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800-head capacity hog barn in 1995, the farming operation had the
capacity to process 1,000 head of hogs. During each of the years
1993, 1994, and 1995, JJ & P Farms, Inc., was required to, and
did, pay to petitioners fair market rent of $21,000 for the
buildings, exclusive of that barn, located on petitioners’
farmland that had the capacity to process 1,000 head of hogs.
Although not entirely clear from the record, it appears that,
after petitioners built petitioners’ 800-head capacity hog barn
in 1995, the farming operation of JJ & P Farms, Inc., had the
capacity to process not only 1,000 head of hogs in those build-
ings but also an additional 800 head of hogs in that barn. We
find it difficult to believe that during 1995 buildings, with the
capacity to process 1,000 head of hogs, would have generated
annual fair market rent of $21,000 while petitioners’ 800-head
capacity hog barn, with the capacity to process 800 head of hogs
and with rent for such barn calculated as $21 per head, per
rotation of hogs that petitioners processed through that barn,
would have generated annual fair market rent of $44,500--the
amount of the 1995 claimed rent for petitioners’ 800-head capac-
ity hog barn that petitioners received from JJ & P Farms, Inc.,
during 1995.
In this connection, at the trial in this case in June 2003
Mr. Solvie, apparently in an attempt to justify having received
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