10.10 - LANDHOLDINGS RESTRICTED.
10.10 LANDHOLDINGS RESTRICTED.
1. Notwithstanding section 9H.4, a farmers cooperative limited
liability company may hold agricultural land in this state if it
meets all of the following conditions:
a. The farmers cooperative limited liability company does not
hold an interest in agricultural land of more than six hundred forty
acres.
b. The farmers cooperative limited liability company does not
produce, including by planting or harvesting, forage or grain on
agricultural land in which the farmers cooperative limited liability
company holds an interest. However, the farmers cooperative limited
liability company may enter into an agreement under a lease or
production contract with a person to produce the forage or grain, if
the farmers limited liability company does not receive forage or
grain in payment under the agreement. The lease or contract may
specify the type of forage or grain that must be produced and provide
that the farmers cooperative limited liability company has a right to
purchase the forage or grain on the same terms and conditions as the
highest bona fide offer received by the person for the forage or
grain, within a period agreed to by the parties to the lease or
production contract.
c. Less than fifty percent of the interest in the farmers
cooperative limited liability company is held by members which are
parties to intra-company loan agreements. If more than one type of
membership interest is established, including any series as provided
in section 489.1201 or 490A.305 or any class or group as provided in
section 489.1201 or 490A.307, less than fifty percent of the interest
in each type of membership shall be held by members which are parties
to intra-company loan agreements.
d. The farmers cooperative limited liability company does not
own swine or contract for the care and feeding of swine, if a member
of the farmers cooperative limited liability company is a regional
cooperative association.
2. a. An interest in agricultural land held by a farmers
cooperative limited liability company shall be attributable as an
interest in agricultural land held by a member cooperative
association of the farmers cooperative limited liability company.
The member cooperative association shall be deemed to hold an
interest in agricultural land held by the farmers cooperative limited
liability company in proportion to the interest that the member
cooperative association holds in the limited liability company.
b. Except to the extent provided in this paragraph, a member
holding agricultural land by attribution shall be subject to
landholding restrictions imposed pursuant to the Code, including
sections 9H.4, 9H.5, 9I.3, and 501.103. However, notwithstanding
section 9H.4, a cooperative association may hold an interest in any
number of farmers entities, if the total number of acres held by the
farmers entities and attributable to the cooperative association is
six hundred forty acres or less.
c. The member cooperative association's proportionate
interest shall be calculated by multiplying the number of acres of
agricultural land held by the farmers cooperative limited liability
company by the percentage interest in the limited liability company
held by the cooperative association as a member.
3. In the event of a transfer of an interest in the farmers
cooperative limited liability company by operation of law, the
farmers cooperative limited liability company may disregard the
transfer for purposes of determining compliance with subsection 1 for
a period of two years after the transfer. Section History: Recent Form
98 Acts, ch 1110, §110, 301; 2008 Acts, ch 1162, §127, 155
Referred to in §10.11 Footnotes
For future amendments to subsection 1, paragraph c, effective
December 31, 2010, see 2008 Acts, ch 1162, § 154, 155