Intermediate-life plants are plants that have a growth and production cycle exceeding one year, but less than those of trees and vines. Examples are artichokes, asparagus, and grazing grasses. During their development, a farmer may engage in land preparation, plant purchases, and cultural care. Development costs should be accumulated until production begins in commercial quantities. At that point, depreciate the costs over the estimated useful life of the plantings. The useful life chosen for depreciation may vary, depending on regional differences and other factors.
The cost of intermediate-life plants are reported on the balance sheet as a non-current asset. A farm should disclose in the footnotes attached to the financial statements the accumulated costs for intermediate-life plants, as well as their estimated useful lives.