A bill that eliminates inspection requirements and licensing fees for smaller Vermont food producers working in a home kitchen has advanced in the Vermont House with broad support.
The changes in H.401 are intended to increase the supply and distribution of locally produced food products and update the statute to reflect cost increases caused by inflation. All eight members of the House Committee on Agriculture, Food Resiliency and Forestry backed the bill unanimously Friday after making some amendments. The bill is currently scheduled for a potential vote in the House Committee on Ways and Means this Thursday.
Current law exempts at-home food manufacturers, or “cottage” food producers, that bring in less than $10,000 in annual gross sales from licensing requirements and fees, and their kitchens are not required to be inspected by the Vermont Department of Health. For baking businesses, that threshold amount is currently less than $6,500 annually, or $125 per week.
The new law would raise the sales threshold to $30,000 for both at-home food manufacturers and bakers, meaning any business with annual gross receipts falling below that amount would not be subject to inspection or licensing fees.
The health department said in testimony before the agriculture committee Friday that licensing fees help to offset the cost of providing regulatory services and support for food manufacturers across the state.
“Increasing the fee exemption for commercial bakers and food manufacturers reduces the resources available for regulating all food manufacturers,” said Liz Wirsing, Director of the Food and Lodging Program at the state health department.
Wirsing also cautioned against putting products into the commercial marketplace without proper inspection.
“Food safety inspections are a preventative public health service, and the program’s goal is to prevent illness, injury and death from foodborne illness,” she said.
However, small food business owners, such as Peter Hopkins of Hop Valley Farm, said in testimony that it is common practice for cottage foodmakers to uphold food safety in their kitchens even though they are not inspected by the state.
“Ours are the same kitchens that we use to make meals for our families, friends, loved ones,” Hopkins said. “It’s cynical to think that we take any less care in the preparation of food for our customers.”
Caroline Sherman-Gordon, Legislative Director at Rural Vermont, told the committee the policy change would be “a step in the right direction” toward Vermont’s goal of satisfying 30% of its food needs within the state by 2030.
In an interview, Sherman-Gordon said home food manufacturers are “being limited in their business growth by these outdated income thresholds” that do not account for rising inflationary costs.
“Why not update the policy?” she said. “Isn’t the policy supposed to be incentivizing [local producers] in this moment in time where we, as a state, are trying to get towards producing 30% of what we consume?”
The bill is moving forward at what Sherman-Gordon described as “atypical speed.” It is expected to hit the House floor this week, but could face revisions later in the Senate.
“We’ll be looking at spending more time with the bill, and also looking at what other states have done to advance their regulatory environment to be favorable to cottage food producers. And we’ll see where the bill will end up, then,” Sherman-Gordon said.
Read the story on VTDigger here: Vermont lawmakers consider cutting regulations for more at-home food producers.