New Laws May Allow for Home-based Food Businesses
Times they are a changing! Until recently if you wanted to start a food business you had no choice but to rent or build out a commercial kitchen before you could get started – neither of which is cheap. Some states though have passed laws that may make it possible for you to start your small food business in the comfort of your own kitchen.
Loosely known as Cottage Food Laws, there is a movement across the U.S. to allow home-based food businesses to be licensed and sell their products to the public. On it’s face value this is wonderful news to anyone who has ever wanted to start a small food business but hasn’t wanted to commit to the cost of renting commercial kitchen space. Currently, the following states have passed Cottage Food Bills: Arkansas, Iowa, Kentucky, Maine, Massachusettes, Michigan, New Hampshire, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, Utah, Vermont, Virginia, Wyoming. Alabama and Indiana also allow bakers to make products in their own kitchens for sale exclusively at farmers’ markets.
While each state differs somewhat, in most cases production of food at home is limited to non-potentially hazardous products which may include, depending on the state, baked goods that don’t require specific storage temperatures, pickled products, jams, jellies, and other items such as granola, and candy. Before you get too excited though be sure to read the fine print for your state. Some states require that your home kitchen be licensed by a health department official while others let you operate out of your kitchen without any oversight. Some won’t allow kids or pets in the same facility as your home kitchen which is not too feasible if you have kids or pets in your home (and plan on keeping them!). Some limit where you can sell your products and others put limits on how much revenue your business can bring in during a year which, after you take out your costs, may not make it profitable for you.
A handful of other states, Arizona, Florida, Illinois, New Jersey, South Dakota, and Washington, have similar laws pending in their legislature right now. Advocates argue that allowing small food producers to utilize their own kitchens will create jobs and businesses, promote locally-produced goods, and help the economy grow. On the flip side, some argue that home based kitchens have a higher likelihood for passing along food borne diseases if they aren’t kept to the same high standards as commercial kitchens and bakeries (though it’s often noted that Iowa, which instituted cottage food laws back in 2005, has had only one instance in food poisoning from a home-based kitchen since the law was enacted).
All in all, while these cottage food laws don’t take out all the obsticles to starting a food business, it does provide entrepreneurs with some new options. This is certainly a great option to anyone just starting out who wants to test the market without committing to renting commercial kitchen space – assuming of course that you live in one of the above states!
This sounds way to simple for CT to even consider…how on earth would you get your health permit fees. Health and Safety certainly are issues but the state is killing small start-up/looking to start-up business in this state. Your commercial kitchen now can’t even be an up-grade to your existing one…all separate…really… and the price for that is $$$$
I live in CT and bake and it has been so hard to get a license since we don’t even have test or incubator kitchens I am wondering if there’s any way to start a bill or something so they can consider the Cottage food bill here, if anyone has any info that will be great. Thanks
Diana,
While the exact procedures for getting a bill to be considered by your state’s legislature will depend on your specific state’s constitution and procedures, I am trying to reach out to some of the folks responsible for bringing Cottage Food Bills to pass in other states and hopefully will be able to write about them in the coming weeks.
In the meantime though, if anyone else here has any thoughts or experiences please do share!
Thank you so much for your input please keep me posted I am very interested on this and want to be involve as possible and willing to find support for it here in CT
To be honest, I was *shocked* when I read that Washington was considering this. But upon closer inspection it would only be good for businesses that make less than $5000 annually from their home-baking business. That’s not enough revenue – especially after you take out your costs – to do much of anything for anyone.
I get that the states are concerned with health and safety and I totally respect that. I just wish there was a way to do that without forcing small businesses to jump through numerous hoops (all of which are expensive) to get started.
Very interesting information – what type of laws exist in Canada concerning this subject?
Susan, I don’t know but I’ll look into it and get back to you later this week…
Boo Hoo Colorado! We like to make at home too!
Actually, Colorado is trying to get the law passed right now…here’s the facebook page behind that movement.
This are fantastic news for me! We just started and are blooming!
Do you have information about Texas?
This page has the most up-to-date information about every state’s Cottage Food Law (updated as of July 2012). http://smallfoodbiz.com/how-to-start-a/home-based-food-business/
Hello,
I live in CT, Would like to know is there any law allows people to cook and sell food from home .
To the best of my knowledge, as of 2012, Connecticut does not allow for home-based food businesses with the exception of those businesses which operate on a residential farm (ie, farmer grows the product and that gets turned into jam onsite).
Hi, thank you for your comments. I am also in CT and currently investigating the practicalities of starting a food business and it seems our state is putting up particularly high hurdles.
You know, I don’t know if it will help at all but a few months ago I did an interview with the woman (civilian) who helped push the Cottage Food Bill through in Washington State. http://smallfoodbiz.com/2012/08/16/the-woman-behind-washingtons-cottage-food-law/
We just created a FB page for CT please support us by linking the page and sharing it with all your friends, Thanks Jennifer for all the info and help. https://www.facebook.com/CottageFoodLawCtMovement
what about Rhode Island i didn’t see there name as one of the states for the cottafe food law i would lov eto start a small business in my kitchen but i dont see rhode island on the list or trying to get on the list thanks debi
Rhode Island does not currently have a Cottage Food Law that would enable you to start a food business from your home kitchen. You may want to take a look at this article about what one civilian is doing to change the law in Louisiana.
Anyone know about Montana and what, if any, laws there are?
Unfortunately, I don’t think Montana currently has a Cottage Food Law at this time.
Update in CT a State Rep submited a bill to talk about the Cottage Food Law is HB-05815 we are also promoting to sign a petition on Change .org here is the link https://www.change.org/petitions/state-senator-martin-looney-support-a-cottage-food-law-in-ct-house-bill-hb-05815
Thanks – I’ll put something up on Facebook about it for next week too.
Any idea on what is the status for NJ? I really want to start my baking business but it’s really hard to find rental kitchen in Central NJ. If only they would allow me to bake out of my own home!
I actually don’t know where the NJ bill currently stands. There is a NJ Cottage Food Facebook page though and they probably can provide much more information.