Arkansas Cottage Food Laws

Arkansas Cottage Food Laws (Food Freedom Act) — A Comprehensive Guide

Arkansas’s Food Freedom Act (Act 1040 of 2021) replaced its prior cottage food law with one of the most permissive home-based food production systems in the U.S. This guide provides actionable, detail-rich information on sales limits, licensing, labeling, allowed and prohibited foods, sales venues, tax obligations, and steps to get started responsibly.

Quick Facts

Overview / Introduction

Arkansas’s Food Freedom Act (Act 1040 of 2021) replaced the older cottage food law, significantly reducing regulatory burdens for home-based food producers. The law exempts certain homemade, non–time‑temperature control for safety (Non‑TCS) foods from state licensing, inspection, and permitting requirements (legalclarity.org). It is considered one of the most permissive food‑freedom models nationally (standscout.com).

Sales Limits

• There are no annual revenue caps or sales limits under Arkansas’s Food Freedom Act (cottagecms.com). Unlike earlier laws which capped sales (e.g., $20,000), this Act allows unlimited sales potential (standscout.com).

Licensing & Registration

• No state permit, license, or registration is required to operate under the Food Freedom Act (cottagecms.com). The law preempts local health restrictions, though local business or zoning permits may still apply (cottagecms.com). Optional registration with the Arkansas Department of Health is available for credibility but is not mandatory and requires no fee (standscout.com).

Training Requirements

• No food safety training or certification is legally required (cottagecms.com). However, completing a food handler course (e.g., ServSafe) is highly recommended—it may enhance consumer trust, meet some market requirements, and help with insurance (foodsafepal.com).

Home Kitchen Inspection

• No inspection of the home kitchen is required under the Act (cottagecms.com). However, home kitchens must still maintain sanitary conditions; unsafe complaints could prompt an inspection by the Arkansas Department of Health (legalclarity.org).

Allowed Foods

Under the Act, all non‑TCS (non–time/temperature control for safety) foods are allowed, including, but not limited to: baked goods (without cream or custard fillings), candies, jams, jellies, fruit butters, honey, maple syrup, sorghum, acidified products (pickles, salsa) with pH ≤ 4.6, dehydrated snacks, nut butters, roasted nuts, tea blends, dry mixes, coffee beans, and more (uaex.uada.edu).

Prohibited Foods

• TCS foods requiring refrigeration or specific processing are prohibited, including meat, poultry, seafood, raw dairy products, sprouts, cut leafy greens, cut tomatoes, garlic‑in‑oil mixtures, low‑acid canned foods, custard or cream‑filled baked goods, cream cheese‑based frostings, cheeses, yogurt, ice cream, and other high‑risk items (uaex.uada.edu).

Labeling Requirements

Labels must include:

1. Producer’s name, address, and telephone number, or a state-issued ID number in place of personal contact info (ij.org).
2. Common name of the food product (foodsafepal.com).
3. Complete ingredients list in descending order by weight, with allergens clearly indicated (e.g., wheat, milk, eggs, peanuts, tree nuts, soy, fish, shellfish) (legalclarity.org).
4. Date of production (manufacture/processing date) (foodsafepal.com).
5. The mandatory disclaimer: “This product was produced in a private residence that is exempt from state licensing and inspection.” Some sources include “…and may contain allergens.” (ij.org).

No pre‑approval of labels is needed; they must simply be clear and legible (standscout.com).

Where You Can Sell

Allowed sales venues under the Food Freedom Act include:

• Direct, in-person sales: from your home (pickup), farmers markets (physical or online), county fairs, special events, pop‑up shops in other businesses (with consent), and similar community settings (uaex.uada.edu).
• Online sales: to in‑state consumers and out‑of‑state customers, provided federal food safety regulations are met (uaex.uada.edu).
• Interstate commerce is permitted, again contingent on federal compliance and destination‑state law (cottagecms.com).
• Third‑party selling: allowed, including retail stores, grocery stores, restaurants, or mail carriers acting as agents (ij.org).

Note: While state law preempts health restrictions, local zoning or business permits may still apply (legalclarity.org).

Sales Tax

• Most cottage food products are subject to Arkansas sales tax. Sellers must register with the Arkansas Department of Finance and Administration to collect and remit tax, particularly for sales at markets or online (legalclarity.org).
• Income from sales must be reported to IRS and state tax authorities; self‑employment taxes may apply; accurate record‑keeping is essential (legalclarity.org).

Special Exemptions / Notes

• Act 698 (effective April 16, 2025) expanded rules around raw milk sales, removing the previous 500‑gallon limit and allowing sales in natural food stores—but this is separate from the Food Freedom Act’s domain (cottagecms.com).
• While state law overrides local health codes, some municipal zoning or HOA rules may still restrict home‑based sales—always verify with local authorities (legalclarity.org).
• No liability protection is afforded by the Act; obtaining food‑liability insurance is strongly advised (cottagecms.com).

Getting Started — Practical Steps

1. Decide what you want to sell—ensure it's a Non‑TCS item permitted under the law.
2. Create compliant labels, including all required elements (producer info, product name, ingredients, date, disclaimer).
3. Check local zoning, business licenses, or HOA rules in your area.
4. Register for sales tax with the Arkansas Department of Finance & Administration, and track income & expenses for tax filings.
5. Optionally register with the Arkansas Department of Health for credibility, though not required.
6. Consider food safety training and obtain liability insurance to protect the business and boost trust.
7. Choose sales venues—home pickup, markets, events, online (in‑state and interstate with compliance), or third‑party retailers.
8. Maintain sanitary practices in your kitchen, keep ingredient/source and batch records, and ensure safe food handling to minimize risk.

Official Resources

• Arkansas Department of Health: “Arkansas Homemade Food Production Guide” (July 28, 2025) (healthy.arkansas.gov).
• University of Arkansas Cooperative Extension: blog post “What You Can Make and Sell Under the Arkansas Food Freedom Act,” including links to guidance and fact sheets (uaex.uada.edu).
• Institute for Justice overview of Arkansas’s homemade‑food laws (ij.org).
• LegalClarity articles explaining the Food Freedom Act and cottage‑food requirements (legalclarity.org).
• StandScout summary of Arkansas Food Freedom Act benefits and details (standscout.com).

Official Sources

This guide was compiled from the following official sources:

• cottagecms.com
• standscout.com
• legalclarity.org
• legalclarity.org
• uaex.uada.edu
• ij.org
• healthy.arkansas.gov

Important Notes

⚠️ Local zoning rules or HOA restrictions may still apply and shouldn’t be ignored.

⚠️ Federal compliance and destination-state law must be met for interstate sales.

⚠️ Insurance and safe practices are advisable; the law offers no liability protection.