Generally ,when you raise crops or livestock to sale generally you have a cost basis of "0" since you have already expensed the feed, seed,fertilizer and other necessary cost.
"Items Purchased for Resale If you use the cash method of accounting, you ordinarily deduct the cost of livestock and other items purchased for resale only in the year of sale."
Farmers ATG - Chapter Seven: General Livestock
The livestock industry is as varied as any other area of farming and agriculture. Methods of bookkeeping within each operation will differ. Due to these variations, this chapter provides a focus on the business of breeding, raising, buying, and selling livestock.
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Farmers-ATG-Chapter-Seven-General-Liv...
