A growing crop is a bush, field, tree, or vine crop prior to being harvested. Field and row crops are typically planted from seeds or transplanted from beds, and then developed to the point of harvesting within a period of months. When these crops have a cycle of less than one year, they are referred to as annuals. Examples of annuals are barley, beans, cabbage, and corn.
All costs of growing crops are to be accumulated until harvesting time. This rule includes crop costs that are incurred before planting, such as the cost of soil preparation.
Some costs associated with growing crops are not incurred until after the harvest, perhaps not until the next year. For example, there may be a residue of harvested crops in the fields that is not cleared until the start of the next growing season. These costs should be accrued and allocated to the harvested crop.
The cost of growing crops should be reported at the lower of cost or market.