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Cullom, Illinois | Had a pretax appointment today. Tax man always gives me a year to year comparison to look over. As he slid it towards me, he said the cattle gross sales category was way down this year. Was there a problem he asked? I told him the only thing I changed was to go from backgrounding to feeding all the way fat. So half as many head as the year before. Well, it meant half as many gross dollars as the year before with roughly the same feed costs, background ration vs finish ration. Which in turn showed up on my working capital. And since this is gross dollars, it's WAY more than net profit.
So I'm having a little trouble understanding this. Is it that I'm adding value using home grown feed, which is not showing on any balance sheet. | |
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Gross dollars feeding cattle
