1227.1 What expenses are included in costs of production?
Costs of production include expenses that relate directly to the production of the commodity, such as feed, seed, plants, fertilizer, fuel, machinery repair, pesticides and other supplies.
1227.2 What expenses are not included in costs of production?
Living expenses paid by the landlord for the tenants; overhead expenses such as taxes, depreciation, etc.; and the value of the labor furnished by the tenant cannot be counted in figuring the costs of production.