Idaho Cottage Food Laws: A Thorough Introduction

Idaho Cottage Food Laws provide a framework for home-based food entrepreneurs to legally sell made-from-scratch foods to the public — without incurring the startup costs associated with an established brick-and-mortar restaurant. Small-scale, home-based food businesses promote local economies and give smaller producers of locally sourced food products a way to get their homemade edibles in the hands of their community.
These laws allow individuals the opportunity to earn a living, while doing the work they love in their own kitchens and backyards — and at the same time provide consumers with fresh wholesome homemade food. Most cottage food laws require products to be made from shelf-stable ingredients requiring no refrigeration so sales are generally permitted at farmers’ markets, within the state, and/or directly to consumers. Cottage food laws likewise address labeling, handling, and storage requirements.
Idaho’s cottage food law was enacted by the state legislature in 2011 allowing individuals to: The Idaho State Department of Agriculture (ISDA) defines a cottage food as "nonpotentially hazardous foods that do not require time or temperature control for safety." …or in other words , foods that do not require refrigeration for safety purposes. ISDA says it does not review notes and package labels.
It is important to note the standard for passing Idaho’s food safety requirements is based on risk. Higher risk foods require a higher level of management, knowledge, and control. Lower risk foods are safe for the average home baker or canner with minimal knowledge of food safety techniques.
Food that falls within the categories of potentially hazardous, which includes dairy products, canned vegetables and meats, and cooked foods and other nonhighly acidic foods, is subject to more extensive regulatory oversight. "Potentially hazardous foods require time and temperature control for safety," per ISDA.
In addition to standards for passing the more stringent potentially hazardous food test, Idaho food safety law includes requirements for the type of facility where food is produced and sold. There are two categories of producers: home-based and retail establishments.
Idaho’s cottage food law does not allow potential hazardous food to be produced in a home-based facility and sold. Additionally, any food sold must be either:
Home-based producers are allowed to sell foods they deemed as nonpotentially hazardous foods under the food safety law from their homes. Only certain cottage food producers may sell their food and beverages directly to consumers.

Idaho Cottage Food Laws: Permitted Food Categories

Idaho cottage food laws permit the production and sale of a fairly short list of items, all of which must be non-potentially hazardous. As such, the focus is on goods that are shelf-stable, such as baked goods, jams, and candies.
The following is a list of foods that can be produced and sold, either directly or at farmer’s markets and cottage food fairs: In addition to these food options, the law also allows for the use of preservatives, flavoring agents and certain additives as long as they are "generally recognized as safe by the U.S. Food and Drug Administration." Based on this statement and the fact the law allows products like butter and cheeses to be sold, it appears the cottage food law is somewhat liberal in terms of the products that are permitted. For instance, though it is not explicitly listed, it appears as though home-baked goods containing potentially hazardous items such as eggs or dairy could theoretically be sold under these laws.
Things not allowed under the law include acidified foods, fruit butters and dried produce, as well as raw milk and raw milk products. Fruit butters are those jams and jellies that have a smooth texture and are made with pureed or ground fruit, not whole fruit. Mold-ripened cheeses (e.g. Brie and Camembert) and soft cheeses (e.g. queso fresco, Farmer’s cheese and Neufchâtel) are also not permitted under the law, nor is canned fruit and vegetables, canned spaghetti sauces, dried fruits, dried vegetables, pickled vegetables and honey.
Any foods that require temperature control for safety, such as meat and poultry, fish and shellfish, and other products that are susceptible to contamination, are not allowed under the cottage food law.

Idaho Cottage Food Laws: Regulatory Oversight and Obligations

Idaho Cottage Food Law will require that producers comply with certain regulatory requirements. These include obtaining the necessary permits and licenses and following labeling rules.
Permits and licenses
Food permit.Food business license.Just because a cottage food producer may be operating a "cottage food business" instead of a "food establishment" (as those terms are defined in Idaho law) does not mean that a food producer is exempt from needing to be licensed to sell food products. Idaho’s food establishment law requires that food establishments have a license to operate. But under Idaho Code § 39-1601(7), cottage foods are excluded from the definition of food establishments. Therefore, cottage foods need not be licensed as food establishments under Idaho law. Alternatively, a food producer can obtain a food business license to be licensed to produce both cottage foods and foods that require food establishment licensure.
Labeling
According to USDA’s Food Safety Inspection Service, labeling for cottage foods can be both tricky and easy to navigate. The agency’s policy states that "food products that are made at home (e.g., in a private home kitchen) for sale at home or for sale at roadside stands or public places are generally not subject to USDA oversight. The same is true for food products that are made at ‘cottage industries’ and sold at farmers markets or other public places. State laws and local ordinances govern the sale of these food products, and many of these laws exempt production and sale from inspection. However, some of these products may fall under food safety requirements imposed by local jurisdictions, such as retail food laws, or, if made under federally inspected conditions, be subject to USDA food labeling requirements." Clearly, there is some conflict between federal and state regulating agencies as to when labeling requirements take effect and what those labeling requirements entail. Anyone considering labeling food products for sale should be aware of the labeling requirements of any federal and state laws and regulations that might apply.

Idaho Cottage Food Laws: Distribution and Retail Limitations

The Idaho Department of Health & Welfare lists several restrictions regarding the sale of foods made in home kitchens under the Cottage Foods Law.
You may only sell cottage foods directly to consumers. This means no wholesaling or distributing through third parties is allowed unless you are selling directly to a consumer, or the consumer is purchasing your cottage foods on location (for example at a farmers market).
Direct to consumer sales may include providing your cottage foods at:
• A farmer’s market or roadside stand.
• Your own business, such as an inn, bakery, or bed and breakfast.
• An event where direct sales to consumers is the primary function (i.e. sampling is permitted).
• An agri-tourism event, such as a farm or ranch open house, barn dance or other similar event.
• Directly from your cottage food operation unless your local health district specifically prohibits it.
Idaho law also requires that cottage foods be sold from inside your home or on your property, so things like a food truck or a roadside stand are prohibited under the current Cottage Foods Law.
Many cottage food producers use the internet to market and advertise their businesses, and they may even "sell" cottage foods online. However, with regard to Idaho’s Cottage Foods Law, even if you’re not accepting payment for your cottage foods through your website, the internet can only be used to advertise, not to sell, cottage foods.

Idaho Cottage Food Laws: Safety and Handling Protocols

Food handling and sanitation are critical components of selling cottage foods safely. Cottage food producers in Idaho must adhere to common food safety standards, such as maintaining a sanitary work environment and safe food handling practices. This includes keeping raw and cooked/processed foods separate to prevent cross-contamination, keeping cottage foods at the proper temperature, making sure cottage foods are packaged with protective wrapping to avoid contamination, and ensuring that cottage foods are sold in a sanitary manner. Selling cottage foods in a place where pets are allowed (such as your own home) is a sound practice; however , it is important to keep in mind that you shall take steps to protect your foods from contamination.
Currently, no specific training or certification in food sanitation techniques is required in Idaho; however, anyone who produces cottage foods should be well-versed in safe food handling and sanitation procedures for their specific food product. For those interested in taking steps to sharpen their understanding of the latest food safety techniques, training is available through programs such as ServSafe.

Idaho Cottage Food Laws: Advantages and Disadvantages

Operating under the Idaho cottage food laws can offer several benefits for entrepreneurs, but business owners should also be aware of the challenges. The biggest advantage to the law for cottage food operators is that they can save a considerable amount of money by avoiding the cost of commercial kitchen rental. Startups don’t need to go through the same extensive permitting process as food service businesses, so their startup costs are low.
However, there are some limitations with the law that could hamper growth. Under the law, there are restrictions on what types of food can be sold. Cottage food law only applies to specific types of food that are non-hazardous (such as baked goods that don’t require refrigeration) and even those foods must be sold from your home or at a community event. Therefore, if your goal is to sell retail from commercial space, then you will still have to go through an extensive permitting process and cover the associated costs.

Idaho Cottage Food Laws: Recent Developments and Emerging Trends

Within the last year, Idaho has taken a hard look at their cottage food laws. They have not been lax in updating their cottage food laws either. All those 2015 amendments we just covered? Their checkered past began as recently as July 15, 2015, when a bill addressing three main issues of the cottage food laws, was signed into law:

  • (1) Clarifying which specific products are not included under the definition of "food employees" and thus not included in the cottage food law.
  • (2) Making clarifications about a cottage food producer’s obligations surrounding food samples, labeling, and allergen safety.
  • (3) Allowing cottage food producers to sell frozen fruits and vegetables if, and only if, they process them as if the "are canned, pickled, fermented, smoked, or otherwise thermally processed."

In December 2015, the Idaho State Department of Agriculture (ISDA) published a revision of its cottage food business application, which includes new requirements for Idaho cottage food producers. Unfortunately, rather than making the qualifying for Idaho’s cottage food program less stringent, the ISDA has caused more headaches for cottage food producers. In addition to providing proof of completion of a food safety training program and the $50 registration fee, cottage food producers are now required to submit proof of cottage food insurance. This insurance must include coverage for property damage and/or bodily injury , including food-borne illness. Coverage must provide no less than $100,000 per occurrence and $300,000 in annual aggregate. Further, the application requires the name of an insurance agent or company so that the ISDA can, at any time, request for proof of insurance. The ISDA clearly intends to keep cottage food producers accountable for adhering to the cottage food law.
Though simply keeping all aspects of the law in mind while you read the new application will help you prepare for becoming an Idaho cottage food producer, keep in mind that as the demand for cottage food continues to grow, and as the popularity of e-commerce and online food sales catch on in Idaho, the ISDA may propose and/or the Idaho State Legislature may enact rules and laws that are more accommodating to cottage food producers. For instance, other states, such as Florida, have recently amended their cottage food laws to allow for online sales where producers are allowed to send products through the mail. Other states have passed legislation allowing cottage food producers to sell directly to customers at fairs, markets, or at the farm by a roadside stand, without having to acquire any permits or pay any fees. If, and when, this happens in Idaho, you’ll want to review any new requirements that may apply.