Selling homemade food at farmers markets, roadside stands, or directly to neighbors operates under a different regulatory framework than packaged food sold in grocery stores. State cottage food laws — not federal FDA rules — typically govern the labels. This guide explains what\'s required, what\'s exempted, and when you need to graduate to full FDA compliance.
Two Different Frameworks
Homemade food businesses navigate two regulatory layers:
- Federal FDA labeling — applies to packaged food sold in interstate commerce or through retail.
- State cottage food laws — apply to direct-to-consumer sales of homemade food within a single state, generally exempting sellers from full FDA nutrition labeling.
If you operate entirely within one state, selling directly to consumers at farmers markets and similar venues, your state\'s cottage food law typically applies. If you ship across state lines, sell to retailers for resale, or exceed your state\'s sales limit, federal rules apply.
What Cottage Food Laws Typically Require
Even under cottage food exemptions, every state requires a basic label including:
- Product name — what the food is, in plain English
- Ingredient list in descending order of predominance by weight
- Allergen disclosure — the 9 major allergens (milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soybeans, sesame)
- Producer name and address — full name and physical address of the home-based seller
- "Made in a home kitchen" statement — specific language varies by state but the disclaimer is universally required
- Net weight or volume in standard units (ounces, pounds, fluid ounces, milliliters)
What\'s Allowed Varies Wildly By State
Cottage food laws differ significantly. Most states permit baked goods, jams, jellies, dry mixes, honey, and similar shelf-stable products. Prohibited items in most states:
- Meat and poultry products (USDA jurisdiction, not state cottage food law)
- Dairy products requiring refrigeration
- Cream-filled or custard-filled baked goods
- Pickled foods with low acidity (botulism risk)
- Fermented beverages (kombucha, beer)
- Any product that supports bacterial growth without refrigeration
Each state has its own specific list — see our cottage food laws by state guide for details.
Sales Limits Range From $25K to $250K
Most states cap cottage food revenue. Above the limit, you must obtain a commercial food permit and comply with full FDA labeling. Examples:
- Michigan: $25,000 annual limit (raised from $15K in 2024)
- Illinois: $36,000 annual limit
- Texas: $50,000 annual limit
- New York: $50,000 annual limit
- California: $50,000 (Class A — direct sales) or $150,000 (Class B — indirect retail sales with permit)
- Florida: $250,000 annual limit (raised from $50K in 2021 — highest in the U.S.)
Scaling From Cottage to Retail
Cottage food laws are designed as starter ladders, not long-term homes for food businesses. When you outgrow them (exceed sales limits, want retail distribution, or want to ship across state lines), you need to:
- Obtain a commercial kitchen license from your state\'s agriculture or health department
- Generate full FDA Nutrition Facts labels for every product — use our free generator
- Implement allergen control protocols in your production environment
- Comply with state cottage-to-commercial transition rules (varies by state)
Many successful cottage food brands operate under exempt rules for 2-3 years, then transition to commercial scale once their product-market fit is proven. Our FDA Requirements Guide covers what changes at that point.