Current Law Details
One of nation's best cottage food systems with flexible two-tier approach. Cottage Food tier: no license, no sales cap, no inspection, online sales/shipping allowed. HFPE tier: $50/year license, $50K cap, wholesale to all venues allowed. HF 2431 (2022) added pickled/fermented foods, online sales, and unique purchased meat allowance under HFPE. Strong local preemption.
Registration & Training
📋Registration
- Required
- No
🎓Training
- Required
- No
Labeling Requirements
Required Statement
"This product was produced at a residential property exempt from state licensing and inspection"
Additional Label Elements
- ✓Producer's name AND address, phone number, OR email address
- ✓Product name
- ✓Ingredients list (by predominance)
- ✓Allergen statement (major allergens: milk, egg, fish, shellfish, tree nuts, wheat, peanuts, soybeans, sesame)
- ✓Production date (required for acidified foods)
- ✓Expiration date (required for perishable HFPE products)
Allowed Sales Venues
COTTAGE FOOD TIER: farmers markets (no market license needed), roadside stands, special events, home sales/pickup, online, delivery, mail order. Direct-to-consumer only. HFPE TIER: All venues including wholesale to restaurants and retail stores/groceries. Iowa unique in allowing purchased meat/poultry products under HFPE.
Shipping & Delivery
Shipping Options
- In-State
- Allowed
- Out-of-State
- Not Allowed
Delivery Methods
- Commercial Carriers
- Allowed
- Third-Party Delivery
- Allowed
Both tiers allow in-state shipping via mail/delivery service. Online sales permitted for both tiers. Food safety info must be provided at point of sale. Interstate sales prohibited. HFPE allows indirect sales and wholesale.
Allowed Foods
COTTAGE FOOD (non-TCS): breads, cookies, cakes, candies, fruit pies, jams/jellies/preserves, cereals/trail mixes/granola, NEW (2022) pickled/fermented/acidified plant foods (pH ≤4.60 OR aW ≤0.85, must test each batch). HFPE (almost any food): all baked goods including perishables (cream pies, custards), refrigerated products, fermented foods, products with some purchased meat/poultry (UNIQUE to Iowa). PROHIBITED both tiers: milk/milk products (Chapter 192), meat food products (Chapter 189A), low-acid canned foods, cured/smoked for preservation. HFPE cannot do acidified foods (use Cottage tier). Must include production date on acidified foods.
Recent Legislative Updates
HF 2431 (Iowa Code § 137F.20)
Effective: July 1, 2022
Major reform: renamed tiers to Cottage Food Operations and HFPE, allowed pickled/fermented foods under cottage food (pH/aW requirements), added online sales/shipping for both tiers, Iowa became only state allowing products with some purchased meat/poultry under HFPE, strengthened local preemption prohibiting local restrictions.
Important Warnings & Notes
- ⚠️Two-tier system: choose Cottage Food (no requirements, no cap) or HFPE ($50, $50K cap, wholesale allowed)
- ⚠️Acidified/pickled foods allowed ONLY under Cottage Food tier (NOT HFPE) - structural quirk
- ⚠️Acidified foods under Cottage Food require pH ≤4.60 OR water activity ≤0.85 - must test each batch with pH meter or aW meter
- ⚠️Production date required on acidified food labels
- ⚠️HFPE requires $50 annual license, annual inspection, ANSI-ANAB food safety training for at least one team member
- ⚠️HFPE application must list all items and be submitted 30 days before operating
- ⚠️Local preemption: local governments cannot add licensing, sales limits, or prohibitions
- ⚠️Operating since 1980s - long-standing tradition
- ⚠️If growing beyond $50K, must use Cottage Food tier (no cap) or upgrade to commercial kitchen
Research Sources
This information was compiled from the following sources (Last updated: 2025-10-06):
- •Iowa Department of Inspections, Appeals, & Licensing (DIAL)
- •Iowa Code § 137F.20 (Cottage Food)
- •Iowa Administrative Code Chapter 481-34 (HFPE)
- •House File 2431 (2022)
- •Iowa State University Extension
- •Practical Farmers of Iowa - New Cottage Food Law Q&A
- •Institute for Justice - Baking Bad Report (2023)
- •Forrager.com - Iowa
Important Legal Disclaimer
This information is for educational purposes only and should not be considered legal advice. Cottage food laws change frequently and vary by local jurisdiction. Always verify current regulations with your state and local health departments before starting your business.
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