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

Regulatory Models Compared

The single decision that fixes the rest of the plan is who is allowed to buy the meat. Mobile vs. fixed is a secondary choice. Under custom-exempt, the buyer must own the live animal before slaughter. Under inspection, the meat can be sold to anyone the stamp covers.

Side by side

Custom-exempt USDA-FSIS inspected MSU Virginia state-inspected
Legal basis 9 CFR 303.1(a)(2); Va. Code § 3.2-5405 A 9 (state parity exemption) FMIA; 9 CFR 304, 307–314, 416, 417 Va. Code § 3.2-5403/5404 (“at least equal to” federal)
Who can buy the meat Only the owner of the live animal, for household, nonpaying guests and employees Anyone: retail, restaurant, wholesale, interstate Anyone, but intrastate only (Virginia is not in CIS)
Marking “Not for Sale” immediately after preparation (316.16) USDA mark of inspection “Virginia Inspected and Passed”
Permit Free annual VDACS OMPS Custom Permit (“permit of exemption”, 2VAC5-210-30), issue date to June 30 Grant of inspection: Form 5200-2 plus a 7-step file, then a 90-day conditional grant to validate HACCP Form VDACS-03090 + SSOP/HACCP/recall plan; 90-day conditional grant; inspection free for five 8-hr days per shift each week
Mobile unit Expressly allowed (“A custom exempt operation may use a mobile slaughter and processing unit”, VDACS Note 7) Allowed, held to the “same regulatory requirements” as a fixed plant Not addressed in statute
Inspector on site No; periodic VDACS review Yes, for every kill. Notify the District Office of each move; 2–4 weeks’ notice recommended Yes
HACCP / SSOP Sanitation 416.1–416.6 only (water-reuse 416.2(g)(2)–(6) excepted) Full HACCP plan (417) before the grant, plus SSOPs (416.11–16) Equal to federal
Records Owner names and addresses, head counts, product types (303.1(b)(3)) All 417.5 and 416.16 records Equal to federal

Sources: 9 CFR 303.1, FSIS MSU compliance guide, Va. Code Ch. 54, VDACS custom-exemptions guide.

Custom-exempt in Virginia: what is actually allowed

From the VDACS OMPS guide (undated, probably 2019–2022):

The statute itself contains no custom license, no fee schedule and no mention of mobile units. Custom-exempt operation rests entirely on the federal-parity exemption in § 3.2-5405 A 9 plus VDACS administrative practice. Any construction standards for mobile units would sit in 2VAC5 regulations, which have not been checked.

USDA-inspected MSU: what changes

Virginia state inspection

Va. Code § 3.2-5403 requires the state program to be “at least equal to” the FMIA. § 3.2-5404 marks product “Virginia Inspected and Passed”, and § 3.2-5405 A 6 funds the program 50:50 with USDA. This is the Talmadge-Aiken / state MPI structure, although the statute never uses that name.

Contradiction resolved (round 2). The MPIRG source file inferred that Virginia has no equal-to state program. FSIS’s own state-MPI list confirms that Virginia does run one (VDACS OMPS). It also confirms that Virginia is not in CIS. Only 10 states participate (OH, ND, WI, IN, ME, MO, IA, VT, SD, MT), and West Virginia isn’t one of them. State-inspected product “can only be sold within that State”. Maryland and Pennsylvania have no state programs. A Winchester operator selling into MD, WV or DC therefore needs USDA inspection (FSIS CIS/MPI lists).

Getting a Virginia grant of inspection (VDACS guide, Jan 2026): - Application package: form VDACS-03090, a plot plan (hand-drawn is acceptable), a water potability letter and lab report, sewage approval, SSOP, HACCP plan, recall plan, and the beef humane-handling, SRM and STEC measures. - Cost: inspection is free for five consecutive 8-hour days per shift each week. Overtime is billed in tenth-hour increments, with a 2-hour call-back minimum. - Conditional grant: issued after an onsite review, with 90 days to validate HACCP. - Mobile units: the guide links to the FSIS mobile slaughter compliance guide but has no mobile-unit text of its own. Fixed-site items (plot plan, well letter, sewage letter) would need answers for each docking site (VDACS grant guide).

Regulations: 2VAC5-210 (not 2VAC5-60, which is a repealed livestock-markets rule): - It adopts 9 CFR Subchapters A and E as of the Jan 1, 2021 edition, reading “Federal” as “Virginia” and “interstate” as “intrastate”. Later FSIS amendments may not apply in Virginia yet. - 2VAC5-210-30 requires anyone using the 9 CFR 303.1(a)(2) custom exemption to “apply for and receive a permit of exemption”. This is the regulatory basis for the VDACS Custom Permit. - No mobile-unit provisions (2VAC5-210).

Where meat may be sold (VDACS selling guide, May 2025): farmers’ markets, restaurants, retail and online sales all need USDA- or OMPS-inspected product. Red-meat sellers “may be required to apply for a Meat Handlers Permit”. The guide is silent on custom-exempt shares, which confirms that custom beef has no retail channel (selling guide).

Pending law: do not plan on it

See Custom-Exempt Share Sales for what this means for revenue.

Open regulatory questions

  1. Waste disposal at each site. Mostly answered in round 2: on-farm composting is likely exempt under 9VAC20-81-95 D.4. See Slaughter Waste Disposal in Virginia. Blood and wash-water rules (VDH, DEQ VPA) are still unsourced.
  2. 2VAC5 Resolved: 2VAC5-210 requires a permit of exemption and has no mobile-unit provisions. Still open: does OMPS have an unwritten policy or equipment checklist for mobile custom units?
  3. CIS Resolved: Virginia is not a CIS state.
  4. Meat Handlers Permit. What it requires, and whether a cut-and-wrap partner selling inspected product needs one.
  5. Retail exemption. The 9 CFR 303.1(d) retail exemption excludes slaughter, and its “normal retail quantity” for cattle is 300 lb (half a carcass). Is it relevant to a cut-and-wrap partner selling inspected product?

See Also