Retail Sales of Agricultural Products in the ALR - A Policy Discussion Paper. September 14, 1994

Examples of processed products which may be offered for sale as an outright use provided the 50% on-farm
ingredients criterion is met would include:

*wine and cider

*fruit pies and pastries

*jams, jellies and syrups

* flower arrangements (fresh or dried)
*dried fruits

*fruit and vegetable juices

*dried herbs, herbal remedies and teas
*sausages and smoked meat products

*honey and honey products

It is intended that the 50% mule be understood as an annual average. In other words, the proportion of farm-raised
product on sale may fluctuate over the course of the year, depending on seasonal availability of farm raised product.
Therefore, during the summer and fall, when farm-raised products are generally abundant, the proportion available
for sale may approach 100% of product sold. in winter, it is reasonable to expect that farm-raised products would
comprise a lesser proportion of the products available for sale.

The policy provides for a maximum retail sales area of 100 square meters which may be fully contained within a
building or which may be partially indoors and partially outdoors provided the 100 square meters total area is not
exceeded. Any retail use which exceeds this would require application to the Commission (with the exception of
“retail sales which comprise 100% on-farm product which have no building size restriction).

The policy provides for the retail sales of up to 15% non-agricultural products from the farm market based on gross
value of total retail sales. This provision is intended to recognize the current practice where many farm-based retail
operations offer accessory products to meet market demand. For nurseries this might include fertilizers and soil
arnendments, gardening tools and gardening accessories. For farm markets this might include local crafts, books
and other food related items.

Office space and space associated with wholesale activities related to agricultural products grown/raised on the farm
are not considered part of the retail sales area for the purposes of this policy.

Onsite food consumption may be provided for as part of the total retail sales area stipulated in the policy, provided
the volume sales do not exceed the 15% threshold for non-agricultural products. This might include a small area set
aside as a tea room, cafe or picnic area but is not intended to include a full-service restaurant which wouid require

an application to the Commission.

It is important to maintain this 15% threshold so that the use is clearly ancillary to the farm operation itself. Again,
any retail activity which exceeds 15% non-agricultural products would require an application to the Commission.
The policy refers te volumes from retail sales and it is expected proportions of sales could be verified from normal

farm business accounts, if necessary. ;