Farmer’s Sales to Agricultural Cooperatives

# (1)

(1) For purposes of the exclusion provided under ORS 317A.100(1)(b)(TT), "farmer's sales" means a taxpayer's receipts from the sale of agricultural commodities, livestock, poultry, dairy products, and similar products or by-products produced through agricultural activity, to an agricultural cooperative in Oregon, provided it is a cooperative organization described in section 1381of the Internal Revenue Code.

# (2)

(2) "Farmer's sales" does not include:

(a) receipts of a taxpayer who is not in the trade or business of growing or raising agricultural commodities, livestock, poultry, dairy products, and similar products or by-products produced through agricultural activity; or

(b) receipts from the sale of any items that were not produced through activities described in section (1) of this rule.

# (3)

(3) *Examples.*