What food would count in calculating the average annual monetary value of food sold during the previous three-year period (for the purposes of proposed §§ 112.4, 112.5, and the definitions of small and very small business in proposed § 112.3(b))? For example, would the value of peaches I sold to a commercial cannery be calculated when determining the average monetary value of food sold during the previous 3-year period?

In the term “average annual monetary value of food sold,” the word “food” means “food
as defined in section 201(f) of the FD&C Act and includes seeds and beans used to
grow sprouts” (see proposed § 112.3(c)). In section 201(f) of the FD&C Act, “food”
means (1) articles used for food or drink for man or other animals, (2) chewing gum, and
(3) articles used for components of any such article. Thus, all food would count in
calculating the average annual value of food sold, even if that food is not covered
produce. In the example, the value of peaches sold to a commercial cannery would be
included in the calculation to determine the average monetary value of food sold during
the previous 3-year period.