WORKING OR AGRICULTURAL CAPITAL
Share of the gross capital spent in specific activities of a factory farm.
All the movable factors are assigned to the working or agricultural capital; it is divided into in-store capital and anticipated capital.
The in-store tools (machineries and livestock) and in-store products belong to the in-store capital, on which the production of the farm depends. In-store tools and in-store products are destined to be reused, as factors of production or raw materials. Machineries as well as battery and working livestock are differentiated factors susceptible to partial damage; fattened livestock and in-store products are instead susceptible to total damage.
The anticipated capital is the undifferentiated capital instalment that is used during the whole duration of the administrative practice (fixed asset) for the characteristic activity carried out by the farm.
The so-defined working capital is financially tied up for the whole duration of the agricultural year, just like the real estate; that makes it possible to provide remuneration through the assignment of an appropriate annual interest rate.
Editor: Barbara PANCINO
© 2009 ASSONEBB