November 1, 2024
What: Act 181 includes changes to Act 143 governing Accessory On-Farm Businesses (AOFBs)
When: Starting July 1st, 2024
Where: All of Vermont
Who: Any farm that has an AOFB. For an overview Act 143 and AOFB, please visit Understanding Vermont’s “Accessory On-Farm Business” Designation.
Farming is exempt from Act 250. However, Accessory On-Farm Businesses are defined differently than “farming”. When it originally passed, Act 143 applied to your town’s zoning only, not Act 250. This past June the legislature made some changes for AOFB's which will provide some exemptions from Act 250 and hopefully increase revenue for Vermont farms.
Here is what is allowed:
- You CAN sell qualifying products produced on any farm. You no longer need to have 50% of your sales from your own products. For example, you are now allowed to sell your neighbor’s maple syrup or your sister’s strawberries at your farmstand without needing to limit the amount.
- You CAN sell your own farm merch! This includes any products that name, promote, or describe your farm or AOFB such as t-shirts, mugs, or hats.
- You CAN sell baked goods and bread, regardless of whether they are made with qualifying products. The purpose is to draw customers and increase sales of local ag products.
Of note: the AOFBs revenues may exceed the revenues of the underlying farm.
Definition of a Qualifying Product
“What are qualifying products?” you may ask. They are agricultural products that are produced on one or more farms.
A qualifying product is a product that is:
- an agricultural, horticultural, viticultural, or dairy commodity, or maple syrup;
- livestock or cultured fish or a product thereof;
- a product of poultry, bees, an orchard, or fiber crops;
- a commodity otherwise grown or raised on a farm; or
- a product manufactured on one or more farms from commodities wholly grown or raised on one or more farms.
ACT 250 Exemptions
There is a second aspect of this rule change that affects AOFBs, which is exemptions from Act 250 for certain AOFB activities.
- Act 181 provides AOFBs with an Act 250 exception for construction for the storage or sale of qualifying products.
- Construction of improvements for the preparation or processing of qualifying products are exempt from Act 250 permitting, provided that more than 50% of the total annual sales of the prepared or processed qualifying products come from products produced on the farm where the business is located.
- Construction of improvements relating to hosting events or farm stays is not exempt from Act 250
AOFB’s are still REQUIRED to notify their town of any new construction and follow the town’s regulations and zoning bylaws.
In summary, Act 181 expanded AOFBs ability to sell qualifying products that are not produced on the farm where an AOFB is located, added new types of eligible products, and created related Act 250 exemptions. Hopefully these changes will foster farmer collaboration, increase farm sales, and facilitate direct sales on farms.
Thank you for reading the Marketing & Agritourism Blog! I’m your host, Selina Rooney, Marketing & Agritourism Specialist at the Vermont Agency of Agriculture, Food & Markets. I am a farmer in Morristown, VT and have been expanding and experimenting with agritourism activities on our farm. Stay tuned every month for tips on marketing and incorporating agritourism practices on your farm and be sure to sign up for the Vermont Ag Bulletin so you never miss a post!