Transfer goats and chickens to co-op ownership
We've submitted a business plan for the co-op that includes income from goats and chickens. But the goats and chickens (and associated infrastructure) are currently owned and cared for by Carol and Jan. Carol and Jan bear all expenses and receive all income from the goats and chickens.
Carol and Jan request that the goats and chickens and associated infrastructure be transferred to co-op ownership. Jan and Carol will receive Class B Investment shares for the fair market value of the goats, chickens, and associated infrastructure, according to the following itemized list.
Operationally, things will continue as before, except that the income and expenses will be run through the co-op. The co-op will pay all goat and chicken expenses, and Carol and Jan will re-imburse the co-op for those expenses. The co-op will receive all goat and chicken income, which will be paid to Carol and Jan as invoiced.
- Farm income that is currently "off the books" will be properly accounted for, which will better show our farm's economic potential to lenders and investors.
- The co-op can legally distribute raw milk via a herd-sharing class of shares, to be worked out.
- There may be tax implications.
|pregnant doe, in milk||3||Jan||$300||900|
|milking parlour tent||1||Jan||$250||250|
|Total Class B Shares, Jan||.||.||.||2,200|
|Total Class B Shares, Carol||.||.||.||685|
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