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Jeff, my point is that in my State the "Sale" of agricultural goods and services includes giving them away, selling them, bartering, etc.  It's well defined.  Such as some people were doing "cow shares" for milk as a way to avoid having to be a licensed dairy.  It's all wishful thinking.
This is no different that on income tax if I were to 'trade' or 'give away' $3,000 in Professional Engineering services.  I would obligated to pay income tax on the appraissed value of my work.  
If your State regulates whatever you are doing (let's say you sell bottled water at a Farm Market) and you elect to give it away (or barter), you must follow the rules to be a bottled water producer unless exempted by the Law.  You cannot choose to exclude yourself using clever terms or contractual provisions (plenty of 'contracts' are signed which are neither legal nor binding).
I'd caution everyone to take Joe Salatin's advice carefully on the matter.  Also, the HACCP requirements on chicken processing are binding, wether you are licensed, inspected, or not.  
Also, we are a LLC and we have immense insurance.  But, to say a farm operates without liability is, as you know, ridiculous.