Alternative measures of farm output to classify farms by size

Classifying a farm's size based on its value of production may give a more accurate picture of farm output and size than does the currently used gross sales measure which does not account for changes in inventory.Value of production measures incorporate inventory adjustments.If inventory is held back to a later year, for example, an otherwise large-size farm could be classified into a much smaller sales class.Such a measure may provide a more accurate indication of the business performance of farms, and aid agricultural businesses to know their farm markets better.