Cottage Food Law Updates Effective August 1, 2021

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On May 17, 2021, the Minnesota House and Senate passed SF 958 that contains the policy portion of the House and Senate Agriculture Committee omnibus bills. Policy items passed in the bill included updates to the Cottage Food Law (MS Sections 28A.152 and 25.391) effective August 1, 2021. Key changes included:

    • An exemption for cottage food pet treats (MS section 25.391) for individuals who prepare and sell home-processed pet treats for dogs and cats, provided certain conditions are met.
    • A higher cap on Tier 2 annual gross receipts of $78,000.
    • An increased cap on Tier 1 annual gross receipts. This amount is currently $5,000 but will be adjusted by January 1, 2022, based on the consumer price index using 2002 as the index year. This means the Tier 1 gross receipts cap will increase in 2022.
    • Individual registrants may organize their cottage food business as a business entity recognized by state law.
    • Labeling must include the individual’s name and registration number OR the individual’s name and address.
    • All product labels must also include the statement, “These products are homemade and not subject to state inspection.”
    • Water activity value of .85 specified in what makes a food non-potentially hazardous.

The on-line training for Tier 1 producers has been updated to reflect the recent changes in Cottage Food Law and will be available on August 1. In addition, Tier 1 producers must pass an exam based upon the updated training material annually to register.

Please take time to familiarize yourself with these changes. More information can be found on the MDA Cottage Food Registration page and the Cottage Food Law Guidance page. If you have questions regarding this announcement, please email mda.foodlicensingliaison@state.mn.us.

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