1226.What constitutes a “significant part” of production costs or equipment?

No precise amount can be defined as a significant part of the cost of production or of the tools, equipment and livestock. One-third or more of the total value of the tools, equipment and livestock used in producing the commodity or one-third or more of the total cost of producing the commodity would usually be considered a significant part. Whether less than one-third is a significant part depends on individual circumstances.