# ASC 330-905-05: Inventory — Agriculture — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/330/905/#05-overview-and-background) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:51:24.987Z to 2026-09-09T23:51:24.987Z Record version: sha256:38b23c933df0c16ccfc978767185e8876d935a648b2e89bc5977c1b8cfcfb169 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-905-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/330/905/#05-overview-and-background) SEC content: no ##### [330-905-05-1](https://asc.understandingaccounting.org/asc/330/905/#330-905-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:24.987Z to 2026-09-09T23:51:24.987Z Record version: sha256:7bf632bc543a0389a5f105098ee2755768a5a0ccff666d2b0c2734051c5486ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses inventory accounting for entities in the agricultural industry. The guidance for accounting for different entities in the agricultural industry is presented in the following three Subsections: 1. a General 2. b Cooperatives 3. c Cooperatives—Patrons. ##### [330-905-05-2](https://asc.understandingaccounting.org/asc/330/905/#330-905-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:24.987Z to 2026-09-09T23:51:24.987Z Record version: sha256:69a6baa9fa23d7bdb997b724776cd9e639b59f2cb564b28b5e554d97d4b4fc47 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsections provide guidance for all those entities operating in the agricultural industry as set forth in the [General Subsection](https://asc.understandingaccounting.org/asc/905/10/#05-overview-and-background) of Section 905-10-05. Inventories of [agricultural producers](https://asc.understandingaccounting.org/glossary/a/#agricultural-producers "Farmers and ranchers including, for example, those who raise crops from seeds or seedlings, breed livestock (whether registered or commercial), and feed livestock in preparation for slaughter.") include growing [crops](https://asc.understandingaccounting.org/glossary/c/#crops "Grains, vegetables, fruits, berries, nuts, and fibers grown by agricultural producers."), developing animals to be held for sale, harvested crops, [livestock](https://asc.understandingaccounting.org/glossary/l/#livestock "Registered and commercial cattle, sheep, hogs, horses, poultry, and small animals bred and raised by agricultural producers.") held for sale, and secondary products, such as calves from dairy herds and wool from sheep. ##### [330-905-05-3](https://asc.understandingaccounting.org/asc/330/905/#330-905-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:24.987Z to 2026-09-09T23:51:24.987Z Record version: sha256:234b700a34556b80aec3b7c7310bf252f969f4db225759a1609f09296c5448dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Field and row crops](https://asc.understandingaccounting.org/glossary/f/#field-and-row-crops "Field and row crops are usually planted from seeds or are transplanted from beds and develop to the point of harvest within several months.") with cycles of less than one year that constitute part of inventory are generally classed as annuals. These crops include wheat, barley, milo, corn, soybeans, sugar beets, tobacco, cotton, crops raised for seed, tomatoes, lettuce, beans, cabbages, and melons. ### Cooperatives ##### [330-905-05-4](https://asc.understandingaccounting.org/asc/330/905/#330-905-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:24.987Z to 2026-09-09T23:51:24.987Z Record version: sha256:ce5f9cbd77cdd14a982cb7bb75f9a2a61f349b404f92eee36f8f03a4ce769ebc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives Subsections provide guidance about the different accounting methods used by [pooling cooperatives](https://asc.understandingaccounting.org/glossary/p/#pooling-cooperative "A marketing cooperative that receives its members' agricultural products without obligation to pay a fixed price and commingles those products into single or multiple pools for processing and marketing purposes. Pool periods may vary from a week to a year or longer, depending on the product involved. Generally profits or losses are allocated to patrons upon closing of the pool.") for [patron](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative.") product deliveries. These methods have been developed to satisfy provisions of their bylaws and contractual arrangements with patrons and to provide equitable methods of settlement from pool period to pool period, as well as among the various classes of patrons. For pooling cooperatives, accounting methods have been developed to allow the use of the single-pool or multiple-pool methods of accounting. ### Cooperatives—Patrons ##### [330-905-05-5](https://asc.understandingaccounting.org/asc/330/905/#330-905-05-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:24.987Z to 2026-09-09T23:51:24.987Z Record version: sha256:932003194bd9bdcfdc3b42df5ec5e53f39077abdae742762bed3cbd48806401e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives—Patrons Subsections address inventory accounting by patrons of [agricultural cooperatives](https://asc.understandingaccounting.org/glossary/a/#agricultural-cooperative "The Agricultural Marketing Act of 1929 defines a cooperative association as any association in which farmers act together in processing, preparing for market, handling, and/or marketing the farm products of persons so engaged, and also means any association in which farmers act together in purchasing, testing, grading, processing, distributing, and/or furnishing farm supplies and/or farm business services. Provided, however, that such associations are operated for producers or purchasers and conform to one or both of the following requirements: No member of an agricultural cooperative association is allowed more than one vote because of the amount of stock or membership capital he may own therein. The association does not pay dividends on stock or membership capital in excess of 8 percent per year. In addition to meeting either of the requirements in this paragraph, the association shall not deal in farm products, farm supplies, and farm business services with or for nonmembers of an agricultural cooperative in an amount greater in value than the total amount of such business transacted by it with or for members. All business transacted by any cooperative association for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in determining the volume of member and nonmember business transacted by such association.").