By Samantha Siedow

Report for Minnesota

People who sell baked goods, jams and jelly, and other foods they make at home without a license would be allowed to sell more with fewer restrictions under a change being considered at the Minnesota Capitol.

Since 2015, Minnesota has allowed the sale of homemade products that are shelf-stable without refrigeration. Known as “cottage foods,” the products are officially defined as “non-potentially hazardous food and canned goods.” 

People registered with the Minnesota Department of Agriculture to make and sell cottage foods face fewer restrictions and food safety requirements than other larger businesses that are required to be licensed.

In 2024, there were 10,853 cottage food registrations, according to the ag department. 

This year Sen. Bill Lieske is proposing changes that would increase production capacity and reach for home food producers.

Lieske, a Republican from Lonsdale, wants to replace the word “individual” in the law with “person,” meaning cottage food business owners would no longer have to sell under their full legal name. The change would reduce personal liability by insulating the owner’s assets from claims against their business, Lieske said.

Another proposed change would allow cottage food businesses to ship their products for both humans and pets and accept online orders. The amendment would require the businesses to  display a message informing consumers their products are homemade and not subject to state inspection.

“I think that these changes are necessary because it allows those businesses to succeed and possibly grow and then enter into the world of commercial licensing,” Lieske said.

Jennifer Carriveau, vice president of the Minnesota Cottage Food Producers Association, a group that originally pushed to legalize the products, spoke in favor of the changes at a hearing last week.

“Now you look at rural communities that are in food deserts, and by not allowing them to ship, you’re decreasing food that’s available to Minnesotans,” Carriveau said. “You’re having a direct impact on the financial future of Minnesotans.” 

In 2019, 44 counties in greater Minnesota had at least 50% of their census tracts qualify as federally designated food deserts, according to a report by the Minnesota Department of Health.

Minnesota ranked 7th worst in the nation for the share of residents with access to healthy foods.

The changes proposed by Lieske would also allow producers to earn more before they are required to obtain a food license. Currently, businesses that earn more than $78,000 annually must get a license. The change would increase that cap to $85,000. 

The adjustment would account for the rising cost of living and business related expenses, Lieske said.

Steve Barthel, the director of government relations for the Minnesota Grocers Association, said expansion of the cottage food exemption could pose safety concerns for a consumer base that would be expanded beyond a local level.

“An online course just does not compare to having a fully licensed operation, with the equipment and with the inspections and with the food safety protocol that comes with being licensed,” Barthel said.

A bad batch of food from the uninspected kitchen of a cottage food seller could impact more than just the immediate community, Barthel said. 

When a food safety issue arises with a particular type of food, consumers often avoid purchasing anything in that category, he said. The expansion of cottage food retailers, especially with the inclusion of shipping, could lead to a decline in sales for retailers outside the affected area.

Lieske’s change would require the state ag department to submit a biannual report on the sales cap, the registration fee exemption, and how these numbers might change if adjusted for inflation.

Businesses making $5,000 or less annually are currently exempt from paying an annual $50 registration fee. The amendment would raise that cap to $8,500 before businesses are required to pay the fee.

The proposed changes are likely to be considered later in the session as part of a broader agriculture-related bill.

Report for Minnesota is a project of the University of Minnesota’s Hubbard School of Journalism and Mass Communication to support local news in all areas of the state.