Basic Record Keeping Information - Inventory

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What are the nine kinds of inventory?

What is inventory?

• The inventory statement is an important document for your business. Since an inventory increase is considered income, and an inventory decrease as an expense, you need an accurate inventory statement to determine your true financial situation. A large agriculturally-related inventory indicates that you are making excellent progress in becoming established in an agricultural career.

A. Harvested and Growing Crops

• This area includes crops owned solely or in partnership by you, those held for livestock feed or later resale and those crops un-harvested or perennial crops that maintain a field value.

• Examples: oats, alfalfa hay, corn silage, apples, rose bushes, fruit trees or other perennial flowers, etc.

B. Feed, seed, fertilizer, chemicals, Supplies and pre paid

expenses

• Includes consumable items of livestock feed and veterinary supplies; crop supplies like fertilizer, potting soil, pesticides and other supplies such as gas, oil, spare parts.

C. Merchandise, crops and livestock purchased for resale.

• Purchased feeder cattle, feeder pigs or nursery and greenhouse merchandise, including bedding plants, trees, fertilizers, grass seed, etc.

D. Investment in raises market livestock and poultry.

• This area is for the specific type of item you are inventorying, such as feeder cattle, feeder pigs, broilers, turkeys or rabbits.

E. Non-Depreciable draft, pleasure or breeding livestock

and poultry.

• dairy cows, bulls, calves, swine and small animals, including breeding rabbits, dogs, etc.

• The animals included in this section have not reached their maturity value (the point at which they start to depreciate).

F. Depreciable draft, pleasure or breeding livestock and poultry

• beef cattle, breeding swine, breeding rabbits and dogs.

• The animals in this section have reached their maturity value and are declining in value.

G. Machinery, equipment and fixtures

• Machinery, equipment and vehicles used in the SAE.

H. Depreciable land improvements, buildings and

fences.• buildings and land

improvements, such as tiling, terracing and fences

I. Land

• land utilized as a part of your SAE program.

Summary

• List only the portion owned by you

• All items must be used for your SAE

• Inventory is usually taken at the end of the record year (December 31)