Note 7 - Deferred Farming Costs

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Deferred Costs Capitalized And Inventory Disclosure [Text Block]

(7)     DEFERRED FARMING COSTS

Orchard costs (e.g., irrigation, fertilizer, pruning and depreciation) related to nuts sold under nut purchase contracts and services provided under farming contracts were expensed to cost of revenues based on management’s estimate of the costs expected to be incurred to produce macadamia nuts sold during the interim reporting period, with the difference between costs incurred-to-date and costs expensed-to-date reported on the consolidated balance sheet as deferred farming costs. Deferred farming costs historically accumulate during the first and second quarter of the year and are expensed or added to inventory over the remainder of the year. For the first nine months of 2016, the Partnership recorded a deferred farming cost of $3,175,000. At December 31, 2015, all farming costs not expensed to cost of goods sold were included in inventory.