Hi,

I want to tell you about a big shift I’ve seen in the cottage food movement.

But before I do, I should mention that my last email contained a couple of mistakes*, which I’ve detailed below.

Last year, all (except one) remaining states filled in Forrager’s map. Now states are looking to strengthen their existing laws.

Cottage food bills keep getting more ambitious. Some of these bills would not have seen the light of day a few years ago.

For instance, the recent mini-restaurant law in CA is significant. And it’s not for reasons you might think. In reality, almost all Californians still cannot use that law.

But it is significant for what it represents. The ONLY reason the legislature could not ignore that bill is because there is growing demand for a law like that. And that demand is much stronger today than it was a few years ago.

Initially, cottage food laws faced resistance due to food safety concerns. But those problems have not materialized, and states are beginning to notice.

Now, the resistance is mostly based on fear of competition. That’s why bakers unions and grocer associations often lobby against cottage food laws.

But their lobbying efforts are typically under the guise of food safety concerns (since fear of competition is not a legitimate reason for stopping these bills). And with those concerns being largely debunked, it’s harder for lobbyists to find good reasons to oppose these bills.

In other words, the cottage food industry has an excellent track record so far, which allows states to explore new possibilities.

But it all stems from public demand for these cottage food businesses -- a demand that seems stronger than ever, now that entrepreneurs around the country have gotten a taste for what’s possible.

Keep up the good work!

David

* Here are the corrections to my previous email update about the new laws in 2019:

I incorrectly stated that the Institute for Justice was responsible for Maryland’s amendment this year. The Institute for Justice helped initiate last year’s cottage food law, but this year’s amendment was actually the work of an entrepreneur, a food co-op, and a couple of delegates.

Also, I missed Arkansas, which added an amendment this year which allows direct sales in other businesses (like grocery and retail stores).

P.S. Congrats to Texas, with their new amendment taking effect on Sept 1st. Texans can now sell many more types of homemade food, and can sell anywhere in their state!