Iowa cottage food laws are divided into two programs; a home food operation and a licensed home bakery operation.
To encourage entrepreneurship and growth, Iowa makes it easy to get started and provides a simple plan for growing your business and its opportunities.
Table of Contents
HOW TO START YOUR COTTAGE FOOD BUSINESS IN IOWA – LICENSING
The following are the two (2) options you have in Iowa. One makes starting quick and easy, the other requires licensing but allows for more food options.
HOME FOOD OPERATIONS
- No license required
- No food safety certificate required
- No limit on annual sales
- Food sold face to face only from operator’s home
- Food limited to non TCS (Temperature Control for Safety) only – this is standard across the country as all cottage food operations are limited to non-potentially hazardous / TCS foods.
- Although not mandated – food labels are suggested
- Customers have the right to “self-inspect” the operators kitchen
LICENSED HOME BAKERY OPERATIONS
- Licensing required for both: from home sales and market place sales
- No food safety certificate required
- Annual sales limited to $35,000
- Food can be sold face to face, farmer’s markets and wholesale to other retailers
- Home bakery operations can sell both, potentially hazardous / TCS foods
- Food labels required
- Inspections performed by Department of Inspections
HOME FOOD OPERATIONS – COTTAGE FOOD ACT
Iowa cottage food laws do not require you to register or do anything other than begin selling.
However, they do have rules on what you can and can’t serve and require you follow the local codes for business licensing, zoning, etc…
Always contact your local city / county office and verify if a business license is required prior to starting.
This is simply done by calling the main number to your city and letting them know you are starting a cottage food business and ask if you need a business license.
- Pick foods to offer from the “allowed” food types listed below.
- Familiarize yourself with food safety basics. (see below)
- Begin selling from your home.
FIND AN ERROR – GET A SPECIAL GIFT
If you find an error, omission, mistake, broken link, any outdated information or an addition that we missed – simply email me at [email protected] a link to the page and any information and I’ll send you something awesome.
IOWA COTTAGE FOOD LAW – Foods That Are Allowed
The following are examples of products allowed to be made from your home without a license. See testing / acidity section below on adding additional items that are non-potentially hazardous.
- Loaf bread, rolls, biscuits
- Pastries and cookies
- Candies and confections
- Fruit pies
- Jams, Jellies, and preserves – Must meet Standard of Identity in 21 CFR Part 150
- Cereal, trail mixes, and granola
If your food item is in question and not listed above, you can reach out and see if your food would be considered non-TCS / non-potentially hazardous:
Dr. Shannon Coleman
Food Safety and Consumer Production
Real Life Cottage Food Entrepreneurs and Opportunities
- Cakes – teacher turns kitchen into bakery
- Doughnuts – cottage mini donut vendor
- Fruit jams and jellies – See Additional Requirements Here
- Kettle corn – real kettle corn vendors from home
- Popcorn (plain and flavored) – see a real home vendor here
- Talk and Join hundreds of others here: VendorsUnited.com
IOWA COTTAGE FOOD LAWS – PROHIBITED FOODS
- Raw doughs
- Acidified, low acid canned foods
- cured foods
- fermented foods
NOTE: Although eggs, milk and dairy products are not allowed, used as ingredients for the allowed foods – is acceptable.
Many prohibited foods that are baked or cooked into the allowed foods are rendered harmless (non-TCS) and therefore allowed.
IOWA ANNUAL SALES LIMITS
Iowa does not cap or limit your sales under the home food operation but does limit it on the licensed home bakery.
Colorado created a brochure on going beyond cottage food once you’ve outgrown or hit your maximum allowed income.
I have provided it here for a resource as you grow your business and wish to expand.
ACIDITY LEVELS AND TESTING
Most states determine if a food is non-potentially hazardous by the acidity level found in the food. The higher the acidity, the more stable at a range of temps, that food product is.
For example: milk is low acidity and requires temperature controls.
The acidity of foods is measured by pH.
• The range of pH is commonly considered to extend from zero to 14. A pH value of 7 is neutral because pure water has a pH value of exactly 7. Values less than 7 are considered acidic, while those greater than 7 are considered basic or alkaline.
• All fruits are acidic foods and are usually tart and sour. Ex: tomato, lemon, peach, apple, etc.
• The FDA rule for acidic foods states that a food must have a pH below 4.6 to be sold as a minimally processed food.
• The reason for this is bacteria does not grow at this level of acidity.
• The exclusion shall not be construed as allowing the sale of low acid foods (pH > 4.6) in
hermetically sealed containers (i.e. home-canned green beans, peas, etc.) when such
food is not prepared in a permitted establishment.
Some states require testing if the pH level is unknown. For many food products, the pH level is already known.
You can test for pH yourself using a pH spear tester. (make sure it is made for food and has a long spear tip).
Oklahoma State University shares an awesome guide for selecting the correct tester for foods and liquids which includes tips and tricks for operation and maintenance. Get The Guide Here.
IOWA COTTAGE FOOD LAWS LABELING REQUIREMENTS
IOWA cottage food laws DO NOT require labeling on products made under the HOME FOOD OPERATION.
However, cottage food operators will benefit from the advertising this does for them and it shows your customer you care. I would never send out anything without a label.
- Producer’s name and address
- Common or usual name of food product
- Ingredients of food product
- Net weight and volume or numerical count
- Date food product was processed
Below is an example of what another state requires on their labels.
Using VistaPrint.com or similar – you can quickly create professional labels that not only serve to meet the state cottage food guidelines but also serve for marketing your awesome business and products.
You’ll find some fantastic examples of this from members inside VendorsUnited.com
ALLERGENS ON LABELING
The FDA lists eight (8) major food allergens. Listing any of these on your label is a smart business practice and will certainly help your customers choose a product.
- Fish (e.g., bass, flounder, cod)
- Crustacean shellfish (e.g., crab, lobster, shrimp)
- Tree nuts (e.g., almonds, walnuts, pecans)
Simply add to your label: “NOTICE: SOYBEANS USED IN THIS RECIPE” Some go as far to announce that a certain allergen is used in the same kitchen.
Some states require you list any potential allergens and potential for any cross contamination even if the allergen is not used in the recipe.
FDA Allergen Labeling Example: Contains Wheat, Milk, Egg, and Soy
WHERE CAN I SELL MY COTTAGE FOOD PRODUCTS
Iowa Cottage Food Laws – Sales Rules
You may sell your cottage food products direct to the customer only. All sales should be made from your home where the products are made.
This means from you to the end user. No wholesale or farmer’s market sales allowed.
Inside kitchenincome.com you can find out how many cottage food entrepreneurs are getting sales faster than they can make the food.
FOOD HANDLER TRAINING AND BEST PRACTICES
IOWA cottage food laws does NOT require you take a food safety and handling course. However, knowing the safe handling practices will protect you and your customers.
There are many short courses you can take online and actually get certified and be able to share that with your customers.
Many of our VendorsUnited.com members our proud to display their food safety certificates as a way to insure their customers that they care. This helps your business.
- Short courses that provide food handling and safety certification
- Free info from the FDA – food safety
Much of this may seem like common sense, but even if you already know, it’s a good idea to remind yourself with a list of things that can prevent you from missing something small.
And if for no other reason… CYA! CYA = Cover Your A#%
CLEAN WORK AREA / WORK SPACE / SANITIZATION
Providing safe to eat foods from your kitchen – starts in your kitchen.
Keep your area clean and sanitized to avoid cross contamination and to insure you provide your customers and clients with the safest and best foods they can get.
The following are some “common” sense things you can do to insure the best environment for preparing foods to sell:
- Keep all equipment and surface areas clean and sanitized
- Make sure window and door screens are bug proof with no gaps
- Keep ingredients separate to prevent cross contamination / e.g. raw eggs near flour
- No pets in work area and preferably none in the home
- Allow no-one with a cold, sniffles or sick in kitchen while preparing foods
- Wipe down walls and clean floors daily
- Use good lighting to avoid missing unclean areas
- Keep window and door screens in good repair to keep insects out
- Wash hands frequently while working and use food grade gloves for extra safety
- Keep areas of food storage and equipment storage clean and sanitized
Why keep these types of records?
Let’s say the inspector calls you and says they got a report that your banana bread, someone purchased, made them sick.
You’ll be able to show that you didn’t even make banana bread that week and that the person who reported you, bought that 4 weeks ago and you weren’t even the one that sold it to him.
This does not need to be complicated. I love my yellow legal pads and they make an inexpensive tool for keeping up with the following:
- The recipes you use including ingredients
- The process you use to prepare that specific recipe: (can be just like recipe instructions)
- Date made (can be coded for your own use only if your state doesn’t require the production date) e.g. Made 12.22.29 = 292212
- Date sold (you can have a batch code to help track a certain batch) Simply write down date you sold an item
- Location sold is another great piece of information to keep track of
- Sales receipts are something great to keep for a couple of reasons and over at KitchenIncome.com I dive into the best practices, best systems and best methods for tracking, managing, selling and shipping.
COTTAGE FOOD lIABILITY INSURANCE
We live in a society that likes to sue. I can sue you for wearing that color shirt. No kidding! Of course I probably won’t win, but at the very least, it’s gonna cause you stress and some costs.
Liability insurance is a MUST.
It can be expensive – but several years ago, I found FLIP and by far, they gave me the most protection (coverage) and allow you to run your cottage food business without fear of being sued.
WHY? Because they provide the lawyers. And their lawyers… they are good!
Of course you should price shop around with your local agent or a national brand company, but rest assured, I’ve done all the legwork for you.
Alternatively, some folks opt to get bonded. You’ve heard the saying before: “licensed and bonded”. A bond is usually provided from an insurance bonding company or your own insurance company.
My first time, I got a bond at State Farm.
A bond is expensive comparatively but is less out of pocket in the beginning. Of course, it’s way, way less insurance / coverage too.
A $10,000 bond may cost $50 annually while a $2,000,000.00 liability policy may cost a few hundred a year.
No matter what you decide… knowing you’re insured against frivolous lawsuits is worth every penny.
IOWA COTTAGE FOOD LAWS IMPORTANT LINKS
- Iowa Home Food and Home Bakeries – Licensing and Regulations PDF
- Starting A Home Based Food Business In Iowa – PDF with links
- Iowa Home Bakeries (licensed) – Cottage Food Laws
- Food Safety for Cottage Food / Home Bakeries / Home Food Operations in Iowa
- Iowa Home Bakery FAQ – Frequently Asked Questions
IOWA COTTAGE FOOD CONTACT INFO
Dr. Shannon Coleman
Food Safety and Consumer Production
UPDATES TO IOWA COTTAGE FOOD LAWS
From time to time, links, info, rules and numbers change, are updated or made obsolete.
Although I spend time daily with hundreds of vendors (many of which are cottage food businesses) – I can miss an update.
If you find a broken link, outdated information or any other issue… please let me know and I’ll send you a special gift for helping me maintain the best site on the internet for the cottage food industry.
My goal has always been to have a central place that is absolutely free those starting out or existing entrepreneurs who use their homes and kitchens to make real incomes.
Need more resources? Check it out HERE (Helpful Resources)
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This information is provided to help those interested in starting a cottage food business. It is not a document made by the state government. This information is not provided as law nor should be construed as law. Always use the contact information for each state to confirm compliance and any changes.
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