Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Related Party Transactions

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Note 6 - Related Party Transactions
6 Months Ended
Feb. 29, 2012
Notes To Financial Statements  
Related Party Transactions Disclosure [Text Block]
NOTE 6 – RELATED PARTY TRANSACTIONS

In 1995, the Company extended a loan to the District, a related party. The loan provided for borrowings of up to $250,000, is unsecured, bears interest based on the prevailing prime rate plus 2% (5.25% at February 29, 2012) and matures on December 31, 2012. The $537,900 balance of the note receivable at February 29, 2012 includes borrowings of $229,300 and accrued interest of $308,600.  The $531,900 balance of the note receivable at August 31,  2011 includes borrowings of $229,300 and accrued interest of $302,600.

HP A&M paid the Company $10,500 and $21,000 during each of the three and six months in the periods ended February 29, 2012 and February 28, 2011, respectively.  This is to reimburse the Company for 50% of the salary and expenses of a Company employee that performs various farm management duties which are for the benefit of HP A&M since HP A&M manages the farm leases as described in Note 4 above.