Crop Method Law and Legal Definition
Crop method is a form of accounting available for farmers who can deduct the entire cost of producing the crop, such as the expense of seed and young plants, in the year he/she realize income from the crop. The crop method permits the taxpaying farmer to deduct the full cost of crop production in the year that the crop is actually sold. This enables the farmer to disregard the production cost against the revenue received in the same year. However, the farmer must obtain prior approval from IRS for this method of accounting.