We get many questions about home-based processing, and how it impacts the average home baker. What are the rules?
The best place to find out what the law states is by reading the current law, which can be done HERE
Then read the STATE REGULATIONS HERE, which lay out all of the home-baker restrictions and may slightly differ from the actual House Bill.
If you have questions about starting a home-based baking business, we suggest contacting an accountant on how to best do that for your situation.
When we helped in the creation of House Bill 263 it only made two simple changes to Kentucky’s existing “Cottage Food” law that was from 2003. These changes were consistent with what is already allowed in most states. The bill was passed unanimously by the Kentucky House and Senate. HB 263 was signed into law by Governor Matt Bevin on April 2, 2018. Since then, House Bill 468 was filed and as an emergency is now law as of March 27, 2019. House Bill 468 added more foods that are allowed to be sold, along with a few extra restrictions on home-based processors such as an income cap and registration with the health department.
First, the law allows for anyone to be a home-based processor, not just farmers.
Second, it expands where these foods can be sold. The updated law allows sales anywhere that is directly to a consumer within the state, including out of a home (whether by pickup or delivery). Wholesales, such as to grocery stores and restaurants, are prohibited. Items must be sold directly to the consumer.
“Home-based processor” means a person who in his or her home, produces or processes non-potentially hazardous foods, including but not limited to dried herbs, spices, nuts, candy, dried grains, whole fruit and vegetables, mixed-greens, jams, jellies, sweet sorghum syrup, preserves, fruit butter, bread, fruit pies, cakes, or cookies and who has a gross income of no more than sixty thousand dollars ($60,000) annually from the sale of the products.
Please be advised that canning is still not allowed under the new law, unless you are a farmer and follow specific guidelines.
And who has a gross income of no more than sixty thousand ($60,000) annually from the sale of the products.
This registration includes the following:
The name of the home-based processor and the physical address where production or processing will occur
A listing of the food products to be produced or processed
A $50.00 FEE that expires March 31 of every year. That means if you apply in December of 2020, you will still need to renew your registration in March of 2021.
“Registration for home–based processors is ongoing. To register, home–based processors should submit a DFS–250Application for Home–Based Processors along with a $50.00 registration fee to the Food Safety Branch. Registrants will receive a physical proof of registration valid until March 31, 2021. Registrations will then be renewable on a yearly basis.”
The example below is from Kentucky’s website, and is based on what the law states for labeling requirements.
You may NOT sell across states lines. There is also NO SHIPPING anywhere for home-based processors due to Health Department regulations. We get this question a lot, and below is the wording that is in House Bill 468:
“Food products that may only be offered for sale directly to consumers within this state, including from the home-based processor’s home, whether by pick-up or delivery, at a market, roadside stand, community event, or online. These food products may be used in preparing and serving food.”
See the above question for the definition of a home-based processor. The new law only allows home-based processors to bake from home kitchens without being a farmer. We originally asked for microprocessors to be included in the bill, but that was removed with the House Committee. To be a home-based microprocessor, you are still required to be a farmer.
The definition of a home-based microprocessor is: “Home-based microprocessor” means a farmer who, in the farmer’s home or certified or permitted kitchen, produces or processes foods, but not limited to acid foods, formulated acid food products, acidified food products, or low-acid canned foods, and who has a gross income of less than sixty thousand dollars ($60,000) annually from the sale of the product.
“Certified” means any person or home-based microprocessor who: Has attended the Kentucky Cooperative Extension Service’s micro-processing program or pilot micro-processing program and has been identified by the Kentucky Cooperative Extension Service as having satisfactorily completed the prescribed course of instruction; or has attended some other school pursuant to 21 C.F.R. sec. 114.10.
“Farmer” means a person who is a resident of Kentucky and owns or rents agricultural land pursuant to subsection (9) of KRS 132.010 or horticultural land pursuant to subsection (10) of KRS 132.010. For the purposes of KRS 217.136 to 12 217.139, “farmer” also means any person who is a resident of Kentucky and has grown the primary horticultural and agronomic ingredients used in the home-based micro-processed products which they have produced; and
The UK College of Agriculture and Food Environment has a helpful page for anyone interested in micro-processing: http://fcs-hes.ca.uky.edu/homebased_processing_microprocessing/ (Note, that this page is not updated with the changes of HB263).
Kentucky’s One Stop Business Portal, has all kinds of information for anyone wanting to bake and sell beyond a hobby!