Rhett Rance Smith and Alice Avila Smith, et al. - Page 25




                                        - 25 -                                        
               Zane had a 7-year business plan involving the importation of           
          bull semen from France, as he could not import Normande cows to             
          breed with his cows to produce offspring that he believed could             
          produce a higher quantity and better quality of milk.  At the               
          same time, Zane was working to convert his land from a                      
          conventional to a certified organic farm.  Zane believed that if            
          his farm could be certified as organic, he would be able to sell            
          the milk at a price three times that of conventional milk.                  
               By the time of trial, Zane’s animal breeding was                       
          progressing, and he hoped he could focus more on the cow activity           
          and less on the dog breeding.  The farm was certified organic in            
          2006.  His gross revenues exceeded $100,000 for 2004, 2005, and             
          2006.  Zane expects the revenue to triple in 2007 because of the            
          organic certification.  In operating this activity, Zane has                
          consulted with experts, done marketing, maintained separate                 
          checking account records, and has focused on ways to maximize               
          revenue.                                                                    
               During August 2001, Zane purchased 77 Normande cows from               
          Keith Miller of Stuart, Iowa.  Beginning in May 2001, David                 
          Hughes (Mr. Hughes) had become Zane’s part-time farm manager in             
          exchange for a place to live at the Columbus Dairy.  Beginning in           
          January 2002, Mr. Hughes became Zane’s full-time employee.  Zane            
          paid Mr. Hughes approximately $29,000 to $30,000 in cash wages              








Page:  Previous  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  Next 

Last modified: March 27, 2008