the instant case because petition-
ers materially participated within the meaning of sec. 1402(a)(1)
in the production of agricultural commodities by JJ & P Farms,
Inc., as employees of JJ & P Farms, Inc., and not in their
individual capacities.
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