Research draft. Not legal, tax or financial advice. Figures are dated to their sources; placeholder assumptions are flagged as such.

Custom-Exempt Share Sales

The rule. Custom-exempt revenue is a service fee charged to someone who already owns the animal. Any business plan line that reads like selling meat (price per pound of packaged product, a retail case, a farmers-market table) needs inspection.

What Virginia permits (VDACS OMPS guide)

Practice Allowed? Condition
Operator sells live animal, then custom-slaughters it Yes (Note 4) Records show the ownership transfer
Several owners of one animal (halves, quarters) Yes (Notes 15–16) Proof of ownership; owner list exists before slaughter
Operator arranges purchase, slaughter, delivery as owner’s agent Yes (Note 18) Delivered product marked “Not for Sale”
Sale priced on live weight or per head Yes (Note 17) Not priced on the meat
Operator charges for the meat itself No Service fee only
Commingling trim from different owners Yes (Note 14) Each owner’s written consent
Resale or donation of the meat by the owner No 303.1(a)(2), VDACS criterion 6

Source: VDACS custom-exemptions guide.

Implications for the plan [inferred]

See Also