Crop and livestock farmers who are working on preparing their 2022 income tax returns can review two useful documents for end-of-year determinations.
The article “Suggested Closing Inventory Prices for 2022 Records” provides suggested closing inventory prices for all major crop and livestock commodities produced in Iowa, and “Deductible Livestock Costs for Adjusting 2022 Income Tax Returns” provides cost estimates for farmers who consume food produced by their operation, which must be deducted from expense reporting.
Both documents are published by Iowa State University Extension and Outreach and are part of the December Ag Decision Maker.
The inventory prices are averages compiled by economists with ISU Extension and Outreach, using data from the United States Department of Agriculture, the Iowa State Cash Rental Rates Survey, and the Iowa Farm Business Association. The prices are used by consultants with the Farm Business Association and tax preparers across Iowa.
In addition to tax preparation, the prices can help farmers who simply want to track their inventory, or who are required to track and report inventory for lending or other business purposes.