Small Farm Exemption

SMALL FARM EXEMPTION

Statutory Provisions

National Organic Program; Final Rule, as published December 21, 2000 and effective April 21, 2001: § 205.101.

(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.

Required Action

Persons who sell no more than $5,000 annually in value of agricultural products and sell or label a portion or all of such agricultural products as organically produced are exempted from certification by a USDA-accredited agency but are required to produce and handle organic products in accordance with the specified provisions of the National Organic Program Final Rule.

The exempted person shall demonstrate compliance with the National Organic Program Final Rule by the implementation of the following measures:

Signature on a completed Affidavit form, which attests to a thorough knowledge of the provisions of the Rule and to the production and handling of organic products according to the National Organic Program Final Rule;

The establishment of record-keeping adequate to trace an organic product from production site through to sale for consumption.  Record must be kept for three years; and 

The provision of public access to the above documents.

Exempted Small Farmers who demonstrate compliance with the National Organic Program Final Rule shall be able to market non-certified organic products from their farms directly to consumers at direct sales outlets.

HOFA’s SFE registration and membership privileges

HOFA offers both membership and registration of the Small Farm Exemption (SFE) packet for a fee. The SFE packet includes a one-year membership to HOFA and the Organic Certification Handbook. If a member has the Handbook, please refer to page 51-53, fill out the Affidavit found on page 53, have it notarized, and send the signed original to the HOFA office. As long as the producer remains a current member, HOFA provides the service of providing public access to the documents by verifying that the affidavit is on file with HOFA to anyone who contacts the office requesting such confirmation. 

If a HOFA member wishes to participate as a Host Farm in the HOFA Apprentice Program, he or she must either have a current license agreement with HOFA as a certified organic producer or have a notarized Small Farmer Exemption affidavit on file with the HOFA office.

It is the producer’s responsibility to be familiar with and follow the NOP organic rules and regulations. Please refer to § 205.101 of the NOP regulations in the HOFA Handbook. 

The standard may also be found online at: http://www.ams.usda.gov/nop; click on the link -> Regulations; then click on the link -> Electronic Code of Federal Regulations (e-CFR); then click § 205.101 Exemptions and exclusions from certification.

The producer may choose to become a member of the Organic Materials Review Institute (OMRI) and purchase the OMRI Products and/or the Generic Material List booklets.