What is agricultural produce?

Agricultural produce refers to the products that are obtained from biological assets. These biological assets include plants, animals, and other living organisms used in agricultural production. The definition highlights that agricultural produce is tangible and can be harvested and sold. This is essential for understanding the broader context of agriculture and financial reporting because agricultural produce has significant value in markets, directly affecting the agriculture sector's performance and the financial statements of entities involved in the production and sale of such goods. Recognizing the distinction between biological assets and agricultural produce is crucial for accurate accounting and reporting practices.