Texas Direct Farm Business Guide
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TEXAS DIRECT FARM BUSINESS GUIDE MICHAELA TARR CHARLES CUNNINGHAM RUSTY W. RUMLEY 1 Texas Direct Farm Business Guide Introduction ................................................................................................................................. 6 I. Using This Guide ............................................................................................................. 7 II. Overview of Administrative Agencies ......................................................................... 8 III. The Food and Drug Administration’s Food Code ...................................................... 10 IV. Texas State Department of Health .............................................................................. 10 Section 1: Farming Operations .................................................................................................... 13 Chapter 1: Structuring the Business .......................................................................................... 14 I. Planning the Direct Farm Business ................................................................................ 14 II. Choosing a Business Entity ........................................................................................ 16 III. Checklist ..................................................................................................................... 23 Chapter 2 - Setting up the Direct Farm Business:..................................................................... 24 I. Siting .............................................................................................................................. 24 II. Registration and Permits ............................................................................................. 27 III. Insurance ..................................................................................................................... 33 IV. Checklist ..................................................................................................................... 35 Chapter 3: Managing and Marketing the Direct Farm Business ............................................... 39 I. Contracting ..................................................................................................................... 39 II. Marketing.................................................................................................................... 49 III. Intellectual Property ................................................................................................... 53 IV. Weights and Measures ................................................................................................ 56 V. Looking to the Future: Estate Planning ...................................................................... 57 VI. Checklist ..................................................................................................................... 58 Chapter 4 - Taxation ................................................................................................................ 59 I. Registration Requirements ............................................................................................. 59 © 2013, All Rights Reserved 2 Texas Direct Farm Business Guide II. Taxation of Business Income ..................................................................................... 60 III. Employment and Self Employment Taxes ................................................................. 63 IV. Excise Taxes ............................................................................................................... 67 V. Texas Franchise and Property Taxes .......................................................................... 69 VI. Checklist ..................................................................................................................... 71 Chapter 5: Labor and Employment ........................................................................................... 72 I. Fair Labor Standards ...................................................................................................... 72 II. Occupational Safety and Health ................................................................................. 76 III. Migrant and Seasonal Workers ................................................................................... 78 IV. Employer Liability ...................................................................................................... 82 V. Checklist ..................................................................................................................... 88 Section II – Regulation By Product .............................................................................................. 89 1 - Dairy….…………………………………………………………………………………….90 I. Federal Regulation ......................................................................................................... 90 II. State Regulation .......................................................................................................... 94 III. Hormone Free Labeling .............................................................................................. 97 IV. Checklist ..................................................................................................................... 99 2- Eggs .................................................................................................................................... 100 I. Federal Oversight of Eggs ............................................................................................ 100 II. Texas Regulation of Eggs ......................................................................................... 102 III. CHECKLIST ............................................................................................................ 105 3 - Fish, Shellfish and Other Aquatics .................................................................................... 106 I. Production .................................................................................................................... 106 II. Texas Marketing Requirements ................................................................................ 110 © 2013, All Rights Reserved 3 Texas Direct Farm Business Guide III. Federal Rules ............................................................................................................ 110 IV. Checklist ................................................................................................................... 113 4- Fruits and Vegetables ......................................................................................................... 114 I. Unprocessed Fruits and Vegetables ............................................................................. 114 II. Processed Fruits and Vegetables .............................................................................. 115 III. Checklist ................................................................................................................... 119 5 - Grains and Cereals ............................................................................................................. 120 I. Grain Inspection Standards .......................................................................................... 120 II. Licensing of Warehouses .......................................................................................... 121 III. Checklist ................................................................................................................... 123 7 - Honey & Maple Syrup ....................................................................................................... 124 I. Bee Keeping ................................................................................................................. 124 II. Selling Honey ........................................................................................................... 125 III. Maple Syrup ............................................................................................................. 126 IV. Checklist ................................................................................................................... 127 8 - Meat and Poultry ............................................................................................................... 128 I. Raising and Caring for Animals ................................................................................... 128 II. Slaughtering & Processing ....................................................................................... 132 III. Marketing Meat & Poultry Products ........................................................................ 137 IV. Checklist ................................................................................................................... 142 9 - Organic Marketing ............................................................................................................. 143 I. Labeling and Marketing ............................................................................................... 144 II. Certification Process ................................................................................................. 144 III. Production Requirements ......................................................................................... 145 © 2013, All Rights Reserved 4 Texas Direct Farm Business Guide IV. CHECKLIST ............................................................................................................ 150 Glossary of Terms ......................................................................................................................