Agricultural produce definition limits processing to cultivator usual operations that don't alter essential characteristics, preserving primary market exemption. Definition of agricultural produce confines exempted goods and services to produce from cultivation or rearing (excluding horses) on which either no further processing is done or only such processing as is usually performed by a cultivator or producer that does not alter the essential characteristics but makes them marketable in the primary market; specified processes like tending, pruning, grading and sorting are included, while manufacturing processes that alter essential characteristics are excluded.