10.7 - LANDHOLDINGS RESTRICTED.
10.7 LANDHOLDINGS RESTRICTED.
1. Notwithstanding section 9H.4, a farmers cooperative
association may hold agricultural land in this state if it meets all
of the following conditions:
a. The farmers cooperative association does not hold an
interest in agricultural land of more than six hundred forty acres.
b. The farmers cooperative association does not produce,
including by planting or harvesting, forage or grain on agricultural
land in which the farmers cooperative association holds an interest.
However, the farmers cooperative association may enter into an
agreement under a lease or production contract with a person to
produce the forage or grain, if the farmers cooperative association
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 association 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.
2. a. Except as provided in this section, an interest in
agricultural land held by a farmers cooperative association shall be
attributable as an interest in agricultural land held by a member
having an interest in the farmers cooperative association. The
member shall be deemed to hold an interest in agricultural land held
by the farmers cooperative association in proportion to the interest
that the member holds in the farmers cooperative association.
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, all of the following shall apply:
(1) 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.
(2) An interest in agricultural land held by a farmers
cooperative association shall not be attributable to a member who is
an entity organized under state law, if the entity holds a five
percent or less interest in the farmers cooperative association.
c. The member's proportionate interest shall be calculated by
multiplying the number of acres of agricultural land held by the
farmers cooperative association by the percentage interest in the
farmers cooperative association held by the member.
3. In the event of a transfer of an interest in a farmers
cooperative association by operation of law, the association 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, §107, 301
Referred to in §10.8, 10.11