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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?


Top 10 Mistakes To Avoid When 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!)


I am interested in making and selling Vanilla extract in my cafe that I own (certified kitchen) can I do that? do I need to involve OLCC for the liquor I will have on hand for supplies?

    I know that you can do that with your commercial kitchen, but I’m not sure how. This law is geared towards those who don’t have a commercial kitchen to use. You should contact the health dept to determine the best way to sell your extract.


I want to sell baked cookies at a farmers market. Once I get my food handlers card do I need to prepare at a commercial kitchen or can I do from home?

I rent a space at a resale shop (Vintage store / Flea Market) and I volunteer to work some days. Could I sell my baked goods on the days I work without getting a domestic kitchen license? If so, what else would I be required to do.

    Probably not, but this law is so new that I haven’t heard the ag dept’s stance on gray areas like this. You should contact your ag dept to see if they will allow it.


Was wondering if you had any further information on the updated cottage food laws for Oregon for 2016? You had mentioned that they would make it “easier” for starting a home-based food business, but I’m wondering if the updates have indeed taken effect, and if so, what changes have occurred between existing law and the new law.


Hi there,

I’m interested in making and selling vegan “cheeses” from my home and I’m curious as to what kind of license I’d need. My raw vegan cheeses are typically made of cashews (pureed) and various seasonings. They basically function like thick nut butters or spreads. However, like most vegan cheeses, they need to be refrigerated maintain freshness.

I noticed in the description above that it says “Almost any kind of [cottage] food is allowed, including products that require refrigeration.” I just wanted to make sure that statement was accurate in my case…

Hi, I was wondering what are the rules on selling frozen cookie dough that is ready to be baked by the end user. I want to sell online and they would be shipped in refrigerated boxes. Is this legal under this food law?
Also can you use the cottage food license to bake out of a rented commercial kitchen space?

    I think you can do that with this law, but you may not be able to ship out-of-state. I also think you can use a commercial kitchen with a cottage food license, but you should talk with the ag dept about the best method for starting your food business.

From my understanding of what I just researched, if I make individually-sized candy for immediate consumption (caramels with locally sourced honey), I do not need a license? Are there limitations, special labeling, etc I need to do? Can I mail them to friends in another state?
Thanks for your help!

    You do not need a license from the ag dept, but you may need other licenses to run a business:

    There are no limitations or labeling requirements, but I believe that “immediate consumption” means that you would not be able to ship them. You definitely wouldn’t be able to ship them out-of-state.

I am wanting to start a pet baked treats business from home. Does that require a license of any type or kitchen inspection?
Thank you!