Use the Farm Inventory section of IRS Publication 225 Farmer's Tax Guide at this link as a guide. I've copied the Livestock paragraph here with areas of emphasis in bold:
Livestock.
Livestock held primarily for sale must be included in inventory. Livestock held for draft, breeding, or dairy purposes can either be depreciated or included in inventory. Also see Unit-livestock-price method, later. If you are in the business of breeding and raising chinchillas, mink, foxes, or other fur-bearing animals, these animals are livestock for inventory purposes.
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