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Poultry Processing Exemptions: 1,000 and 20,000 Birds

Poultry processing exemptions: 1,000 birds of your own raising, up to 20,000 labeled Exempted P.L. 90-492, in-state sales only, shared plants, a checker.

By Koa Sterling. Product specialist at TaroStack and small business owner. Yes, I am a real human, and I actually sit in front of a computer and write these articles. Reviewed October 19, 2026 · 5 min read

Poultry sold as food has to be slaughtered under inspection, with a few exemptions small farms use. The smallest covers a farmer who slaughters no more than 1,000 birds a year, all of their own raising, buys and sells no other poultry, and whose birds don't move in commerce as the rule defines it. Above that, up to 20,000 birds a year, the producer/grower exemption covers birds raised and processed on the farm and sold only within the state, labeled with the farm's name and address and "Exempted—P.L. 90-492", as long as the farm doesn't buy or sell other poultry. A related exemption covers selling straight to households, restaurants and hotels in the state. None of these applies at a processing facility another person also uses, unless FSIS approves it. States add their own rules, and some require a license. In the example below, a Missouri farm checks which exemption its 1,760 birds a year fall under.

The short version

  • Up to 1,000 birds of your own raising: no buying or selling other poultry, none in commerce.
  • Up to 20,000: the producer/grower exemption, raised and processed on your farm, sold in your state.
  • Exempt birds carry your name, address and "Exempted P.L. 90-492".
  • Buying or selling other poultry ends the producer/grower exemption.
  • A facility another person also uses needs FSIS approval.
  • Your state can add a license or its own limits.
  • TaroStack keeps each processing day as a lot. More below.

The exemptions

Exemption Birds a year Conditions
Own raising 1,000 or fewer Raised on your own farm; no buying or selling other poultry; none moves in commerce
Producer/grower Up to 20,000 Raised and processed on your premises; sold only in your state; labeled with name, address and Exempted P.L. 90-492; no buying or selling other poultry
Direct to households, restaurants and hotels Up to 20,000 Sold only in your state, straight to household consumers, restaurants, hotels and boardinghouses; the same label
Small enterprise Up to 20,000 Slaughtering or cutting up whole birds or parts sold in your state; labeled in full, without an inspection mark
Over 20,000, or sold out of state Inspection

Inspection itself is in usda meat inspection requirements, and the hazards in processing in poultry haccp plan.

The rules

Rule Where
Own raising 1,000 poultry a calendar year of the producer's own raising on their own farm, no buying or selling other poultry products, none moving in commerce (9 CFR 381.10(c); 21 U.S.C. 464(c))
Producer/grower Raised and processed on the producer's premises, distributed only within the state, labeled with name, address and Exempted P.L. 90-492, no buying or selling other poultry (381.10(a)(5))
Direct sales Distributed only within the state, straight to household consumers, restaurants, hotels and boardinghouses, with the same labeling (381.10(a)(6))
Small enterprise Slaughtering or cutting up for carcasses or parts within the state, not misbranded, without the inspection legend (381.10(a)(7))
Limits No (a)(5) to (a)(7) exemption above 20,000 poultry a year, or at a facility another person uses, unless FSIS approves an application (381.10(b))

This is general information, not legal advice.

An example: which exemption fits

Hickory Bottom Farm, the made-up pastured poultry farm in Missouri I use in these examples, raises meat chickens from May to October, processes them on the farm, and sells them frozen at a market, to three restaurants and as 10-bird shares. Its owner checked each option against 1,760 birds a year:

Option Fits? Why
The 1,000-bird exemption No 1,760 birds is over 1,000
The producer/grower exemption Yes All raised and processed on the farm, all sold in Missouri, under 20,000
Buying a neighbor's birds to fill restaurant orders No Buying other poultry would end the exemption
Processing at a neighbor's setup Only with FSIS approval A facility another person uses needs an approved application
A restaurant across the line in Kansas No Exempt poultry is sold only in the state

Every bag carries the farm's name and address and "Exempted P.L. 90-492", and the farm holds the license its state asks for. The Kansas restaurant would need birds from an inspected plant. The farm's year is in chicken business plan.

Get the checker

Download the poultry exemption checker. One sheet: the birds you'll process this year, whether all are your own raising, whether you buy or sell other poultry, whether any leave the state, and whether another person uses your processing facility; what can fit fills in. It's an ordinary Excel file with no macros, and it works in Google Sheets, LibreOffice and Numbers.

Where this stops working

The checker sorts the exemption. Counting the year's birds, labeling every bag, and knowing which processing day went to which restaurant are the records that back it up.

How TaroStack does it

TaroStack keeps each processing day as a lot, so the year's count and every buyer are on record.

Lots by processing day. Each day's birds are a lot with the date and the count.

Frozen birds by date. Orders take the oldest lots first by default.

Recalls. If a processing day goes wrong, one report shows every restaurant and customer who got its birds.

The job Notebook In TaroStack
Birds processed this year Added up from notes From the lots
Which birds go out first Dates on the bags First-expired-first-out
Who got a day's birds Invoices One recall report

Lots, first-expired-first-out and recalls are on every plan, from $49 a month. The first 30 days are free, with no credit card. If you'd like a hand setting up, ask, and we'll do it with you.

Questions people also ask

How many chickens can I process without inspection?

Up to 1,000 of your own raising under one exemption, and up to 20,000 a year under the producer/grower exemption, sold only in your state.

What does Exempted P.L. 90-492 mean?

It's the statement exempt poultry carries, with the producer's name and address, in place of the inspection legend.

Can I sell exempt poultry to restaurants?

Within your state, under the producer/grower or direct-sale exemptions; check your state's own rules too.

Can exempt poultry be sold across state lines?

No: exempt poultry is sold only within the state; out-of-state sales need inspection.

Sources

  1. 9 CFR 381.10: exemptions for the producer/grower who raises and processes poultry on its own premises and distributes it only within the state, labeled with name, address and Exempted P.L. 90-492, buying or selling no other poultry; for direct sales within the state to household consumers, restaurants, hotels and boardinghouses; for small enterprises cutting up poultry within the state; none above 20,000 poultry a year or at a facility another person uses without approval; and 1,000 poultry of a producer's own raising, none moving in commerce · read October 19, 2026
  2. 21 U.S.C. 464(c): the statutory exemptions, the 20,000-poultry limit and the 1,000-poultry exemption for producers with poultry of their own raising on their own farms · read October 19, 2026

We use AI to help with the research for these articles. Every one is read, checked against its sources and edited by Koa before it's published. Spot a mistake? Tell us and we'll fix it and say so. How we write these.

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