Guides

Cottage Food Labels in New York: The Home Processor Exemption

New York does not have a law called a cottage food law. What it has is the Home Processor exemption, which releases a home-based producer from the Article 20-C food processing licence that would otherwise apply, provided the products qualify and you register with the Department of Agriculture and Markets.

Two things make New York distinctive:

  • There is no annual sales cap. Most states cap cottage food sales somewhere between $50,000 and $250,000. New York does not cap them at all.
  • Net quantity must appear in both US and metric units. This trips up producers who have only ever labelled for a state that accepts ounces alone.

What the label must carry

  • The common name of the product
  • Your name and full address as the processor
  • Net quantity of contents, in US customary and metric units
  • The ingredients, in descending order by weight
  • A declaration of the major food allergens present
  • The home-kitchen disclosure required by the exemption

Two things New York does differently

  1. Dual-unit net quantity. "8 oz" alone is not enough. It needs the metric equivalent too, for example "8 oz (227 g)". Round the metric figure the way the federal net quantity rules require rather than inventing a conversion.
  2. All nine allergens, sesame included. Sesame became a major allergen federally in 2023 and is frequently missing from older label templates. If your template predates that, it is out of date.

No cap, but the exemption still has edges

An absent sales cap does not mean unlimited scope. The Home Processor exemption is limited by what you make, not by how much you sell of it. It covers shelf-stable, low-risk products: baked goods without custard or cream fillings, jams and jellies, candy, snack items, dry mixes, and similar. Products needing refrigeration for safety fall outside it, and so do most acidified and low-acid canned goods without additional process approval.

The practical implication is the opposite of most states. Elsewhere, growth eventually pushes you out of cottage food. In New York, a change of product line is far more likely to be the thing that does.

When you need a Nutrition Facts panel

The Home Processor exemption is a state licensing exemption. It says nothing about the Nutrition Facts panel, which is federal. Most home producers are exempt under 21 CFR 101.9(j)(1): annual gross sales of $500,000 or less, or annual gross sales of food to consumers of $50,000 or less, with no filing required.

Because New York sets no state cap, the federal thresholds are the ones that will actually bind as you grow. Watch them.

You need a panel if:

  • You make a nutrient content or health claim on the label, in labeling, or in advertising.
  • Your sales pass the federal thresholds above. With no state ceiling to stop you first, this is a more realistic prospect in New York than in most states.
  • A retailer requires one to stock the product.

If you cross the (j)(1) thresholds but remain small, the second federal route may apply: 21 CFR 101.9(j)(18) covers a product where the business averages fewer than 100 full-time equivalent employees and sells fewer than 100,000 units of it in the US in 12 months. That one requires a notice filed with the FDA every year. The detail is in when nutrition labels are required in the US.

What to do in Nutrifax

  1. Build or import the recipe and check each ingredient match.
  2. Set the serving size from the reference amount for the category.
  3. Generate the panel in the FDA 2016 format, rounded per 21 CFR 101.9.
  4. Export a print-ready PDF or PNG, or tile an Avery 5163 sheet.
  5. Generate an audit report if a buyer wants to see where each figure came from.

Nutrifax produces the Nutrition Facts panel. The dual-unit net quantity, the processor address, and the disclosure go on the label alongside it.

Related pages

Sources

Disclaimer

Educational content only; not legal advice. Confirm current requirements with the New York State Department of Agriculture and Markets, and confirm the final label against current regulations for your product and jurisdiction.

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