Jere J. and Paulette M. Solvie - Page 24

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          We understand the foregoing question by petitioners’ counsel to             
          be asking whether the total rent that JJ & P Farms, Inc., paid to           
          petitioners during 1995 with respect to petitioners’ 800-head               
          capacity hog barn (i.e., $44,500) was above, below, or at fair              
          market value.  However, the rent that that company was required             
          to, and did, pay to petitioners during 1995 with respect to that            
          barn was not $44,500, but was $21 per head, per rotation of hogs            
          that petitioners processed through that barn.  There is nothing             
          in the record establishing that $21 per head, per rotation of               
          hogs that petitioners processed through petitioners’ 800-head               
          capacity hog barn represented fair market rent for such barn.22             


               22Assuming arguendo that it were proper for the colloquy               
          between petitioners’ counsel and Mr. Solvie to have focused on              
          the total rent that JJ & P Farms, Inc., paid to petitioners                 
          during 1995 with respect to petitioners’ 800-head capacity hog              
          barn (i.e., $44,500), instead of on the rent of $21 per head, per           
          rotation of hogs that petitioners processed through that barn, we           
          are not persuaded by Mr. Solvie’s testimony, which we found to be           
          vague and ambiguous, that such total rent paid represented fair             
          market rent.  Mr. Solvie’s use of the word “about” as a qualifier           
          to the phrase “fair market value” raises a serious question in              
          our mind as to whether Mr. Solvie was testifying that the total             
          rent that JJ & P Farms, Inc., paid to petitioners during 1995 was           
          below, at, or above fair market rent.  Mr. Solvie’s repeating the           
          phrase “fair market value” does not clarify but instead compounds           
          the vagueness and ambiguity of his testimony that such total rent           
          paid was “about fair market value.”  Moreover, we found Mr.                 
          Solvie’s testimony to be general, vague, ambiguous, self-serving,           
          uncorroborated, and/or internally inconsistent in certain other             
          material respects.  For example, the following exchange took                
          place during the cross-examination by respondent’s counsel of Mr.           
          Solvie:                                                                     
                    Q    But the rent that you received for the new                   
               facility was wholly dependent upon the number of pigs                  
                                                             (continued...)           




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