Family faces $4 million in USDA fines for selling bunnies

By Bob McCarty
Big Government

Almost nine months after a Missouri dairy was ordered to stop selling cheese made from raw milk, I share details of another hare-raising story from the Show-Me State: John Dollarhite and his wife Judy of tiny Nixa, Mo., have been told by the USDA that, by Monday, they must pay a fine exceeding $90,000. If they don’t pay that fine, they could face additional fines of almost $4 million. Why? Because they sold more than $500 worth of bunnies — $4,600 worth to be exact — in a single calendar year.

About six years ago, the Dollarhites wanted to teach their young teenage son responsibility and the value of the dollar. So they rescued a pair of rabbits — one male and one female — and those rabbits did what rabbits do; they reproduced. Before long, things were literally hopping on the three-acre homestead 30 miles south of Springfield, and Dollarvalue Rabbitry was launched as more of a hobby than a business.

“We’d sell ‘em for 10 or 15 dollars a piece,” John said during a phone interview Tuesday afternoon, comparing the venture to a kid running a lemonade stand. In addition, they set up a web site and posted a “Rabbits for Sale” sign in their front yard. Most customers, however, came via word of mouth.

In the early stages, some of the bunnies were raised and sold for their meat. Much further down the road, John said, they determined it more profitable to sell live bunnies at four weeks old than to feed bunnies for 12 weeks and then sell them as meat.

“We started becoming the go-to people” for rabbits in the Springfield area, John said. “If you wanted a rabbit, you’d go to Dollarvalue Rabbitry.” He added that the family even made the local television news just before Easter in 2008 for a report about the care and feeding of “Easter bunnies.”

Initially, the Dollarhites sold the large, white, pink-eyed variety of rabbits. Eventually, however, they switched to selling a couple of different varieties of miniature rabbits, the mating pairs of which were purchased from breeders across the state. Not only did their “show-quality” miniatures reproduce well, but they ate less and seemed to be more popular with theme park visitors and retail buyers.

During the summer of 2009, the Dollarhites bought the rabbitry from their son who had grown tired of managing it. They paid him what he asked for it, $200. Things kept growing, however, and the Dollarhite’s landed a pair of big accounts in 2009.

A well-known Branson theme park, Silver Dollar City, asked the Dollarhites to have them provide four-week-old bunnies per week to their petting zoo May through September. When the bunnies turned six weeks old, they were sold to park visitors. The Springfield location of a national pet store chain, Petland, purchased rabbits from the Dollarhites as well.

In the fall of 2009, the theme park deliveries ended for the year and the Dollarhites scaled back their operation. At about the same time, the folks at Petland asked the Dollarhites to raise guinea pigs that the store would purchase from them. No big deal.

By the year’s end, the Dollarhites had moved approximately 440 rabbits and grossed about $4,600 for a profit of approximately $200 — enough, John said, to provide the family “pocket money” to do things such as eat out at Red Lobster once in a while. That was better than the loss they experienced in 2008.

Then some unexpected matters began demanding their attention.

It’s an understatement to describe the Dollarhites as being “beyond surprised” when, in the fall of 2009, a female inspector from the U.S. Department of Agriculture showed up at the front door of the family home, wanting to do a “spot inspection” of their rabbitry. She said she had come across Dollarhite Rabbitry invoices while inspecting the petting zoo at Silver Dollar City.

“She did not tell us that we were in violation of any laws, rules, anything whatsoever,” John said, explaining that the inspector said she just wanted to see what type of operation they had. Having nothing to hide or any reason to fear they were doing anything wrong, the Dollarhites allowed the inspection to proceed.

John said he had to go to work at the family’s computer store, so Judy took the inspector to the back of their property where the rabbits were raised. There, the inspector began running the width of her finger across the cage and told the Dollarhites they would need to replace the cage, because it was a quarter-inch too small and, therefore, did not meet federal regulations.

Such a requirement came as a shock to the Dollarhites, because they had just invested in new cages to ensure the bunnies had a healthy amount of space to develop, John explained. Though raising dwarf breed varieties of rabbits which require less space, they had opted to purchase cages designed for “large breed rabbits” so the dwarfs would have plenty of room. All for naught.

Not only was the cage too small, according to the inspector, but she noted a small rust spot on a feeder and cited it as being out of compliance. When the Dollarhites told the inspector that rabbit urine causes the cages to rust and that they worked hard to keep the rabbits cages in top shape, she told them it didn’t matter. The rust spot would count as an infraction.

The inspector then asked how the cages were sanitized, John said, and Judy explained how she moved the bunnies to travel carriers and powerwashed the cages, using bleach when necessary. Afterward, she allowed the cages to dry in the sun before putting the bunnies back inside them.

The Dollarhites’ practice was much safer than that used by some breeders who used blow torches to burn hair and manure from the cages — a practice that can lead to rusting metal and produce toxic fumes from burning metal.

During the course of the spot inspection, John said, the inspector asked his wife if she and John would like to have their operation certified by USDA. Judy said she wasn’t sure and asked what certification would entail and if it would help them sell more rabbits. The inspector responded, telling her it would involve monthly inspections and was completely voluntary. The inspection ended with the inspector telling Judy that the Dollarhites rabbits looked healthy and well-cared for.

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