FDA Recently Updates the FSMA Inflation Adjusted Cut Offs for Qualified Exempt Farms (4/2/2020)
Recently, FDA released the newly adjusted yearly sales figures for small farms and farms that may be eligible for “Qualified Exempt” status. Under the FSMA Produce Safety Rule, small farms that that have less than $25,000 in annual produce sales, adjusted yearly for inflation, as an average over the previous 3 years, will not be covered by the rule. As of April 2, 2020, the newly adjusted yearly sales minimum is $28,075 (averaged over 2017 – 2019).
Additionally, farms that have less than $500,000 in annual produce sales, adjusted yearly for inflation, as an average over the previous three years and meet other criteria, may be eligible for a “Qualified Exemption”. In addition to the yearly sales averages, the farm’s sales to qualified end-users must exceed sales to all others combined during the previous three years. A qualified end-user is either (a) the consumer of the food or (b) a restaurant or retail food establishment that is located in the same state or the same Indian reservation as the farm or not more than 275 miles away. As of April 2, 2020, the newly adjusted maximum yearly sales that a farm can have and still be considered for a “Qualified Exemption” is $561,494 (averaged over 2017 – 2019).
To determine where your produce farm falls under the Produce Safety Rule, complete the template provided in the order presented. Template for farms to determine their status with the PSR in 2020
More information regarding these adjusted cutoffs can be found at the FDA FSMA Inflation Adjusted Cutoffs website.