The facility rule
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What 507 is
Current good manufacturing practice, hazard analysis and risk-based preventive controls for food for animals. The animal-food counterpart to the human food preventive controls rule.
The qualified facility exemption
"Except as provided in subpart D of this part, subparts C and E of this part do not apply to a qualified facility." That removes the hazard analysis and preventive controls subparts, not the whole rule.
And what remains
Qualified facilities "are subject to the requirements in 507.7". So the answer to "am I exempt" is never simply yes; it is exempt from these subparts and subject to that section.
The thresholds are not quoted here
What makes a facility qualified is a monetary definition that sits elsewhere in the regulations, and this property did not read it. Check it against your own numbers rather than assuming the exemption applies.
CGMP is the part people underestimate
Cleanliness, pest control, equipment design, water, training and records. For a small operation making feed supplements in a shed, this is usually the gap rather than the labeling.
It interacts with the ruminant ban directly
Separation of mammalian and non-mammalian protein, clean-out between runs, and written procedures are exactly the kind of thing CGMP is about. The two rules point at the same practices from different directions.
Records are the evidence
A practice you follow and cannot evidence is, to an inspector, a practice you may not follow. Both rules ask for written procedures, and the ruminant ban asks for a year of receipt, processing and distribution records specifically.
The exemption is about scale, not about care
A careful small operation and a careless one of the same size are both qualified facilities. The rule is sized to the business rather than to the practice, which means being exempt says nothing about whether the product is well made.
Write the procedures before you need them
Cleaning, pest control, training, water, equipment. Each is a page, and having them written is the difference between an inspection that goes well and one that goes on for a long time.