Defining Agricultural Production
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Defining Agricultural Production
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Agricultural production is a series of activities that result in a product that will ultimately be sold at retail.
Agricultural Production Process
The agricultural production process begins when:
- You purchase or breed a qualifying animal
- You prepare the soil for planting crops
The process ends when:
- You place livestock or crops – packaged or unpackaged – into finished goods inventory
- Your grain is sellable or at a stage that it can be commingled
Note: If a product is not placed into finished goods, the process ends when the last step before loading the product for shipment is complete. Loading or preparing a product for shipping are not part of the production process.
Types of Agricultural Production
Agricultural production includes these activities (when they result in a product that will be sold at retail):
- Agriculture – cultivating soil, planting, raising and harvesting crops, rearing, feeding, and managing animals
- Aquaculture – raising private aquatic animals (fish)
- Floriculture – growing flowering plants
- Horticulture – growing fruits, vegetables, and plants
- Maple syrup harvesting
- Silviculture – growing and caring for forest trees
Businesses involved in agricultural production include:
- Breeding operations
- Farms, including crops and certain animals
- Greenhouses and nurseries that grow their products to be sold at retail
- Ranches
- Tree and sod farms (if products are sold at retail and not installed by the grower)
Agricultural Production does not include:
- Storing or preserving raw materials before the start of the production process
- Storing, preserving, handling, or moving finished goods
- Storing or processing agricultural products at co-ops, grain elevators, dairies, or meat packers
- Raising animals for your own use