Minnesota State Senator Bill Lieske (R-Lonsdale) announced on Sunday that his cottage food reform package was approved by the Senate as part of the 2025 agriculture and broadband budget compromise. The bill will now head to the governor’s desk for his signature or veto.

The agriculture conference committee kept the Lieske cottage food reform proposal intact but did decide to push out the effective date by two years. The reforms will now take effect August 1, 2027.

“While I am disappointed these changes will not take effect for another two years, this is still a big win for the thousands of Minnesotans who sell home-baked goods and other homemade treats at local farmers markets, community events, and right from their own kitchens,” Sen. Lieske said. “It’s about giving people more freedom to grow their side hustle or family venture without jumping through unnecessary hoops. And it still protects consumers with clear labeling, safety training, and transparency.”

Sen. Lieske’s bill updates Minnesota’s cottage food laws, which allow people to sell homemade, non-hazardous foods without needing a commercial kitchen license. The new reforms make it easier for families, hobbyists, and part-time producers to turn their passion into a small business.

Key changes include:

• Lower costs for small producers: The annual registration fee drops from $50 to $30, making it more affordable to get started.
• Clearer eligibility rules: Cottage food producers can now be individuals, sole proprietors, or even small two-person LLCs as long as both owners live in the same household.
• Expanded delivery options: Producers can now deliver by mail or commercial services in addition to hand delivery.
• Better food safety standards: Registered producers will complete a food safety training course every three years, instead of annually.
• Keeping up with inflation: The current $78,000 annual sales cap will now adjust every two years to keep pace with inflation.