Inventories

12 Months Ended

Dec. 31, 2023

Major classes of inventories are presented below. Readily Marketable Inventories are agricultural commodity inventories such as corn, soybeans, wheat, and ethanol co-products, among others, carried at net realizable value which approximates fair value based on their commodity characteristics, widely available markets, and pricing mechanisms. The net realizable value of RMI is calculated as the fair value (spot price of the commodity in an exchange), less cost of disposal and transportation based on the local market. All other inventories are held at lower of cost or net realizable value. The components of inventories are as follows:


	December 31,
(in thousands)	2023		2022
Grain and other agricultural products (a)	$	886,725	$	1,326,531
Energy inventories (a)	21,705		21,084
Ethanol and co-products (a)	104,349		156,341
Plant nutrients and cob products	153,921		227,769
Total	$	1,166,700	$	1,731,725

(a) Includes RMI of $862.5 million and $1,308.8 million at December 31, 2023, and December 31, 2022, respectively.

The Company incurred inventory damage charges of $17.3 million in the year ended December 31, 2022. In December 2022, approximately $16.2 million of that charge was related to a fire at a Michigan grain asset where substantially all of the insured inventory held at that location was severely damaged or destroyed.