"Production of Agricultural Products" Begins With:
- Cultivation of land previously cleared for planting crops; or
- The purchase or breeding of livestock or domesticated fowl.
"Production of Agricultural Products" Ceases When:
- A product has been transported to the point where it will be sold by the producer or processed.
- Machinery and equipment used directly and primarily in the production of agricultural products
- Machinery and equipment used directly and primarily in a manufacturing process
- Replacement parts for exempt machinery and equipment
- Computers used in processing or storage of data by a commercial enterprise (farmers cannot purchase computers tax free, but an agribusiness may be eligible for exemption)
- All vehicles subject to registration
- All equipment attached to a vehicle subject to registration
- Labor to repair exempt machinery and equipment
- Parts not separately itemized from taxable labor
- Grain testing
- Grain storage
- Pest eradication