10.3 - LANDHOLDINGS RESTRICTED.
10.3 LANDHOLDINGS RESTRICTED.
1. Notwithstanding section 9H.4, a networking farmers corporation
may hold agricultural land in this state if it meets all of the
following conditions:
a. The networking farmers corporation does not hold an
interest in agricultural land of more than six hundred forty acres.
b. At least seventy-five percent of the networking farmers
corporation's gross receipts are from the sale of livestock or
livestock products.
2. a. An interest in agricultural land held by a networking
farmers corporation shall be attributable as an interest in
agricultural land held by a shareholder having an interest in the
networking farmers corporation. The shareholder shall be deemed to
hold an interest in agricultural land held by the networking farmers
corporation in proportion to the interest that the shareholder holds
in the networking farmers corporation.
b. Except to the extent provided in this paragraph, a
shareholder 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 shareholder's proportionate interest shall be
calculated by multiplying the number of acres of agricultural land
held by the networking farmers corporation by the percentage interest
in the networking farmers corporation held by the shareholder.
3. In the event of a transfer of an interest in the networking
farmers corporation by operation of law, the corporation 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, §103, 301
Referred to in §10.4, 10.11