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Court of Appeals indicated that a grain elevator or feed store
that sells grain or feed to farmers, and that has no control or
management of the farm operation, does not qualify as a farm or
farmer).
Petitioner cites several other cases which it contends
support its position that it is a farmer. However, in none of
these cases were the taxpayers in the business of making retail
sales to farmers. The taxpayers owned or operated a cattle-
feeding or feed lot business in Frysinger v. Commissioner, 645
F.2d 523 (5th Cir. 1981), affg. T.C. Memo. 1980-89; Hi-Plains
Enters., Inc. v. Commissioner, supra; Packard v. Commissioner, 85
T.C. 397 (1985); and Van Raden v. Commissioner, 71 T.C. 1083
(1979), affd. 650 F.2d 1046 (9th Cir. 1981). The taxpayers
raised poultry or livestock in United States v. Chemell, 243 F.2d
944 (5th Cir. 1957); Duggar v. Commissioner, 71 T.C. 147 (1978);
and Maple Leaf Farms, Inc. v. Commissioner, supra.
We conclude that petitioner was not a farmer for purposes of
section 448(b)(1) and sections 1.471-6(a) and 1.61-4, Income Tax
Regs.
D. Whether Respondent Should Have Compared Petitioner's Income
Under the Cash and Accrual Methods for More than 3 Years
Petitioner contends that respondent's determination that it
must use the accrual method of accounting was an abuse of
discretion because respondent considered petitioner's income for
only 3 years (1990, 1991, and 1992).
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