New Mexico Cottage Food Law: Labeling, Sales, and Local Rules

New Mexico’s cottage food law, formally the Homemade Food Act, lets you make and sell certain shelf-stable foods from your home kitchen, farm, or ranch without a food permit from the New Mexico Environment Department (NMED). The law took effect July 1, 2021, and it replaces the old permit system with a lighter framework built on food handler training, proper labeling, and basic kitchen hygiene.¹ You can sell at farmers’ markets, festivals, roadside stands, online, by phone, through the mail, or from your front door. Only foods that don’t need refrigeration qualify, and the labeling and food-safety rules below apply to every sale.

What You Can Sell

The Homemade Food Act limits you to foods that don’t require time-or-temperature control for safety, often called non-TCS foods. If a product needs refrigeration to stay safe, it doesn’t qualify. The idea is straightforward: shelf-stable foods carry much less risk of causing foodborne illness when produced outside a commercial kitchen.¹

NMED’s guidance lists the products that typically qualify:²

Cakes, cookies, yeast breads, pastries, and pies that don’t need refrigeration.
Candy, popcorn, chocolate-covered pretzels, and granola or dry mixes.
Dehydrated fruits and similar shelf-stable products.
Roasted coffee beans and whole, uncut fruits and vegetables.

Several baked goods are specifically excluded because they need refrigeration: cream-filled pies (banana cream, custard, lemon meringue), cheesecakes, and anything with cream cheese frosting.

Jams and jellies made from high-acid fruits can qualify if the acidity is low enough to prevent bacterial growth. Pickles, salsas, and other acidified foods are trickier. The product generally needs a pH at or below 4.6, and NMED recommends contacting a Process Authority (a food scientist trained to evaluate product safety) if you’re unsure whether your recipe meets the standard.²

Where You Can Sell

The statute gives you a wide range of sales channels, but every sale must go directly to a consumer inside New Mexico. You cannot sell wholesale to stores or restaurants. Permitted sales methods include:¹

Farmers’ markets, festivals, and roadside stands.
Pickup at your home or delivery to the buyer’s home.
Website or phone orders, shipped by mail or delivered in person.

Interstate sales are off-limits. Federal food safety rules apply to any food that crosses state lines, and cottage food products generally don’t meet those federal requirements. Shipping to a buyer in another state can violate federal law regardless of what New Mexico allows.¹ If you sell through a website, limit orders to New Mexico addresses.

Labeling Your Products

Every product you sell has to carry specific information for the consumer. How you deliver it depends on how you sell. Packaged items need a label on the package. Bulk items need a label on the bulk container. Food that is neither packaged nor in a container can use a placard at the point of sale. For items sold online, the information must appear on the product’s webpage.¹

Your label must include:

Your name, home address, phone number, and email address.
The common or usual name of the food.
A full ingredient list in descending order by quantity.
The exact disclaimer: “This product is home produced and is exempt from state licensing and inspection. This product may contain allergens.”

That disclaimer has to appear word-for-word, including the allergen warning. Leaving off the allergen language puts you out of compliance. The statute doesn’t require net weight or volume, though adding it is good practice.³

Phone and custom orders work a little differently. You don’t need a physical label on the product, but you must verbally tell the buyer that the food was produced in a private residence, is exempt from state licensing and inspection, and may contain allergens.¹

The required disclaimer gives a general allergen warning, but listing specific allergens in your ingredient list is the practical way to protect your customers and yourself. If a reaction happens because an allergen wasn’t disclosed, the general disclaimer alone may not shield you from a liability claim.

Food Handler Certification

Before you sell anything, complete a food handler certification course approved by NMED.¹ NMED requires cards from programs accredited through the American National Standards Institute (ANSI).⁴ Several online courses meet that standard, and most cost $10 to $25. The training covers safe temperatures, cross-contamination prevention, and proper handwashing, and ends with a short exam. Keep a copy of your certificate; NMED can ask to see it.

Kitchen Rules

You don’t need a commercial kitchen, but your home kitchen has to meet basic sanitation standards. The statute spells out several specific obligations:¹

Keep the kitchen clean and practice good personal hygiene during food preparation.
Protect the kitchen from rodents and other pests.
Keep pets and children out of the kitchen while you’re producing food.
Transport delivered food in a sanitary manner, protected from pets, children, and other contamination risks.

The pets-and-children rule surprises some first-time sellers. It applies the whole time you’re producing food, not just while you’re packaging the finished product.

No State Permit, but Check Local Rules

You do not need a food permit from NMED to sell qualifying homemade food. The law specifically exempts these operations from the Food Service Sanitation Act and the New Mexico Food Act.⁵ NMED runs a voluntary permit system if you want one, but it’s optional.¹

What the state doesn’t require, your city or county might. Class A counties and home-rule municipalities can run their own food safety programs, and some localities require a general business license for any home-based business. Roswell’s zoning code, for example, requires an approved business license for all home occupations operating from a residence.⁶ Local zoning rules may also restrict signage, customer traffic, or hours of operation. Call your city or county clerk’s office before you start selling.

If Something Goes Wrong

NMED enforces the Homemade Food Act and can investigate any suspected foodborne illness linked to your products. The department can also stop the sale of any food it suspects is contaminated. The law builds in a buffer: NMED must issue a written warning about a violation before it can impose a fine.¹

If you get a written warning and don’t fix the problem, the next step is a misdemeanor charge. Conviction carries a fine of up to $100 per violation.³ The fine is modest, but a misdemeanor conviction is still a criminal record, and a labeling error that causes an allergic reaction creates civil exposure that dwarfs the fine. NMED and the New Mexico Department of Health may both get involved in foodborne illness investigations.²

Taxes

Operating under the Homemade Food Act doesn’t exempt you from taxes. New Mexico has a gross receipts tax (GRT) instead of a traditional sales tax, and cottage food sales are generally subject to GRT unless a specific deduction applies. Register with the New Mexico Taxation and Revenue Department and collect the applicable rate for your location.

Cottage food income is also taxable on your federal return. Report revenue and expenses on Schedule C. Deduct ordinary business expenses like ingredients, packaging, labels, and your food handler certification. If you use part of your home exclusively for food production, you may qualify for the home office deduction.⁷ If you don’t have employees, you can use your Social Security number for federal filings; you’ll need a free Employer Identification Number from the IRS if you hire anyone.

Liability Insurance

The law doesn’t require insurance, but going without it is a gamble most experienced sellers wouldn’t take. If a customer has an allergic reaction or gets sick, you’re personally on the hook for medical bills and legal costs. Homeowner’s insurance almost never covers claims arising from a home-based food business.

Product liability insurance for small food businesses covers claims related to foodborne illness and allergen incidents. General liability insurance adds protection for injuries at a farmers’ market booth or other point of sale. Policies for small-scale food producers start around $300 per year.⁸ Your actual cost depends on annual revenue, what you produce, and any added coverage. Many farmers’ markets require proof of liability insurance before they’ll give you a booth, so even if you aren’t worried about lawsuits, insurance often becomes a practical necessity.

1
Justia. New Mexico Code 25-12-3 – Homemade Food Items; Licensing, Permitting, Inspection and Labeling Exemptions; Requirements; Investigations
2
New Mexico Environment Department. Homemade Food Act FAQ
3
The National Agricultural Law Center. New Mexico Code 25-12-1 Through 5 – Homemade Food Act
4
New Mexico Environment Department. Food Handler and Food Manager Training
5
New Mexico Environment Department. HomeMade Food Act
6
Municode. Roswell NM Code of Ordinances – Article 62 Home Occupations
7
Internal Revenue Service. Business Use of Home
8
FLIP. Food Business Insurance Cost