| "This has all come about because my banker expenses my feed at market price but does not show any income from it in the sale of cattle." Not sure what you mean by "does not show any income....." However, if you really want to know if you are making money feeding cattle or not, yes, you need to put a fair market value on the cost of that feed. The right way would be to have 2 separate enterprises: enterprise A to grow the crops, and enterprise B to raise the cattle. Enterprise B would have to buy the feed from Enterprise A at fair market value. So, if enterprise B is losing money due to high feed cost, then yes, Enterprise A is probably making money by raising the crops. I realize most do not do this, but it would be the right way to know if you are making money in any one enterprise. or help you to know whether to feed your crops, or to sell your crops to someone else (who wants to lose money). Clear enough? |