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By Brianna Routh, PhD, RDN, Associate Professor and MSU Extension Food and Family Specialist, and Nicolette Paulas, Montana Dietetic Intern

IN 1950, 70 PERCENT OF FOODS CONSUMED IN MONTANA were local to Montana, but in 2021, only 3 percent were. To increase local, direct-to-consumer options, the Montana Local Food Choice Act, or SB199, was enacted in 2021 and updated in 2023. This law exempts certain homemade food producers from many regulations, including food licensure, permitting, certification, packaging, labeling, and inspection regulations.

The goal was to allow people to sell and eat homemade food so that 1) it is easier to eat fresh and local foods, 2) Montana ranches, farms, and homemade businesses can grow, and 3) consumers can have more access to homemade food.

This MontGuide explores the Local Food Choice Act for food producers and consumers in Montana.

  • Use the check below to see if a food product qualifies for the “Local Food Choice Act” in Montana.
  • Explore basic liability and food safety considerations for homemade food producers.
  • Identify additional resources, licensures, and organizations that can help determine the next best business step.

The MontGuide is for general food safety awareness and does not replace legal or professional safety advice for specific products.

Under the Local Food Choice Act

WHO CAN SELL

  • Farmers, ranchers, and homemade food producers (and their employees) who are selling directly to the end consumer for personal, household, or family use
  • Not under/in conflict with an already licensed food establishment
  • Not sold through a second-party distributor or otherwise licensed food entity

WHAT FOODS CAN BE SOLD

  • Food products that the seller has harvested, produced, or prepared in their home kitchen
  • Includes small dairy exemption allowing the sale of raw milk
    • Small dairy follows a 5/10/10 rule: 5 or fewer lactating cows or 10 or fewer lactating goats or sheep, and complies with DPHHS testing and reporting requirements
  • Includes 1000 bird per year exemption, allowing the sale of home-processed poultry
    • Must still align with federal requirements for safety, labeling, and record keeping
  • If preparing a shelf-stable, high-risk (low acid or acidified) homemade preserved food, file a Federal Drug and Agriculture (FDA) exemption
  • Not preparing food products in a business or commercial kitchen
  • Not including products with any meat, drugs, alcohol, marijuana, or CBD in them
  • Not making health claims about products that make them a drug or supplement

WHERE CAN FOODS BE SOLD

  • Direct-to-consumers or at farmers’ markets and local community events in Montana
  • Sale and delivery must be in Montana
  • Not selling food through retail, resale, or wholesale
  • Not selling food off a producer’s property at an unmanned roadside stand or kiosk

INFORMED END CONSUMER

  • Producers are required to inform the end consumer that the homemade food products have not been through any official regulation or inspection.
  • Producing food products under this exemption does not eliminate any potential liability for foodborne illness or product defects.
Local Food Choice Act products can still be subject to civil legal action.

Liability

To reduce the risk of lawsuits, producers should consider the following steps:

  1. Get insurance. Even if not required by law, having product liability or completed product insurance helps protect businesses from catastrophic losses from potential lawsuits. Product liability protects a business from bodily injury and property damage claims arising from the products manufactured, sold, or distributed. For example, if a customer brings a lawsuit because they claim they became ill from the food produced, product liability insurance could respond to this claim.
  2. Form a corporation or LLC. While not required, structuring a business as a corporation or LLC can protect business owners. These business structures keep personal assets separate from business assets, reducing financial risk to the business owners.
  3. Follow food safety guidelines. Even if regulations do not require food safety steps, these are important to keeping happy and healthy customers. Proper handling, cooking, and storage throughout food production reduces the risk of contamination or spoilage.

ALTERNATIVES TO WAYS PRODUCERS CAN SELL FOODS IN MONTANA

If a food product does not fit under the Montana Local Food Choice Act, there are several alternative options for selling.

1. Cottage Food Laws: If products are classified as cottage foods, they can sell at farmers’ markets, community events, and directly from a home. Cottage foods typically include items like baked goods, jams, and certain low-risk foods, but they must comply with specific regulations, such as labeling requirements.

2. Wholesale License: If pursuing a wholesale food license, one can sell products to grocery stores, restaurants, or other retailers, but this will require producing food products in a licensed commercial kitchen, meeting state and local food safety regulations, obtaining the necessary licenses, and passing inspections.

Resources and Support

STATE AGENCIES

  • Montana Department of Health and Human Services (DPHHS):
    • Public health guidance and information on state and federal food laws
    • Contact: 406-444-2837
  • County Sanitarian and Environmental Health Officers

OUTREACH ORGANIZATIONS

  • Regional Food and Agriculture Development Centers (FADC)
  • MSU Extension Office
    • Educational resources in agriculture, family and consumer sciences, including food safety, youth development, and community vitality
    • Classes and individualized support
    • Contact Statewide: 406-994-1750

LEGAL COUNSEL

  • Agricultural and Food attorneys can help with:
    • Interpreting the law and its scope
    • Advising on compliance with other laws
    • Risk management and liability
    • Guidance on interstate sales
    • Business structuring

Summary

Consider current and future needs when determining the right kind of food license for product(s). Since every producer’s situation is different, obtaining advice tailored to specific needs, such as food safety or legal protection, is crucial. Montana producers can take full advantage of the opportunities to grow their business while providing their Montana neighbors with safe, local foods to enjoy.

Reviewer Acknowledgment

Thanks to Hailey Vine, Sadie Overlie, RS, Lisa Terry, and Sam Blomquist for their review.

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Copyright © 2025 MSU Extension
We encourage the use of this document for nonprofit educational purposes. This document may be reprinted for nonprofit educational purposes if no endorsement of a commercial product, service or company is stated or implied, and if appropriate credit is given to the author and MSU Extension. To use these documents in electronic formats, permission must be sought from the Extension Communications Director, 135 Culbertson Hall, Montana State University, Bozeman, MT 59717; E-mail: publications@montana.edu

The U.S. Department of Agriculture (USDA), Montana State University and Montana State University Extension prohibit discrimination in all of their programs and activities on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital and family status. Issued in furtherance of cooperative extension work in agriculture and home economics, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture, Cody Stone, Director of Extension, Montana State University, Bozeman, MT 59717.