### Question
How is the "excess prepaid farm supplies" defined?


### Answer
The term **excess prepaid farm supplies** is defined in *26 U.S.C. § 464* as follows -

> the prepaid farm supplies for the taxable year to the extent the amount of such supplies exceeds 50 percent of the deductible farming expenses for the taxable year (other than prepaid farm supplies)

#### Citation:
  - *26 U.S.C. § 464*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart C-Taxable Year for Which Deductions Taken**

