MINNEAPOLIS (WCCO) – The Minnesota Department of Agriculture now allows an annual gross salary cap of $78,000 for cottage food producers.

Previously it was capped at $18,000 including expenses, and small businesses across the state say it’s a huge win for entrepreneurs. They say it’s thanks to the efforts made by the Minnesota Cottage Food Producers Association.

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“Finally. We have been trying so hard to get this bill passed,” said Steph Krueger, owner of Shortie’s Sweets ‘n Treats. “Now we can hustle. We can achieve those goals. Now we can make more money to feed our families.”

Jessica Mayer, the owner of Bake You Happy, started her cottage food business last year when the pandemic hit. Like Mayer, nearly 2,000 other Minnesotans registered for a cottage food license since the pandemic.

Mayer has been selling baked goods primarily online. However, with the $18,000 limit, she wasn’t able to do it as a full-time job. With the new law in place, Mayer said she doesn’t have to wait to get a brick-and-mortar store anymore.

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“It works a little better than it would at a brick-and-mortar store because you have less overhead cost, but at the same time, you can only charge so much for a dozen of cookies before someone says ‘whoa, that’s a lot for cookies’,” Mayer said.

Under the new law, cottage food businesses can also run as an LLC and they can now make treats for cats and dogs.

“It’s such a relief that we are able to make a living income doing what we love, which is baking,” said Krueger.

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For more information on the cottage food law click here.

Pafoua Yang