Citrus grove owners frequently arrange with a cooperative to furnish all the materials, equipment and labor necessary to produce the fruit crop.

The owner is engaged in a trade or business covered by Social Security, because he assumes the risk of profit or loss. The cooperative is paid without regard to profit or loss on the farm operations. The owner, as principal, is engaged in operating the agricultural enterprise through agents. His income is includable in computing NESE.

These arrangements may be found in use with other crops. The same principles apply.