Farmers' Market Management Network » Market Management http://fmmn.org Working cooperatively to enhance Ohio farmers’ markets Mon, 30 Jan 2012 21:19:40 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Reporting of SNAP Transactions to the IRS http://fmmn.org/2011/08/24/reporting-of-snap-transactions-to-the-irs/ http://fmmn.org/2011/08/24/reporting-of-snap-transactions-to-the-irs/#comments Wed, 24 Aug 2011 14:41:00 +0000 admin http://fmmn.org/?p=1356 An update from FMC, for farmers’ markets that accept SNAP:

Earlier this year, IRS issued a final rule on “Information Reporting Requirements Payments Made in Settlement of Payment Cards and Third Party Network Transactions” (6050W for short). Many of you have been eagerly awaiting a final word regarding the reporting obligations of markets operating [...]]]> An update from FMC, for farmers’ markets that accept SNAP:

Earlier this year, IRS issued a final rule on “Information Reporting Requirements Payments Made in Settlement of Payment Cards and Third Party Network Transactions” (6050W for short). Many of you have been eagerly awaiting a final word regarding the reporting obligations of markets operating scrip systems. Are they required to issue 1099s to each individual farmer to whom they reimburse token purchases?

Since early spring, FMC has been engaged in discussions about potential interpretations and implications, and, with the help of pro bono legal guidance and the research efforts of members like the Farmers’ Market Federation of New York, gone back and forth with officials in IRS and USDA. In early June, staff in Maine Representative Chellie Pingree’s office took the lead on a letter on behalf of fourteen House members urging IRS to clarify their interpretation and eliminate uncertainty around the requirements. By the way, below this message is a list of those Representatives, so that you can send them a thank-you email!

I’m writing today to let you know that the saga reached a new milestone last week when the IRS came to determination about how farmers markets operating scrip systems are to be considered for purposes of reporting electronic transactions.  In short, it’s good news. Below is text, reviewed and developed in cooperation with IRS, about how they interpret the 6050W rule.

Farmers Markets Requirements Concerning IRS 6050W

A central payor in a farmers market scenario may have an obligation to issue information reports (via a 1099-K) documenting payments made to market stall merchants if their relationship meets the definition of a third party network and if the number and amount of the transactions exceeds certain thresholds.

A third party network is any arrangement which involves the establishment of accounts with a central organization by a substantial number of persons (50 or more, according to the legislative history). Third party network arrangements, in a farmers market context, may include scrip currency programs. In such arrangements, customers use electronic payment to receive approved scrip from a central payor (the farmers market), which is then exchanged for goods with individual market stall-holders, who are reimbursed by the central payor (the farmers market).  Third party network transactions are reportable only if total annual transactions with respect to a particular payee exceed $20,000 and 200 in number.


Thus, small farmers markets (those with 50 or fewer stall merchants) are not subject to 6050W because they are not third party networks.  Larger farmers markets that constitute third party networks are subject to 6050W only to the extent that payments to a particular stall merchant involve more than 200 transactions and exceed $20,000.  (Note: “transactions” refers to the exchange of scrip between farmer and farmers market, not between customer and farmer).


Documentation:
A central payor is responsible for keeping books and records to substantiate that he/she is exempt from 6050W information reporting as a third party network. The primary reasons a small farmers market would be outside the scope of 6050W would be because (1) there are not a “substantial number” of farmers (fewer than 50) to whom a central payor is making payments, (2) payments to any given farmer in the market by such a central payor do not exceed $20,000 in a calendar year or (3) transactions by any given farmer (in which the farmer exchanges redeemed scrip for cash by the central payor) do not exceed 200 in a calendar year.  Depending on the sophistication of the central payor (farmers market), much of this information is already being kept.  Information about the number of vendors to which the central payor makes payment, the number of transactions with each vendor, and the total amount paid out are all relevant items for documentation.  This information should be collected and maintained for each calendar year beginning January 1, 2011.  For more specific legal and taxation advice, farmers markets should seek services of a qualified tax professional.

More information about Internal Revenue Code section 6050W can be found on the IRS web site.  Third party networks subject to full reporting requirements under 6050W can preview form 1099-K here.

 

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]]> http://fmmn.org/2011/08/24/reporting-of-snap-transactions-to-the-irs/feed/ 0 Farmers’ Markets at Ohio Rest Areas http://fmmn.org/2011/07/16/farmers-markets-at-ohio-rest-areas/ http://fmmn.org/2011/07/16/farmers-markets-at-ohio-rest-areas/#comments Sat, 16 Jul 2011 13:49:50 +0000 admin http://fmmn.org/?p=1232 Ohioans are being presented with the unique opportunity to pilot farmers’ markets at four Ohio rest areas. The four potential locations are:  

Interstate 71 at New Brunswick (mile marker 224); Interstate 70 in Licking County (mile marker 131 by Buckeye Lake); Interstate 75 in Hancock County (mile marker 153 by Findlay) State Route [...]]]> Ohioans are being presented with the unique opportunity to pilot farmers’ markets at four Ohio rest areas. The four potential locations are:
 

  1. Interstate 71 at New Brunswick (mile marker 224);
  2. Interstate 70 in Licking County (mile marker 131 by Buckeye Lake);
  3. Interstate 75 in Hancock County (mile marker 153 by Findlay)
  4. State Route 2 on the Lorain/Erie County line.

 
In order to gauge interest in the program, please fill out the survey linked below. Each market will need a farm market manager so please indicate in the survey if you are interested in being that person. Each market will also need to be registered through ODA as a farmers’ market (registration is free) and each vendor will have to follow ODA’s Division of Food Safety regulations for farmers’ markets.

 

Click here to fill out the survey.

 

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]]> http://fmmn.org/2011/07/16/farmers-markets-at-ohio-rest-areas/feed/ 0 FMMN To Spotlight Successful Ohio Markets http://fmmn.org/2011/06/27/fmmn-to-spotlight-successful-ohio-markets/ http://fmmn.org/2011/06/27/fmmn-to-spotlight-successful-ohio-markets/#comments Mon, 27 Jun 2011 04:49:25 +0000 admin http://fmmn.org/?p=1195 The Farmers’ Market Management Network wants to tell the story of successful markets . FMMN will take nominations to shine a spotlight on the markets who are achieving their missions particularly well, even in smaller communities. To celebrate National Farmers Market Week, August 7-13 we will be selecting six (6) markets around Ohio to [...]]]> The Farmers’ Market Management Network wants to tell the story of successful markets . FMMN will take nominations to shine a spotlight on the markets who are achieving their missions particularly well, even in smaller communities. To celebrate National Farmers Market Week, August 7-13 we will be selecting six (6) markets around Ohio to feature.

Does your market excel at one or more of the following?:

  • Number of farmers or acreage of farmland in production for the market
  • Innovative community partnership (eg with local nonprofit, hospital,school, etc.)
  • Strong integrity around concept of locally grown/enforcement ofproducer-only rules
  • Measurable economic impact (to rural producers and/or to region at large,with SEED or other economic analysis)
  • Engagement opportunities for children
  • A role as a small business incubator (eg part time farmers becoming full time)
  • SNAP/EBT redemption growth
  • At least eight months into a successful FMPP grant
  • Wide product diversity/preservation of heirloom varieties
  • Instances of civic engagement and volunteerism

Nominate an exceptional market by July 15, 2011.  Tell us in an e-mail.

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]]> http://fmmn.org/2011/06/27/fmmn-to-spotlight-successful-ohio-markets/feed/ 0 Adams County Explores Starting a Farmers’ Market http://fmmn.org/2011/06/20/adams-county-explores-starting-a-farmers-market/ http://fmmn.org/2011/06/20/adams-county-explores-starting-a-farmers-market/#comments Mon, 20 Jun 2011 16:43:19 +0000 admin http://fmmn.org/?p=1187 If you are a producer or know producers who are still looking for markets in which to participate, here is another opportunity. Adams County is exploring starting a farmers’ market. If you are interested in participating, please contact Cynthia Brown at info@hopespringsinstitute.org or via telephone 937-587-2602. Please include your name, contact information (phone and/or [...]]]> If you are a producer or know producers who are still looking for markets in which to participate, here is another opportunity. Adams County is exploring starting a farmers’ market. If you are interested in participating, please contact Cynthia Brown at info@hopespringsinstitute.org or via telephone 937-587-2602. Please include your name, contact information (phone and/or e-mail) and what you produce. Cynthia will contact you to discuss the market.

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]]> http://fmmn.org/2011/06/20/adams-county-explores-starting-a-farmers-market/feed/ 0 Implications of IRS electronic payment reporting requirements http://fmmn.org/2011/04/19/implications-of-irs-electronic-payment-reporting-requirements/ http://fmmn.org/2011/04/19/implications-of-irs-electronic-payment-reporting-requirements/#comments Tue, 19 Apr 2011 17:18:13 +0000 admin http://fmmn.org/?p=1158 A few short weeks ago, the Farmers Market Coalition became aware of a new Final Rule related to IRS reporting requirements for electronic transactions. This regulation, ‘Information Reporting for Payments Made in Settlement of Payment Card and Third Party Network Transactions,’ (6050W, for short) requires that all payments, including EBT, debit, and credit sales, [...]]]> A few short weeks ago, the Farmers Market Coalition became aware of a new Final Rule related to IRS reporting requirements for electronic transactions. This regulation, ‘Information Reporting for Payments Made in Settlement of Payment Card and Third Party Network Transactions,’ (6050W, for short) requires that all payments, including EBT, debit, and credit sales, be reported to the IRS (via 1099K, a form they are currently creating) by the merchant processing companies facilitating these transactions (such as J.P. Morgan, ACS, or Fidelity). Essentially, this is to ensure that the IRS receives an annual record of all the incoming electronic transactions conducted by merchants, whether they’re hardware stores, cafés, farmers markets, or farmers themselves. Nonprofits are not exempt from reporting requirements, according to the IRS.

Read the full story for a detailed analysis of how this will be affecting markets and vendors.

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]]> http://fmmn.org/2011/04/19/implications-of-irs-electronic-payment-reporting-requirements/feed/ 0 Wireless EBT at Farmers Markets to Get Federal Support http://fmmn.org/2011/02/26/farmers-market-coalition-%c2%bb-blog-archive-%c2%bb-fmc-thanks-obama-for-supporting-wireless-ebt-at-farmers-markets/ http://fmmn.org/2011/02/26/farmers-market-coalition-%c2%bb-blog-archive-%c2%bb-fmc-thanks-obama-for-supporting-wireless-ebt-at-farmers-markets/#comments Sat, 26 Feb 2011 21:57:17 +0000 admin http://fmmn.org/?p=1109 On February 14th, 2011, President Obama released his proposed budget for FY 2012. Despite more than $3.2 billion in proposed discretionary cuts to the overall USDA Budget, the President showed some Valentine’s Day love for farmers markets by including $4 million in his proposed budget for USDA Food and Nutrition Service for providing wireless [...]]]> On February 14th, 2011, President Obama released his proposed budget for FY 2012. Despite more than $3.2 billion in proposed discretionary cuts to the overall USDA Budget, the President showed some Valentine’s Day love for farmers markets by including $4 million in his proposed budget for USDA Food and Nutrition Service for providing wireless POS devices to farmers markets.

The Farmers Market Coalition issued a letter of thanks to the President, Secretary Tom Vilsack, Deputy Secretary Kathleen Merrigan, and administrators in the Food and Nutrition Service.

Read the full story.

FMMN is a member of the Farmers Market Coalition, in our continuing efforts to bring resources to Ohio Farmers’ Markets.

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]]> http://fmmn.org/2011/02/26/farmers-market-coalition-%c2%bb-blog-archive-%c2%bb-fmc-thanks-obama-for-supporting-wireless-ebt-at-farmers-markets/feed/ 0 FMC Newsletter http://fmmn.org/2011/01/11/fmc-newsletter/ http://fmmn.org/2011/01/11/fmc-newsletter/#comments Tue, 11 Jan 2011 18:12:18 +0000 admin http://fmmn.org/?p=991 The latest edition of the Farmers’ Market Coalition Newsletter offers some interesting reading plus a insurance webinar series.  Read More

In This Issue: A New Year Letter from the Board FMC Announces Insurance Webinar Series to Start January 31 FMC Seeks Resource Librarians Successes to Celebrate in Food Safety Legislation FMC Welcomes Newest Members [...]]]> The latest edition of the Farmers’ Market Coalition Newsletter offers some interesting reading plus a insurance webinar series.  Read More

In This Issue:
A New Year Letter from the Board
FMC Announces Insurance Webinar Series to Start January 31
FMC Seeks Resource Librarians
Successes to Celebrate in Food Safety Legislation
FMC Welcomes Newest Members
FNS Funds Research on Farmers Markets & SNAP
Community Funded Incentive Galvanize Portland Communities
SquareUp: New Smartphone POS Technology
Marketshare Upgrades Offer Improved Impact Evaluation Tools
FMC Welcomes Intern Drew Love

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]]> http://fmmn.org/2011/01/11/fmc-newsletter/feed/ 0 Ohio Farmers’ Market Conference http://fmmn.org/2010/01/31/ohio-farmers%e2%80%99-market-conference/ http://fmmn.org/2010/01/31/ohio-farmers%e2%80%99-market-conference/#comments Mon, 01 Feb 2010 01:12:05 +0000 admin http://fmmn.org/?p=545 March 4-5, 2010 at the Ohio Department of Agriculture in Reynoldsburg

We have partnered with Ohio State University South Centers and the Ohio Department of Agriculture to present Ohio’s first statewide farmers market conference.  This two-day conference will cover topics such as direct marketing,  insurance and funding.

Farmers’ market managers and vendors are invited [...]]]> March 4-5, 2010 at the Ohio Department of Agriculture in Reynoldsburg

We have partnered with Ohio State University South Centers and the Ohio Department of Agriculture to present Ohio’s first statewide farmers market conference.  This two-day conference will cover topics such as direct marketing,  insurance and funding.

Farmers’ market managers and vendors are invited to attend to network and share ideas that will improve their market.  Members of the Farmers’ Market Management Network will receive a discount on conference registration.

See all Details at:  http://ohiofarmersmarkets.osu.edu/conference.htm

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]]> http://fmmn.org/2010/01/31/ohio-farmers%e2%80%99-market-conference/feed/ 0 Defining and Defending a Producer-Only Market http://fmmn.org/2010/01/27/defining-and-defending-a-producer-only-market/ http://fmmn.org/2010/01/27/defining-and-defending-a-producer-only-market/#comments Wed, 27 Jan 2010 20:19:26 +0000 admin http://fmmn.org/?p=540 One of the most challenging aspects of running a market can be defining and enforcing a producer-only market policy. This winter, Farmers Market Coalition dove into the often murky and controversial waters of producer-only market enforcement on behalf of its market managing readers in search of the answers to a few frequently asked questions: [...]]]> One of the most challenging aspects of running a market can be defining and enforcing a producer-only market policy. This winter, Farmers Market Coalition dove into the often murky and controversial waters of producer-only market enforcement on behalf of its market managing readers in search of the answers to a few frequently asked questions: What does it mean to be a producer-only market? Should producer-only markets be advertised as such? What problems can a producer-only market expect to encounter? And lastly——are there any good solutions to these problems?

http://farmersmarketcoalition.org/producer-only/

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