What it is
A farm’s inventory is three different problems on one balance sheet: crops still growing, harvested grain and other commodities, and livestock. Each has its own cost basis and its own market test. This workbook gives each one its own tab, with the inputs the auditor needs to recompute carrying value.
Growing crops accumulate cost by field and are limited to expected net realizable value. Harvested crops are valued by lot at the lower of cost or net realizable value, or at market where industry practice allows it. Livestock is valued by class. A flag shows any lot where a market price is missing.
When to use it
- At year end on any farm or ranch with crops, stored grain or livestock on the balance sheet.
- When commodity prices fell between harvest and year end and a write-down is possible.
- When a lender asks for support behind the borrowing base inventory.
What’s inside
- Growing crops tab: cost by category, cost per acre, yield, price and net realizable value
- Harvested tab: units by lot, measurement method, cost, market and carrying value
- Livestock tab: head count, weight, cost and market by class and purpose
- Tie-out tab: schedule carrying values to the ledger with differences flagged
Standard cited
This template follows ASC 905 / ASC 330. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Should harvested grain be carried at cost or market?
Most producers use the lower of cost or net realizable value. Some carry readily marketable commodities at market under industry practice. Choose the basis per lot, keep it consistent, and document the policy.
How is stored grain verified?
By measurement of the bin, by scale tickets or by warehouse receipts and confirmations for grain stored elsewhere. Record the method on the Harvested tab for each lot.
Is breeding stock written down to market?
Not on this schedule. Breeding stock is carried at cost less depreciation, so the Livestock tab applies the market test only to animals held for sale. Test breeding stock for impairment separately.
Related templates
- Audit Program: Farm and Agricultural Operation
- Lower of Cost or NRV Inventory Test (ASC 330)
- Inventory Observation Memo and Test Count Sheet (AU-C 501)
- Lead Schedule Template (Excel)
Last updated 11/05/2026. All free templates.