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Outdated cottage food law limits growth for Michigan entrepreneurs
The Michigan Farmers Market Association is urging lawmakers to modernize the state’s Cottage Food Law before the issue potentially carries into a fifth legislative session.
Executive Director Amanda Shreve tells Brownfield the retail market has undergone dramatic changes in the past 15 years since the legislation was enacted.
“Originally, the bill did not allow for any online sales, and we know in today’s marketplace how important that is for all businesses to have an online presence and be able to facilitate sales in that way,” she says. “We also have some updated concerns around privacy.”
Shreve says capping businesses at $25,000 in annual sales doesn’t allow them to accumulate the capital necessary to expand.
“We find that most of those small business loans require at least annual sales of $45,000 per year, so the cap is even preventing businesses from qualifying for small business loans,” she says.
Advocates have been calling for changes since the pandemic to remove limitations on farmers and food entrepreneurs.
“Every time it has been introduced, it has had bipartisan support from both Republicans and Democrats, and in multiple sessions has had bicameral support, and due to political circumstances and timing and other factors, it hasn’t gotten across the finish line yet,” she explains.
Shreve says the Michigan House passed HB 4122 this spring, which would update the regulations and enhance small business opportunities.
She says it’s up to the Senate Regulatory Reform Committee to take action and move the legislation forward.
This is so frustrating. I sincerely hope there is a change soon. This limit allows no room to take the risk and begin selling.