Proposed Legislation in Wisconsin Sparks Debate Over Cottage Food

MADISON, WI (OnFocus) – A new legislative proposal in Wisconsin has ignited a contentious debate surrounding cottage food producers in the state. Assembly Bill 897 and Senate Bill 813, introduced by Rep. Rob Summerfield and Rep. Chanz Green, respectively, aim to impose annual gross sales caps on Wisconsin cottage food producers.

Cottage food, characterized by homemade, home-grown, small-batch food, has gained popularity, particularly post-COVID, as consumers increasingly seek products closer to the source. However, the proposed legislation, if enacted, would significantly impact the cottage food industry in Wisconsin.

Assembly Bill 897 proposes a $20,000 cap on annual gross sales, while Senate Bill 813 suggests a slightly higher cap at $25,000. Proponents argue that these caps are essential to ensure fair competition and address concerns about unregulated home-based producers having an advantage over licensed commercial bakeries.

On the other hand, opponents assert that these caps would limit their ability to earn a living wage and point out that such restrictions are not commonplace across the majority of states. The article notes that a significant number of states do not have cottage food sales caps, and even those that do set them much higher than the proposed amounts in Wisconsin.

The proposed bills not only focus on sales caps but also introduce regulations requiring cottage food producers to inform the Wisconsin Department of Agriculture, Trade, and Consumer Protection (DATCP) about their sales plans. Proponents argue that this is a crucial step in ensuring public safety in the event of a foodborne illness outbreak. However, opponents counter that cottage foods, particularly baked goods, pose no safety threat, citing research by the Institute for Justice.

This legislative development follows previous legal battles in Wisconsin regarding the sale of home-baked goods. In 2017, lawsuits challenged a law that required cottage food producers to obtain a license and use a commercial-grade kitchen. The court ruled these restrictions unconstitutional, leading to the legalization of selling homemade, shelf-stable baked goods without a state license.

Differing opinions on the impact of the proposed legislation are evident. Supporters believe it addresses unfair competition and safeguards licensed food producers, while opponents argue it would restrict consumer options, especially for specialty items. The bills are currently under discussion in the Committee on Consumer Protection.

Katrina Kroeplin, owner of Kat’s Sweet Escape Bakery in Marshfield, testified in Madison on January 11 at the hearing. In her comments to legislators, she stated:

“Not only has baking from home provided me with a source of income, but it has also given me a sense of purpose and fulfillment. I am able to create delicious treats and share them with others, which brings me joy and a sense of accomplishment. It has also allowed me to connect with my community more than ever and build relationships with my customers and while turning my hobby into a successful business. I’ve been blessed to be able to give back From a single mom’s shelter, equine therapy program, local schools to having high school students shadow as they think about starting their own businesses. My community is a huge supporter of small local businesses and want to know where their products come from.

With sales cap of $20,000, factoring in all the costs of business, especially in one that has a lot of upfront costs such as a bakery, it’s just not sustainable. It doesn’t allow enough of profit to live off of. there would not have been any room to grow and expand as a business and still support our families. As a business owner, it is important to continuously innovate and offer new products to keep up with the ever-changing market.

As a community of home bakers, it is important for us to advocate for fair and reasonable regulations and still allow us to support our businesses and allow us to continue providing high-quality products to our customers.”

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