By SHELLY STRAUTZ-SPRINGBORN
Michigan Correspondent

LANSING, Mich. — A pair of bills being considered by state legislators could open the door for the creation of new small businesses in the state.

Two identical cottage food bills – HB 5280 and HB 5837 – recently approved by the House Agriculture Committee would allow Michigan residents to sell homemade food at farmers’ markets, roadside stands, county fairs and other events.

Under the plan, certain foods that are made in unlicensed home kitchens, rather than in licensed commercial settings, could be sold to the public as long as they are properly labeled. The plan covers foods such as pies, candy, jams and jellies, dry mixes, popcorn, coffee, nuts and nut mixes, flavored vinegar mixes, honey, maple syrup and other items.

Current law only permits food items made in kitchens that are inspected and approved by the Michigan Department of Agriculture (MDA) to be sold to the public. Residents who want to open a startup food business must set up a separate kitchen and obtain state approval, which can be very costly.

The plan would exempt a new category known as a “cottage food operation” from the licensing process in order to help increase entrepreneurship in Michigan and boost local economies. Cottage food items must carry a label stating the name and address of the cottage food operation; the product’s ingredients; and a statement that it was made in a home kitchen that has not been inspected by the MDA, among other requirements. To qualify as a “cottage food operation,” gross sales cannot exceed $15,000 annually per residence. In addition, cottage food products could only be sold directly from the cottage food operation to the consumer, and not via the Internet or e-mail. The bill also prohibits sales by consignment or at the wholesale level.

The plan has been endorsed by State Rep. Mike Huckleberry (D-Greenville), who also is chairman of the House Agriculture Committee.

“Especially in these tough times, we need to help folks on every level of business succeed, but in a way that protects the health and safety of our residents,” Huckleberry said. “This plan will preserve important safeguards and help farmers who may have a crop surplus and residents who like to bake pies or make jelly share their talents with our neighbors and make a couple of extra bucks along the way.

“Simply put, this plan will help give our residents another opportunity to provide for their family and showcase the high-quality homemade products (we) have to offer.”

Dru Montri, manager of the Michigan Farmers’ Market Assoc. (MIFMA), said the group is supporting the bills.

“One of MIFMA’s core values is to work toward common goals while respecting differences,” she said. “We believe that together with our members and with other stakeholders across the state, we can support legislation that helps promote farmers’ markets and provide entrepreneurial opportunities for the small businesses that participate in those markets.

“We are excited about the new opportunities this will present for Michigan farmers and farmers markets.”

Other groups working on the effort include Michigan Farm Bureau, MDA, Michigan Farm Marketing and Agri-Tourism Assoc., Michigan Department of Community Health, Michigan Assoc. for Local Public Health, Michigan Food and Farming Systems, farmers’ market managers and others.