Andrew Smiley - Comment

Sustainable Food Center works closely with several small businesses, including small-scale food processors and family farms, many of which are reliant on "value-added" enterprises to expand their product line. The Tester-Hagan Amendment established the fact that Congress recognizes small businesses (with gross sales under $500,000 annually) and those that sell directly to consumers are in a special category. A fee structure that does not take into consideration appropriate delineations of small and rural enterprises would be overly burdensome on farm-based and small-scale food businesses. . We agree with the Weston A. Price Foundation in their comments submitted along with the Farm and Ranch Freedom Alliance and the Farm to Consumer Legal Defense Fund, in their recommendations, as follows: The definition for small businesses should be based on a simple, multi-industry approach. The fees should be completely waived for facilities grossing under $500,000. The fees should be reduced for businesses above that amount based on a graduating scale: 75% reduction in fees ($56/hr) for businesses grossing between $500,000 and $5 million annually. A 50% reduction in fees ($112/hr) for businesses grossing between $5 million and $15 million annually. A 25% reduction in fees ($168/hr) for businesses grossing between $15 million and $25 million annually. The cut-offs for gross income should be adjusted annually for inflation. Gross income levels should include subsidiaries and affiliates so that the large companies cannot manipulate the fee structure by having multiple different facilities. No fees should be imposed for travel time. Total fees for re-inspections should be capped at no more than 0.25% of the facility’s gross income per year. Additional reductions or exemptions should be considered for facilities that market exclusively direct to consumers.