Yes, cows born and raised into breeding stock are sold as non-depreciated business property and only reported in the year they were sold. You will need to check a box in the Farm Income and Expense section, under Final Details, Special Situations, click Start, Other Situations, click the box "During 2016, I disposed of non-depreciable business assets" to report the sale. It's a little hard to find that box. When reported correctly the sale will report on form 4797, part 1. You will need to report how long you have had them by entering the date acquired, any date over two years will work, they just want to know if it's long term gain or short term gain. I use one acquired date for all raised cows sold that year. In the description I enter "Raised Cows".
