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mom2wildboys

Anyone know about regs for selling seedlings?

15 years ago

The "mini-farm" story and discussion of selling produce got me thinking. I always start way more tomato seedlings than I can actually use. I give some of them away and plant others at the community garden, but I've thought about selling some to offset my gardening costs. I haven't done so because I don't know if I would run afoul of any Dept of Agriculture regulations or anything like that! Does anyone have experience with small-scale seedling sales?

Comments (6)

  • 15 years ago

    How many plants are you talking about? 50 or 500?

    Many small scale growers sell their plants to friends, family, neighbors, at the local farmer's market, at the corner grocery store, from the back of their pick-up along the roadside, etc. in the spring at planting time.

    It only becomes complex if you get into sales across state lines or make enough sales where you have to collect and pay state sales tax declare it as income or if you set yourself up as a small business (contact the local Small Business Bureau).

    Dept. of AG has rules that can limit sales/transport across state lines and each state has its own rules on amounts requiring sales tax collection and payment. And your local farmer's market association may have their own rules too - some do, some don't.

    You can find out what the county/state regs are from your local county extension office or the local state revenue office.

    Dave

  • 15 years ago

    I'm not sure how many you are planning on selling but I have sold lots of plants at a yard sale. Every year I would dig and divide up things like hostas, daylilies etc and put the out in a yard sale. I would think you could do the same with tomato plants. We also have quite a few farmer's markets that operate from May to Oct in a few cities around us where the farmer's sell plants and later produce. I guess you could see if there was any in your area and ask if there are specific regulations. Of course I would keep track of expenses vs income so Uncle Sam could not come after you later if working at the farmer's market. Kim

  • 15 years ago

    If I was in your shoes, I'd discuss my plans with my insurance agent and getting appropriate coverage before getting started, especially if you own assets.

    If you don't discuss it, you run the risk that your homeowner's/renter's insurance company drops you without notice, due to being kept in the dark about the additional liability of a small-scale business.

    It may be that a rider could be added to your existing policy, and that the expense is minor.

    Best of luck! And keep us posted....

  • 15 years ago

    What you may need will depend somewhat on whether you are going to try to fly under the radar or not. Generally, you are probably at least required to get a nursery license from your state Dept. of Ag. if you are going to sell any plants. Most people doing only a very small amount will probably fly under the radar and skip the tax collections and licenses they are supposed to have. If you get into enough plants that you can get noticed, such as at a booth at a farmers market, then you ought to check the suggestions above to find out what you need with your state so you don't get pinched for not having a nursery license, a sales tax license, etc. The fines will cost more than what you are selling.

  • 15 years ago

    The regs are going to depend on your jurisdiction. The advice to do your homework is sound and you should follow it. And if you're curious about licenses and permits, etc., you might also give your county clerk's office a call.

    But take heart...I'd be surprised if you find as much bureaucracy as you think you might be in for. There is such a thing as "hobby" income, and you often don't have to jump through any hoops to make a few bucks at something you dabble around in. There are technical types out there who'll tell you the kid who mows grass in the neighborhood needs a business license and a Federal tax ID, but you won't see the county sheriff serving that kid with a cease-and-desist notice, or the IRS confiscating his lawn mower.

    Ed

  • 15 years ago

    I should think, as others have mentioned, that unless you are going into business and/or shipping the regulations, if any, that you need to familiarize yourself with are mostly local.

    Nytimes.com today mentions that 'garage-sale economy is flourishing and in many regions of the country, so much so that some cities have begun cracking down.'