10.5 - LANDHOLDINGS RESTRICTED.

        10.5  LANDHOLDINGS RESTRICTED.
         1.  Notwithstanding section 9H.4, a networking farmers limited
      liability company may hold agricultural land in this state if it
      meets all of the following conditions:
         a.  The networking farmers limited liability company 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
      limited liability company's gross receipts from farming are from the
      sale of livestock or livestock products.
         2. a.  An interest in agricultural land held by a networking
      farmers limited liability company shall be attributable as an
      interest in agricultural land held by a member having an interest in
      the networking farmers limited liability company.  The member shall
      be deemed to hold an interest in agricultural land held by the
      networking farmers limited liability company in proportion to the
      interest that the member holds in the networking farmers 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's proportionate interest shall be calculated by
      multiplying the number of acres of agricultural land held by the
      networking farmers limited liability company by the percentage
      interest in the networking farmers limited liability company held by
      the member.
         3.  In the event of a transfer of an interest in the networking
      farmers limited liability company by operation of law, the networking
      farmers 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, §105, 301
         Referred to in §10.6, 10.11