Sellers of homemade jams, baked goods and more, get higher sales limits and more delivery options.

Selling homemade food has long been part of Michigan’s economy. For some in the cottage food business, it’s supplemental income and for others it’s their primary source of income. Recently, updates to the Cottage Food Law brought welcome changes for small-scale producers of homemade goods. Here’s what House Bill 4122 and Senate Bill 93 mean when they go into effect March 24, 2026.

More ways to sell product

Previously, food sales required in-person delivery; most often this meant direct sales to consumers at roadside stands and farmers markets. HB 4122 opens up new ways to sell product, including online sales to in-state consumers, mail order and delivery by a third party.

Sellers making sales online do have to provide an opportunity for consumers to directly interact through two-way communication before a sale is made, such as with a video call or virtual meeting.

A higher annual sales threshold for licensing

For cottage food producers who have seen prices for everything from ingredients to packaging go up, SB 93 is welcome news. It increases the annual sales threshold for licensing from $25,000 to $50,000. If the product you sell is $250 or more per unit, the new sales limit is $75,000. The limits will be adjusted annually for inflation each October 1.

Food producers can diversify

There’s good news for folks with more than one specialty or multiple food entrepreneurs in the same household—you can now have more than one cottage food operation per residence.

New to the cottage food business?

If you’re planning to start a new cottage food business or diversifying your product offering, check out these two resources:

• Guide to Foods that Can and Cannot Be Cottage Foods from the Michigan Department of Agriculture
• Selling Food In Michigan: Quick Reference Guide from Michigan State University Extension

Also, when setting up your business, open a business checking account to separate your business transactions from personal ones. Separate accounts help track business spending and income more accurately and can make tax preparation simpler.

 

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