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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!)


This has been a helpful website, but im still a little confused as to what im all allowed to sell under this law. Just basically no meats and nothing that needs to be kept refridgerated? And i need to have a food handlers card, thats it. And with a farmers market or public parks permission its legal for me to do? Because this sounds too good to be true haha. Is there a link to a list of foods that go into detail this law covers? Just in case :)

    It’s not exactly too good to be true… you don’t need a license from the ag or health dept, but there may be other things you need to start a business, like a business license.

    Also, farmers markets or other events might have their own requirements, such as getting insurance.

    As far as allowed foods, this law only covered baked and confectionary goods that are non-perishable. However, not all products that fall under that category are necessarily allowed. For borderline products, you should contact the ag dept for more info. If you want to ask me about a specific kind of product, I can probably give you a good idea about whether or not it would be allowed.

Hello! I want to sell fudge made with cricket flour. Is this allowed under the new law or is it considered meat? Thank you!

    I’m not even sure the laws about this have been written yet. But generally speaking, the problem with meat and soy is the protein involved, and I’d expect similar concerns with cricket flour when mixed with water/milk/etc. My guess is that you won’t be able to sell this with the basic cottage food law, and you might not even be able to with a domestic kitchen license either. You should contact the ag dept for more information.

Love your site! Can you tell me the difference between selling baked goods on the Internet, versus advertising on the Internet? If someone in another state finds my website and contacts me to place an order, is this selling on the Internet? Thanks!

I really appreciate what you are doing here! But unfortunately, this website contains some misleading information concerning Oregon’s Farm Direct Marketing Rules.

For instance, Jams and Jellies are listed as being prohibited here. But within the Oregon Department of Agriculture’s FAQ list it states that they are exempt.

Can I make preserves in jars and sell them without a license?

If you grow the principal ingredients yourself, the Farm Direct Marketing Rules exempt shelf-stable products, including syrups, jams, preserves, jellies, and canned fruit, from ODA licensing. In some cases pickles, chutneys, relishes, sauerkraut, and some salsas may be sold under this exemption.



Some PDF files concerning the subject:

Farm Direct Marketing Producer Processed Products:

Farm Direct Agricultural Products:

ODA’s website (for complete up-to-date information):


Can partnership operate under under CFO? There are two of us and we want to try sell our homemade baking goods. Just wonder if we can work together under the same business name or each of us have to get own business licence? Thank you!

    Although this isn’t allowed in some states (like CA), I don’t see anything that would prevent it here. You can apply for a partnership when you get your business license. However, this might limit you to $20,000 of sales for the two of you, which doesn’t seem ideal. You should contact the ag dept to see if that would be the case.

Hi David, I own a small business where I go to people’s homes and cook for them. However, I’ve been wanting to start making baked goods/desserts in my own home to sell at markets and to my clients. I have a food handlers card and business licenses for my local city. Do I need anything else to start selling the goodies? Thank you for having this amazing site! It’s been super helpful!

First, I think this website is great! Easy to read and understand. I’m looking to start selling homemade baked goods in Oregon. To start doing this, you don’t need a business license or inspection from the health department, right? As long as you follow the regulations, you can sell your items at farmer’s markets/events (with their permission, I assume). Just want to make sure there’s no other preliminary steps other than the food handler’s card and prep work like making labels and such.

I spoke with a person at Oregon’s Dept. of Ag, who is one of the inspectors. She tells me fruit pies are not allowed at farmers markets from the unlicensed kitchen. What is it about fruit pies that requires refrigeration? I know I can do these to order. Just curious. Thanks,

    That doesn’t seem right. Are you sure that she’s aware of SB 320? If so, what did she say is allowed? I think you should press more for details… the law clearly says that non-PHF baked goods are allowed.

    Thanks David. I agree with you, but will leave them out for now, as they are really labor-intensive. We start tomorrow, and I’ve got more than I can handle as it is. I’ll see how this market goes. Oh, and she had thoroughly read the law before we talked, so this might be something we disagree on. More later, and wish me luck tomorrow!

I want to sell cupcakes at Farmer’s Markets… I have a dog but he is not in the house when I bake… I also have just passed the Food Handler’s License test… should I carry the certificate when selling? What else do I need to carry with me? Knowing all the above, does this sound like I am covered?