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- #231
- Jul 30, 2009
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From http://www.thecompletepatient.com/journal/2010/11/30/if-youre-in-the-food-business-better-begin-preparing-now-to.html
1. Examine ways to divide your business into several separate entities, each falling under the small business revenue guidelines. Perhaps you have a vegetable LLC, an egg LLC, a cheese LLC, and a chicken LLC. You see where I'm going. The Europeans, who have long had onerous regulations on all businesses, are masters at such techniques. As you grow, you continue subdividing the business. Maybe eventually you have ten or twelve independent businesses that are part of your "organization." But better act fast, so you don't get sucked into the regs to begin with; it will be much more difficult, I'm sure, to exit the FDA's tentacles than to avoid them in the first place.
2. Consider keeping two sets of books. One covers the operations in summary form, and doesn't include lists of customers, suppliers, and other details. This is the one for FDA inspectors, while another off-site has more detailed info. Once again, get going on this quickly, so you have some practice on keeping things in order.
3. Avoid registering or getting permits from any government agencies, if possible, since the new legislation requires the FDA to work in concert with state regulators. I appreciate that my advice comes too late for many food producers, which have permits of various sorts. The idea is to be as little known to the regulators as possible.
4. Go private. Related to the previous suggestion to stay outside the permit systme, explore leasing and CSA arrangements, since there's no evidence the new legislation will apply to these non-commercial situations. In other words, as much as possible, sell your products privately, outside the conventional distribution system.
I'm sure others here have other ideas...for example, what to do when the FDA agents come calling to implement Good Agricultural Practices on your farm. I think it's useful to share ideas as much as possible, to get as many producers as possible sowing confusion for the enforcers. Just because Congress has no problem sacrificing our rights to be able to point to a rare "accomplishment" doesn't mean we have to make it easy for them.
2. Consider keeping two sets of books. One covers the operations in summary form, and doesn't include lists of customers, suppliers, and other details. This is the one for FDA inspectors, while another off-site has more detailed info. Once again, get going on this quickly, so you have some practice on keeping things in order.
3. Avoid registering or getting permits from any government agencies, if possible, since the new legislation requires the FDA to work in concert with state regulators. I appreciate that my advice comes too late for many food producers, which have permits of various sorts. The idea is to be as little known to the regulators as possible.
4. Go private. Related to the previous suggestion to stay outside the permit systme, explore leasing and CSA arrangements, since there's no evidence the new legislation will apply to these non-commercial situations. In other words, as much as possible, sell your products privately, outside the conventional distribution system.
I'm sure others here have other ideas...for example, what to do when the FDA agents come calling to implement Good Agricultural Practices on your farm. I think it's useful to share ideas as much as possible, to get as many producers as possible sowing confusion for the enforcers. Just because Congress has no problem sacrificing our rights to be able to point to a rare "accomplishment" doesn't mean we have to make it easy for them.