For a variety of reasons, a farm may structure its operation into multiple business entities. Producers and regulators have both raised questions as to how they should determine whether the sales from multiple business entities should count toward calculating a farm’s exemption status under the PSR. Generally speaking, forming two separate entities on paper alone is likely not sufficient to establish separate operations for purposes of determining eligibility for an exemption. However, there may be situations where it is appropriate to consider sales from separate entities separately. This factsheet identifies several factors for producers and regulators to consider in making this determination and, through several examples, describes how day-to-day activities, management, and farm financial structure can inform whether multiple business entities should be considered a single farm operation under the PSR or not.
This factsheet cross-references:
Produce Farms, Foodborne Illness, and Legal Liability
This factsheet compliments:
Planting the Seed: A Proposal for a Farm Operation Test Under the FSMA Produce Safety Rule
DOWNLOAD FACTSHEET: FSMA PSR Coverage and Exemptions for Farms with Multiple Business Entities
