Agricultural operations in British Columbia have a variety of assets that affect total property value. Knowing what agricultural assets are is crucial for optimizing value and understanding the entire financial picture for your farm. At Leskun & Son Accounting, we provide complete accounting and financial solutions to help you understand, utilize, and maximize the value of your agricultural assets. That is why our team has compiled a list of important information on common agricultural assets.
Learn more about financial planning steps for farms or tax tips for BC farmers.
Examples of Agricultural Assets
Understanding what qualifies as an agricultural asset will allow you to accurately assess and track value. The following elements of a farm can be classified as an asset:
Land
The land that the farm is located on is often the most valuable asset a farmer has. All land within the boundaries of the property hold value, whether they are simple fields or locations for crops. The size of the property, its location, and the condition of the land all contribute to the overall value. Regular property assessments can be a good method of staying on top of the value of the land and how it may change over time.
Livestock
Livestock is another valuable component of any farm. These assets include cattle, pigs, goats, chickens, turkeys, and even various types of fish for fish farms or hatcheries. If an animal is raised and kept for the purposes of producing food products, it is considered livestock. Each of these biological assets are valued based on several factors including size, health, and age.
Crops
Crops are a consistent asset for most farms that are sold on a seasonal basis. Examples of crops include carrots, potatoes, corn, tomatoes, berries, and grapes (for vineyards). The quantity and condition of crops have the most impact on value. Crop quantity is often measured by weight or by the size of the field in which they are grown.
Facilities and Buildings
In addition to livestock and crops, it is important to consider the facilities used to house them. Chicken barns, greenhouses, feed silos, and cattle housing are examples of valuable facilities for any farm. Each of these buildings have value as an asset and should be regularly assessed. Any homes on the property also hold value, but their value is assessed differently than other buildings.
Machinery/Equipment
Any machinery or equipment that is regularly used in agricultural work counts as an asset. These units can include tractors, harvesters, vehicles, and watering equipment. Other equipment such as power tools, compressors, and generators can also count as an asset depending on their frequency of use.
To learn more about what qualifies as an agricultural asset, reach out to the experts at Leskun & Son Accounting through our online contact form. Our team will work with you to help you understand the full value of your farm and everything on it.
