Know the Rules. Stay Compliant.
The USDA retail exemption and SNAP/EBT authorization are powerful tools—but only if you follow the law step by step.
Here’s what you need to know.
What the Retail Exemption Allows
Under 9 CFR 303.1(d), ranchers and farmers may perform operations “traditionally conducted at retail stores,” including:
- Cutting USDA-inspected carcasses and sub-primals into retail cuts.
- Grinding into hamburger.
- Wrapping, packaging, labeling, and freezing.
Important:
- Slaughter is not allowed under the retail exemption.
- Only meat that has already passed USDA inspection may be cut and sold.
Sales Limits Under the Retail Exemption
- At least 75% of your sales must be direct to household consumers.
- No more than 25% of your sales may go to restaurants, hotels, or institutions.
- Even then, sales to non-household customers are capped at dollar limits set annually by FSIS.
Current Non-Household Limits (2025):
- $103,600 for red meat.
- $74,800 for poultry.
Highlight Box:
✔ Track your sales carefully to stay compliant.
How to Label Retail Exempt Meat
- Products cannot carry the USDA “Inspected & Passed” legend.
- Labels must not be misleading.
- Safe handling instructions are required.
- Labels should include: product name, weight, farm/processor identity, and storage guidance.
“If you sell exempt, your product must be labeled clearly—but never as USDA-inspected.”
Keep Standards High
Even if your butcher shop is exempt from continuous federal inspection, you are still responsible for food safety. Follow HACCP-style best practices:
- Keep raw and cooked products separate.
- Maintain cold storage at safe temperatures.
- Use proper cleaning and sanitizing protocols.
- Train staff in safe handling procedures.
- Keep written sanitation logs.
Documentation Is Your Best Defense
Maintain detailed records of:
- Every carcass or sub-primal received (source, date, inspection plant).
- Every cut and batch produced.
- Sales volumes and destinations.
- Sanitation and temperature logs.
Highlight Box:
✔ If FSIS or state officials visit, your records prove compliance.
Custom Exemption Rules
Custom slaughter and processing is allowed for animals owned by individual customers.
- Meat must be stamped “NOT FOR SALE.”
- It may only be consumed by the owner, their family, and household guests.
- It cannot be sold at your farm store or market.
Know Your State Rules
- 27 states run their own USDA-approved inspection programs.
- State-inspected meat may only be sold within that state, unless the state participates in the Cooperative Interstate Shipment (CIS) Program.
- USDA-inspected meat may be sold across state lines.
Tip:
Always check with your state agriculture department to confirm how they interpret retail exemption rules.
Quick Checklist for Staying Legal
- Use only USDA-inspected carcasses or sub-primals.
- No slaughter under the retail exemption.
- Keep at least 75% of sales to consumers.
- Stay under FSIS dollar thresholds.
- Label properly - no USDA inspection legend.
- Maintain strict sanitation and record keeping.
- Know your state’s specific rules.
Compliance = Freedom
By following these rules, you can confidently build your on-farm butcher shop and market - knowing you are protected by federal law.
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