– Editorial – - Cap on home-based cottage foods producers makes sense
By Editorial Board
Wisconsin needs to move quickly, to close the loophole that allows home-based food production businesses to unfairly compete with traditional brick-and-mortar businesses.
Assembly Bill 897, which was introduced by Rob Summerfield (R-Bloomer) and Rep. Chanz Green (R-Grand View), would be a step in the right direction, by imposing a $20,000 cap on annual gross sales of Wisconsin cottage food producers.
Cottage foods producers are home-based bakers and canners, who produce what are considered “shelf stable” food products. These, typically small scale producers are a common sight at farmers markets, flea markets and roadside stands around the state, selling things such as pies, bakery items, jams, jellies, pickles and other similar products.
The proposed law change wouldn’t impact many, or even most, of these producers. They would continue selling directly to consumers, as they have been.
What it will do, is impose a cap on how much they make in gross sales, before they would no longer fall under the almost non-existent rules for home-based food producers, and have to abide by the sanitation and safety regulations, and rules of commercial bakeries, food processors and others.
To put it into perspective, someone selling homemade pies for $12 each, would need to sell nearly 1,700 pies in a year, to cross the threshold. This would equate to about 32 pies made and sold every week. At that volume, the pie-making enterprise ceased to be an agribusiness side-hustle and instead, became someone’s full-time job.
The cottage foods industry is inherently set up to unfairly compete against established brick-and-mortar business. These brick-andmortar facilities are the ones that must have state and local licenses, and permits, to operate, who occupy buildings on main streets and who must undergo regular inspections, to ensure the products sold meet health and safety standards.
Food and safety regulations, like most business rules, can be onerous and tedious to have to follow. They are designed for preventing worst-case scenarios and seek to mitigate risk to consumers, while establishing standards.
As the cottage foods producers grow and expand their market, they also grow in the potential harm that could be caused in the worst case scenario, for not only the consumers, but any workers who may be involved.
AB 897 and similar legislation in the state senate, are a step toward creating a level playing field for all businesses, while ensuring consumers get safe food.
There is a rich tradition in America, of businesses starting in the home, garage or spare room, and transitioning into major economic forces in their communities and across the state. This should be celebrated and encouraged.
For successful cottage foods industries, a cap is an incentive to grow into the next stage of business development.
Members of the Courier Sentinel editorial board include publisher Carol O’Leary, general manager Kris O’Leary and Star News editor Brian Wilson.
