Mississippi Farmers Markets

A Legal and Business Guide

Prepared April 2009

Updated April 2011

Table of Contents

Introduction .................................................................................................................................... 1

About This Guide ......................................................................................................................... 1

About the Authors ....................................................................................................................... 2

Non-Profit Status ............................................................................................................................ 2

Land Use – Leasing or Permissive Use ........................................................................................... 6

I. Lease Agreements ................................................................................................................... 6

II. Permissive Use ........................................................................................................................ 7

Market Rules .................................................................................................................................. 7

Food Safety Regulations .............................................................................................................. 11

I. General Food Regulations ..................................................................................................... 12

II. Specific Food Regulations ..................................................................................................... 13

III. Organic Food Certification .................................................................................................. 16

Sales Tax ....................................................................................................................................... 17

Market Certification ..................................................................................................................... 19

Insurance ...................................................................................................................................... 21

Accepting Food Stamps and WIC Vouchers................................................................................. 22

I. Food Stamps and EBT Machines ........................................................................................... 22

II. WIC Farmers Market Nutrition Program Vouchers .............................................................. 24

Funding Sources ........................................................................................................................... 25

I. Government Funding Opportunities ..................................................................................... 25

II. Private Funding Opportunities ............................................................................................. 28

III. Other Funding Resources .................................................................................................... 29

Additional Resources ................................................................................................................... 31

I. Federal Government ............................................................................................................. 31

II. Mississippi ............................................................................................................................ 31

III. Universities .......................................................................................................................... 31

IV. Other Resources .................................................................................................................. 31

Document Prepared By ................................................................................................................ 32

Appendices

Appendix A: Sample Lease Agreement

Appendix B: List of Local Health Departments And Local Health Inspectors

Introduction

In September 2008, in collaboration with Delta State University and the Center for Community and

Economic Development, the Delta State Institute for Community-Based Research (ICBR) engaged in an

assessment of alternative food systems operating in the Mississippi Delta. Farmers markets were

identified as the primary alternative to large-scale agricultural productions. In the fertile soils of the

Delta’s eleven “core” counties, six farmers markets were identified. Over an eight-week period,

interviews were conducted with the managers of these markets as well as restaurant managers, farmers

market vendors, and institutional providers of produce. The goal of this assessment was to achieve a

greater understanding of the issues facing farmers markets. In December 2008, findings from the

interviews were compiled into a working paper and shared with participants. From this initial gathering

emerged a group of farmers market managers and farmers/vendors interested in addressing the

opportunities and challenges the working paper identified.

Throughout 2009, this group of market managers and farmers/vendors worked to make information and

resource sharing more effective in an effort to strengthen farmers markets throughout the Delta. During

the first quarter of 2009, three meetings took place revealing the overwhelming need for consistent,

localized legal and organizational guidance. From these meetings, a need for legal and technical

assistance emerged, and this guide was produced in April 2009 as a result of that need.

As a result of this guide and the organizing efforts of ICBR and Delta Directions Consortium, the Delta

markets organized into the “Delta Regional Farmers Market Alliance” (DRFMA). This group has stayed in

touch and has met on a periodic basis for the past several years in order to share best practices,

disseminate legal and technical assistance, and stay abreast of policy and legal changes at the state level

that could benefit farmers markets and farmers/vendors in the state. This guide was updated in April

2011 to reflect some legal and regulatory changes in the state as well as new programs available for

farmers markets in Mississippi. Over time, more markets have sprung up in the Delta and membership in

DRFMA has grown to include the markets in Clarksdale, Cleveland, Greenwood, Greenville, Hernando,

Indianola, and Leland.

About This Guide

This guide is meant to provide farmers market managers, farmers/vendors, and other interested parties

with an overview of legal and business issues that arise in the course of running a farmers market. The

topics covered are the product of interviews conducted in spring 2009 with markets in Bolivar,

Coahoma, Leflore, Sunflower, and Washington Counties, but the information will apply more broadly to

markets throughout Mississippi. We have not attempted to catalog all the issues that a market may

face; instead, this guide focuses on major issues common to many farmers markets.

Although we have made an effort to provide as much information as possible, every situation is unique

and requires a tailored approach. This guide is not legal advice and you should not rely on it alone to

make decisions. Whenever possible, you should consult with an attorney or accountant.

We hope that this guide will help generate ideas and describe some of the questions that market

managers should be asking as their market develops. At the end of this guide, there is a list of national

and state resources that may be able to provide additional advice. Also, in each section of this guide,

there are websites, phone numbers and contact information for state agencies, non-profit organizations

and individuals who may be able to help with those specific issues. We strongly urge you to do

additional research and speak with some of those listed to get more information on the topics in this

guide.

We wish you all the best and hope that you find the information useful to advancing the cause of

farmers markets and local food security.

About the Authors

This guide is the product of the research and personal experiences of dozens of individuals, some of who

have been involved for decades in promoting farmers markets. Chief among these is Dr. John Green of

the Institute for Community Based Research at Delta State University. For many years, Dr. Green worked

with students at Delta State University and others to support farmers markets. JR Love, an MBA student

at DSU and a Delta native, and Miranda Walker, an AmeriCorps VISTA volunteer at the ICBR, traveled

near and far to speak with market managers and to learn about the issues they face. The Delta

Directions Consortium, led by Emily Broad, a joint fellow at the Social Science Research Center at

Mississippi State University and Harvard Law School, recruited and supervised eight Harvard Law School

students to spend their spring break in the Delta, working to compile the information and experiences

that these individuals and institutions have accumulated and conduct legal research on the topics of

concern. The students involved in the project were Amir Ali, Max Chen, Marianna Jackson, William

Magnuson, Jordan Myers, Daniel Preysman, Benjamin Saltzman, and Dina Stukanow Dominguez. Chris

Powell, an attorney practicing in Cleveland, Mississippi served as the legal adviser to this project.

This guide was most recently updated in March 2011 by Harvard Law School student Brent Bernell under

the supervision of Emily Broad, Senior Clinical Fellow at the Harvard Law School Health Law and Policy

Clinic.

This guide owes much of its value to countless other individuals involved with the markets. Not all of

them can be named here, but a debt of gratitude is owed to Maggie Barnes, Anita Butler, Kate Failing,

Lise Foy, Michelle Johansen, Thommy Miller, Robert Hitt Neill, Carol Puckett, Angela Simpson, and

Cornelius Tool.

Non-Profit Status

This section is written in Q&A form and seeks to provide information on what exactly a non-profit

organization is and when a farmers market might choose to become one.

A: A non-profit is an organization that does not aim to make a profit and which is not part of the

government. The most common non-profit organization is a 501(c)(3) non-profit, which is a corporation,

formed under state laws, that has applied for a tax exemption from the IRS. It is called a 501(c)(3)

because that is the section of the tax code that allows the organization not to pay federal income tax. In

addition, if an organization has official 501(c)(3) status, any donations made to the organization are tax

deductible.

What is a non-profit?

A: A nonprofit is a special type of corporation. In order to have a 501(c)(3), you must file Articles of

Incorporation with the Mississippi Secretary of State, draft the corporation’s by-laws, and hold regular

board meetings. That makes a non-profit just like any other corporation. The only difference is that a

How is a non-profit different from a corporation?

501(c)(3) non-profit is a corporation that has gotten permission from the IRS not to pay federal income

taxes.

A: The most important requirement for corporations to comply with Section 501(c)(3) of the US tax code

is that the organization be organized and operated exclusively for purposes that are “religious,

charitable, scientific, testing for public safety, literary, or educational….”

What are the requirements to become a non-profit?

The organization does not

need to currently have any projects or money, but it does need to have a 3-year budget planned and a

mission compatible with Section 501(c)(3) of the US tax code. Importantly, a 501(c)(3) organization

cannot be organized or operated for the benefit of private interests and none of its net earnings can be

used for the benefit of a private shareholder or individual. Once the market becomes a non-profit, it

must get funding from a variety of sources and can’t rely on just a few large grants for all of its funding.

Grower fees are especially important in making sure the market satisfies IRS funding rules.

A: Yes. The farmers market should make a case that it is a “charitable” organization. According to the

IRS, the term “charitable” includes “relief of the poor, the distressed, or the underprivileged . . .

lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and

discrimination . . . and combating community deterioration and juvenile delinquency.”

Can a farmers market qualify as a Section 501(c)(3) organization?

Although some

farmers market have been denied 501(c)(3) status on the basis that they were merely helping growers

make a profit, many other markets have qualified.

An organization is especially likely to qualify if it

serves a range of purposes, such as public education, community gardens, or revitalizing a downtown

area through the market. Before applying for tax-exempt status, you should consult with other farmers

markets that have gone through the process. If your farmers market does not meet the qualifications to

be a 501(c)(3) organization, it may still qualify as a 501(c)(5) organization, which refers to “labor,

agricultural, or horticultural organizations.”

501(c)(5) organizations are also exempt from paying federal

income tax, but, unlike 501(c)(3) organizations, they do not offer the benefit of tax-deductible donations

for donors and are subject to several other restrictions in addition to those applied to 501(c)(3)

organizations.

What are the advantages and disadvantages of becoming a non-profit?

26 U.S.C.A. § 501(c)(3).

Non-profits’ funding sources are subjected to the Public Support Test, which requires that a certain percentage of funding

come from qualified sources. For more information, see

http://www.irs.gov/pub/irs-tege/eotopicj93.pdf.

IRS Website: http://www.irs.gov/charities/charitable/article/0,,id=175418,00.html.

See IRS Private Letter Ruling 200818028 (February 8, 2008), denying 501(c)(3) status to a farmers market because it provided

a “substantial private benefit” to the growers without charitable or economic development programs.

26 U.S.C.A. § 501(c)(5).

Advantages Disadvantages

 Tax exemption

 More funding because donations are tax

deductible (this is especially important

for government and foundation grants)

 Liability protection. Market managers are

much less likely to be personally liable.

 Oversight by the IRS, including annual

filing requirements

 Activities are restricted in terms of

employee salaries and participation in

activities that are political in nature

 Corporate formalities must be observed,

such as board meetings, record keeping,

etc.

A: The essential steps to form a 501(c)(3) are:

What steps do I need to follow to create a non-profit?

Name: Make sure the name you want to give your non-profit is available. You should check this

through the Mississippi Secretary of State

(

https://business.sos.state.ms.us/corp/soskb/csearch.asp) and the US Patent and Trademark

Office (

http://www.uspto.gov/). Reserving the name costs $25.

Articles of Incorporation: Prepare and file Articles of Incorporation with the MS Secretary of

State. This requires a $50 fee and must be done on the 2-page State Form F0001. You can find

the form at

http://www.sos.ms.gov/business_services_feesForms.aspx.

By-laws

: Prepare by-laws for the non-profit corporation. These do not need to be filed with the

Secretary of State.

Board of Directors

: Form a Board of Directors and hold an official organization meeting to elect

the Board of Directors, elect officers, and adopt the by-laws.

EIN: Obtain a federal Employer Identification Number (EIN). EIN numbers may be obtained by

filling out form SS-4. This can be done online at

www.irs.gov. For more information on how to

apply for an EIN, visit

http://www.irs.gov/businesses/small/article/0,,id=97860,00.html. (You

should apply for the EIN after filing the Articles of Incorporation because only after filing the

Articles will you have your official name. If you already have an EIN, however, you should be

able to file your Articles under the same name that you used to get the EIN.)

IRS Exemption Application: Apply for federal tax exemption via IRS Form 1023. This requires a

one-time fee of $400 or $850 depending on the size of the organization’s revenues, including

farmers/vendors’ fees, grants, and any other source of funds. The application can take 10-15

hours to complete. You can find the form online at

http://www.irs.gov/pub/irs-pdf/f1023.pdf.

Pending further delays, the IRS will release a new, web-based software program called Cyber-

Assistant in 2011 to help applicants complete Form 1023. Once the program is active,

registration fees will change to $200 for organizations (regardless of size) using the software to

State Registration

Additional checklists with more detailed information about creating a non-profit organization can be found at the following

websites:

: Register with the Mississippi Secretary of State as a charitable organization.

The organization must file a United Registration Statement and pay a $50 annual fee prior to any

http://www.irs.gov/charities/article/0,,id=96210,00.html and

http://www.sos.ms.gov/business_services_nonprofit5.aspx.

The cost is the same for name reservation for a corporation, LLC, nonprofit, or fictitious business name/d.b.a. For more

information, visit

http://www.sos.ms.gov/business_services_business_formation.aspx.

fundraising. The form can be found at:

http://www.sos.state.ms.us/forms/Charities/URSandInstructions.pdf.

Additionally, the market

must register as a corporation with the Mississippi Department of Revenue (formerly the

Mississippi State Tax Commission). More information, including the application, can be found at

http://www.dor.ms.gov/regist.html.

A: Becoming a 501(c)(3) takes about six months. You can become a state corporation very quickly – as

soon as you file the Articles of Incorporation, you are officially a corporation. But applying for and

obtaining the IRS tax exemption may take anywhere from 2 - 12 months. The total cost is anywhere

between $525-$975 in fees, plus the cost of preparing the application if any. Note that, as mentioned

above, the cost of filing for 501(c)(3) status online will decrease to $200 once the Cyber-Assistant tool is

activated in 2011.

How long does it take to become a non-profit? How much does it cost?

A: Yes. You can get a bank account for the market by getting an Employer Identification Number (EIN)

from

If the market isn’t incorporated, can it have a bank account?

www.irs.gov. If you go to your local bank, they will set up an account in the name of whoever is

opening the account with a second name under the market. For example, if Fred Smith is getting an EIN

for the Jackson Farmers Market, the bank would create an account for “Fred Smith doing business as the

Jackson Farmers Market.” That way, any checks written to the “Jackson Farmers Market” can be

deposited in the account.

A: No, not exactly. Individuals can obtain insurance and organizations can obtain insurance. Most

markets that don’t have non-profit status are affiliated with another organization, such as the local Main

Street Association or the local Chamber of Commerce. These affiliate organizations can obtain insurance

in their name to cover the market, and the policies should protect market managers. However, if the

market is unaffiliated, individual market managers can take out insurance in their own names. That is, a

market manager can get her own insurance policy to cover any losses due to harm on the premises. She

can also get product liability protection if she sells her own products. For more information, see the

section of this guide entitled “Insurance.”

If the market isn’t incorporated, can it get insurance?

A: No, not exactly. But, someone else can sign a lease on the market’s behalf. Individuals can sign leases

and organizations can. Keep in mind that any individual who signs a lease may be liable to

farmers/vendors and visitors for dangerous conditions on the property.

If the market isn’t incorporated, can it sign a lease agreement?

A: No. Although many grants are available only to 501(c)(3) non-profits, there are many sources

available for individuals, informal cooperatives, and individual farmers/vendors. (See the section of this

guide entitled “Funding Sources” for more information.) In addition, many granting organizations will

allow markets to apply through an affiliated entity, such as the Chamber of Commerce or the local Main

Street Association. Of course, one of the major reasons that organizations will form a 501(c)(3) is that

there are more funding sources available, not to mention that individuals are more likely to make

donations if they can get a tax deduction!

I want to get funding for the market. Do I need to be a non-profit?

If the corporation has employees, it must also register for unemployment insurance with the Mississippi Department of

Employment Security (

http://www.mdes.ms.gov). If you have any question about this or any other requirement, you should

seek out professional legal and/or financial planning advice.

A: Yes! If there is an existing non-profit that the farmers market can partner with, the market can

sometimes piggyback on the other organization’s 501(c)(3) status. This is called

Is it possible to get some of the benefits of being a non-profit without incorporating?

fiscal sponsorship

, an

arrangement where the 501(c)(3) lends its non-profit status to the farmers market. The 501(c)(3) is

called the “fiscal sponsor” or “fiscal agent.” Any funds that a farmers market raises (including fees and

grants) are passed on to the fiscal sponsor, which uses the funds to pay any suppliers, buy advertising

materials, etc. This kind of relationship can be beneficial for both the farmers market and the fiscal

sponsor, but it must be very carefully managed. Here are some things to keep in mind:

1. The IRS strictly prohibits “conduit” arrangements. For example, when a donation is made by A to

B, earmarked for C, it is in reality a donation from A to C, and if C is not exempt under section

501(c)(3), the gift is not a tax-deductible contribution. To be deductible, the fiscal sponsor must

have “complete discretion and control” of the funds, and any funds must be used to further the

fiscal sponsor’s tax-exempt purposes.

2. Because any farmers market funds are controlled by the fiscal sponsor, there must be a strong

relationship of mutual trust.

3. The mission of the fiscal sponsor must be broad enough to cover the farmers market. A good

way to think about it is: If the fiscal sponsor had wanted to start a market, would its mission

have allowed it to do so? This question is important because an organization that goes outside

its mission may lose its tax-exempt status with the IRS.

4. There are important tax and liability implications for both the fiscal sponsor and any individuals

working on the project. The farmers market should consult an attorney or accountant. The

market should sign a contract with the fiscal sponsor outlining the terms of the arrangement.

5. The fiscal sponsor must report any funds it receives or payments it makes as part of its annual

IRS filings on Form 990. To the extent it pays the market manager, it must report payments on a

W2 or a 1099 depending on whether the market manager is considered an employee or an

independent contractor. If the market manager or anyone else affiliated with the market gets

payments from the fiscal sponsor, this is an important issue, and you should contact an attorney

or accountant to determine how to handle this. A good place to look for the basics is

http://www.irs.gov/businesses/small/article/0,,id=99921,00.html.

Additional Resources: For more information on business entities (for-profit and non-profit), you can

check the Secretary of State’s website at

http://www.sos.ms.gov. Another useful resource for nonprofits

in Mississippi is the Mississippi Center for Nonprofits. This organization provides training and assistance

for nonprofits throughout the state and can be found at

http://www.msnonprofits.org.

Land Use – Leasing or Permissive Use

In order to make sure that your market will have a consistent place to operate, it is important to make

sure you have permission to use the land on which your market operates. There are two types of use

that markets should know about – Lease Agreements and Permissive Use.

I. Lease Agreements

Your landlord may require that you sign a lease agreement. If you are paying rent, you should insist

on a written lease agreement. We have put together a model agreement, attached as Appendix A,

which can be used to lease a plot of land for your market. You should feel free to make changes to

the model lease so that it makes sense for your particular market. Below are instructions for filling

out the lease.

1. In the first blank space, write the name of your market (your market is the “lessee”). For

example, you could write “Cleveland Farmers Market.”

Instructions for Model Lease Agreement

2. In the second black space, write the name of the organization that is leasing you the land. This

could be a city, such as “The City of Leland” or it could be a private organization, such as “Viking

Range Corporation.” This is the “lessor.”

3. In the third blank, you should describe the piece of land being leased. For example, this could be

“The south-western corner of the parking lot of Walmart.” Make your description as detailed as

possible.

4. For the Market Season, write the start date and end date of the market season each year.

5. For the Market Days, list the days that the market will be open each week. For example

“Wednesdays and Saturdays.”

6. For the Market Hours, list the times that the market will be open on the days that it is operating.

7. If you are not paying any rent for the land, you can delete the provision on the Market Fee,

otherwise fill in the rental price.

8. For Sections I and II, delete anything that does not make sense for your particular agreement.

9. In Section III #1, write the number of years that you expect this lease to be valid, with the

specific desired start and end date.

10. If there are other things that you expect to be provided, include them in the agreement.

11. Make sure you have one representative of appropriate authority from each party sign the

agreement and make a copy for each party.

12. If the lease is from the city, make sure the lease is (a) approved by a majority vote of the Board

of Aldermen or City Council, and (b) recorded in its Minutes.

II. Permissive Use

If your market is located on city property, your city may be reluctant to sign a written lease

agreement. That is okay. Just make sure that the city’s Board of Aldermen or City Council (a)

approves, by majority vote, your market’s use of the property, and (b) records the approval in its

Minutes.

Market Rules

Market rules are the detailed rules governing the operation of the farmers market. They contain

information such as market hours, farmer/vendor responsibilities, operating procedures, food and

health regulations, and additional guidelines for farmers/vendors and visitors at the market. Market

rules are different from by-laws. The by-laws govern the management of a corporation or non-profit

corporation. Both by-laws and the articles of incorporation are legal documents. Though the

market

rules are not a legal document

, they do serve an important purpose by protecting the market and the

market managers from certain liability. The market rules dictate what farmers/vendors and visitors can

and can’t do at the farmers market and put the farmers/vendors on notice as to their responsibilities.

Here are some suggested market rules. They should be adjusted to fit your market’s individual needs

and then should be distributed to market employees, volunteers, and farmers/vendors.

I. Statement of Purpose

This statement should outline the mission of the farmers market. It can be written in sentence form

or in bullet points.

a. Example Statement: “This Farmers Market is a community-based organization intended to

support local farmers, to promote the sale of fresh, home-grown foods, and to encourage

environmental and nutritional awareness.”

b. Example Bullet Points: The goals of _____ Farmers Market are:

 To strengthen and support local farmers

 To bring people together in a community activity

 To support and stimulate local entrepreneurs and small businesses

 To stimulate _____’s downtown area

 To create interest in environmental issues

 To encourage the consumption of healthy foods

II. Applications to Sell at the Market

Markets should make all farmers/vendors sign written “Vendor Applications” or “Vendor

Agreements.” The application should include biographical information about the famer/vendor

(name, address, phone number, etc.) and information about the products the farmer/vendor

intends to sell. It may be useful to have separate applications for artisan items and food items. For

artisan items (e.g. arts and crafts), the vendor should describe the items he/she wants to sell and

possibly attach a picture of the goods. Food item applications may require more detail, including

information about the farmer/vendor and their operation and the origin of their products. All

applications should require each applicant to agree to follow the market’s rules and allow a

representative of the market to tour the farmer/vendor’s operation if it is deemed necessary. The

market should also make all farmer/vendors sign a copy of the market rules acknowledging that

they have read the rules and will abide by them.

If your market charges farmers/vendors a participation fee to sell at the market, you should consider

providing both a daily or weekly rate and a full-season rate for participation.

a. Option 1:

Daily or Weekly Rate

b. Option 2:

. Charge farmers/vendors X amount for each use of market

premises. Price may be contingent upon whether or not a farmer/vendor chooses to accept

accommodations, such as a tent.

Full-Season Rate

. Charge farmers/vendors Y amount for use of the market for the

entire season. This rate would be less expensive than it would be to charge on a daily or weekly

basis. This option encourages farmers/vendors to commit to participating in the market for the

duration of the season.

III. Membership Requirements (Who Can Sell)

Markets may wish to establish the following stipulation: “Vendors shall be farmers and/or

gardeners, who grow agricultural products or raise livestock in the local community.”

a. Markets will have to establish a suitable definition for “local.”

 For example, a market may restrict membership to farmers/vendors within a geographic

region, such as the Mississippi Delta, or within 100 miles of the market.

IV. Products (What Can be Sold)

Markets should be explicit about which products may or may not be sold. The market rules should

clearly state that all products are sold at the discretion of the market manager, or his/her agent, and

the market’s board. The market should also be clear about expectations for the origins of any food

products or other goods (e.g. grown in Mississippi or hand crafted). In outlining which products may

or may not be sold at the market, markets should consider the following categories:

a. Raw Agricultural Products: Products grown or produced by the vendor.

 Fruits and Vegetables

 Plants and Flowers

b. Prepared-for-Sale Raw Agricultural Products

 Shelled Peas

 Sliced Fruits and Vegetables

 Butchered Meats

c. Cooked/Processed Agricultural Products

 Cooked or Boiled Eggs

 Baked Goods

 Jams/Jellies/Preserves

 Pickles/Pickled Vegetables

 Sauces/Relishes/Pestos

 Cheeses

 Fresh Juices/Drinks

d. Other Goods

 Flowers

 Crafts

o Markets should also be explicit as to what specific type of crafts can be sold (e.g.

wood carving, weaving, pottery, quilts, baskets, candles, etc.).

o Markets may choose to limit the percentage of crafts that food vendors can sell or

the percentage of crafts-only vendors allowed in the market.

NOTE: Market rules should alert the farmers/vendors that the farmers/vendors must comply with

any federal and state food regulations on products sold at their booth, including obtaining the

proper permits, licenses, or certification. For any further questions, see the section entitled “Food

Safety Regulations.”

V. Setting Up and Taking Down

These provisions should exist to establish an orderly process for farmers/vendors to set up and take

down their booths.

a. Setting Up:

 Markets should explicitly define the lot of each selling space.

 Markets should also explicitly state when vendors may begin setting up and when the

market will open for customers.

o Markets may wish to limit participants to those vendors that set up their booths

prior to the opening of the market absent prior arrangements.

 Spaces should be assigned on a first-come, first-serve basis.

o Markets may wish to give priority to those signing up and paying for the entire

season.

o Daily farmers/vendors should be provided space depending upon availability.

 Markets may want to require farmers/vendors to set-up on the next available space

beginning from a certain fixed point (such as a particular street).

 If a farmer/vendor does not attend the market, the market manger may rent the space

to another farmer/vendor.

o Similarly, markets should establish a “cut-off” time at which pre-reserved lots will

become available to rent to another farmer/vendor.

 Markets may wish to provide farmers/vendors with tents and tables.

b. Taking Down

 Markets should have an explicit time after the close of the market by which the

farmers/vendors must be off the market premises.

 Market rules should explain that farmers/vendors are responsible for cleaning up their

lots and leaving the lots in as good a condition as they were when rented.

o Markets may wish to provide trash receptacles for trash generated by the market’s

visitors.

 If they have rented tables or tents, farmers/vendors must return the items to market

personnel.

VI. Pricing/Sales Tax

a. Sales Tax:

 Market rules should state that the farmers/vendors are to be responsible for collecting

and paying any required sales tax. Although certain items are exempt from the sales tax,

the farmers/vendors are responsible for determining whether or not their goods qualify

for the exemption. (See the section entitled “Sales Tax” for further instruction.)

o Note: As discussed in the “Sales Tax” section, most of the goods sold at certified

farmers markets are exempt from sales tax collection. However, even at certified

markets, the rules should state that each farmer/vendor is responsible for assessing

whether his/her goods fall within the exemption.

b. Pricing:

 Market rules should require vendors to post their prices.

VII. Enforcement

Markets should establish a policy to deal with violations of market rules. The rules should clearly

explain the parties that will be evaluating claims (usually the market manager and possibly the

market’s board) and the process by which complaints will be addressed.

a. Customer Complaints:

o Markets should state clearly that complaints made against vendors by customers or

guests of the market will be addressed by the market manager or some other pre-

designated party.

b. Vendor-Vendor Complaints:

o Market managers may wish to encourage farmers/vendors to bring any complaints

concerning other farmers/vendors to the market manager for resolution.

c. Vendor Breach of Market Rules:

o Markets may want to establish fines for certain violations and bans for violations

that are especially egregious.

VIII. General Rules

a. Signs and Advertisements: Market managers may require all farmers/vendors to display a sign

in their stall identifying the name of the farmer/vendor and their location, as well as additional

information, such as the vendor’s telephone number and address.

b. Parking: Markets should establish an appropriate parking policy for both farmers/vendors and

customers.

c. Alcohol: Markets should prohibit alcohol at the market. Some insurance policies exclude

protection for the markets for incidents resulting from the use of alcohol.

d. Weights and Measures: Markets may require farmers/vendors to use scales when selling goods.

Markets may reserve the right to check the scales for accuracy but should note that it is the

farmers/vendors’ responsibility to ensure that scales are in working condition. Mississippi law

requires that all scales used for commercial products be both certified and inspected by the

state.

This requirement applies to both scales used at farmers markets and those used by

farmers that pre-weigh and package their goods before coming to market.

Scale

manufacturers and distributors should provide a list of certified scales, but prospective buyers

and existing owners can also search online at

http://www.ncwm.net/certificates to determine

whether their scale has been properly certified. The Weights and Measures Division of the

Mississippi Department of Agriculture and Commerce can also help with certification questions

and should be contacted to set up an initial inspection of a new scale. They can be reached at

(601) 359-1149.

e. Temperature: Markets may reserve the right to check the temperature at which climate-

sensitive goods are sold.

f. Behavior: Markets may want to encourage farmers/vendors and shoppers to comport

themselves in a certain manner by for example:

 Requiring shoes and shirts.

 Prohibiting alcohol, drugs, smoking, and pets (or allowing pets only if they are kept on

leashes).

g. Liability Clause: Markets should include a provision exempting them from liability in the case of

an accident or injury.

 Example:

o “The Market will not be liable for any damage, loss or theft of any possessions left at

the market. All farmers/vendors are responsible for their own tent and/or stall and

should arrange it so that it does not impede thoroughfare. Farmers/vendors are

responsible for obtaining their own insurance in case of accident.”

 More detailed example, taken from the Sullivan County, New York Farmers Market

(NOTE: this example fails to address insurance):

o “I (we), the undersigned, have read the Rules and Regulations and do agree to abide

by all these rules and regulations. I (we) further agree to operate my (our) stall in

accordance with these rules and regulations and to pay all applicable fees as set out

in the rules and regulations. I (we) do understand that the stall fee, length of season

and hours of operations are set in the rules and regulations, and I (we) will abide by

them.

o I (we) further understand that failure to comply with the rules and regulations could

mean dismissal from the market.

o As a vendor wishing to participate in ____, located in ____, I (we) agree to SAVE,

HOLD HARMLESS AND INDEMNIFY ___ and the Town(s) of _____from any and all

liability or responsibility pertaining to any damages to person or property on the site

assigned to me (us) by _____, when such damages or liability arise out of acts of my

(our) own, or of my (our) employees or associates, located at such site.”

 NOTE: For more information, see the section entitled “Insurance.”

h. Contact Information: Market managers should list the phone number, address, and/or email

address to which questions should be directed.

i. Additional Rules: Markets may include any other rules that they see fit.

For example, two sample rules from a “General Rules of the Market Section” are:

 “No one may sell or attempt to sell any merchandise on the market grounds without the

express permission of the market manager”

Miss. Code Ann. § 75-27-23 (2010). Opinion of Connie F. Braswell, Director of the Weights and Measures Division, Mississippi

Department of Agriculture and Commerce on February 11, 2011.

Opinion of Connie F. Braswell, Director of the Weights and Measures Division, Mississippi Department of Agriculture and

Commerce on February 11, 2011.

 “Farmers/vendors are expected to stay for the duration of the market day even when

attendance is low and the weather is bad.”

IX.Disclaimer

Market rules should include a disclaimer stating that the market reserves the right to modify the

rules and regulations at any time. In the case of a subsequent modification, the revised rules should

be distributed and all farmers/vendors should sign the new rules acknowledging that they have

received and read the rules and agree to abide by them.

Food Safety Regulations

Ensuring the health and safety of local consumers is one of the most important concerns of farmers

markets. Many products that local farmers/vendors sell are potential health risks, especially if the

products are improperly prepared or stored. If an individual gets sick, it will have negative consequences

for both the farmer/vendor and the market. Therefore, all efforts should be made to ensure that

farmers/vendors follow the proper procedures in preparing and selling their products.

I. General Food Regulations

Primary responsibility for ensuring the safety of food sold at farmers markets lies with the Mississippi

Department of Health and the Mississippi Department of Agriculture and Commerce (MDAC).

Your

local health department is the agency most likely to be enforcing food safety rules at your market, so

each farmer/vendor should talk to the local health inspector about the rules for the specific products

that he or she plans to sell. This is the best way to avoid violations and ensure that food sold at the

market is safe. Appendix B lists the health inspectors in Bolivar, Coahoma, Desoto, Holmes, Leflore,

Panola, Quitman, Sunflower, Tunica, and Washington Counties.

To find information about the local

health department office nearest you, visit the Mississippi Department of Health site at

http://www.msdh.state.ms.us/msdhsite/_static/19,0,166.html.

Another excellent source of advice is the Mississippi Farmers Market, the State’s official farmers market

located in Jackson. You can find more information about the market, including upcoming events, at the

market’s website:

http://www.mdac.state.ms.us/n_library/departments/farm_mkt/index_farmmkt.html. You can also

contact the market by email at

[email protected] or by phone at either (601) 359-1159

or (601) 354-6573.

Farmers and vendors can sell whole, fresh fruits and vegetables without obtaining a permit. However, all

prepared foods (for example, bread, jam, canned vegetables, pickles) must be produced in certified

kitchens. The Mississippi Department of Health certifies kitchens that meet certain requirements, but

home kitchens used for household food preparation cannot be certified. Also, “potentially hazardous

The Department of Health is formally responsible for overseeing processed foods (baked goods, jams, jellies, soups, cut fruit)

while the MDAC and the USDA focus on fruits, vegetables, meat, dairy, and eggs. However, the MDAC does not currently

inspect farmers markets unless they are certified by the state (a voluntary program). With some minor modifications,

Mississippi has adopted the FDA’s model Food Code. The most recent version is the 2009 Food Code. The full text of the code

can be found online at http://www.fda.gov/Food/FoodSafety/RetailFoodProtection/FoodCode/FoodCode2009/. A list of

Mississippi-specific modifications can be found at

http://www.msdh.ms.gov/msdhsite/_static/30,1542,77,60.html.

These counties have been included as counties with markets that have worked with the Delta Regional Farmers Market

Alliance.

foods” (which include meat, poultry, and dairy products) must be processed in certified facilities, and a

permit is required for their sale.

Meat, poultry, fish, shellfish, eggs (except eggs treated to eliminate Salmonella), cooked

vegetables, dairy products, mushrooms, raw seed sprouts, cut melons, cut leafy greens, cut

tomatoes, untreated garlic-in-oil mixtures, and baked goods that are subject to spoilage (such as

custard or cream-filled pastries or other baked goods that must be refrigerated) are examples of

potentially hazardous foods.

Potentially Hazardous Foods

According to federal and state regulations, “potentially hazardous

food” means a food that requires time and temperature controls because it is capable of

supporting the growth of infectious or toxic microorganisms.

Farmers/vendors must receive a permit from the MS Department of Health before selling

potentially hazardous foods. If farmers/vendors are unsure about whether their product is

potentially hazardous, they should contact the local health department. They should also

contact the local health department in order to apply for a permit to sell these foods.

Farmers/vendors who sell potentially hazardous foods should put their products inside a clean

and sanitary container. The container should be properly labeled. See below under “Food

Labeling” for more information about the labeling requirements.

Foods not mentioned above are generally considered non-potentially hazardous foods. These

include jams, jellies, sweet sorghum syrup, preserves, fruit butter, fruit pies, air-cooled hard-

boiled eggs, and baked goods that are not subject to spoilage, among other products.

Non-Potentially Hazardous Foods

According to federal and state regulations, “non-potentially hazardous food” means a food that

does not support the growth of infectious or toxic microorganisms.

Farmers/vendors who sell

“non-potentially hazardous foods” do not need a permit from the Health Department. However,

non-potentially hazardous foods must be prepared in certified kitchens. Certification is

conducted by the Mississippi Department of Health. For more information, visit

http://www.msdh.state.ms.us/msdhsite/_static/30,0,77.html.

Farmers/vendors selling non-potentially hazardous foods should use clean and sanitary

containers to store the foods, and should follow the same labeling requirements listed under

“Food Labeling.”

II. Specific Food Regulations

This section includes only basic information about food regulations for some of the goods commonly

sold at farmers markets in this region. For more information on specific food regulations, visit the FDA

Whether a food is “potentially hazardous” or not depends primarily on its pH and water activity. The definition used by the

FDA is found in the US FDA Food Code § 1-201.10 (B) Potentially Hazardous Food (2)(a) and can be viewed online at

http://www.fda.gov/Food/FoodSafety/RetailFoodProtection/FoodCode/FoodCode2009/ucm189170.htm. The FDA definition of

“potentially hazardous food” is incorporated into Mississippi law at Miss. Code Ann. § 69-1-18 (1)(a) (2010).

The specific definition in the FDA Food Code can be found at

http://www.fda.gov/Food/FoodSafety/RetailFoodProtection/FoodCode/FoodCode2009/ucm186464.htm.

Examples taken from the Market Rules for the Mississippi Farmers Market, available at

http://www.sos.state.ms.us/busserv/AdminProcs//PDF/00014980b.pdf.

US FDA Food Code § 1-201.10 (B) Potentially Hazardous Food (3).

Food Code at

http://www.fda.gov/Food/FoodSafety/RetailFoodProtection/FoodCode/FoodCode2009/default.htm or

the MS Department of Agriculture and Commerce at

http://www.mdac.state.ms.us/n_library/agency_info/reg_laws/index_regl_subpart4_RS.html.

NOTE

: This section is not comprehensive - there are other foods not mentioned here that are subject to

regulation. Also, the regulations for the foods listed here are not complete and may be subject to change

over time. Thus, farmers/vendors wishing to sell any items other than fresh, unmodified

fruits/vegetables must research the pertinent regulations and should contact their local health

department with any questions.

All finished products must be placed in a clean and sanitary container with a label. Mississippi

follows federal law on food labeling.

A. Food Labeling

 The name and address or place of business of the manufacturer, packer, or distributor.

The label should be conspicuous and should include the

following:

 The common/usual name of the food or a descriptive statement identifying the food,

including the form in which the product is marketed (i.e. whole, sliced, diced, etc.) if the

product is marketed in various forms.

 The ingredients in descending order of predominance in weight, if the food is prepared

from two or more ingredients.

 Any major food allergens included in the food.

 An accurate declaration of the product’s quality (do not make claims about the

nutritional content of the food unless you follow federal regulations about nutritional

content).

 The net weight, standard measure, or numerical count of the product/items.

 Ready-to-eat potentially hazardous food should include the date by which the food

should be consumed.

 Raw fruits, vegetables, and fish can only be labeled as “fresh” if the food is in its raw

state and has not been frozen or subjected to any form of thermal processing or

preservation.

According to the Mississippi State Department of Health, the major cause of food-borne illness

is food kept at improper temperatures for cooking, cooling, holding, and reheating food. Most

bacteria grow when food is kept in the “danger zone” between 41 degrees and 140 degrees.

B. Food Temperature

The Department of Health advises food vendors to keep cold foods at 40 degrees Fahrenheit or

less. Hot foods should be heated to their full temperature of at least 140 degrees Fahrenheit

15 Mississippi Department of Health § III 75-04.103.

21 C.F.R. § 101.5.

21 C.F.R. § 101.3.

21 C.F.R. § 101.4.

US FDA Food Code § 3-602.11 (B). Major food allergens include milk, egg, fish (e.g., bass, flounder, or cod), crustacean

shellfish (e.g., crab, lobster, or shrimp), tree nuts (e.g., almonds, pecans, or walnuts), wheat, peanuts, and soybeans or food

ingredient that contains a protein derived from one of these. US FDA Food Code § 1-201.10 (B)(1)(a).

21 C.F.R. § 101.9, 13.

21 C.F.R. § 101.105(a).

US FDA Food Code § 3-501.17 (A).

21 C.F.R. § 101.95 (a).

(though some foods may require higher temperatures) and kept at that temperature while

serving. Any market offering cooked food should check the website of the Department of Health

for details at

http://www.msdh.state.ms.us/msdhsite/_static/43,345,77.html.

Farmers/vendors do not need a permit in order to sell whole, raw fruits and vegetables, though

all fruits and vegetables should be washed, dried, and kept away from contaminants.

C. Raw Vegetables and Fruits

The FDA treats sliced or altered fruits or vegetables (shelled peas, cut fruits, etc.) as “processed

foods” which must be prepared under special guidelines for sanitation and safety.

D. Sliced or Chopped Fruit and Vegetables

Because

some health inspectors may require that they be prepared in a certified kitchen,

farmers/vendors selling cut or altered fruits or vegetables should consult their local health

inspector.

Farmers/vendors selling these foods must produce them in a certified kitchen approved by the

Health Department.

E. Baked Goods/Jams/Jellies/Preserves

A home kitchen generally cannot be an approved facility. For more

information, call the Food Protection Office at 601-576-7689. We have proposed legislative and

regulatory changes to allow the sale of home-produced non-potentially hazardous foods

(including most jams, jellies, and preserves), but under current Mississippi law all prepared

foods must be made in a certified kitchen.

In addition to the certified kitchen requirement, farmers/vendors must obtain a certification for

the sale of such processed foods by completing, or having at least one full-time employee

complete, a certified food safety management course. The “ServSafe” food safety course is

recommended and recognized by the Mississippi State Department of Health. For more

information, visit the Mississippi State University Extension calendar for ServSafe at

http://msucares.com/servsafe/index.html. The course lasts two days and costs $130.

The farmer/vendor should check with the local health department to determine whether their

products are potentially hazardous. Farmers/vendors should also follow the “Food Labeling”

requirements noted above.

NOTE: Non-potentially hazardous foods, which include most baked goods, jams, and jellies, may

be prepared in home kitchens and sold to raise money for religious or charitable organizations.

Thus, if home-prepared, non-potentially hazardous baked goods are donated to the farmers

21 C.F.R. § 110.19

Although the definition of processed foods at 21 C.F.R. § 201(gg) focuses on jams, jellies, pickles and other highly altered

foods, the FDA has taken the position, in a non-binding opinion, that simple cut fruits and vegetables qualify as “processed

foods.” See the “Guide to Minimize Microbial Food Safety Hazards of Fresh-cut Fruits and Vegetables” at

http://www.fda.gov/food/guidancecomplianceregulatoryinformation/guidancedocuments/produceandplanproducts/ucm0644

58.htm.

Opinion of Richard Butler, Director of the Mississippi Farmers Market, Mississippi Department of Agriculture and Commerce

on April 2, 2009.

US FDA Food Code § 8-301.11 says “A person may not operate a Food Establishment without a valid permit to operate issued

by the Regulatory Authority.”

Opinion of Richard Butler, Director of the Mississippi Farmers Market, Mississippi Department of Agriculture and Commerce

on April 2, 2009.

market, a non-profit market may be allowed to sell the goods to raise funds to support that

market.

All farmers/vendors selling eggs must follow three main requirements. (1) The egg producer

must write his/her name and address on the egg container;

F. Eggs

(2) eggs must be refrigerated at a

temperature of 45 degrees or lower;

and (3) the egg package should include this safe handling

instruction on its label: “To prevent illness from bacteria: keep eggs refrigerated, cook eggs until

yolks are firm, and cook foods containing eggs thoroughly.”

Farmers/vendors selling fewer than six dozen eggs per week, or selling eggs they produced at

home, are exempt from all provisions governing the sale of eggs except the above three

requirements.

All other farmers/vendors selling eggs must comply with the above provisions and additional

requirements that depend on how many egg-laying hens the farmer/vendor owns. Operations

with less than 3,000 laying hens must ensure that all eggs offered for sale meet the minimum

grading requirements for AA, A, or B eggs.

Further, all containers in which eggs are marketed

must state on the outside of the container: 1) the consumer grade of the eggs; 2) the size or

weight class of the eggs; 3) the word “eggs”; 4) the number of eggs in the container; 5) the

name and address of the producer, packer, or distributor; 6) the date the eggs were graded; and

7) the words “keep refrigerated” or other similar words.

Famers/vendors selling eggs from an operation with more than 3,000 laying hens are subject to

additional heightened production regulations. More information about recent changes to the

requirements can be found on the FDA website at:

http://www.fda.gov/Food/FoodSafety/Product-

SpecificInformation/EggSafety/EggSafetyActionPlan/ucm170615.

Any meat from cattle, sheep, goats, rabbits, or pigs sold at farmers markets must be slaughtered

and processed at a facility that is licensed and inspected by the state or the federal

government.

G. Meats

Meat that is processed at an inspected plant must be packaged in accordance

with state regulations.

Poultry is not subject to the same kinds of regulations. Farmers who raise their own birds and

produce fewer than 20,000 birds per year are exempt from inspection by either the state or the

US FDA Food Code § 1-201.10 (B) Food Establishment (3)(d) says that the following is not considered a food establishment for

purposes of regulations: “A kitchen in a private home if only food that is not Potentially Hazardous (time/temperature control

for safety) food is prepared for sale or service at a function such as a religious or charitable organization’s bake sale if allowed

by law and if the consumer is informed by a clearly visible placard at the sales or service location that the food is prepared in a

kitchen that is not subject to regulation and inspection by the regulatory authority.”

Miss. Code Ann. § 69-7-321 (2010).

21 C.F.R. § 115.50 (b)(2), Miss. Code Ann. § 69-7-329 (2010).

21 C.F.R. § 101.17 (h).

Miss. Code Ann. § 69-7-321 (2010).

Miss. Code Ann. § 69-7-323 (2010).

Miss. Code Ann. § 69-7-327 (2010).

Miss. Code Ann. §§75-33-7, 75-33-3(1)(b) (2010).

Miss. Code Ann. § 75-33-1 (2010).

federal government. Any poultry products sold under this exemption must be labeled with the

name and address of the farmer as well as the statement “Exempted--P.L. 90-492.”

Further,

farmers who raise their own birds and produce fewer than 1,000 birds are not covered by

federal regulations at all, and do not need to include the exemption label when selling their

product.

Because meat is a potentially hazardous food, it must be kept at 45 degrees Fahrenheit or

below. If poultry, fish, or other meats are sold cooked then they must be cooked to 165

degrees.

Additionally, since meat and poultry are potentially hazardous foods, a permit from

the Department of Health is required to sell them to the public, regardless of any of the

variations in inspection requirements noted above.

The production and sale of dairy products (milk, cheese, sour cream, etc.) is governed by the

Pasteurized Milk Ordinance, which requires that any farmer/vendor producing or selling milk

have a permit, acquired from the Department of Health.

H. Dairy

In addition, all milk or milk products

intended for human consumption must be pasteurized.

III. Organic Food Certification

Many farmers/vendors want to label their products as “organic” in order to attract customers. The

organic label is regulated by federal and state laws. In general, in order for food to be labeled organic, it

must be free of synthetic substances, must contain no antibiotics or hormones, must not be irradiated

or fertilized with sewage sludge, must be raised without the use of most conventional pesticides, and

must contain no genetically modified ingredients.

Products may only be labeled “organic” if the farmer is certified by the USDA, or if the farmer’s total

organic sales are less than $5,000.00 a year.

All organic farmers must register with the Mississippi

Department of Agriculture and Commerce.

Therefore, small farmers may label their products

“organic” as long as they are registered with the state, but big farmers must both register with the state

and receive USDA certification.

A list of USDA accredited certifying agents can be found by visiting this site:

http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateJ&navID=National

OrganicProgram&leftNav=NationalOrganicProgram&page=NOPACAs&description=USDA Accredited

Certifying Agents&acct=nopgeninfo. The application fee for certification ranges from $25 to $75,

9 C.F.R. §§ 381.10(a)(5) & (a)(6).

9 C.F.R. §§ 381.10(c).

Mississippi State Department of Health, http://www.msdh.state.ms.us/msdhsite/_static/43,345,77.html.

See Miss. Code Ann. § 75-31-65 (1)(c) (2010), setting the model Pasteurized Milk Ordinance as the regulatory structure to be

enforced by the State Board of Health.

The full text of the Pasteurized Milk Ordinance, which governs dairy production and sale, can be found at

http://www.fda.gov/downloads/Food/FoodSafety/Product-

SpecificInformation/MilkSafety/NationalConferenceonInterstateMilkShipmentsNCIMSModelDocuments/UCM209789.pdf.

Permitting is discussed in Section 3 of that document.

The National Organic Program (NOP) includes as an exemption from the organic certification process: “A production or

handling operation that has $5,000 or less in gross annual income from organic sales is exempt from certification… [However,

a]n exempt producer or handler must comply with the labeling requirements of section 205.310 and the organic production

and handling requirements applicable to its type of operation.” 7 CFR § 205.101(a)(1).

Miss. Code Ann. § 69-47-5(1) (2010).

depending on how much land is used for farming. Organic farmers must also pay a $25 or $50 renewal

fee each year.

For more information on how to register and/or certify as an organic farmer, you can contact Kevin

Riggin, Mississippi Department of Agriculture and Commerce, by calling 601-359-1138 or emailing

kevin@mdac.state.ms.us.

Although there are private certifiers, MDAC is the most cost effective way to

obtain organic certification. Mississippi State University has also created a handout describing the

organic certification process in Mississippi, available at

http://msucares.com/pubs/publications/p2454.pdf.

Sales Tax

Most produce sold at farmers markets is not subject to sales tax. For the products that are subject to

sales tax, the farmers/vendors should be responsible for collecting and remitting the sales tax. The

market managers should make this responsibility clear in their market rules. This section gives some

basic information about the sales tax required in Mississippi and how sales tax can be remitted to the

Mississippi State Tax Commission.

A: Under recently passed Mississippi law,

What is taxed?

all food products that are grown, made or processed in

Mississippi and sold from certified farmers markets

are not subject to state sales tax.

Only farmers

markets certified by the Mississippi Department of Agriculture and Commerce qualify for this

exemption. However, only raw produce and home processed food products are covered under the law,

and food vendors that are an extension of an established retail food outlet (restaurants being the most

common example) are not exempt from collecting a sales tax on goods sold. Additionally, food products

not grown or made in Mississippi and non-food items, such as landscape plants and arts and crafts, are

not covered by the exemption and are subject to sales tax.

This is a recent and significant change in the law that provides a significant financial advantage to selling

food products at a certified farmers market. See the section on Market Certification below for more

information on the approval process and its economic benefits.

Food products sold at

uncertified farmers’ markets may still be exempt from sales tax under Mississippi

law if the products are (1) sold by their original producer, (2) in their original state, and (3) not sold in an

“established store” (a permanent building owned or leased for at least 90 days by the vendor).

This

exemption applies to all producers of livestock, poultry, fish, or farm, grove, or garden grown produce.

Because many markets are outdoor and temporary (and are not operating in a permanent building that

they own or lease for 90 days), most markets should fall within the exemption.

Organic farmers may be able to get some portion of the costs of certification reimbursed through the Organic Cost Share

Program. More information can be found at:

http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateQ&navID=Certifiers&rightNav1=Certifiers

&topNav=&leftNav=NationalOrganicProgram&page=NOPCostSharing&description=Organic Cost Share

Program&acct=nopgeninfo.

More information about organic farming can be found online at:

http://www.mdac.state.ms.us/n_library/departments/reg_services/rgs_fruitveg_organic.html.

Miss. Code Ann. § 27-65-103(f) (2010).

Miss. Code Ann. §§ 27-65-103(b), 27-17-365(3) (2010).

Note

: However, some authorities, notably local tax commissioners, have recently argued that a

farmers market is an “established store” because of its use of tents to sell products and its

weekly schedule and that therefore the exemption does not apply. Although we believe that

most agricultural products sold in their original state by their original producers fall within the

exemption, Mississippi law is unclear, allowing local tax commissioners to demand sales tax

revenue even when vendors are selling their own produce. Certified farmers markets do not

face this uncertainty due to the recent revision of the law noted above. For this reason, we

encourage markets to seek certification.

The following guidelines generally apply to products sold at markets in Mississippi:

1. Any food products, whether raw, cooked, or processed that are sold at a certified farmers

market

are not

subject to sales tax as long as they are not an extension of a food retail

establishment.

2. At an uncertified market, raw fruits, vegetables, eggs, milk, poultry, fish, and meat sold by the

farmers who produced them,

are not subject to sales tax. Also, shelled peas and sliced fruit are

not subject to sales tax. These raw products are exempt from sales tax because they are “sold in

the original state or condition of preparation for sale before such products are subjected to any

other process.”

Note

: This tax exemption applies to the farmers or producers of the products; there is no

exemption for items bought from the farmers and resold at a farmers market by another

person.

3. At an uncertified market, jams, jellies, pestos, baked goods, breads, pasteurized milk, etc.

are

subject to sales tax (7%). Cooking, mixing, and processing food means the food is not in its

“original state” and thus removes its tax exemption.

4. All food sales purchased with food stamps are exempt from sales tax, regardless of the food

product or where it is sold.

5. Ornamental plants (i.e., flowers), which bear no fruit or commercial value,

are subject to a sales

tax (7%) when sold either at a certified or uncertified market.

6. Non-food items such as crafts, paintings, and antiques,

are

subject to sales tax (7%) when sold at

either a certified or uncertified market.

A: Sales tax in Mississippi is 7%.

How much is the sales tax?

A: Mississippi law requires whoever is selling a particular item to the public to collect the sales tax and

remit it to the state.

Who is responsible for collecting the sales tax?

Miss. Code Ann. § 27-65-103(b) (2010).

However, there is an exception to this rule. In the case of a promoted event, the

Miss. Code Ann. § 27-65-111(o) (2010).

Miss. Code Ann. § 27-65-103(b) (2010).

Miss. Code Ann. § 27-65-23 (2010).

Miss. Code Ann. § 27-65-27(1) (2010).

Mississippi Tax Commission considers the manager or promoter to be the “seller;” therefore, the

manager or promoter is responsible for collecting and remitting the sales tax.

It is unclear whether a

farmers market constitutes a promoted event. This ambiguity has allowed some district tax

commissioners to characterize uncertified farmers markets as promoted events and to demand sales tax

from market managers, many of whom are unpaid volunteers with little control over or knowledge of

how much vendors are making. The common understanding of the law, however, is that farmers market

vendors and not managers are responsible for collecting and remitting sales tax.

As a result, we recommend that uncertified farmers markets should require all farmers/vendors to

collect and pay their own sales tax. Example language that markets may use in their Vendor Agreement

or Market Rules is: “Farmers/vendors are responsible for collecting and remitting a 7% sales tax on all

products, except raw fruits, vegetables, eggs, milk and meat which you grew and produced yourself.”

Note that the issue of collecting the sales tax

only

applies to uncertified farmers markets. As noted

above, most food products grown, made, or processed in Mississippi sold at certified farmers markets

are exempt from the sales tax.

A: To pay sales taxes, farmers/vendors should follow the following steps:

How do you remit sales tax?

1. Register with the Mississippi State Tax Commission (“MSTC”). The proper forms are available

online at:

http://www.dor.ms.gov/regist.html and

http://www.dor.ms.gov/taxareas/sales/main.html.

2. After registering, farmers/vendors can file and pay sales tax by mail or online at:

http://www.dor.ms.gov/taxareas/sales/Salesinetfiling.html. If farmers/vendors need assistance,

they should contact an accountant.

3. For more information about sales tax, please see "Sales Tax FAQ" from the MSTC at:

http://www.dor.ms.gov/info/faqs/SalesFAQ.pdf.

Market Certification

The Mississippi Department of Agriculture and Commerce (“MDAC”) offers free certification to qualified

farmers markets. The program is entirely voluntary but can be very beneficial to participating markets.

Certified markets are listed on the MDAC website, receive up to $300 of promotional assistance with

advertising specific to the market (including items such as logo stickers, pricing tags, and signage), and

the opportunity to participate in educational workshops and potentially apply for mini-grants. In

addition, the single greatest benefit to MDAC certification is the recently enacted sales tax exemption.

As noted above, all food products grown, made, or home processed in Mississippi and sold at certified

farmers markets are exempt from sales tax. Given the somewhat uncertain status of other sales tax

exemptions, there is a strong incentive for farmers/vendors to sell at certified markets where their

goods are certain to be exempt from sales tax collection. Only markets that have MDAC certification can

offer this exemption to farmers/vendors, thereby giving certified markets a competitive advantage in

attracting the best vendors.

35-413-05 Miss. Code R. § 203.

Farmers markets must meet the following requirements in order to eligible for certification:

1. At least 50% of the agricultural products offered for sale at the market must be produced by the

grower or under the grower’s direction within Mississippi.

2. A grower or grower representative must be present during market hours when his/her products

are offered for purchase.

3. The market must be operated by a grower’s association; a certified, non-profit organization; or a

government entity (state, county, municipal, tribal, etc.)

Markets that allow the sale of non-food products (arts, crafts, or plants) are still eligible for certification.

However, those goods will not be exempt from sales tax collection.

Markets interested in gaining certification must apply with the MDAC and undergo a state inspection.

MDAC certification must be renewed

annually

in order to keep the sales tax exemption. For more

information you can contact Donna West at (601) 359-1118.

Insurance

A: Commercial general liability insurance provides the market manager with protection against most

types of liability incurred on the premises of the market. Such insurance typically covers bodily injury

and property damage liability (physical injuries to farmers markets’ employees, farmers/vendors, and

customers; damage to equipment, etc.), personal and advertising injury liability (other injuries caused

by farmers markets, e.g. wrongful invasions of private properties, copyright infringements in the use of

advertisements, etc.), and medical payments to injured persons.

What types of insurance are relevant to farmers markets?

Some commercial general liability insurance policies offer an optional, but important feature – coverage

for products/completed operations liability. This insurance provides protection for liability associated

with the products sold at the market. For example, this would cover liability from injuries associated

with eating food items sold at the market.

In certain states (e.g., New York), farmers markets require individual farmers/vendors to purchase

vendor insurance as a condition to participate in the market. These vendor insurance policies typically

name the market as an additional insured. For example, if Mr. Smith sells produce at his local farmers

market, he must obtain standard vendor insurance that has been pre-cleared by the market and name

the market on the insurance policy. The market’s commercial liability insurance will then provide

additional protection above and beyond that provided by vendor insurance.

A: Farmers markets in the Delta have different types of insurance coverage and may pay very different

yearly premiums for their coverage. The table below presents two sample insurance policies purchased

by farmers markets in the Mississippi Delta.

What types of insurance do markets in the Mississippi Delta have? How much do they pay?

Market A Market B

Aggregate Limits of

Liability

$2 million $2 million

Products/Completed

Operations Liability

Excluded Included

Bodily Injury and

Property Damage

Liability

$1 million each

occurrence

$1 million each

occurrence

Damages to Rented

Property

$100,000 each

occurrence

$25,000 fire

damage only

Personal and

Advertising Injury

Liability

$1 million each

occurrence

$1 million each

occurrence

Medical Payments

$5,000 any one

person

$5,000 any one

person

Gross Sales Exposure

$40,000 $1,500

Annual Premium

$2,000 $143

Effective Rate

$50 per $1,000 $93.33 per

$1,000

A: Yes, if they can afford it.

Should all farmers markets have insurance protection? How much insurance should they have?

Before deciding on the right amount of insurance to purchase, the farmers market should assess its risk

exposure. For example, a farmers market that features live music and entertainment may draw a much

larger crowd onto its premises than other markets and may be exposed to much bigger premises

liabilities compared to one without live music and entertainment. Likewise, a market that has been

receiving significant funding in the form of donations or grants may have more financial assets at risk

compared with one that has less financial resources at its disposal. As a result, it might have more to

lose in a lawsuit and might need insurance more than other markets.

The question of entity structure may also be relevant. On the one hand, if a farmers market is

unincorporated and operates as an informal arrangement without any insurance, potential tort

claimants are more likely to sue individual farmers/vendors if they have a sizeable amount of assets,

rather than suing the market itself. By having insurance, a farmers market is more likely to shield

individual farmers/vendors from lawsuits. On the other hand, if a farmers market operates under the

auspices of another non-profit organization, liabilities of the market could become liabilities of the

parent organization. Likewise, if a market is already incorporated as a 501(c)(3) non-profit corporation,

the entity itself will need insurance protection against potential liabilities.

A: In most instances, if the farmers/vendors are responsible for the safety of their own products as

stipulated in the market rules and the farmers market simply provides a venue for transactions, then the

risk exposure of the farmers market or market manager is minimal. Note that if a farmers market’s

commercial liability insurance also includes product liability insurance, then each farmer/vendor must

Should farmers markets have product liability insurance?

Minimum premium required for this policy. Premium calculated based on estimates of gross sales is lower.

be a member of the market in order for the product liability insurance to extend to him. This typically

requires the market to maintain an up-to-date directory of participating farmers/vendors.

Should farmers markets in the Mississippi Delta require individual farmers/vendors to have vendor

insurance in order to participate in the market?

A: While the two-tiered protection (vendor insurance and market insurance) found in other states

eliminates most risks associated with the operation of a farmers market, it may be unrealistic to have

the same requirement in the Mississippi Delta. Currently, the priority for the farmers markets in the

region is to encourage more farmer participation and to increase the general public’s awareness of the

markets. Requiring insurance will decrease farmer/vendor participation in the market. Markets should

clearly indicate in the market rules that farmers/vendors are responsible for their own liabilities and that

farmers/vendors should decide for themselves whether they need insurance protection.

Once the farmers markets have matured into sizable operations where farmers/vendors could generate

substantial and consistent profits, they should consider requiring vendor insurance.

A: Group insurance policies could save money for the smaller markets in the region. However, for the

larger markets in the region, the savings are unlikely to be substantial. Before obtaining group coverage,

markets should consult an attorney about joint venture or partnership liability that may be incurred as a

result.

Should farmers markets in the Mississippi Delta team up to purchase group insurance?

What steps should market managers take with regard to insurance?

A: There are a few action steps you can take to determine your need for insurance to make sure you get

the right insurance for your market:

Risk Assessment

: Market managers should first assess their risk exposures based on the factors

outlined above.

Estimate of Gross Sales

: Gross sales of a market determine its policy premium. Market managers

should try to form reasonably accurate estimates of gross sales at their markets.

Understand the Insurance Policy

: Insurance policies are some of the most complex contracts in

existence. Ask your insurance agents any questions you have and ask them to go through the

policies with you in detail. Many courts hold insurance agents’ representations to clients as

controlling interpretations of the insurance policies.

Shop for the Best Insurance Policy

: Policies and premiums can vary substantially from one

insurance company to another. It is always advisable to contact multiple insurance agents and

compare the best deals that they have to offer. Below, we list the contact information of a

number of insurance agents who have provided insurance policies to farmers markets in the

region.

Ed Deane

Washington County Farm Bureau – Leland Office

Tel: (662) 686-7955

Jacob Clark

Clark Insurance – Greenwood Office

Tel: (662) 453-1111

Billie Whit Purvis

SouthGroup – Greenville Office

Tel: (662) 378-5200

Accepting Food Stamps and WIC Vouchers

Farmers/vendors at farmers markets have the ability to accept food stamps provided by the

Supplemental Nutrition Assistance Program (“SNAP”) and vouchers provided by the Women, Infants,

and Children Farmers Market Nutrition Program (“WIC FMNP”). Both are operated through the United

States Department of Agriculture’s Food and Nutrition Service (“USDA FNS”). Participating in these

programs expands the market for local farmers, helps provide healthy products for individuals and

families that might not be able to afford them otherwise, and encourages deeper community

involvement and interaction. The authorization process for farmers markets differs by program: the

food stamp application is to be completed by the market manager, while farmers/vendors must apply

individually in order to be eligible to accept WIC vouchers. Both processes are absolutely free of charge

and are described in further detail below. An in-depth practical guide for accepting food stamps and WIC

vouchers can be found starting on pg. 36 of the report “Food Assistance Programs and Mississippi

Farmers Markets,” which can be downloaded at:

http://deltadirections.org/files/download.php?file=18855455584d2cc24bcc502.pdf. The guide offers

extensive instructions that go into even greater detail than those listed below.

I. Food Stamps and EBT Machines

The Supplemental Nutrition Assistance Program (“SNAP” is the new name for the food stamp program)

allows low-income individuals and families to access nutritious food. Food stamps were originally

submitted in paper form, but the United States Department of Agriculture (“USDA”) recently switched

from paper coupons to Electronic Benefit Transfer (“EBT”) cards, which are used by swiping them

through an EBT machine.

All SNAP benefits now exist entirely on EBT cards and thus, any vendor wishing to accept SNAP must rely

on a special EBT card reader, referred to as a Point of Sale (“POS”) device, to process EBT transactions.

To become eligible to accept SNAP payments, vendors such as farmers or farmers markets must first be

approved by the Food and Nutrition Service division of the USDA (“FNS”). Once FNS approves a vendor

to accept SNAP payments, a vendor (whether a supermarket, farmers market, or other food retailer) can

receive a free POS device. Traditionally, only wired machines, which require a permanent location with

access to electricity and communications wiring (e.g. a telephone line), were available for free.

However, because most farmers markets exist in outdoor locations without electricity, they can only

process SNAP sales by using a wireless POS device. Although such devices are commercially available,

they typically cost between $800 and $1,000 per device and likely require a monthly processing fee of

approximately $45 and a transactional fee of 10 to 15 cents per swipe.

In spring 2011, Mississippi Department of Human Services (“MDHS”) and MDAC announced a new

program to provide free wireless EBT machines to individual farmers and farmers markets in Mississippi.

Vendors must still apply through FNS in order to be authorized to accept SNAP benefits, but once

approved, the wireless EBT machines will be provided at no cost and without any minimum sales

requirement. However, vendors should be aware that unlike some purchased models, free EBT

machines, both wired and wireless, only accept SNAP benefits and cannot accept credit or debit card

purchases.

Here are the steps the market manager should take to become authorized to accept SNAP and obtain a

free EBT machine:

1. For those wishing to apply online, set up a USDA eAuthentication account by following the

“Register” link at

http://www.fns.usda.gov/snap/retailers/register.htm.

2. Complete the Retailer Application online by clicking the “Fill Out Online Application” link at

https://www.fns.usda.gov/SNAP/retailers/application-process.htm or call toll-free at (877) 823-

4369 to obtain a paper application.

Note: FNS may take up to 45 days to process an

application once it is complete.

3. Send all required documentation to your servicing FNS office, which is provided during the

online application process or for paper applicants, will be given when you receive your

application package.

4. For help, call the Mississippi FNS field office at (919)-790-2927 or the Mississippi EBT customer

service line at 866-598-1772. For additional questions about the free wireless EBT machines,

market managers or farmers can also contact Purvie Green at MDAC by phone at (601) 359-

1168 or via email at

purvie@mdac.state.ms.us.

Once a farmers market qualifies with FNS, it will receive a free EBT machine of its choosing from the

MDHS. Although individual farmers may apply for EBT machines, farmers markets may also want to get

a machine for use by all the vendors selling at the market. This will help to ensure that smaller and part-

time vendors will have access to the machine for their sales. Markets with only one centralized EBT

machine may want to consider implementing what is generally known as a “token system.” In a token

system, the market creates market-specific tokens that correspond to different dollar amounts.

Customers seeking to use SNAP benefits receive tokens from the centralized EBT machine when they

swipe their SNAP card and then use those tokens to purchase food from individual vendors. At the end

of the day, vendors can then redeem those tokens with the farmers market for money. While market

managers will need to pay extra care to avoid the potential for fraud, MDAC and MDHS have no

objections to markets using free EBT machines with a token system.

Alternatively, if the farmer or farmers market does not have either a wired or wireless EBT machine, the

farmer can use manual vouchers. This process requires a mobile phone to check if funds are available in

the customer’s EBT account and to place a hold on the purchase amount by calling toll-free at (800) 221-

5689. The customer will then give the farmer a paper voucher in the amount of the transaction that the

farmer can then mail to FNS in order to receive money in his account. In the alternative, a farmer can

keep the free POS device at home and clear all paper vouchers through the device at the end of the

day.

Paper applications should be mailed to: Retail Administration Center Food and Nutrition Service, USDA Cedar West Building,

Suite 102 3109 Poplarwood Court Raleigh, NC 27604.

Additional information can also be found in the FNS’ SNAP EBT Farmers Market Handbook, available at:

http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELPRDC5085298&acct=wdmgeninfo.

Note

: It is not necessary for the farmers market to incorporate in order to participate in the

SNAP program. The market manager may register the POS device with his/her personal bank

account and disperse the funds to the individual farmers/vendors after they are deposited into

his/her account by the state.

II. WIC Farmers Market Nutrition Program Vouchers

The Farmers Market Nutrition Program (“FMNP”) was created in 1992 and allows low-income pregnant

and post-partum women, as well as women with infants and children, to use WIC vouchers to purchase

fresh fruits and vegetables from farmers/vendors at authorized farmers markets. In Mississippi, the

program provides recipients with $15 in vouchers per season. In the summer months of June and July,

FMNP vouchers are issued to WIC recipients at local WIC sites. These coupons can be used until the end

of October to buy foods from farmers/vendors at eligible farmers markets or roadside stands that have

been approved by the state agency. The farmers then submit the coupons to the bank or state agency

for reimbursement.

Farmers markets are selected and trained for the WIC FMNP based on criteria developed by the

Mississippi Department of Agriculture and Commerce (“MDAC”) and the Mississippi State Department

of Health (“MSDH”). The MDAC has already authorized the program to operate in Bolivar, Hinds,

Holmes, Lauderdale, Noxubee, Sunflower, and Warren Counties. Farmers/vendors outside of these

counties should contact Purvie Green, Mississippi FMNP Coordinator, by phone at (601) 359-1168 or by

email (

purvie@mdac.state.ms.us) for more information about bringing the FMNP to their area. MDAC

can only finance a limited number of markets each year, so markets with low redemption rates may lose

authorization in future years as new markets are approved.

In order to participate, each farmer/vendor at a WIC FMNP-authorized market must be approved by the

MDAC to accept the FMNP vouchers in a simple, two-step process:

1. Attend an FMNP training session. Contact Purvie Green, the Program Coordinator, at (601) 359-

1168 for information on upcoming training sessions.

2. Complete and submit the FMNP Farmer Application and Agreement, which includes submitting

a crop plan. The crop plan should identify which fruits and vegetables the farmer intends to

produce and in what quantities. The forms for these documents can be found online at:

http://www.mdac.state.ms.us/n_library/programs/mfmnp/pdfs/wic_farmerapp.pdf.

Once the two steps are completed, the farmer/vendor will be authorized to accept vouchers from WIC

participants at the farmers market. The vouchers (each worth $3) can be exchanged during the period of

time set by the county (usually from June or July until October). The farmer/vendor then mails the

vouchers to MDAC and receives a check for 100% reimbursement. A staff member of MDAC will visit the

farmer/vendor once a year to ensure compliance with the program regulations.

In addition to WIC FMNP, the Seniors Farmers Market Nutrition Program (“SFMNP”), also administered

by FNS, provides low-income seniors with vouchers to purchase fresh fruits and vegetables at farmers

markets and roadside stands. Mississippi has participated in the SFMNP program since 2004. Seniors

over the age of 60 who are receiving services from local Agency on Aging organizations are eligible for

vouchers. Each growing season, participants receive $28 in vouchers (7 checks valued at $4 each), which

are distributed in June and July at local feeding sites and through home-delivered meals. Recipients can

then redeem the checks for fresh fruits and vegetables from participating farmers. The program

currently affects up to 4,000 seniors and operates in Adams, Carroll, Desoto, Forrest, Harrison, Hinds,

Holmes, Lawrence, Leflore, Lowndes, Marion, Oktibbeha and Walthall Counties and other areas

throughout south Mississippi.

Funding Sources

There are many funding sources available for farmers markets, though some applications are more

difficult to complete than others. We have attempted to provide a sampling of the funding sources that

other markets have been successful in obtaining or sources that have a lot of money available (and

hence may be worth the extra effort).

Some of these grants are provided by government entities (state and federal), some are provided by

corporations, and others by private foundations. Each market should consider the sources below and

look at the additional resources at the end of this section. Grant funding can be a wonderful resource to

help advertise markets, pay for supplies, pay salaries for market managers, or involve local schools in

the market.

The most important funding source is the USDA’s Farmers Market Promotion Program (“FMPP”), which

provides grants for general market operations, expansion of the market, and advertising. If a market has

not already tapped the FMPP, it should do so before continuing down the list of other funding sources.

The following are funding sources that markets should consider applying for:

I. Government Funding Opportunities

The Farmers Market Promotion Program (“FMPP”) is an excellent opportunity to get significant

funding from the USDA. The deadline to apply is generally in mid to late April. If you plan to

apply in the future, check the program’s website (

USDA Farmers Market Promotion Program

http://www.ams.usda.gov/AMSv1.0/FMPP)

for specific deadlines.

What they fund

 Business planning, market growth management, and recordkeeping

: Through the FMPP, the USDA funds projects targeted to help improve and

expand domestic farmers markets, roadside stands, community-supported agriculture

programs, agri-tourism, and other direct producer-to-consumer market opportunities. The grant

can be used for, but is not limited to:

 Food safety and handling

 Outreach to under-represented ethnic groups

 Alternative purchasing methods, such as WIC, food stamps and debit/credit

technologies (NOTE: This might be a good source of funding to get a device that will

accept food stamps EBT cards, credit, and debit all-in-one)

 Associational and other organizational development

Size of grants:

Up to $100,000.

Who is eligible:

Agricultural cooperatives, producer networks, producer associations, local

governments, nonprofit corporations, public benefit corporations, economic development

corporations, regional farmers market authorities, and Tribal governments.

Additional Information: A detailed “how to” guide for applying for a FMPP grant can be found at

the USDA’s website at:

http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELPRDC5082923. The program’s

website (

http://www.ams.usda.gov/AMSv1.0/FMPP) also contains additional resources,

including an application checklist and specific program guidelines. You can also contact Carmen

Humphrey, USDA Branch Chief, at 202-694-4000 or by email at

Carmen.Humphrey@usda.gov.

The following are examples of the kinds of organizations that have recently received FMPP

funding:

 Mississippi (2009): $85,800 to Hancock County, Bay St. Louis, MS, to provide

infrastructure, education, and other training workshops for local farmers and vendors to

sell and promote their products at the new Hancock County Farmers Market.

 Mississippi (2009): $31,075 to Delta State University, Cleveland, MS, to support

infrastructure improvements and implement a promotional campaign for the Cleveland

Farmers Market to provide local farmers with direct access to consumers, increase

consumer access to locally grown produce, and enhance and expand the market.

 Arkansas (2010): $48,102 to the University of Arkansas, Fayetteville, AR to increase the

participation of SNAP, WIC, and Senior FMNP recipients at farmers markets by

promoting the benefits of eating locally grown fresh produce and expanding new EBT

technology at Northwest Arkansas Farmers Market Alliance member markets.

 Georgia (2010): $37,547 to the Upper Ocmulgee River RC&D Council, Inc., Lawrenceville,

GA, to 1) promote the nutritional benefits of locally grown foods among low-income

citizens, 2) purchase EBT machines and provide training to 8 new local farmers markets,

and 3) support the continuing operations of 16 existing EBT markets.

 Louisiana (2010): $39,417 to the Historic Lower 9th Ward Council for Arts and

Sustainability, New Orleans, LA, to 1) purchase equipment, signage, and supplies, 2)

develop an advertising and promotional campaign, and 3) establish a new EBT program

at the new Sankofa/Lower 9th Ward Farmers Market to sell fresh local produce and

seafood.

 North Carolina (2010): $45,746 to Foothills Farmers’ Market, Shelby, NC, to 1) create a

brand for the Market, 2) purchase print, radio, and billboard advertising and expand

web/social media efforts, and 3) engage community stakeholders in the development of

a strategic plan that guides the growth and continued development of a sustainable

local food system.

Sustainable Community Innovation Grant

What they fund: This grant program is administered by Southern Region Sustainable Agriculture

Research and Education (“SARE”) program, under the UDSA. The goal of the Sustainable

Community Innovation (“SCI”) grants is to connect farm and non-farm communities through the

use of sustainable agriculture. The grant has been awarded to expand farmers markets, to

develop community gardens, and to promote Community Supported Agriculture (“CSA”) shares.

Most often, the grants are provided to support a new project but have in some cases been

awarded to expand existing markets. The deadline is generally October 1st, but check

http://www.southernsare.uga.edu/callpage.htm for the most current information.

Size of grants

: Up to $10,000.

Who is eligible: Anyone.

Additional information: The key to applying for this grant is bringing together farmers and non-

farmers in a town or county. Past applicants have done so through educational outreach and

through economic development, such as moving the market to a downtown area to draw

people to the market and to local businesses. One market used the money to fund a community

garden where participants were able to sell their harvest at the local market. Proposals are also

more likely to succeed when there are multiple partners. This could include a local university

such as Delta State University, the local Chamber of Commerce, the local Main Street

Association, a regional development organization, other non-profit organizations, or local

schools. This grant is a great opportunity to grow a market and may be used in part for

advertising and promotion. The website for the grant is

http://www.southernsare.uga.edu/scig_page.htm. The contact for the grants is Paige Patton,

who can be reached at (770) 412-4787 or by email at

[email protected]. If you choose to

apply for this grant, you should look at the Call for Proposals

(

http://www.southernsare.uga.edu/callpage.htm) and make sure to submit by the deadline.

Generally the call goes out during the summer and in recent years, proposals have been due

October 1st. It would also be helpful to look at descriptions of past grant application winners,

which are accessible at:

http://www.southernsare.uga.edu/winners.htm.

Local Government Funding

Municipality: Another great way to get more funding for your farmers market is via funding from

your municipality. The governing authorities of your municipality may have the authority to

match funds you receive from other sources.

Currently, Mississippi law permits municipal

governments to donate matching funds to “social and community service programs[.]"

Although the state’s definition of “social and community service programs” does not include

farmers markets, the list is non-exhaustive and farmers markets may be eligible for municipal

funding. To obtain matching municipal funding, you would first need a separate independent

source of funding.

County: Most counties in Mississippi do not have explicit authority to fund farmers markets;

however, funding may still be available on a case-by-case basis.

Other Government Grants

The USDA funded Community Food Project provides one-time grants from $10,000 up to

$300,000 for large scale projects that attempt to make low-income communities more self

reliant at maintaining their food systems. Programs are funded from 1 to 3 years and must have

resources that match the federal grant dollar-for-dollar. Individual markets are not likely to

qualify – instead, regional efforts are best positioned to take advantage of this funding. For

more information, visit:

http://www.csrees.usda.gov/nea/food/in_focus/hunger.

The

Value Added Producer Grants Program

Miss. Code Ann. § 21-19-65 (2010).

is a competitive grants program run by the Rural

Business Cooperative Service at the USDA. The grants are targeted at farmers to help them

Id.

Miss. Code Ann. § 19-5-73 (2010) authorizes a narrow class of counties to contribute funds to farmers markets and other

establishments intended to aid farmers’ “disposal and sale” of produce.

expand their businesses. Although markets don’t profit directly from this grant, they may wish

to inform their farmers/vendors of the opportunity. For more information, visit:

http://www.rurdev.usda.gov/rbs/coops/vadg.htm.

The

Federal-State Marketing Improvement Program (“FSMIP”) provides matching USDA fund to

state Departments of Agriculture, state agricultural experiment stations, and other appropriate

state agencies to assist in exploring new market opportunities for U.S. food and agricultural

products, and to encourage research and innovation aimed at improving the efficiency and

performance of the marketing system. Markets that are able to get state funding should also

consider pursuing FSMIP funds. More information, including guidelines for applying, can be

found at:

http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateC&navID=

WholesaleandFarmersMarkets&leftNav=WholesaleandFarmersMarkets&page=FSMIP&descripti

on=Federal State Marketing Improvement Program&acct=gpfsmip.

The

Business and Industry Guaranteed Loan Program aims to improve, develop, or finance

business, industry, and employment, and improve the economic and environmental climate in

rural communities by helping new and existing business get access to loans. Under the program,

the USDA guarantees loans to business from private banks, essentially co-signing the loan and

guaranteeing to pay a portion of any loss that might come from the business not repaying its

loan. Organizations receiving this benefit can be either for-profit or non-profit, but must be in

rural areas (any area except a city or town, or surrounding area, that has a population exceeding

50,000). The program has funds specifically designated for initiatives that establish and facilitate

the processing, distribution, aggregation, storing, and marketing of locally or regionally

produced food products. More information can be found at the following websites:

http://www.rurdev.usda.gov/rbs/busp/b&i_gar.htm

http://www.usda.gov/wps/portal/usda/knowyourfarmer?contentid=kyf_grants_rd3_co

ntent.html&navtype=KYF&edeploymentaction=changenav

The

Rural Cooperative Development Program awards USDA-funded grants for establishing and

operating centers for cooperative development with the primary purpose of improving the

economic condition of rural areas through the development of new cooperatives and improving

operations of existing cooperatives. Only non-profit entities may apply, but grants are available

for up to $200,000. This opportunity is best geared towards larger initiatives that may also

include a farmers market. More information is available at:

http://www.rurdev.usda.gov/rbs/coops/rcdg/rcdg.htm.

The

Specialty Crop Block Grant Program awards USDA-funded grants to states to enhance the

competitiveness of specialty crop industries. Specialty crops are defined as “fruits, vegetables,

tree nuts, dried fruits, horticulture, and nursery crops (including floriculture).” Although funding

will not be awarded to projects that solely benefit a particular commercial product or provide a

profit to a single organization, institution, or individual, this can be a consistent source of

funding for projects that fit within the program’s parameters. Applications are usually due at the

beginning of May, but the exact date varies by year. For information about the program itself,

including guidelines, you can visit the USDA’s website at:

http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&navID=

SpecialtyCropBlockGrant0Program&rightNav1=SpecialtyCropBlockGrant0Program&topNav=&lef

tNav=CommodityAreas&page=SCBGP&resultType. For information about how to apply for the

MDAC-administered grants, you can contact Paige Manning by phone at (601) 359-1163 or via

email at [email protected]. You can also find information online at

http://www.mdac.state.ms.us.

II. Private Funding Opportunities

There are many private organizations and foundations that could potentially provide funding to farmers

markets. Below are descriptions of grants that are offered by a few of these foundations:

Farm Aid

What they fund

: Farm Aid provides grants to farm and rural service organizations for a variety of

purposes. One of these purposes is supporting “innovative programs” that build local food

systems.

Size of grants

: Up to $20,000, though most are from $3,000-$7,500.

Who is eligible

: Only 501(c)(3) non-profits, though others can apply through an existing non-

profit.

Additional information: Farm Aid focuses on promoting “family farms” and will fund

organizations that can show how their work improves the position of family farms. In particular,

Farm Aid is a great source of funding for public education, legislative advocacy and advertising

about farmers markets and their role in supporting family farms. Make sure that if you approach

Farm Aid, you indicate that you are applying for the program “Growing the Good Food

Movement.” It is one of four grant areas and the one most directly related to farmers markets.

Grant guidelines are online at:

http://www.farmaid.org/site/c.qlI5IhNVJsE/b.2723745/k.9953/Grant_Guidelines.htm. The

website also has a sample grant proposal that may be useful. You can also contact Hilde Steffey,

Program Associate, by phone at 1-800-FARM-AID or by email at

[email protected]. Examples

of recent grants awarded and a general program description can be found at:

http://www.farmaid.org/site/c.qlI5IhNVJsE/b.2723621/k.9C20/Grant_Program.htm.

W.K. Kellogg Foundation

What they fund

: The Kellogg Foundation focuses on improving the lives of children in poverty. It

does so through various means, including supporting local food systems and rural development.

While Mississippi is a target state for their funding, because the Kellogg Foundation receives

many applications from well-established non-profits with large grant-writing staffs, applying to

the Foundation is likely to be difficult and is probably ideal for large projects with clear goals (as

opposed to ongoing operations). Applications are reviewed throughout the year, so there is no

deadline.

Size of grants

: Up to $100,000-$500,000.

Who is eligible

: Only 501(c)(3) non-profits.

Additional information: Before applying for a grant, the market should research past successful

proposals and seek grant-writing assistance. The Kellogg Foundation prefers that applications be

made through the Internet. For more information, including a link to the online application, visit

http://www.wkkf.org/grants/for-grantseekers.aspx. You can also contact the foundation at

(269) 968-1611.

Many large corporations have a separate foundation arm for charitable donations. You may

consider looking at the website of some of these businesses or approaching them directly to

gauge their interest in providing funds. The best businesses to approach are:

Corporate Grants

1. Local businesses.

2. Businesses with many rural stores, such as Walmart, Kroger, Dollar General, or Family

Dollar.

3. Businesses that supply or purchase from farms, such as John Deere, Bobcat, or Archer

Daniels Midland.

4. Businesses that focus on public health, such as Blue Cross Blue Shield, Kaiser

Permanente, Merck, Assurant, or Humana.

5. Food businesses, such as Kraft, Dole, or Procter & Gamble.

III. Other Funding Resources

There are many more government and private organizations offering grants that could fit the needs of

farmers markets. Here are some good resources that provide information about other grant

opportunities:

The USDA website has information about many of the programs listed above and some

additional ways to receive financial assistance. For more information, visit:

http://www.usda.gov/wps/portal/usda/knowyourfarmer?navtype=KYF&navid=KYF_GRANTS.

The Farmers Market Consortium Resource Guide, published by USDA’s Agriculture Marketing

Service. It can be found online at:

http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELDEV3100937&acct=frmrdirmkt.

Grassroots Guide to the 2008 Farm Bill

, published by the National Sustainable Agriculture

Coalition. This guide can be found online at

http://sustainableagriculture.net/publications/grassrootsguide/. This guide also provides a list

of grants that may be available directly to farmers, particularly from struggling communities.

Grants.gov

is a website that allows you to search through all government grants and download

applications and/or apply online.

5. The

Rural Assistance Center provides information to organizations based in rural America,

including advice on funding. Information can be found online at

http://www.raconline.org/.

6. See the section entitled “Additional Resources” for a list of other websites that may be useful.

Additional Resources

The internet has a wealth of free information for farmers market managers, organizers, and

farmers/vendors. In addition to the contact information and websites listed throughout this guide, here

are a few useful resources where one can find further information:

I. Federal Government

 United States Department of Agriculture: http://www.usda.gov



United States Farm Service Agency: http://www.fsa.usda.gov



Internal Revenue Service: http://www.irs.gov



Supplemental Nutrition Assistance Program (retailer information):

http://www.fns.usda.gov/snap/retailers/merchants.htm



WIC Farmers Market Nutrition Program (national information):

http://www.fns.usda.gov/wic/FMNP/FMNPfaqs.htm

II. Mississippi

 Mississippi Department of Agriculture and Commerce: http://www.mdac.state.ms.us



Mississippi Secretary of State: http://www.sos.ms.gov



Mississippi State Tax Commission: http://www.dor.ms.gov



Mississippi Farmers Market Nutrition Program:



http://www.mdac.state.ms.us/n_library/programs/mfmnp/mfmnp_program.html

Mississippi Department of Health, Local Health Department information:

http://www.msdh.state.ms.us/msdhsite/_static/19,0,166.html

III. Universities

 Delta State University Institute for Community Based Research:

http://www.deltastate.edu/pages/537.asp



Mississippi State University Extension Services: http://msucares.com/



Alcorn State University Extension Service (Provide technical assistance to farmers locally):

http://asuextension.com/asuep/index.php

IV. Other Resources

 Mississippi Center for Nonprofits: http://www.msnonprofits.org/



Farmers Market Coalition resources:

http://www.farmersmarketcoalition.org/resources/resource-library/



Market Umbrella (New Orleans’ farmers market information and manager resources):

http://www.marketumbrella.org/



Cleveland farmers market blog: http://clevelandfarmersmarket.blogspot.com/



Farmers Markets New Mexico (Sample market rules from various markets in New Mexico):

http://farmersmarketsnm.org/Market_Managers/Market_Rules/index.html



Farmers Market Federation of New York (Publications and other helpful information about

starting a market):

http://www.nyfarmersmarket.com/



Rural Coalition (advocacy/policy group, provides assistance to farmers and works closely with

USDA):

http://www.ruralco.org/



Heifer International (Provide funding and technical assistance to farmers):

http://www.heifer.org/site/c.edJRKQNiFiG/b.485969/



Growing Power, Inc. (Provide trainings and workshops for farmers):

http://www.growingpower.org/

Document Prepared By

Participating Harvard Law Students:

Amir Ali

Max Chen

Marianna Jackson

Evan Kubota

Sheila Lopez

William Magnuson

Jordan Myers

Daniel Preysman

Benjamin Saltzman

Dina Stukanow Dominguez

Brent Bernell*

Project Supervisor:

Emily Broad**

Director, Delta Directions Consortium

Delta Fellow, Harvard Law School

Post-Doctoral Fellow, Social Science Research Center at Mississippi State University

Legal Adviser:

Chris Powell, Esquire

MBN # 100675

* editor of the April 2011 edition

** Senior Delta Clinical Fellow, Health Law & Policy Clinic at Harvard Law School beginning Sept. 2010

Appendix A: Sample Lease Agreement

MEMORANDUM OF AGREEMENT

This agreement is entered into and executed by ____________________, herein referred to as

Lessee,

and ____________________, herein referred to as

Lessor

, for the purpose of securing a space for Lessee

to operate a farmers market on Lessor’s property;

Whereas the

Market Location

, owned by Lessor, is located at

______________________________________________.

Whereas the

Market Season

(the lease period) shall be from ____________________ until

________________ and special market weekends may be scheduled with consent of both parties;

Whereas the

Market Days

shall be _________________________ each week during the Lease Period;

Whereas the

Market Hours

shall be between the times of ___________ and ______________;

Whereas the

Market Fee

, payable by Lessee to Lessor, shall be $________, paid

weekly/biweekly/monthly.

Now, therefore, in consideration of the foregoing and mutual covenants and agreements contained

herein, the parties have agreed to the following:

1. Supply, set up, and take down the equipment used at the market.

Section I: Lessee shall:

2. Administrate the financial and record-keeping aspects of running the market.

3. Timely pay the Market Fee.

4. Supply personnel to set up, manage, and clean the market area.

1. Keep the leased premises reasonably safe.

Section II: Lessor shall:

2. Allow access to the Market Location to farmers/vendors, market managers, and to the public.

Such access shall be permitted before and after Market Hours for farmers/vendors and market

managers to set up and take down the market.

3. Permit reasonable adjustments to the Market Season, Market Days, and Market Hours if Lessee

chooses to extend or shorten the market season, days, or hours based on weather or other

considerations.

4. Allow public use of Lessor’s dumpsters, restrooms, electrical outlets, and other facilities.

1. The term of this agreement shall be ____ year(s), beginning ______________ and ending on

______________. It may be extended or revised with the consent of both parties.

Section III: Lessee and Lessor agree that:

2. Both parties will promote and advertise the market before and during its season, at their

discretion.

3. Notwithstanding any other provisions of this agreement, if funds anticipated for continued

fulfillment of the agreement are, at any time, not forthcoming or insufficient, then both parties

shall have the right to amend or terminate this agreement without penalty by giving the other

party not less than thirty (30) days’ written notice.

4. If either party fails to fulfill its obligations under this agreement in a timely and proper manner

or if either party violates any terms of this agreement, the aggrieved party shall have the right to

terminate this agreement and withhold further services by giving the other party not less than

thirty (30) days’ written notice.

WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT.

By: ___________________________ Date: _____________________________

Position & Organization: _____________________________________________

By: ___________________________ Date: _____________________________

Position & Organization: _____________________________________________

Appendix B: List of Local Health Departments

And Local Health Inspectors

Bolivar County Health Department

711 3

St.

Cleveland, MS 38732

Tel: (662) 843-2706

1006 Dr. Martin Luther King Jr.

P.O. Box 446

Rosedale, MS 38769

Tel: (662) 759-3361

Coahoma County Health Department

1850 Cheryl St.

Clarksdale, MS 38614

Tel: (662) 624-8316

DeSoto County Health Department

3212 Highway 51 South, Suite A

Hernando, MS 38632

Tel: (662) 429-9814

6569 Cockrum Rd., Bldg. A, Suite 2

Olive Branch, MS 38654

Tel: (662) 895-3090

8705 Northwest Drive

Building A, Suite 1

Southaven, MS 38671

Tel: (662) 393-2775

Holmes County Health Department

106 Westwood Avenue

Lexington, MS 39095

Tel: (662) 834-3142

Leflore County Health Department

2600 Browning Road

Greenwood, MS 38930

Tel: (662) 453-0284

Panola County Health Department

381 Highway 51 South

Batesville, MS 38606

Tel: (662) 563-4616

Quitman County Health Department

235 Chestnut Street

Marks, MS 38646

Tel: (662) 326-2861

Sunflower County Health Department

412 Hwy 49 S.

Indianola, MS 38751

Tel: (662) 887-4951

Tunica County Health Department

2073 Old Hwy 61 North

Tunica, MS 38676

Tel: (662) 363-2166

Washington County Health Department

801 N. Broad St.

Leland, MS 38756

Tel: (662) 686-7711

1633 Hospital St.

Greenville, MS 38701

Tel: (662) 332-8177

306 East Avenue South

Hollandale, MA 38701

Tel: (662) 827-5626

**For a listing of all local health departments in the State of Mississippi, visit the Mississippi State

Department of Health website at

http://www.msdh.state.ms.us/msdhsite/_static/19,0,166.html.