General Livestock

Table of Contents

• Chapter 1, Introduction
  • Purpose of the Guide
  • Keeping in Touch with the Industry
  • Compliance Potential
  • General Livestock Risks
  • Changes in Methods of Accounting
  • Conclusion

• Chapter 2, Examination Techniques
  • Pre-Planning
  • Document Request/Appointment Schedule
  • Initial Interview
  • Site Visit
  • Audit Steps
  • Closing Conference
  • Conclusion

• Chapter 3, Industry Issues
  • Common Issues
  • Breeder Operation
  • Fattening/Feeding Operation

  • Issues
    • IRC section 1231
    • IRC section 162
    • IRC section 61
    • IRC section 168
    • IRC section 179
    • IRC section 183
    • IRC section 195
    • IRC section 451
    • IRC section 465
    • IRC section 469
    • IRC section 471
    • IRC section 1033

  • Conclusion
  • Unique Characteristics

• Chapter 4, Cattle Industry
  • Introduction
  • Industry Facts

  • Issues
    • IRC section 162
    • IRC section 61
    • IRC section 168
    • IRC section 469

• Chapter 5, Dairy Cattle Industry
  • Introduction
  • Industry Facts
  • Issues
    • IRC section 61
    • IRC section 168

• Chapter 6, Horse Industry
  • Introduction
  • Industry Facts
  • Issues
    • IRC section 1231
    • IRC section 61
    • IRC section 168

• Chapter 7, Sheep And Goat Industry
  • Introduction
  • Sheep
  • Goats
  • Industry Facts
  • Issues
    • IRC section 162
    • IRC section 61
    • IRC section 168

• Chapter 8, Swine Industry
  • Introduction
  • Industry Facts

  • Issues
    • IRC section 168

• Chapter 9, Ratites And Alternative Livestock Industry
  • Ratites
    • Introduction
    • Industry Facts
    • End Products

  • Issues
    • IRC section 1231
    • IRC section 61
    • IRC section 168
    • IRC section 179
    • IRC section 195
    • IRC section 469

  • Alternative Livestock
    • Introduction

  • Issues
    • IRC section 1231
    • IRC section 61
    • IRC section 168
    • IRC section 179
    • IRC section 195
    • IRC section 469

• Appendix - A, Glossary-Livestock Terms
  • Quick Facts Related to Livestock Farming
    • Cattle
    • Horses
    • Sheep
    • Swine
    • Mink Farming

  • Glossary

• Appendix - B, Interview Questions - By Type
  • Introduction
  • Farm Initial Interview
  • Beef Interview Questions
  • Dairy Interview Questions
  • Swine Interview Questions
  • Sheep Interview Questions
  • Exotic Animal Interview Questions

• Appendix - C, Other Sources Of Information
  • MSSP Audit Guides
  • Publications
  • Periodicals and Non-IRS Publications

• Appendix - D, Livestock Breed Associations
  • Ass Breed Associations
  • Cattle Breed Associations
  • Goat Breed Associations
  • Horse Breed Association
  • Sheep Breed Associations
  • Swine Breed Associations

• Appendix - E, United States Department Of Agriculture
  • Electronic Sources of Information

1. A cow usually has a single calf every 12 months. This will be true of both dairy and beef cattle. The young heifer added to the herd will usually be bred for the first time at the age of 16 months.

2. On a dairy farm, the calf is usually sold within a very short time after birth, less than 30 days, unless it is a heifer which may be kept for the dairy herd. The cattle rancher will not sell his calves until they are 6-8 months old. He may also keep some of the better heifers for breeding purposes.

3. Feeder calves (heifers or steers) are usually placed in the feedlot at a weight of 500 - 700 lbs, or around 6 - 9 months old. The calves are in the feedlot from 4 - 6 months or to a weight of 1,000 - 1,200 pounds before being sold to packing plants.

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1. For registration purposes, all Thoroughbreds, Arabians, Tennessee Walking Horses, etc. are one year old on January 1 regardless of when born during the prior year.

2. Many times the stallions may be syndicated for breeding purposes. Generally, up to 40 shares of a stallion are sold. Each share, breeding, entitles the holder of the right to 3 "tries" at impregnating the same mare per year. A breeding right is an intangible, depreciable asset. The purchase of a breeding right many times guarantees a live foal. This means the foal has to stand and nurse the mare.

3. Mares are eligible to be bred at age two, but are generally bred at age three. The mare usually gives birth to one offspring each year.

4. Teaser ponies are used by the breeder to prepare the mare forservice by the stallion. A teaser pony is a depreciable asset.

5. A gelding is a male horse that has been castrated. It cannotbe depreciated for breeding purposes. It can be depreciated if it is used as a show, work or race horse.

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1. A ewe will normally have 1, sometimes twin, lamb during 12 months. The lambs are usually born during the winter or early spring. The mature sheep are sheared of their wool in the spring. The wool production from each animal is from 7 - 9 pounds annually.

2. The lambs that are being sold will be held for 6 - 9 months. Their weight at selling time will be about 90 - 100 pounds.

3. Feeder lambs are purchased at about eight weeks weighing about 20 pounds. They will be in the feedlot for 6 - 7 months, weighing 90 - 100 pounds when sold.

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1. A sow will average two litters a year. The litters will varyfrom 4 - 12 piglets each. The average size of a litter over the productive live of the sow is about eight.

2. A sow is usually kept for 3 - 4 years or 6 - 8 litters before being sold.

3. Feeder pigs are held by farmer for 6 - 8 weeks. They are then sold at a weight of 40 - 60 pounds.

4. Usually, butcher hogs are sold when they reach 220 - 280 lbs which occurs about 5 - 6 months after birth.

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1. Mink farmers usually require one male for five females. There is one litter of kits a year with an average of 3 - 4 kits reaching maturity. The female is bred in March with the kits being born in late April. The breeders are usually kept for 4 - 5 years.

2. The kit is usually pelted out around the middle to latter part of November. The pelting is not done until after the first hard freeze.

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BARROW - Castrated male hog.

BARTERING - To trade goods or services for goods or services.

BEEF BULL - A male animal which is part of the breeding herd for raising beef calves.

BEEF CATTLE - Generally purchased at the aged of a few days to 6 months and raised until 15 - 18 months old. The normal selling weight is 1,000 - 1,200 pounds. The purchase and sale may occur during two different years and the cost must be recovered in the year of sale.

BOAR - A male hog which is part of the breeding herd for raising feeder pigs, may weigh 1,000+ pounds.

BRED HEIFER - A pregnant heifer with her first unborn offspring.

BREEDING LIVESTOCK - Mature male and female animals that are used to reproduce offspring. The offspring are then sold as a product of the farm.

BROOD COW - A female cow which is part of the breeding herd for raising beef cattle.

BUCK - Adult male sheep.

BULL - Male animal which is part of the cattle breeding herd.

BUTCHER HOGS - Farrowed or purchased as "feeder pigs" at a weight of 40 - 50 pounds and raised until 5 - 6 months old. Their normal selling weight is 200 - 280 pounds. Purchase and sale may or may not take place in the same year. Cost must be recovered in year of sale, also market hogs.

CALF - Young cattle less than a year old.

CAPON - Castrated male chicken.

CASH MARKET - Market for immediate delivery of commodities against payment.

CASH PRICE - Price in the cash market for actual or spot commodities with delivery through customary market channels.

CLOSING OPTION TRANSACTION - Cancels a previously established long- or short-option position.

COCK - Adult male chicken.

COCKEREL - Young male chicken.

COLT - Young male horse.

COOPERATIVE - An enterprise owned by and operated for the benefit of those using its services.

CORRAL - A pen or enclosure for confining livestock.

COW - Mature female cattle.

CULL COW - This is a female dairy animal which is no longer profitable as a milk producing cow.

DAIRY BULL - A male dairy animal which has been used in the dairy herd for breeding.

DOE - Adult female sheep.

DROVE - Group of swine.

EGGS - A product of poultry. Normal production by chicken is about 260 eggs per year.

EWES - Female sheep which are part of the breeding herd for raising lambs.

FARM - A farm includes stock, dairy, poultry, fish, fruit, and truck farms, plantations, ranches, ranges, orchards and plant nursery. This includes growing, feeding, protecting, tending, etc., the product of the farm, not just the harvesting.

FARROW - To give birth, in regard to pigs.

FEED - Food for animals. Amount will be determined by number of animals, age, etc.

FEEDER/FINISHER PIGS - Pigs from weaning age (25 - 40 pounds) to market size (220+ pounds)

FILLY - Young horse mare (female.)

FLOCK - A group of sheep, chicken, or turkeys.

FOAL - Colt or filly less than a year old.

FREIGHT - Expense of hauling milk, grain, or livestock. Watch for netted sales with freight also deducted separately.

FRYERS - Chicken raised from 90 - 120 days, then sold for meat.

GELDING - Castrated male horse.

GILT - Female hog until second pregnancy.

HEDGING - Entering into the purchase of commodity futures contracts to reduce the risk of an unfavorable price fluctuation.

HEIFER - Female cattle less than three years old and usually one that has not produced an offspring.

HEN - Adult female chicken.

HERD - A group of cattle.

HINNY - Cross between a stallion and a female donkey.

HOG - Swine over 120 pounds.

JACK - A male donkey.

JENNY - A female donkey.

KID - Young goats up to one year old.

LAMB - Any sheep less than a year old. Produced on the farm or purchased at about 20 pounds and raised until 8 - 9 months old. Normal selling weight is 90 - 100 pounds. Usually purchased in early summer and sold in late fall of same year.

LITTER - Collective term for pigs farrowed by a sow.

MARE - Adult female horse.

MARKET HOGS - Swine of 220+ pounds, also butcher hog.

MILK ASSIGNMENTS - The assignment of milk income to directly pay for purchase of farm, machinery, cattle or feed.

MILK VOUCHERS - Statements provided by the dairy company or cheese factory once or twice a month. May be used to verify income.

MILKING PARLOR - This is the building in which the dairy cows are milked twice a day. This building houses the milking equipment, storage equipment, and provides feed for the cows as they are being milked.

MINK FARMING - Raising mink for pelts. Mink produce one litter of kits per year and average 3 1/2 kits per litter. Kits are generally born in spring and pelted out in late fall. Pelts are usually sold at fur auctions in New York or Minneapolis.

MULE - A cross between a jack and a mare. With rare exceptions, the mule is sterile.

NRCS - National Resources Conservation Service - Combined services of several former U.S. Department of Agriculture offices.

OPEN OPTION PURCHASE - A transaction by which an investor establishes a position.

PIG - Swine up to 120 pounds.

PIGLET - Newborn pig.

POLLED - Naturally hornless cattle or cattle with horns cut off.

POSITION - An interest in the market, either long or short, in the form of one or more open contracts.

PULLET - Young female chicken.

RAMS (BUCKS) - Male sheep which are part of the breeding herd for raising lambs.

ROOSTER - Colloquial term for male chicken of any age.

SHOAT - Weaned pig 25 -40 pounds, also weaner.

SHOW ANIMALS - Any animal used for competition of judging animals against each other. Often related to 4-H or FFA stock show competitions for farmers children. Winner receives prize money and, often, retains the animal. May also be competitions entered by taxpayer or other members of family.

SILAGE - A form of feed for livestock. It is made by placing grain in a silo or bunker and allowing it to ferment.

SOW - A female hog which is part of the breeding herd which has produced offspring.

STALLION - A breeding, male horse.

STEER - Castrated male cattle. Raised for sale as meat. Held until 15 - 18 months old and sold at a weight of 1,000 - 1,200 pounds.

SWINE - Generic term for all pigs and hogs.

UNIT-LIVESTOCK-METHOD - Applicable to livestock raised or purchased before maturity. Livestock must be grouped into class and age. A value is set for each year of the animal's life to maturity. The total of these amounts should equal the cost of raising the animal to maturity.

WEANER - Weaned pig of 25 - 40 pounds, also shoat.

WEANING - A weaned foal.

WETHER - Castrated male sheep.

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