| Farm Direct: What everyone needs to know |
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| Business planning |
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Raising and selling Oregon agricultural products can be fun and rewarding. It's also a lot of hard work, and chances are, you also want to raise some income and grow a business. Successful business management depends on careful planning. Do your research. The Secretary of State Corporation Division Web site is designed to provide basic information on how to start a business in Oregon. The site provides a list of tools and publications to help you get your business off to a good start. Take advantage of support offered by government agencies, grower associations, small business centers, commodity groups, and fellow growers.
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| Starting a business in Oregon |
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Choose a business structure
Select a business entity type. The Small Business Development Web site has a great online tool for choosing a legal structure, http://www.sba.gov/starting_business/legal/forms.html .
Create a business plan
It helps to begin with a plan. A business plan is a blueprint of every aspect of your business. Sales, marketing, advertising, promotion and location are just some of the aspects of creating a plan. Visit the Oregon Department of Agriculture business plan guide at http://oregon.gov/ODA/grants_business_plan.shtml .
Register your business
The Oregon Secretary of State Corporation Division is the place to register your corporation, nonprofit corporation, assumed business name, limited liability company, limited liability partnership, Oregon trademark or service mark. Go to the forms and fees Web page, http://www.filinginoregon.com/forms/business_registry.htm , to download and print forms.
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| Taxes |
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Understanding your tax obligation is an important consideration for any business. The Filing in Oregon Web site also provides information about Oregon and federal income taxes, http://www.filinginoregon.com/business .
Learn about requirements to report personal property to your County Assessor's Office. You will also want to check on other taxes that may apply to your business.
Land used in agricultural production may qualify for deferred taxes. Talk to your county assessor for more information.
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| Licenses |
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Many occupations and business activities require special licenses, permits, or certifications from state agencies or boards. The State of Oregon now offers a searchable online license directory, http://licenseinfo.oregon.gov . Cities and counties may also require businesses to have a license or permit in order to operate. Please check with your city and county government to determine the license, permit, or zoning requirements for your area.
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| Employing others |
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The State of Oregon Referral Center is a wonderful online resource for Oregon employers. An online business wizard provides customized referrals and related government contacts for your business, http://www.filinginoregon.com .
Businesses that employ others will need to apply to the Internal Revenue Service for a federal employer identification number (EIN). You can now apply online for a federal EIN through the IRS and the Small Business Administration.
The Oregon Farmer's Handbook is another valuable resource for Oregon producers and direct marketers. The Oregon Farmer's Handbook, http://oregon.gov/ODA/pub_agripedia.shtml , contains information on the following topics related to agricultural employment and taxes.
- Agricultural labor housing and related facilities: federal and state law
- Agricultural Recruitment System, ARS (clearance orders)
- Crew leaders and contractors
- Discrimination laws
- Employing minors
- Employment eligibility verification
- Fair Employment Practices Act
- Fair Labor Standards Act (FLSA-minimum wage): federal law
- Family and Medical Leave Act: federal
- Family medical leave: Oregon
- Farm labor contracting
- Federal hazardous materials regulations (HMR)
- Federal motor carrier safety regulations (FMCSR)
- Field sanitation standard
- Income tax withholding: federal
- Income tax withholding: Oregon
- Migrant and Seasonal Agricultural Worker Protection Act (MSPA)
- Minimum wage: Oregon law
- OR-OSHA hazard communication standard
- OR-OSHA safety checklist
- Pesticide use, distribution, transport and storage
- Property tax special assessment
- Self-employment tax
- Social Security tax
- State operator license and farm vehicle registration
- Unemployment tax: federal
- Unemployment tax: Oregon
- Using WorkSource Oregon Employment Department to find employees
- Worker health and safety (Oregon OSHA)
- Worker protection standard (WPS) for pesticide applications
- Workers' compensation
Printed copies of the Oregon Farmer's Handbook may be ordered from the Oregon Department of Agriculture Information Office, 503-986-4560. Cost is $5.
Labor law can be one of the most difficult areas of compliance. Make sure you visit a qualified consultant or legal counsel.
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| Packaging and labeling |
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All packaged products must be labeled, and ingredient information must be available for foods sold in bulk. Four pieces of information are required on labels:
- name of product
- net quantity of contents
- ingredients in descending order by weight or volume
- name and address of the producer or distributor.
The name must be the actual name under which the business is conducted. Packages packed in the presence of the consumer are not required to include on the label the name of the packer. All required information must be in English and clearly printed. Agricultural commodities transported from the owner's fields to warehouses for storage, processing, grading, or packaging are exempt from the regulations, providing that the name and address of the grower appear on the container. The quantity of contents statement must appear in the lower 30 percent of the label and must be parallel to the base of the package. Lettering size on the quantity of contents statement is determined by the size of the principal display panel. Oregon Administrative Rules 603-027-105 defines packaging and labeling requirements.
Bulk sales
Bulk foods do not have the same labeling requirements as packaged foods. Ingredient information can be posted on the bulk bins or a sign can be displayed saying the ingredients are available upon request. Ingredient information should be maintained in writing. Products sold in bulk form (for example, firewood or liquid fertilizer) but not weighed or measured through a licensed device, must still be accurately represented as to the quantity delivered. This requires that an appropriate unit of measure be applied (OAR 603-27-206 and 603-27-370).
Method of sale
Generally, state regulations require that commodities in liquid form shall be sold only by liquid measure or weight. Except as otherwise expressly provided, commodities not in liquid form shall be sold only by weight, measure of length of area, or count. These provisions do not apply to- commodities sold for immediate consumption on the premises where sold.
- vegetables sold by the head or bunch.
- commodities in containers standardized by the laws of Oregon or the United States.
- commodities in package form where there is a general consumer usage to express quantity in some other manner.
- concrete aggregates, concrete mixtures, and loose solid materials such as earth, soil, gravel, crushed stone, and like substances sold by cubic measure
- unprocessed vegetable and animal fertilizer sold by cubic measure.
Oregon Administrative Rules 603-027-206 thru 603-027-370 define method of sale requirements for commodities.
New and used boxes
It is unlawful to sell, or offer for sale, horticultural products in used packages or containers unless they are first cleaned of all foreign matter and substances and are in all respects sanitary. Previous markings, brands, grade markings, labels, trademarks, names, and addresses must be entirely removed or defaced to destroy their legibility, or made illegible by turning the container or package inside out. New label information, as noted above, must be added to used boxes. This section also does not apply to transportation from the field. Specific references are contained in:- Oregon Revised Statutes Chapter 632.900 to 632.985. ORS 632.900 to 632.985 defines the grades and standards for inspection and classification of agricultural products.
- Oregon Administrative Rules 603-51. OAR 603-51 defines the grade standards for Oregon produce.
For more information contact the Oregon Department of Agriculture Commodity Inspection Division, 503-986-4670.
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| Weights and measures (scales) |
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Scales
Scales used in direct buying or selling of commodities or services by weight must be licensed annually with the Oregon Department of Agriculture, prior to commercial use. This includes, but is not limited to, the following types of weighing equipment:
- produce scales (hanging or countertop)
- price-computing scales
- portable platform scales (for weighing sacks, baskets, bins, etc.)
- built-in, floor, or "dormant" scales (for weighing pallet loads, tote boxes, etc.)
- single animal scales (for weighing one head of livestock at a time)
- livestock scales (on farms and ranches and at stock shipping points)
- motor truck scales
- hopper scales (for loose bulk commodities, grains, seeds, nuts, etc.)
Scales must meet state standards for design, readability, accuracy, and reliability, based on National Institute of Standards and Technology (NIST) Handbook 44, and have an active National Type Evaluation Program (NTEP) Certificate of Conformance. To find out which scales have active NTEP certificates you can contact the scale company or check the NTEP database online at: http://www.ncwm.net/ntep/index.cfm?fuseaction=search .
Non-NTEP approved scales may be used commercially provided they are non-price-computing, non-electronic mechanical scales of 50 kg (110 lb.) capacity or less, and
- meet other scale code requirements in NIST Handbook 44.
- have a minimum of 240 scale divisions.
- are intended for class III applications excluding precious metals and semi precious gem weighing.
- have a division size of 1 oz., or smaller, if used for retail food sales and are less than 50 pounds capacity.
The operator is responsible for the accuracy of the scale at all times and is responsible for positioning the weighing devices so that the indication may be read and the weighing operation observed from the customer's position.
Licensing
Contact the ODA Measurement Standards Division, 503-986-4670, to request a scale license application. Your application will be sent along with other informational handouts. You may start using your scale as soon as you submit a license application with payment to the Measurement Standards Division. A field inspector will make arrangements to test and certify your scale when they are in your area.
License fees are based upon the scale's manufacturer rated capacity. See the table below for license costs. License fees are per scale for one year, spanning July 1 to June 30, and are not proratable.
- A 0-400 pound capacity $37.00
- B 401-1,160 pound capacity $76.00
- C 1,161-7,500 pound capacity $153.00
- D 7,501-60,000 pound capacity $230.00
- E Over 60,000 pound capacity $230.00
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