North Dakota Modernizes Its Cottage Foods Law: What SB 2386 Means for Home Bakers, Spouses & Small Food Businesses
On March 21, 2025, Governor Kelly Armstrong signed Senate Bill 2386 into law, ushering in important changes to North Dakota’s cottage food regulations. The amendments expand how, where, and to whom home-based food entrepreneurs may sell their goods—helping small food businesses, military spouses, rural producers, and local economies.
Below is a breakdown of what changed, why it matters, and how entrepreneurs can take advantage of the new law:
What Is the Cottage Foods Act (Before SB 2386)?
Under the prior law (ND Century Code § 23-09.5), home food producers could sell uninspected, homemade “cottage food” products directly to consumers in person (e.g. at farmers markets, yard sales) without needing inspection or licensing.However, this law also placed several restrictions:
- No interstate commerce — you couldn’t ship your homemade goods across state lines.
- No sales via internet, phone, mail, or consignment — transactions had to be in person.
- Limitations around poultry products — uninspected poultry was only allowed under certain conditions and could not be sold interstate under prior rules.
These constraints meant that home bakers and food makers—especially those who move often or have established clientele outside North Dakota—faced serious barriers to growth.
SB 2386: What Changed?
SB 2386 amends subsection 3 of section 23-09.5-02 of the North Dakota Century Code. The key changes include:
Allows interstate sales (shipping across state lines)
Home food producers can now ship their cottage food products out of state. Previously, ND was one of the few states disallowing that.
- Permits sales via online, phone, mail, or consignment
Cottage food operators can now accept orders over the internet or phone, and fulfill via mail or third-party shipping. - Clarifies poultry exceptions for interstate commerce
The sale of uninspected poultry products interstate is restricted: only poultry raised by the cottage operator (and up to 1,000 birds/year) can be included under certain rules. - Retains other constraints
The law still forbids cottage food operations from selling meat not produced by them, from engaging in interstate commerce with uninspected meat, and continues to exclude transactions via consignment for restricted products.
Emergency clause & effective timing
The bill includes an emergency clause, and passed with strong bipartisan support.
In effect, SB 2386 modernizes North Dakota’s cottage food law to align with how small food businesses operate today, especially in a digital, mobile world.
Why It Matters: The Impact on Entrepreneurs & Military Spouses
Greater Market Reach & Business Continuity
- Many cottage food entrepreneurs have clients in multiple states from previous locations. Under the old rules, they had to sever those relationships. Now, they can maintain and grow those customer bases across state lines.
- For military spouses, who frequently relocate, this flexibility creates business continuity, no matter where they are stationed.
Modern Sales Channels
- The ability to take orders online or by phone means cottage food entrepreneurs can scale beyond local markets, tapping into e-commerce trends.
- Mail or shipping fulfillment allows small food producers to handle logistics more efficiently and reach customers beyond immediate geography.
Supporting Local Economies & Food Entrepreneurs
- When home-based producers can grow, local revenue stays in communities instead of being funneled to external, large-scale food corporations.
- Small-scale food entrepreneurs, especially in rural or underserved areas, can better access consumers beyond nearby towns.
- Lawmakers, chambers, and local organizations see this as a win for economic development and empowerment.
Voices from the Field
- Jenetta Sawyer, a military spouse and home baker at Minot AFB, was a key advocate. She pointed to how ND’s earlier restrictions would have “moved my business back a step.”
https://www.minot.af.mil/News/Article-Display/Article/4155560/baking-beyond-borders-military-spouse-city-and-base-unite-to-modernize-nd-cotta/ - April Getz, a baker from Dickinson, called the changes “huge,” noting she can now ship popular items like iced cookies beyond ND borders. https://www.thedickinsonpress.com/lifestyle/local-bakers-rejoice-new-cottage-food-law-expanding-online-and-out-of-state-sales
- Brekka Kramer (Minot Area Chamber EDC) testified in support, emphasizing how the legislation lifts barriers and supports military families and small business growth. https://ndlegis.gov/assembly/69-2025/testimony/HAGR-2386-20250306-39013-F-KRAMER_BREKKA.pdf
What Entrepreneurs Should Know & Do Next
- Review the updated law text and your business model
Compare your products, sales channels, and clients to the new allowable practices under SB 2386. - Adjust your labeling and disclaimers
With interstate shipments, be sure to understand labeling requirements, consumer advisories (e.g. home kitchen, uninspected) and any disclosure laws. - Plan logistics and shipping strategies
Start developing systems (packaging, shipping partners, order tracking) to support phone, online, and mail orders. - Comply with poultry-related limits
If you use poultry products, ensure you meet the constraints outlined (raising your own poultry, caps, etc.) before shipping those products interstate. - Use the law to build or sustain continuity
If you move due to military assignments or personal reasons, you now have more flexibility to maintain your customer relationships. - Engage local networks & chambers
Economic development organizations, local chambers, and base communities may help you with marketing, mentoring, or shared logistics support.
With SB 2386, North Dakota has taken a bold step toward modernizing its cottage food statute—transitioning from strict in-person, in-state commerce to a law better suited for today’s digital and mobile small businesses. For military spouses, home bakers, and small food entrepreneurs, this opens new doors: expanded markets, continuity across relocations, and the ability to grow beyond county or state lines.
If you’re a home food producer in ND (or planning to be), now is the time to revisit your business model, explore interstate sales, and embrace the new freedoms this law enables.
Find more resources here:
https://www.hhs.nd.gov/health/food-and-lodging/cottage-food
https://minotchamberedc.com/news/cottage-food-legislation
https://nationalaglawcenter.org/food-law-in-the-states-2025-update
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