Food Safety and Quality
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FSMA PSR status for nonprofits
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FSMA PSR status for nonprofits
Hi all, I’m trying to figure out how the PSR treats non-profit farms that do not exchange money with their customers. Here’s the scenario: I work with a farm that operates as a non-profit. It does not exchange money for the sale of produce and there aren’t receipts or documented transactions. I’ve never been able to find a clear, documented answer about whether this type of farm is exempt from FSMA PSR.
Do you know?
Thank you!
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4 Replies
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I’m thinking they are not covered but I’ve asked others more knowledgable for an answer. It comes up for me too.
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I believe Lindsey is correct. Coverage and farm size are based on sales. If no money is changing hands and no services rendered (indicating a value) then they would not be covered. Comment 119 in the preamble might help if you need a reference.
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Thank you so much, Lindsay and Kristin!
Copying comment 119 for folks:
(Comment 119) Some comments request clarification on how sales will be calculated for the purpose of determining a farm’s size and, therefore, whether the farm is a covered farm, eligible for a qualified exemption, and/ or eligible for an extended compliance period. Comments ask whether the value of produce donated to non-profit organizations such as food banks and senior centers would be counted towards sales. In addition, comments ask whether sales or donations to public institutions, such as prisons, would be counted towards sales.
(Response) For purposes of the sales thresholds in this rule, FDA does not consider a donation in which there is no payment of money or anything else of value in exchange for produce to be a ‘‘sale.’’ Such donations, including to public institutions or non-profit organizations, are not counted toward a farm’s sales revenue. However, sales of produce to any public institutions or non-profit organizations in which money or anything else of value is exchanged for produce must be counted as sales for purposes of this rule.
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Unless you live in MN. They count donations toward sales for farm inventory purposes. This was the policy a couple of years ago – maybe it is different now.
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