If you are researching Oregon cottage food law, you are looking at a state with three parallel paths for home-based food sales. Oregon does not have a single "cottage food license." It has a Cottage Food Exemption (ORS 616.695), a Farm Direct Marketing Law (ORS 616.706 et seq.), and an optional Domestic Kitchen License from the Oregon Department of Agriculture (ODA). This guide compares the three and tells you which fits your operation.
At a Glance
- Cottage Food Exemption (ORS 616.695): no license, no registration, $0 fee, $52,700 gross annual cap for 2026 (CPI-indexed from $50,000 base, SB 643 effective Jan 1, 2024)
- Farm Direct Marketing Law (ORS 616.706): farmers only (must grow the principal ingredients), no license, $50,000 processed-value cap; allows acidified and fermented foods
- Domestic Kitchen License: optional alternative, $208/yr, for operators outside the exemption (higher volume, broader foods, out-of-state shipping)
- Food handler card: required for all paths (OHA-issued or local health department, max $10, valid 3 years)
- Online sales / in-state shipping: allowed under the exemption. Out-of-state shipping is not.
Overview: Three Separate Legal Paths
Cottage Food Exemption — ORS 616.695
The broadest path for most home-based food sellers. No license, no registration, no ODA inspection unless a complaint arises. You may produce and sell non-potentially-hazardous (shelf-stable) foods directly to consumers. The annual cap is $52,700 for 2026, indexed to inflation from the $50,000 base that SB 643 set effective January 1, 2024.
Farm Direct Marketing Law — ORS 616.706 et seq.
A parallel exemption specifically for farmers who sell value-added products made from ingredients they grow themselves. Covers fruit jams, jellies, preserves, syrups, acidified foods (pickles, salsas, hot sauces with pH ≤ 4.6), lacto-fermented foods (sauerkraut, kimchi), plus raw produce, dried herbs, herbal teas, syrups, and juices. $50,000 annual processed-value cap.
Domestic Kitchen License (Bakery or Food Processor)
An optional ODA license ($208/yr for FY2025-26) for operators who need to operate outside the exemption — for example, higher revenue, broader food categories, or out-of-state shipping. Catering from a domestic kitchen remains prohibited even with this license.
Allowed and Prohibited Foods (Cottage Food Exemption)
Allowed
- Breads, cookies, cakes, pastries without cream fillings
- Candies and confections
- Dry mixes, granola, cereals
- Dried herbs, spices, dried fruit and vegetables
- Jams, jellies, fruit butters (non-refrigerated, high-acid)
- Nut butters (shelf-stable)
- Dry pasta
- Roasted coffee, dry tea blends
- Honey
NOT Allowed Under the Cottage Food Exemption
- Any TCS (time/temperature-control-for-safety) food
- Meat, poultry, seafood, dairy
- Low-acid canned goods (common misconception — these are NOT allowed under the exemption)
- Acidified foods (pickles, salsas) — these fall under Farm Direct Marketing Law only, for farmers growing the principal ingredients
Labeling Rule (Cottage Food Exemption)
Each product must include, in 10-point type minimum with contrasting color:
- Producer name and address
- Product name
- Ingredients in descending weight order
- Allergen disclosures
- Net quantity
- The exact statement: "This product is homemade, is not prepared in an inspected food establishment and must be stored and displayed separately if merchandised by a retailer."
Food Handler Card — Required
Every cottage food operator must hold a current food handler card issued by the Oregon Health Authority or a local public health department. Out-of-state cards are not valid. Maximum cost: $10 per ORS 624.570. Card must be obtained within 30 days of starting sales and is valid for 3 years.
Sales Channels
Cottage Food Exemption — Allowed
- Direct-to-consumer from home, farmers markets, community events
- In-state online orders and mail-order delivery
- Retail stores that display cottage food products in a separate section with the required disclaimer (per the labeling rule)
Not Allowed Under the Exemption
- Out-of-state shipping (requires Domestic Kitchen License)
- Hot/TCS foods of any kind
- Catering
Step-by-Step: Operating Under the Cottage Food Exemption
- Verify your products qualify as non-potentially-hazardous under ORS 616.695 and OAR 603-025-0215.
- Obtain an Oregon food handler card within 30 days of starting sales.
- Design compliant labels with the full statutory disclaimer.
- Set up a clean, sanitary home kitchen (ODA retains inspection authority on complaints).
- Sell through authorized channels, keeping delivery within Oregon.
- Track gross annual sales to stay under the $52,700 cap (2026).
Common Mistakes
- Assuming Oregon requires everyone to get a Domestic Kitchen License — the license is an alternative, not the default. Most home-based sellers qualify for the Cottage Food Exemption or Farm Direct Law instead.
- Selling low-acid canned goods under the exemption — these are prohibited. Acidified foods are allowed only under Farm Direct and only for farmer-growers.
- Shipping out of state without a Domestic Kitchen License.
- Operating without a current food handler card.
- Using an incomplete disclaimer that omits the "stored and displayed separately" clause.
FAQs
Do I need a license under Oregon cottage food law?
Not under the Cottage Food Exemption (ORS 616.695) or the Farm Direct Marketing Law. Both are exemptions — no license, no registration, no fee. A Domestic Kitchen License ($208/yr) is an optional alternative for operators who need to sell foods outside the exemption, exceed the cap, or ship out of state.
What is the 2026 sales cap?
$52,700 gross annual sales under the Cottage Food Exemption, CPI-indexed from the $50,000 base set by SB 643 (effective Jan 1, 2024). Farm Direct Marketing Law has a separate $50,000 processed-value cap.
Can I sell acidified or fermented foods?
Only under the Farm Direct Marketing Law, and only if you grow the principal ingredients. Low-acid canned goods are prohibited under every home-based path — they require a licensed commercial facility.
Can I ship cottage foods?
In-state online orders and in-state delivery/mail are allowed under the Cottage Food Exemption. Out-of-state shipping requires a Domestic Kitchen License.
Is food handler training required?
Yes. An Oregon Health Authority or local-health-department food handler card is required within 30 days of starting sales. Maximum $10, valid 3 years.
External Resources
- ODA Cottage Food Exemption FAQ (March 2026)
- ODA Home (Domestic) Kitchen Licensing
- OSU Extension EM-9192 — Oregon's Cottage Food Exemption
- OSU Extension EM-9205 — Farm Direct Marketing Law
- ORS 616.695 — Cottage Food Exemption
Internal Links
Final Thoughts
Oregon offers some of the clearest statutory exemptions for home-based food sales in the country, but the three-track system (Cottage Food Exemption, Farm Direct, Domestic Kitchen License) is easy to confuse. Most home bakers belong under the Cottage Food Exemption. Farmers with their own produce should look at the Farm Direct Law. Only choose the Domestic Kitchen License if you need to operate outside both exemptions. Verify current rules against the ODA Cottage Food Exemption FAQ before making label or sales-channel decisions.