Michigan lawmakers advance bills to update cottage food law for small producers

The Michigan government meeting on March 20, 2025, focused on proposed updates to the state's cottage food law, which supports small-scale food processors. The current law has not adapted to inflation, changing consumer preferences, or the realities of modern food sales, prompting the introduction of new legislation aimed at revitalizing the sector.

Key among the proposals is House Bill 4,122, which seeks to increase the gross sales cap for cottage food operations from $25,000 to $50,000. For high-value items, such as wedding cakes priced at $250 or more, the cap would rise to $75,000. This adjustment aims to help small producers grow their businesses while ensuring food safety remains a priority.

Additionally, the bill proposes to tie the sales cap to the Detroit Consumer Price Index, allowing for automatic adjustments over time to keep pace with inflation. Another significant change includes the removal of outdated restrictions on sales channels, enabling cottage food producers to sell their products online, via mail order, and through third-party delivery services. This update reflects modern shopping habits and aligns Michigan's regulations with those of other states.

These proposed changes are seen as essential for fostering growth among small food producers in Michigan, ensuring they can thrive in a competitive market while maintaining necessary safety standards.