Cottage Industry Law Improved
Oregon's New Law SB643 improves upon The Home Bakery Exemption originally created in 2016.
New Year, Better Law
This year’s Farmers Market Season benefits from new opportunity in Oregon.
Oregon started the new year with a big step up for the Cottage food industry, Back in June, 2023 Governor Kotek signed SB 643 raising the dollar limit for Cottage industry from $20,000 to $50,000 per year, making Oregon one of the best states for selling homemade food products. This according to Forrager.com a leading online resource for the Cottage Food Community.
NOTE: This information is provided for educational purposes only it is not intended to be legal advice. Anyone starting any kind of business is advised to seek appropriate council.
GATEWAY TO ENTREPREURISM
According to The Institute for Justice (IJ.com), the nation’s leading advocate for homemade food producers, Research shows that expanding cottage food laws will provide greater access to entrepreneurship for women, people of modest means, and those living in rural communities.
Cottage industry laws allow for the production and sale of homemade shelf-stable goods or “cottage foods” such as cookies, cakes, jams, and more. There are limits on how much a Cottage business can sell in a given year, Oregon had been among the lowest ranked among the 50 states with a sales cap of $20.000.00 and other restrictions. The new law, SB643, now elevates Oregon's Cottage Industry close to the top in 4 ways:
It raises the annual gross revenue cap for cottage food producers from $20,000 to $50,000.
Increasing sale opportunities, cottage food producers can conduct online sales, mail delivery and retail sales.
No longer requires Cottage Industry Businesses to list their home addresses on their food labels.
Removes the ban on pet owners from selling homemade foods. Pets must stays out of the kitchen during production.
THE BIG PICTURE
This new set of regulations affects one of the three laws that govern food sales from the homes and/or farms in Oregon. The other two laws are known as the Domestic Kitchen Law and the Farm Direct Law. Further details provided in the links below.
Farm Direct Law