Farming Income and the AgriStability and AgriInvest Programs Guide – 2019 – How to calculate the mandatory inventory adjustment (MIA)

For instructions on how to fill in the following charts, see Chapter 3.

Chart 1
Cash cost of purchased inventory

Enter the amount you paid by the end of the 2019 fiscal period for the specified animals you bought:

Fiscal period

Cash cost

in your 2019 fiscal period

$
Line 1

in your 2018 fiscal period

$
Line 2

in your 2017 fiscal period

$
Line 3

in your 2016 fiscal period

$
Line 4

before your 2016 fiscal period

$
Line 5

Enter the amount you paid by the end of your 2019 fiscal period for all other inventory you bought:

in your 2019 fiscal period

$
Line 6

in your 2018 fiscal period

$
Line 7

in your 2017 fiscal period

$
Line 8

in your 2016 fiscal period

$
Line 9

before your 2016 fiscal period

$
Line 10

Chart 2
Value of purchased inventory for specified animals

Inventory bought in your 2019 fiscal period
Enter an amount that is not more than the amount on line 1 but not less than 70% of this amount.

$
Line 11

Inventory bought in your 2018 fiscal period
Enter an amount that is not more than the amount on line 2, but not less than 70% of the total of the value at the end of your 2018 fiscal period plus any amounts you paid in your 2019 fiscal period toward the purchase price.

$
Line 12

Inventory bought in your 2017 fiscal period
Enter an amount that is not more than the amount on line 3, but not less than 70% of the total of the value at the end of your 2018 fiscal period plus any amounts you paid in your 2019 fiscal period toward the purchase price.

$
Line 13

Inventory bought in your 2016 fiscal period
Enter an amount that is not more than the amount on line 4, but not less than 70% of the total of the value at the end of your 2018 fiscal period plus any amounts you paid in your 2019 fiscal period toward the purchase price.

$
Line 14

Inventory bought before your 2016 fiscal period
Enter an amount that is not more than the amount on line 5, but not less than 70% of the total of the value at the end of your 2018 fiscal period plus any amounts you paid in your 2019 fiscal period toward the purchase price.

$
Line 15

Chart 3
Value of purchased inventory for all other inventory

Inventory bought in your 2019 fiscal period
Enter the amount from line 6 or the fair market value, whichever is less.

$
Line 16

Inventory bought in your 2018 fiscal period
Enter the amount from line 7 or the fair market value, whichever is less.

$
Line 17

Inventory bought in your 2017 fiscal period
Enter the amount from line 8 or the fair market value, whichever is less.

$
Line 18

Inventory bought in your 2016 fiscal period
Enter the amount from line 9 or the fair market value, whichever is less.

$
Line 19

Inventory bought before your 2016 fiscal period
Enter the amount from line 10 or the fair market value, whichever is less.

$
Line 20

Chart 4
Calculation of MIA

Enter the amount of your net loss from line 9969 of form T1163 or T1164.

$
Line 21

Enter the value of your inventory from Chart 2 and Chart 3:

the amount from line 11

$

the amount from line 12

$

the amount from line 13

$

the amount from line 14

$

the amount from line 15

$

the amount from line 16

$

the amount from line 17

$

the amount from line 18

$

the amount from line 19

$

the amount from line 20

$

Total value of inventory

$
 
$
Line 22

MIA – enter the amount from line 21 or line 22, whichever is less.

$
Line 23
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