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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
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Last modified: March 27, 2008