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The $5,000 Exemption

by Dan Anderson last modified February 09, 2007 01:59 PM



   According to USDA rules, a farmer or processor cannot claim to be
   organic or use the organic label (above) unless they are certified. The
   exception to is rule is a farmer whose gross sales from organic is
   $5,000 or less.

   Below is the language from the National Organic Program Regulations
   and Guidelines...




§ 205.101 Exemptions and exclusions from certification.
(a)
Exemptions.
(1)A production or handling operation that sells agricultural
products as “organic” but whose gross agricultural income
from organic sales totals $5,000 or less annually is exempt
from certification under subpart E of this part and from
submitting an organic system plan for acceptance or approval
under § 205.201 but must comply with the applicable organic
production and handling requirements of subpart C of this part
and the labeling requirements of § 205.310. The products from
such operations shall not be used as ingredients identified as
organic in processed products produced by another handling
operation.

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