Farmers report seed or plant costs on Line 26, Schedule F. Crops such as corn, soybeans, or vegetable crops use seed. Other crops, such as sweet potatos or tobacco, are started as plants. Nurserymen may buy seedlings and “up-pot” them from one container size to another to grow the plants to a marketable size.
Example 1. Janice buys 1,500 azalea seedlings in small containers, she up-pots them into three-gallon containers with plans to grow them out and subsequently sell them. Janice reports the cost of these plants on Line 26, Schedule F.
Example 2. Bob paid his seed dealer $35,000 for his corn and soybean seed which he planted in the spring. Bob uses Line 26 to report this expense.
The Center for Agricultural Law and Taxation is a partner of the National Agricultural Law Center (NALC) at the University of Arkansas System Division of Agriculture, which serves as the nation’s leading source of agricultural and food law research and information. This material is provided as part of that partnership and is based upon work supported by the National Agricultural Library, Agricultural Research Service, U.S. Department of Agriculture.