Defining Agricultural Production

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.

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