For the purposes of this chapter:
1. "Actively engaged in farming" means that a natural person who is a shareholder and an officer, director or employee of the corporation or who is a member or manager of the limited liability company either:
a. Inspects the production activities periodically and furnishes at least half of the value of the tools and pays at least half the direct cost of production; or
b. Regularly and frequently makes or takes an important part in making management decisions substantially contributing to or affecting the success of the farm operation; or
c. Performs physical work which significantly contributes to crop or livestock production.
2. "Agricultural land" means land suitable for use in farming.
3. "Authorized farm corporation" means a corporation other than a family farm corporation founded for the purpose of farming and the ownership of agricultural land in which:
a. The stockholders do not exceed twenty-five in number; and
b. The stockholders are all natural persons or persons acting in a fiduciary capacity for the benefit of natural persons or nonprofit corporations.
4. "Authorized limited liability company" means a limited liability company other than a family farm limited liability company founded for the purpose of farming and the ownership of agricultural land in which all of the following apply:
a. The members do not exceed twenty-five in number.
b. The members are all natural persons or persons acting in a fiduciary capacity for the benefit of natural persons or nonprofit corporations.
5. "Authorized trust" means a trust other than a family trust in which:
a. The beneficiaries do not exceed twenty-five in number; and
b. The beneficiaries are all natural persons, who are not acting as a trustee or in a similar capacity for a trust as defined in subsection 34 of this section, or persons acting in a fiduciary capacity, or nonprofit corporations; and
c. Its income is not exempt from taxation under the laws of either the United States or the state of Iowa.
6. "Base price" means the price paid for swine, delivered to the processor, before application of any premiums or discounts, and expressed in dollars per hundred pounds of hot carcass weight as calculated in the same manner as provided in 7 C.F.R. § 59.30.
7. "Beneficial ownership" includes interests held by a nonresident alien individual directly or indirectly holding or acquiring a ten percent or greater share in the partnership, limited partnership, corporation, limited liability company, or trust, or directly or indirectly through two or more such entities. In addition, the term beneficial ownership shall include interests held by all nonresident alien individuals if the nonresident alien individuals in the aggregate directly or indirectly hold or acquire twenty-five percent or more of the partnership, limited partnership, corporation, limited liability company, or trust.
8. "Business association" means a person organized under statute or common law in this state or another jurisdiction for purposes of engaging in a commercial activity on a profit, cooperative, or not-for-profit basis, including but not limited to a corporation or entity taxed as a corporation under the Internal Revenue Code, nonprofit corporation, cooperative association, partnership, limited partnership, limited liability company, limited liability partnership, investment company, joint stock company, joint stock association, or trust, including but not limited to a business trust.
9. "Cash or spot market purchase" means the purchase of swine by a processor from a seller, if the swine are slaughtered not more than fourteen days after the date that the seller and the processor agree on a date of delivery of the swine for slaughter and the base price for purchasing the swine is determined by an oral or written agreement between seller and processor executed on the day the swine are delivered for slaughter.
10. "Cattle operation" means a location including but not limited to a building, lot, yard, corral, or other place where cattle for slaughter are fed or otherwise maintained.
11. "Contract feeder" means a person owning in the applicable reporting year, as provided in section 9H.5B, more than two thousand five hundred swine or five thousand head of poultry, if the swine or poultry are subject to a contract or contracts for care and feeding by a person or persons other than the owner on land which is not owned, leased, or held by the owner.
12. "Contract for the care and feeding of swine" means an oral or written agreement executed between a person and the owner of swine, under which the person agrees to care for and feed the owner's swine on the person's premises. A contract for the care and feeding of swine does not include an agreement for the sale or purchase of swine.
13. "Cooperative association" means the same as defined in section 10.1.
14. "Corporation" means a domestic or foreign corporation subject to chapter 490, a nonprofit corporation, or a cooperative.
15. "Family farm corporation" means a corporation:
a. Founded for the purpose of farming and the ownership of agricultural land in which the majority of the voting stock is held by and the majority of the stockholders are persons related to each other as spouse, parent, grandparent, lineal ascendants of grandparents or their spouses and other lineal descendants of the grandparents or their spouses, or persons acting in a fiduciary capacity for persons so related;
b. All of its stockholders are natural persons or persons acting in a fiduciary capacity for the benefit of natural persons or family trusts as defined in subsection 18 of this section; and
c. Sixty percent of the gross revenues of the corporation over the last consecutive three-year period comes from farming.
16. "Family farm limited liability company" means a limited liability company which meets all of the following conditions:
a. The limited liability company is founded for the purpose of farming and the ownership of agricultural land in which the majority of the members are persons related to each other as spouse, parent, grandparent, lineal ascendants of grandparents or their spouses and other lineal descendants of the grandparents or their spouses, or persons acting in a fiduciary capacity for persons so related.
b. All of the members of the limited liability company are natural persons or persons acting in a fiduciary capacity for the benefit of natural persons or family trusts.
c. Sixty percent of the gross revenues of the limited liability company over the last consecutive three-year period comes from farming.
17. "Family farm limited partnership" means a limited partnership which meets all of the following conditions:
a. The limited partnership is formed for the purpose of farming and the ownership of agricultural land in which the general partner and a majority of the partnership interest is held by and the majority of limited partners are persons related to each other as spouse, parent, grandparent, lineal ascendants of grandparents or their spouses and other lineal descendants of the grandparents or their spouses, or persons acting in a fiduciary capacity for persons so related.
b. The general partner manages and supervises the day-to-day farming operations on the agricultural land.
c. All of the limited partners are natural persons or persons acting in a fiduciary capacity for the benefit of natural persons or family trusts.
d. Sixty percent of the gross revenues of the partnership over the last consecutive three-year period come from farming.
18. "Family trust" means a trust:
a. In which a majority interest in the trust is held by and the majority of the beneficiaries are persons related to each other as spouse, parent, grandparent, lineal ascendants of grandparents or their spouses and other lineal descendants of the grandparents or their spouses, or persons acting in a fiduciary capacity for persons so related; and
b. In which all the beneficiaries are natural persons, who are not acting as a trustee or in a similar capacity for a trust, as defined in subsection 34 of this section, or persons acting in a fiduciary capacity, or nonprofit corporations; and
c. If the trust is established on or after July 1, 1988, the trust must be established for the purpose of farming and sixty percent of the gross revenues of the trust over the last consecutive three-year period must come from farming.
19. "Farming" means the cultivation of land for the production of agricultural crops, the raising of poultry, the production of eggs, the production of milk, the production of fruit or other horticultural crops, grazing or the production of livestock. Farming shall not include the production of timber, forest products, nursery products, or sod and farming shall not include a contract where a processor or distributor of farm products or supplies provides spraying, harvesting or other farm services.
20. "Fiduciary capacity" means an undertaking to act as executor, administrator, personal representative, guardian, conservator or receiver.
21. "Grantor" means a natural person, other than a nonresident alien as defined under this section, who is the creator of a revocable trust or a trust.
22. "Indirect" means to act or attempt to accomplish an act through an interest in a business association, through one or more affiliates or intermediaries, or by any method other than a direct approach, including by any circuitous or oblique method.
23. "Limited liability company" means a limited liability company as defined in section 490A.102.
24. "Limited partnership" means a partnership as defined in section 487.101, subsection 7, and a limited liability limited partnership under section 487.1301, which owns or leases agricultural land or is engaged in farming.
25. "Nonprofit corporation" means:
a. Corporations organized under the provisions of chapter 504 or 504A; or
b. Corporations which qualify under Title 26, section 501, "c", (3) of the United States Code.
26. "Nonresident alien" means:
a. An individual who is not a citizen of the United States and who is not domiciled in the United States.
b. A corporation incorporated under the law of any foreign country.
c. A corporation organized in the United States, beneficial ownership of which is held, directly or indirectly, by nonresident alien individuals.
d. A trust organized in the United States or elsewhere if beneficial ownership is held, directly or indirectly, by nonresident alien individuals.
e. A partnership or limited partnership organized in the United States or elsewhere if beneficial ownership is held, directly or indirectly, by nonresident alien individuals.
f. A limited liability company organized in the United States or elsewhere, beneficial ownership of which is held, directly or indirectly, by nonresident alien individuals.
27. "Processor" means a person who alone or in conjunction with others directly or indirectly controls the manufacturing, processing, or preparation for sale of beef or pork products, including the slaughtering of cattle or swine or the manufacturing or preparation of carcasses or goods originating from the carcasses, if the beef or pork products have a total annual wholesale value of eighty million dollars or more for the person's tax year. A person shall be deemed to be a processor if any of the following apply:
a. The person has a threshold interest in a processor which is a business association. "Threshold interest" means a direct or indirect interest in the business association, calculated as follows:
(1) For a processor of beef products, the person's threshold interest begins at ten percent.
(2) For a processor of pork products, the person's threshold interest begins at ten percent for a processor of pork products having a total annual wholesale value of at least eighty million dollars and decreases to one percent for a processor of pork products having a total annual wholesale value of at least two hundred sixty million dollars. The amount of the decrease in the amount of the threshold interest shall equal one percent for each increased increment of twenty million dollars in total annual wholesale value.
b. The person holds an executive position in a processor of pork products or owes a processor of pork products a fiduciary duty if the processor directly or indirectly controls the processing of pork products having a total annual wholesale value of two hundred sixty million dollars or more. A person who held such an executive position or owed a fiduciary duty shall be deemed to still hold the position or owe the duty for a two-year period following the date that the person relinquishes the position or duty. An executive position in a processor organized as a business association includes but is not limited to a member of a board of directors or an officer of a corporation or cooperative association, a director or officer of a joint stock company or joint stock association, a manager of a limited liability company, a general partner of a limited partnership, or a trustee of a trust.
28. "Qualified processor" means a processor of pork products if all of the following apply:
a. (1) (a) Swine producers exercise a controlling interest in the processor. "Controlling interest" means actual control or the possession directly or indirectly of the power to direct or cause the direction of the management and policies of a processor, whether through the ownership of voting securities, by contract, or otherwise.
(b) Of the total interest held by all persons in the processor, swine producers hold at least sixty percent of the interest. In addition, of the total interest held by all persons in the processor, swine producers hold at least sixty percent of interests with voting rights.
(2) Of the total interest held by all persons in the processor, all retailers hold a total of not more than twenty percent of the interest.
b. Another processor does not hold a direct or indirect interest in the processor. However, this paragraph does not apply to a person deemed to be a processor solely because the person holds a threshold interest in the processor.
c. Not less than twenty-five percent of the swine slaughtered by the processor each day are purchased through cash or spot market purchases from sellers of swine who do not hold a direct or indirect interest in the processor.
29. "Retailer" means a person who is engaged in the business of selling pork products in this state, if all of the following apply:
a. The pork products are sold only on a retail basis directly to the ultimate purchasers of the pork products for consumption and not for resale.
b. The person is not engaged in the slaughter of swine.
c. A processor does not have a direct or indirect interest in the person.
30. "Revocable trust" means a trust which provides that the grantor retains the power to amend, modify, or revoke the trust at any time prior to the death of the grantor, regardless of whether, subsequent to the execution of the revocable trust and at any time prior to death, the grantor is legally competent to exercise the power to amend, modify, or revoke the trust and regardless of when the trust is created.
31. "Swine operation" means a location where swine are fed or otherwise maintained, including a building, lot, yard, or corral; and swine which are fed or otherwise maintained at the location.
32. "Swine producer" means a person who owns, controls, or operates a swine operation in this state or who contracts for the care and feeding of swine in this state.
33. "Testamentary trust" means a trust created by devising or bequeathing property in trust in a will as such terms are used in the Iowa probate code. Testamentary trust includes a revocable trust that has not been revoked prior to the grantor's death.
34. "Trust" means a fiduciary relationship with respect to property, subjecting the person by whom the property is held to equitable duties to deal with the property for the benefit of another person, which arises as a result of a manifestation of an intention to create it. Trust does not include a person acting in a fiduciary capacity, as defined in subsection 20, or a revocable trust. A trust includes a legal entity holding property as trustee, agent, escrow agent, attorney in fact, and in any similar capacity.
[C77, 79, 81, § 172C.1; 82 Acts, ch 1103, § 1108]
84 Acts, ch 1219, § 6; 88 Acts, ch 1191, § 1, 2; 91 Acts, ch 172, § 2; 92 Acts, ch 1151, § 2--4
C93, § 9H.1
93 Acts, ch 39, §1--4; 94 Acts, ch 1153, §1--3; 99 Acts, ch 169, § 1; 2000 Acts, ch 1024, §1; 2000 Acts, ch 1048, §1, 3; 2002 Acts, ch 1095, §1--3, 10--12
Legislative intent; 2002 Acts, ch 1095, §8
2002 amendments, and terminology change substituting "swine" for "hogs", take effect April 9, 2002, and apply retroactively to January 1, 2002; 2002 Acts, ch 1095, §11, 12
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