If you live in South Dakota (SD) and plan to sell homemade or homegrown food, it's essential to understand the state's cottage food laws. These South Dakota food service regulations are specifically for home-based food operations. SD cottage food law outlines how cottage food operations prepare, package, store, and sell non-potentially hazardous foods.  

Cottage food law also dictates what makers can and can't sell as a home-based food business in the state. Additionally, regulations keep cottage food operators from selling homemade products in grocery stores, restaurants, or wholesale.  

So, where can you sell cottage food products?  

South Dakota Cottage Food Law  

Under the South Dakota cottage food law, you can sell at South Dakota farmers markets, roadside stands, festivals, and events such as church bazaars. The food you can sell at a farmer's market or a roadside stand includes fresh fruits and vegetables, canned goods, and baked goods.  

Selling foods across state borders makes them subject to FDA jurisdiction. Online sales count as interstate commerce. You'll need to meet FDA food labeling requirements if you intend to sell homemade food online.

FDA-Compliant food labeling includes:

• Principal display panel
• Information panel
• Statement of identity
• Net content statement
• Ingredients statement
• Business information
• Contact Information  

In other words, you can only sell cottage food products locally in South Dakota. So, if you want to sell food products from your website, that will require further research.

Website for Kitchen-Based Creators

On the other hand, you could sell from your website and deliver locally. Creating a website is beneficial to all businesses as it gives you an opportunity to promote and market your products. Additionally, you can provide your customers with information about the farmers markets and events where they can buy your products.

Castiron provides a website platform for home-based food makers. It includes common allergens and diet tools to keep your customers safe. And the platform enables you to create and manage custom orders, estimates, invoices, and deposits.

You can market and track your business to make the whole process smooth and efficient.

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SDSU Extension Courses  

SDSU extension courses are an excellent free resource for home-based makers. The SDSU extension website covers various topics, from how to get a South Dakota food vendor license to what to expect from a South Dakota health inspector.

The agency's food preservation self-study course is one example of a resource for learning about preservation methods like pressure canning, water bath canning, freezing, and drying food. They also explore selling home-canned goods. Participants receive a certificate upon completing the course.

SDSU's extension website also covers topics such as dehydration and preserving herbs. Considering that herbs are some of the best sellers in the home-based food market, learning these techniques could open up new inspirations.

Department of Health Food Permit Application

South Dakota's Home-Processed Food Law passed in 2010 and expanded in 2011. The law requires homemade food sellers to pass food service inspections, fill out a food permit application, and pay a fee. It's a good idea to check the state food code for a list of definitions, so you're clear on what you need to know.

There are two sets of rules regarding selling homemade food in South Dakota. First, for makers who want to sell their products at home. You can sell food at home without a department of health food permit, but your gross annual revenue can't exceed $5,000.  

A South Dakota food handlers license is required for most activities. And South Dakota department of health licensure and certification allows you to sell directly to consumers at farmers markets, roadside stands, and events.

Direct Marketing Alternatives

South Dakota farmers markets are considered temporary food establishments by the SD Department of health food service. In addition to health and safety regulations, there are food sampling requirements and South Dakota farmers market regulations including:

• You must cut and prepare food samples on-site.  
• Food must be in good condition, with no spoilage or other contamination.
• You must use individual single-use containers or pre-portioned bite-sized foods.  
• You must use clean, sanitized utensils, deli sheets, or single-use gloves.
• Use sneeze guards or plastic coverings to protect open food products from contamination.
• You must provide a hand washing station.  

If food requires temperature control once it's cut or opened, it must be kept at or below 41°F for cold food or 140°F or above for hot food to ensure food safety. And, don't forget, you must obtain a department of health food license.  

These direct marketing alternatives benefit growers, makers, and consumers. SDSU Extension provides farmers and home-based food businesses with research-based industry information so you can explore operation and regulations topics.

South Dakota Cottage Food List

If you're thinking about selling honey in South Dakota, you can't sell it as a cottage food operation. There is a specific list of acceptable foods that you can sell according to South Dakota food service regulations. It includes:

• Fresh fruits and vegetables
• Dried herbs
• Dried fruits  
• Non-temperature controlled baked goods
• Acid and acidified canned goods

So, if you're wondering, "can I sell home-canned food?" The answer is yes, but there are rules.  

Selling Canned Foods

The laws specify that you can only sell acid or acidified canned goods. Additionally, you must have a third-party processing authority to review home-canned products for sale and a South Dakota food vendor license. SDSU Extension can provide services for food safety product evaluation, including:

• Process verification letter  
• Ingredient declaration and nutrition facts panel creation  
• Product and process review  

The agency can also provide Hazard Analysis and Risk-Based Preventative Controls (HARPC) and Hazard Analysis and Critical Control Point (HACCP) product safety evaluations to satisfy the South Dakota health inspector.

Homemade Baked Goods

Similarly, you can sell specific baked goods that are non-temperature-controlled, such as bread, cake, and cookies. Unlike canned goods, South Dakota requirements for the sale of baked goods made within your home don't include a review. However, they must meet certain conditions such as labeling that includes:

• Product name
• Producer's name and contact information
• The processing dates  
• Ingredients

You must also include a disclaimer stating you processed your products in a home kitchen, not a commercial one. And you'll need to have allergy information.

Prohibited foods

According to South Dakota Department of Health regulations, the list of what you can't sell as a home-based food business is longer than the list of acceptable items. The thing is, these prohibited foods are potentially hazardous. Some of the foods include:

• Cheesecake
• Custard pies
• Cream pies
• Fresh or dried meats or poultry  
• Fish or shellfish
• Refrigerated baked goods
• Milk and dairy foods  
• Ice and ice products
• Whole eggs in the shell
• Meat products  
• Home-processed apple cider and fruit juices  
• Foods that require refrigeration  
• Flavored oils
• Honey
• Refrigerator pickles

While cottage food laws prohibit this food list, there are often other options to sell them commercially as a startup. However, you would need to check commercial kitchen requirements in South Dakota and rent a licensed commercial kitchen.

State Law Regulates Food Within the State

As we mentioned earlier, the federal government regulates food in interstate commerce, but individual state law does so in each state. The bottom line is that most states follow cottage food law considerations, but they can differ. For example, compared to South Dakota, Minnesota Cottage Food Law expanded in 2021.  

The MN dept of health food license now has a sales cap from $18,000 to $78,000 per year. Plus, the state added pet treats as an allowed cottage food. However, obtaining Minnesota department of health licensing and certification can require extensive facility inspections and food plans.

On the other hand, a food service license RI application won't apply to cottage food laws because selling food from home in Rhode Island is currently not allowed. Fortunately, RI is one of the few states that don't have laws allowing for home-based food makers.

In contrast, North Dakota Cottage Food Law allows makers to sell uninspected, homemade cottage food products. Likewise, Georgia food service rules and regulations enable the production and sale of most non-potentially hazardous foods from your home without needing a kitchen inspection. However, according to Georgia's cottage food laws, anyone selling food within the state must fill out a Georgia food service permit application.

NYS Department of Health Food Service Regulations

NYS Department of Health food service regulations varies depending on the type of food and how you plan to sell it. For example, certain baked goods, snack mixes, and jellies may qualify for a Home Processor exemption, allowing you to prepare food in your home kitchen.  

On the other hand, if you want to sell homemade foods in New York state that isn't on the Home Processor exemption list, you'll need a Food Service Establishment permit from the local health department. Additionally, you won't be able to make the food in your home kitchen in the second scenario, but a separate kitchen in your residence may be okay.

Differences in Cottage Food Laws

Another way states vary in their cottage food laws is the amount makers can make each year. For example, Iowa Cottage Food Law says home-based makers can't exceed $35,000 in annual sales.

In 2019, Nebraska Cottage Food Law began allowing homemade foods already authorized for sale at farmers' markets for sale directly to consumers at the maker's home, fairs, festivals, other public events. Cottage food operators can also sell online for pick-up or delivery within the state. And there's no sales limit each year.

Wyoming Cottage Food Law and Montana Cottage Food Law also have distinct parameters if you live in those states. The bottom line is that, regardless of where you live in the U.S., you want to check your state's cottage food law before starting your home-based food business.

In the meantime, you can get more information by reading Castiron's blog. Or join our community of makers. And when you're ready, set up your home-based food website with help from cottage food professionals.