Crop Production Costs
Expenditures on crop production costs are valued at the lower of cost or market and are deferred and charged to cost of products sold when the related crop is harvested and sold. The deferred crop production costs included in the consolidated balance sheets consist primarily of the cost of plants and the transplanting, stand establishment costs, intermediate life irrigation equipment and land amendments and preparation. Crop production costs are estimated to have useful lives of three to five years depending on the crop and nature of the expenditure and are amortized to growing crop inventory each year over the estimated life of the crop.
Components of crop production costs are:
| June 30, | June 30, | |||||
| 2013 | 2012 | |||||
| Stevia | $ | - | $ | 935,466 | ||
| Alfalfa seed production | 1,497,605 | 73,031 | ||||
| Alfalfa hay | 84,904 | 46,067 | ||||
| Wheat and triticale | - | 43,728 | ||||
| Total crop production costs, net | $ | 1,582,599 | $ | 1,098,292 |