The Senate’s Agriculture, Veterans Broadband, and Rural Development Committee on Monday heard a bill (SF391) from State Senator Bill Lieske (R-Lonsdale) to make it easier for Minnesota’s small food entrepreneurs to sell their homemade goods.
“This bill is about making life easier for home-based food businesses and small sellers,” Sen. Lieske said. “People should be able to turn their passion into a business without jumping through hoops, whether they’re selling at a farmers’ market, online, or shipping orders across the state. We’re cutting unnecessary restrictions and giving these businesses the flexibility they need to succeed.”
The bill includes a number of updates to the state’s cottage food laws:
- More flexibility for small business owners – The law previously only applied to “individuals,” meaning people had to sell under their own names. This bill allows people to create small businesses to sell under the same cottage food rules.
- More selling options – Right now, cottage food sellers can sell at farmers’ markets, community events, or from home (if local laws allow). This bill allows sellers to ship their food through mail or delivery services, which wasn’t allowed before. Sellers can also take online orders, as long as they include a notice that the food is homemade and not inspected.
- Higher earnings before extra regulations – Currently, a cottage food seller must get a food license if they make more than $78,000 per year. This bill raises the cap to $85,000, giving sellers more room to grow without added red tape.
- More small sellers exempt from fees – Right now, anyone making under $5,000 per year in cottage food sales doesn’t have to pay the state’s $50 annual registration fee. The bill raises this exemption to $8,500, meaning more small sellers won’t have to pay.
- Allowing sales of homemade pet treats – The bill expands the Cottage Food Law to include homemade pet treats for dogs and cats. Sellers must register with the state and label their products clearly, but they can now legally sell homemade, baked, or dehydrated pet treats without needing a separate pet food license. These treats must be safe for human consumption as well as for pets.
- Pet treats can be shipped – Just like homemade food, pet treats can now be delivered by mail or commercial delivery services, giving pet treat businesses more ways to sell their products.
In addition, the Minnesota Department of Agriculture will now be required to report every two years on the sales cap, the registration fee exemption, and how those numbers would change if adjusted for inflation, ensuring the law stays fair and keeps up with the economy.
The bill was laid over and will be considered as part of a larger bill dealing with agriculture issues later in session.
ADDITIONAL MEDIA