Are there circumstances where there may be two initial commercial sales associated with one crop?
Yes. Because an initial commercial sale may occur at the conclusion of the production of a crop and at the conclusion of processing that crop into a more refined product, there may be situations where there are two initial commercial sales. For example, wheat is harvested and sold to a factory for processing the wheat into flour. The sale ends the production phase of the crop. The factory then processes the wheat into flour and sells the flour to a bakery. The sale of the flour to the bakery is an initial commercial sale of a processed product (flour) to a next-stage processor and ends the processing phase as a qualifying agricultural activity. Harvesting the wheat and processing the wheat into flour processing of a crop for initial commercial sale.
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