Offer your thoughts or opinion on the input financial query or topic using your financial background.

GAAP for items that you both sell and make? 
First, please allow me to recommend that you do not try gimmickry when financials do give expected results.  It's a sure path to disaster and illegality.  The best route is to first check if accounts are being properly booked.  If they are then there is most likely a problem with the business.  Anything out of bounds yet properly booked is indeed the problem. Now, the reason why your results seem strange is because investments are being improperly booked as inventory; therefore, the current account is deviating badly from the industry mean. The dividing line for distinguishing between current and long term assets is one year; although, modern financial accounting theorists & regulators have tried to smudge that line, so standards do not always adhere to that line. Therefore, any seedlings for resale should be booked as inventory while those for potting as investment.  It's been some time since I've looked at the standards closely, but this used to fall under "property, plant, & equipment".  Generally, it is a "capital expenditure" by the oldest definition.   It is not necessary to obsess over initial bookings because inventory turnover will quickly resolve itself, so a simple running or historical rate can be applied to the seedling purchases. The books will now appear more normal, and better subsequent strategic decisions can now be made.