SouthDown Farm Open Letter Concerning DPH Proposed Ad. Reg. 902 KAR 45
KY Department of Health is proposing to raise the permit fees for our 250SF permitted commercial kitchen from $120/year to $1,350/year. We think this in inequitable for small food producers in KY and may very well close down small agricultural businesses. Here is a copy of our written comments we submitted protesting this new proposal:
Donna Little
Deputy Executive Director, Office of Legislative and Regulatory Affairs
275 East Main Street, 5W-A
Frankfort, KY 40621
chfsregs@ky.gov
August 12, 2020
Dear Ms. Little –
I am writing in regard to the new proposed administrative regulation (902 KAR 45) filed on June 4, 2020 by the Kentucky Cabinet for Health and Family Services that would change the permit fees for commercial food manufacturing plants in Kentucky.
My wife and I operate SouthDown Farm in Letcher County. On the farm we make Kentucky maple syrup from the maple trees on our steep EKY hillside property. We also raise a market garden and have a permitted commercial kitchen where we make value added products from our maple syrup and produce that we raise. These products are sold at our local farmers market and our KFB Certified Farm Market but in an area with a struggling economy we have also developed an e-farm store on our website and ship our products to our customers. The online sales allow us to sell our products to customers in portions of the country that are affluent, bringing new dollars into our community. We also sell our products to a few restaurants and gift shops. We are currently permitted as a Food Manufacturer on the farm and at the local community kitchen. We consider our business to be a social enterprise where we can help others learn how they can supplement their income with agriculture in an area struggling with persistent poverty.
Safely manufacturing food products is very important to our business and we appreciate the Cabinet’s efforts to ensure Kentucky businesses are in compliance with federal and state laws and regulations, with permits and regular inspections. However, this new fee structure is inequitable and will absolutely kill our business which we have worked so hard to establish. We currently pay $120/year for our permit, under the new regulation we will need to pay for a level 2 risk permit which costs $1,350/year. Our permitted space is only 250 SF in size. The inequity of this proposal lies in the fact that a 50,000 SF level 2 risk facility would pay the exact same fee while making millions of dollars worth of product. Because our space is small we also use the CANE community kitchen in Whitesburg to make larger batches (500 pints) of apple butter and apple sauce. We are also required to pay a permit fee at this facility as well. Under the new proposal this would add another $1,350 permit. This would add up to $2,700/year for permitting both places we use to manufacture our food. Small, on farm food manufacturing provides important economic opportunities to farmers in the Commonwealth. We are concerned that if this new regulation is passed many of the small food processors in Kentucky like SouthDown Farm will be forced to close important lines of business which are important to the overall success of our business.
I encourage the Cabinet to consider thinking about fair and equitable policies that consider the size and scope of small food manufacturers in Kentucky. I would recommend an exemption to the proposed regulation for small scale manufacturers.
We have a lot of thoughts and comments regarding this proposal which we consider unfair to small food producers. Though the public hearing is scheduled early on August 24 at 9:00 AM, I will get up very early in the morning, making the drive to attend the hearing in person and plan to comment on the proposed administrative regulation.
Sincerely,
Seth Long
SouthDown Farm
3379 Craft Colly Road
Ermine, KY 41858
Website: SouthDownKy.com
Email: southdownfarmky@gmail.com
Cell: 606 634 2426
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