A: Cash cards can be loaded with a value, then the recipient may use all, or a partial amount of that value towards a purchase of anything in the LOGAN FARMS store. The recipient may also reload the card if desired. The drawback to the Cash cards versus the Product cards is that we do not give discounts on the Cash cards, whereas the Product cards enjoy substantial discounts based on the quantity purchased

A: There are a few very good reasons for this. In the interest of simplicity, we will try and keep our discussion of it concise.

Economic: First, about five years ago hams sold for around $45. Today, they retail for about $64. Redeeming voucher-style gift cards older than 5 years puts us at a distinct economic disadvantage, primarily because the cost of the products we sell (pork, poultry, beef) can fluctuate dramatically from year to year. This trend (increased costs) always moves upward on the financial scale (against our favor), and never down.

Financial: Secondly, when un-redeemed gift cards stay on the books from year to year, they reside on our balance sheet as a ‘liabilities’. When they are redeemed, and only when they are redeemed, are they listed as ‘revenue’. This will be true for any business offering gift cards. Assume a business sells, say $200,000 in gift cards each year, and $10,000 of these cards end up being un-redeemed each year. After 5 years, that would mean that there would be $50,000 in ‘outstanding debt’ a business could rack up on its financial statement. LOGAN FARMS has been in operation since 1984. This would result in quite a large chunk of liabilities we would be saddled with, should we just never expire them, so we expire these cards every five years, and release ourselves from this debt.

Federal Law: Several years ago the US Congress adopted national standards that would protect gift cards consumers, the “Credit CARD Act of 2009,” and under that statute a gift card must remain current and active for a minimum of five years. We clearly state our policy to any company or individual wishing to purchase gift cards from us. The 5-year duration of the gift cards is an important aspect of the terms and conditions agreed to by both parties at the time of sale.

Regulatory: Lastly, and always important, there are state and Federal laws governing the sale of gift cards. The IRS and many state tax authorities clearly define that a tax must be paid on the gift card at the time it is redeemed. LOGAN FARMS bears this responsibility, then, upon redemption. Should un-redeemed cards float around without expiration, the government cannot collect the taxes it deems due, so we expire un-redeemed cards after 5 years, and then pay taxes to the government on that amount.