Selling Homemade Food in Arkansas: A Legal Guide Under the Food Freedom Act

It’s farmers’ market season across the state, which means locally grown and homemade food will pop up for sale on neighborhood corners, downtown squares, and across the street. If you are selling locally grown or homemade food, here’s some good information to know this spring:

What is the Arkansas Food Freedom Act?

The Arkansas Food Freedom Act (the “Act”) is the primary law governing the sale of certain homemade foods from your home to the public without requiring a license as a commercial food business. Ark. Code Ann. § 20-57-501 et seq.  The Act, which became effective on July 28, 2021, replaced Arkansas’s prior Cottage Food Law code and expanded home-based food production provisions.

The legislative intent of the Act is to “allow for a producer’s production and sale of homemade food or drink products for an informed end consumer and to encourage the expansion of agricultural sales at farmers’ markets, ranches, farms, and producers; homes or offices,” according to Ark. Code Ann. § 20-57-502.

What Homemade Foods Can Be Sold Without a Commercial License?

The Act allows individuals to make and sell homemade foods that do not require temperature control for safe consumption (known as “non-TCS food”).[1]

Non-TCS Foods Allowed Under Arkansas Law

Examples of non-TCS foods include shelf-stable baked goods, breads, jams and jellies, uncut fruit or veggies, and honey. Some foods, such as pickles and salsas, may also be sold without a commercial license if their pH is 4.6 or lower.

Restrictions on product sales and labeling

You must sell your homemade product directly to the end customer with labeling that includes common product names, ingredients in order by weight, the manufacturer’s name and address, the production date, and a clear disclaimer that the product was manufactured in a private residence.

Business and Tax Considerations for Arkansas Food Entrepreneurs

State law governs food safety exemptions, but local zoning or business ordinances may also impact your business model. Check with your city and county for local business license, zoning, signage, and sales activity requirements.

Sales Tax Permits and Income Reporting

Even if you are not required to have a food permit according to your locality, you may still need a sales tax license (EIN) from the Arkansas Department of Finance and Administration to report applicable sales tax. You should also report your business-related earnings, losses, and costs on your income tax returns.

Legal Risks and Compliance Issues Under the Arkansas Food Freedom Act

While the Act reduces regulatory barriers for qualifying homemade food producers, it does not eliminate legal risk. Sellers who misunderstand the scope of the exemption may inadvertently expose themselves to regulatory enforcement or civil liability.

Below are several potential compliance issues with the sales of homemade foods.

Sell direct – Skip the Middleman

The Act permits the sale of qualifying non-TCS foods directly to the end consumer. Expanding your distribution to wholesalers or restaurants may fall outside the Act’s exemption framework and subject the producer or seller to additional liability. 

Keep it Local – Avoid Federal Regulatory Exposure

The Act governs Arkansas-based intrastate activity; it does not shield producers from federal oversight. Shipping or selling homemade food products from Arkansas to another state exposes you to federal regulatory requirements.

Once a food crosses state lines:

• Federal production and sales laws may apply
• Federal labeling standards may become enforceable
• Registration and facility requirements may be triggered

Shipping products to customers outside of Arkansas significantly alters the regulatory landscape.

Allergen Disclosure and Misbranding Risks

Even sellers exempt under the Act must comply with Arkansas law’s labeling requirements, including ingredient disclosure in descending order by weight.

Failure to properly disclose major allergens – such as milk, eggs, wheat, soy, peanuts, tree nuts, fish, or shellfish – can give rise to negligence claims or potential misbranding issues.

Legal Guidance for Arkansas Homemade Food Producers

If you have questions about selling your homemade food, contact the food and agricultural attorneys at The Law Group of Northwest Arkansas PLLC; we are happy to assist Arkansas food entrepreneurs with regulatory compliance, business formation, trademarks, and risk mitigation strategies.

Buying Homemade Food in Arkansas: What Consumers Should Know

If you are shopping for locally grown or homemade food, here’s what you need to know:

Foods that Require a Commercial Food License

Foods that require time and temperature control for safe consumption, like meat, dairy, seafood, cream cheese products, and cut produce, cannot be sold in Arkansas without a commercial food license. When shopping, verify that the business selling TCS products is operating in an inspected and licensed facility.

How to Safely Purchase Non-TCS Homemade Food

If you are shopping for homemade, non-TCS foods, be sure to read over the label to familiarize yourself with the product, check for potential allergens, and note the producer you are supporting for future reference.

[1] Time/Temperature Control for Safety (“TCS”) foods are foods that require temperature regulation to prevent pathogen growth or toxin formation under FDA standards.