Catharine Daniels, Attorney, OSU Extension Agricultural & Resource Law Program
Soon, farmer’s markets all over Ohio will be full of vendors selling a variety of products–from fresh fruits and vegetables to home baked goods. For vendors selling home baked goods, it can be tricky to understand the legal landscape at a farmer’s market. What laws apply? What type of license is required? What do you need to do to be in compliance with the law?
The first step to answering these questions is to determine how your baked items are classified under state law. Ohio law has two categories of regulation that include baked goods: cottage food regulations and home bakery regulations. Knowing which category your baked goods fall under will determine which laws apply to you. The major difference between the two is whether or not the baked good is considered “potentially hazardous” for consumption if not prepared and managed properly.
Cottage Foods
A “cottage food operation” is an operation in a person’s home (i.e., in the cottage) where food items that are not potentially hazardous are produced for sale. Ohio Revised Code section 3715.01(A)(19). Ohio law provides a list of baked goods that are cottage foods because they are not potentially hazardous: cookies, breads, brownies, fruit pies, cakes, unfilled baked donuts, granola and pizelles. (There are other types of food products included as cottage foods, but we will discuss those further in future posts.) Because these cottage foods do not pose high food safety risks, they are not highly regulated. A few important questions illustrate Ohio’s cottage food laws:
- If I want to produce and sell a cottage food, do I need a license from ODA?
No; the Ohio Department of Agriculture does not require a license if you plan to sell non-potentially hazardous “cottage foods” such as cakes, brownies, breads, fruit pies and cookies. No additional license is needed from the local health department where the farmer’s market is located.
- Will my home kitchen where I produce the cottage food need to be inspected?
No inspection is required for a home kitchen producing “cottage foods.”
- What do I need to do to sell my cottage food at a registered farmer’s market?
You must properly label the baked good (see specific labeling requirements here). The label must contain the statement: “This Product is Home Produced.” This alerts potential buyers that the food was produced in a private home that is not subject to inspection.
- Can I sell my cottage food at any farmer’s market?
Under the Ohio cottage food law, you may only sell cottage foods within the state of Ohio.
Home Bakeries
If you plan to produce “potentially hazardous” baked goods, then you must abide by Ohio’s regulations for “home bakeries.” The food safety risks posed by potentially hazardous foods lead to a higher level of regulation over Ohio’s home bakeries.
- What foods are “potentially hazardous” foods?
Potentially hazardous foods are those that are in a form capable of supporting rapid and progressive growth of infectious or toxigenic microorganisms–these are food products that require temperature control because they create risks for sickness if not prepared and handled property. Examples of potentially hazardous baked goods are cheesecakes, custard pies, filled donuts and cream pies – think of baked goods that typically need to be refrigerated.
- Do I need a license to operate a “home bakery”?
Yes, you are required to obtain a license from the Ohio Department of Agriculture to operate as a “home bakery.” There is an annual license fee of $10. Also, a local license will be required. Contact the local health department where the farmer’s market in which you will sell is located to obtain a license from them for selling the “home bakery” goods in their market. If you are selling cheesecake for example, not only do you need a home bakery license from ODA to produce the cheesecake in your home, but you will also need a license from the local health department to sell the product at the farmer’s market.
- Will my “home bakery” need to be inspected?
Yes. You will be subject to inspections by the Ohio Department of Agriculture. A few requirements a home bakery kitchen must meet include: being in good repair, being clean and easily cleanable, having no carpeted floors, being pest free, having no pets in the home, and having a mechanical refrigerator equipped with a thermometer.
- What foods may I produce in my “home bakery”?
In addition to being able to produce the potentially hazardous baked goods such as cheesecakes, custard pies and cream pies , you may also produce those baked goods that fall under the “cottage foods” definition–cakes, cookies, brownies, etc.
- What do I need to do to sell goods from my “home bakery” at a registered farmer’s market?
Just as with cottage foods, you must properly label all baked goods from a “home bakery” (see specific labeling requirements here).
- Can I sell my “home bakery” goods at any farmer’s market?
Maybe. Unlike cottage food products, a baked good produced under a home bakery license may be sold and distributed outside of Ohio. You may be able to sell your baked good at a farmer’s market outside of Ohio, but it is highly likely there would be additional requirements, such as obtaining a license from the local health department where the market is located.
The importance of good management practices
To make sure you’re in compliance with the law, it is best to check with the Ohio Department of Agriculture and your local health department when you are unsure about how your baked good is classified. It is also a good idea to check with the farmer’s market where you wish to sell your baked good for any additional rules or regulations they may impose for the venue. Also keep in mind the importance of using good production practices when creating your baked goods–a home bakery inspection helps ensure this. But if you’re not required to be inspected and licensed, utilize all information available to you to institute good management practices that will yield a safe food product.
For additional information on cottage food and home bakery regulation, visit the Ohio Department of Agriculture, Division of Food Safety.
Ohio Agricultural Law Blog 
Hello, I am selling cookies under cottage food operation and was wondering if I could also sell my items to a local gas station with a food mart for resell?
As long as the product is properly labeled, it may be sold to retail food establishments or licensed food service operations. Properly labeled products may also be sold directly to the consumer from the home where it was produced, through grocery stores, registered farm markets, registered farmers markets, and/or used in preparing food in a restaurant. The cottage foods may only be sold within the state of Ohio, however.
Hi, Thanks for this post! What kind of license do you need to sell cottage foods outside of Ohio?
To sell a cottage food product outside of Ohio, you will need to obtain a home bakery license. For more information on home bakeries, see our recent post: https://ohioaglaw.wordpress.com/2013/07/12/ohios-home-bakery-license-whats-required/.
Hello. I was wondering about the other food guidelines. Have you posted about this somewhere? I’m interested in making homemade hummus and other health foods to sell at a farmers market. Thanks.
We will actually have a post on the blog soon that explains how other food products, besides baked goods, are classified. In order to sell hummus at a farmers market in Ohio you would be required to produce the hummus in a licensed facility – it cannot be produced in your home and sold. A licensed facility would be a place where food is processed, packaged, manufactured, or otherwise held or handled for distribution to another location or for sale at wholesale. Licensed facilities are regulated and inspected by the Ohio Department of Agriculture.
Hello, I am a cottage food baker and I am looking to branch out an open a bakery. I am looking to do a 6 month test in the space before making the commitment and renovating. What would I or the landlord need to do to prepare? I will be making my goods and labeling them as I would normally, but selling from my potential shop front.
Thank you.
If you are not producing the baked goods in your home kitchen, then you will need to obtain a bakery license from the Ohio Department of Agriculture. Also, since this is a storefront, you will likely need to contact your local health department.
Two questions, if I have a licensed bakery, and I want to sell single-serving items (i.e a piece of angel food cake), do I need to put a label of ingredients, etc. on each of these small packages or is it ok to have a list of ingredients available for each product if the consumer asks? Second, are macarons an acceptable cottage food?
You would need to label each food item. Since macarons are a cookie, they would be considered a cottage food. However, the filling used in the macaron cannot require refrigeration if you want to produce it as a cottage food. If it does require refrigeration, you will likely need to obtain a home bakery license. For more information, contact the Food Safety Division at the Ohio Department of Agriculture: 614-728-6250.
Do I need a vendors license to sell for a cottage home baker? What about filing taxes on sold items?
If you are only selling your cottage food products from your home, then you do not need a vendor’s license. However, if you are selling your products somewhere else, such as at a farmer’s market, then you might be required to obtain one. You should check with whoever is in charge of the venue where you are selling, if you are selling outside of your home. As far as taxes associated with your cottage food business, you would likely treat it as being self-employed. You should contact a tax professional to fully understand the tax implications or contact the Ohio Department of Taxation for guidance: http://www.tax.ohio.gov/.
Hoping someone or perhaps you can point me into the right direction. I currently own a baby store but we are expanding to a play cafe. I have been searching trying to find laws about kids play cafe, coffee shop and foods. I am trying to understand that fine line of restaurant vs just a cafe with catered items and prepackaged foods.
I have a mom also wanting to sell cottage foods to me is this ok?
Any help would be amazing! Thank you!
What you describe would likely be considered a “Retail Food Establishment.” Rules for retail food establishments are found in the Ohio Revised Code Chapter 3717 found here: http://codes.ohio.gov/orc/3717. To operate a retail food establishment, you must obtain a license through either your local health department or the Ohio Department of Agriculture. I would start by contacting your local health department to get more information on how proceed with your plans.
Can I sell my homemade fresh pasta at farmers’ markets in Ohio?
You likely can, but you would first need to obtain a home bakery license. To obtain a home bakery license, you will first need to contact the Ohio Department of Agriculture Division of Food Safety to set up a home kitchen inspection. For more information on a home bakery license, visit: http://www.agri.ohio.gov/divs/FoodSafety/foodsafety.aspx#tog and http://aglaw.osu.edu/blog/fri-07122013-1019/ohio%E2%80%99s-home-bakery-license-what%E2%80%99s-required.
Thank you for all of your great information. I am considering preparing cottage foods for farmer’s market sales, but would like to know if I can also sell my products online? Would this be considered ‘out of state’ sales and require a license?
You may sell your cottage food products online, but the customer MUST be located in Ohio. You may not sell a cottage food product online to someone located out of state. If you want to be able to sell your products out of state, you would need to obtain a home bakery license.
Honey and honey comb are not considered cottage food products, but you do not need an additional license to sell honey, as long as at least 75% of the honey you jar comes from your own hives. You are required to obtain an apiary license from the Ohio Department of Agriculture if you keep one or more honey bee colonies in an apiary.
Thank you. I will definitely look into the apiary license from ODA. As I understand from you I would need to somehow limit online sales to Ohio customers only, which I’m not exactly sure how I would do that, or I would need to produce the items for sale in a licensed facility. Since I have pets I would not qualify for a home bakery license. Could I rent a licensed facility to make my apple butter and toffee or does the license need to be in my name?
Yes, you can likely rent space in a licensed facility to produce your products. You should contact the Ohio Department of Agriculture Division of Food Safety at 614-728-6250 to find out if any additional license would be required.
Also is honey and honey comb considered a cottage food?
Are you able to sell at local flea markets?
Yes, if you are properly licensed as a home bakery, you may sell your goods at a flea market. Be sure to follow the labeling requirements (see our other blog post about labeling).
What about under cottage food law?
Hi, I am planning to open a Fresh Produce Farm Market soon under the Cottage Laws for Ohio.
1. Can I sell my home baked cakes, whole and slices of sweet potato, peach cobbler and apple pies and zucchini bread products with proper labels under the Cottage law in my Fresh Produce Store front.
2. Can, I sell my zucchini bread batter frozen or do I need a different license?
3. To grow my business in the future, Can I sell a variety of veggie side dishes that I precook and freeze at home in plastic containers like (collard greens, Kentucky wonder green beans, candied yams under the Cottage Law at my Fresh Produce Market Store front?
Ms. Brown,
Some of the activities you are considering are not permissible under Ohio’s Cottage Food Law. I recommend that you read our cottage food law blog posts, which are available by searching this site or farmoffice.osu.edu/blog. You can also find several bulletins on our “Food Law” library shelf in the Ag Law Library, also available on the farmoffice.osu.edu site–the bulletin on selling food from the farm should be useful. I think you will need to confer with the Ohio Department of Agriculture Food Safety Division and your local county health department for some of your activities.
Peggy Hall