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Cottage Food Law

Oregon’s new cottage food law (SB 320) went into effect on January 1st, 2016, which makes starting a cottage food operation much easier. Although the new law comes with many more restrictions, those who want more flexibility can still get a Domestic Kitchen license. Also, Oregon’s Farm Direct Bill allows farmers and growers to bypass many requirements.

Starting a cottage food operation in Oregon is relatively simple, requiring only food handlers training, with no license or inspection from the ag department needed. However, operations can only sell up to $20,000 of non-PHF baked and confectionary goods each year. Also, indirect sales (via stores and restaurants) and online sales are prohibited.

Some types of food are completely exempt from agriculture department licensing, like candy and honey (see Product section).


Although you cannot sell products online, you can use the internet to advertise.

If you want to sell your products in stores, restaurants, or online, you can get a domestic kitchen license.

Starting a cottage food business?


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Allowed Foods

Only non-PHF baked and confectionary goods are allowed under this law. If you want to sell more types of products, you can get a domestic kitchen license. If you grow the main ingredient in your product (e.g. you grow strawberries and make strawberry jam), you may be able to use Oregon’s Farm Direct Bill.

Some products are exempt from ag department licensing:

  • Candy, candied apples, and other non-PHF confections*
  • Coffee, tea, and other non-PHF drinks* (does not include fresh fruit juice)
  • Honey
    • All direct sales to a consumer are exempt
    • Indirect sales (wholesale) are exempt if the producer owns no more than 20 hives, but the producer must apply for the exemption
  • Pet food that does not contain meat

* must be sold in individual-sized portions, for immediate consumption only

Only "non-potentially hazardous" foods are allowed, but certain non-PHFs may not be allowed. Most foods that don't need to be refrigerated (foods without meat, cheese, etc.) are considered non-potentially hazardous. Learn more


Sales are limited to $20,000 per year

You must keep annual sales records for at least three years, including the types of foods produced.

To sell more than $20,000 of products per year, you can get a domestic kitchen license.


Food handler training program

Each person who prepares food for the business must complete a food safety training course to acquire an Oregon food handler card. The test can be taken online for $10.


Sample Label

Chocolate Chip Cookies

"This product is homemade and is not prepared in an inspected food establishment."

Forrager Cookie Company

123 Chewy Way, Cookietown, OR 73531

Phone: (123) 456-7890

Ingredients: enriched flour (wheat flour, malted barley flour, niacin, iron, thiamin mononitrate, riboflavin, folic acid), butter (cream, salt), semi-sweet chocolate (sugar, chocolate, cocoa butter, milkfat, soy lecithin, natural flavors), brown sugar, granulated sugar, eggs, vanilla extract (vanilla bean extract, alcohol, sugar), baking soda, salt (salt, calcium silicate)

Contains: milk, eggs, wheat, soy

NET WT 2 lb 4 oz (1.02 kg)

If the label makes any health claims (low-fat, cholesterol-free, etc), a nutrition label is required.


Department of Agriculture
635 Capitol St. NE
Salem, OR 97301
Law Dates
January 2016
SB 320

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Starting a cottage food business?


Top 10 Mistakes To Avoid When Starting A Cottage Food Business

(Some of them just might surprise you!)


So which license would be required for buying Wilton’s chocolates and melting them into chocolate molds and selling them?

    This is a incorrect statement. A WSDA processors license is reciprocal in Oregon. Once a product is prepared and packaged in a WSDA food processing facility, once it crosses state lines it can be sold to anyone, public, private, wholesale, retail. ANYWHERE just so long as it remains in its original state from when it left the licensed facility. Some non potentially hazardous items are exempt from any special licensing at all and can be sold to the public, regardless.

    Added comment. If you were to apply for a Cottage food license, then, yes, you are not allowed to sell product across state lines. A Dept. Of AG license is the best way to go as it offers many more benefits vs. Cottage food license. It just depends on your individual needs.

    Thanks for amending that Carol. This site is only focused on cottage food info, and there are very few instances where cottage food products may be sold interstate.

The OR farm direct law (or cottage food law) is only direct to end user, NOT restaurants and retail stores. “Farm Direct rules do not change licensing requirements for selling through stores, restaurants and institutions. Licensing is still required for wholesale activities. “

    Here is our page for Farm Direct (it’s an inconspicuous link at the top — sorry).

    This page is for the rules about domestic kitchens, and I can’t find any information about venues, so I think I assumed that all were allowed, especially since it appears that domestic kitchens are considered to be food facilities. Do you have any info that shows that sales at retail stores and restaurants by domestic kitchens are not allowed?

If I am preparing medibles in my home kitchen for dispensaries or OMMP patients do I need to be licensed? These items are not for sale, they are reimbursement only.

    I am not completely sure in Oregon, but usually medically-related products are excluded from cottage food laws and require special licensing. You should definitely check with the health department about this, as I’m pretty sure the cottage food law will not apply to you — but there may be some other exemption for preparing these items at home.

Hi I want to do middle eastern sweets like Backlava, middle eastern cookies etc.. Would I need a license to start from my home kitchen?

Would I need to be licensed if I was offering homemade baked goods in return for donations for the Humane Society or other charities not actually “selling” the goods?

    The cottage food law would not apply to you in this case. There is actually a special exemption for these kinds of fundraisers, and you wouldn’t need a license to do this. You only need to put out a sign notifying people that these are homemade goods, and the items should be individually wrapped in your kitchen beforehand (i.e. you shouldn’t be handling the food onsite).

    Low-acid canned foods are not allowed, and I believe that sauerkraut would fall under this category, so it’s not allowed. But you can call the ag dept to make sure.

    Lori, sorry for the confusion. Those would definitely not be allowed under any cottage food law. The term “treats” (which I know I should change) is meant to refer to baked goods like Rice Krispies treats. Cottage foods cannot require any temperature control, either hot or cold.