You can list them as a farm expense if they cost $2,500 or less. You would enter them as Farm Assets but then elect to deduct them as expenses. The depreciation for this item is normally five years. You could also take the full amount as a Section 179 or a partial Section 179 and the bonus depreciation. You have many options which will be shown to you in the Farm Assets section.

The income from the breeding would be entered in Other Farm Income unless you received a 1099-Misc, 1099-G, 1099-PATR or 1099-K for that service.