South Dakota Cottage Food Law 2026: Training, Labeling, and No Sales Cap

Introduction

Yes, you can sell baked goods and other homemade foods from your home kitchen in South Dakota. And if you've been eyeing the regulations from a distance, here's the headline: South Dakota is unusually flexible compared with many cottage food states.

If you only remember three things, make them these: there's no sales cap (you can earn as much as you want), you don't need a state license or registration, and you can sell a surprisingly broad range of products — including home-canned goods, fermented foods, and even cheesecake — as long as you complete a $40 food safety training for the higher-risk items.

The trade-off? You can't ship anything. South Dakota keeps your sales tied to physical-presence venues and personal handoff: your home, farmers' markets, roadside stands, or temporary venues. And your labels need to include a very specific allergen disclaimer that you cannot paraphrase or shorten.

Let's walk through everything you need to know to sell cottage food in the Mount Rushmore State.

What You Can (and Can't) Sell in South Dakota

South Dakota's cottage food law is remarkably broad. The state allows you to sell non-temperature-controlled foods, baked goods, home-canned goods, fermented foods, and even certain perishable baked goods — most states don't go nearly this far.

The key distinction is whether your product requires temperature control for safety (TCS foods). Some products need no special training at all; others require you to complete a $40 food safety course.

No Training Required

These products are your simplest entry point — no training, no extra hoops:

This list isn't exhaustive. The statute covers "non-temperature-controlled food prepared at a residence" and "baked goods prepared at a residence" broadly (SDCL § 34-18-35). If it doesn't need refrigeration and isn't a canned good, you're generally in the clear.

Training Required ($40 Every 5 Years)

Complete the SD DOH-certified online training, and you can also sell these higher-risk categories:

This tiered approach is what makes South Dakota unusual. Many states simply prohibit home-canned goods and perishable baked goods under cottage food laws. South Dakota lets you sell them if you meet the training, pH/water-activity, and cold-holding rules that apply to the product.

Here's what that means for you: if you're making jerky or processing honey, you'll need to work through the appropriate state agency rather than the cottage food framework. And if you're thinking about selling something that requires strict temperature control beyond what's listed above, check with SDSU Extension to confirm whether it qualifies.

Sales Limits and Channels

No Sales Cap

South Dakota has no statewide annual sales cap. SDCL § 34-18-35 and § 34-18-38 simply don't establish one. You can earn unlimited gross revenue from compliant cottage food sales.

That's a notable advantage over states that cap you at $25,000 or $50,000. Just remember — even without a cap, you'll need to track your sales for tax purposes.

Where You Can Sell

South Dakota limits you to direct, in-person sales. Here's exactly what's allowed:

• Your primary residence — porch pickup, in-person sales at your home
• Farmers' markets
• Roadside stands
• Other temporary sale venues — craft fairs, bazaars, holiday markets
• Personal delivery — you or a member of your household drives the product to the buyer

Where You Cannot Sell

This is where South Dakota draws a hard line:

• No shipping — SDSU Extension says the law does not allow mail or carrier delivery (USPS, FedEx, UPS, etc.)
• No wholesale
• No retail stores — you can't sell through a third-party shop or grocery store
• No restaurants or catering
• No third-party fulfillment — the statute requires personal delivery by you or someone who lives at your primary residence

Local Regulations

South Dakota's cottage food statute creates one statewide exemption, so you are not dealing with a separate county cottage-food permit. That said, you should still check your local zoning ordinances if you're running a business from home — some municipalities have home-based business regulations that could apply.

Permit, Registration, and Training Requirements

No State License or Registration

You do not need a state license or registration to operate a cottage food business in South Dakota. SDCL § 34-18-38 explicitly exempts you from licensing and license fee provisions if you're selling food prepared at your residence in accordance with § 34-18-35.

No application. No fee. No inspection schedule. Just follow the rules.

Food Safety Training

The training requirement is tiered by product:

• No training needed for non-temperature-controlled foods and standard baked goods
• $40 training required (every 5 years) for home-canned goods, fermented foods, TCS baked goods, TCS sauces/pesto, and frozen produce

The course is self-paced and online, certified by the South Dakota Department of Health. You'll pay a $40 registration fee, complete the modules, and receive a certificate. Keep that certificate on file — the state expects you to retain records verifying timely completion of training.

SDSU Extension's Master Food Preserver or Home Food Preservation course also counts as equivalent training if you'd prefer that route.

Sales Tax Permit

This isn't a cottage food requirement per se, but it's something you need: a sales tax permit from the South Dakota Department of Revenue. All cottage food sales are subject to sales tax. You can reach the DOR at 1-800-829-9188 or bustax@state.sd.us.

Kitchen Inspections

South Dakota does not conduct routine government food safety inspections of cottage food operations. Your kitchen is your kitchen. The labeling disclaimer you're required to use makes this clear to your customers.

South Dakota Cottage Food Labeling Requirements

Your labels are where South Dakota gets specific. Every cottage food product you sell must have a label with all of the following elements, per SDCL § 34-18-37.

Required Label Elements

1. Name of the product
2. Name of the producer
3. Physical address of production — the actual address where you made the food (P.O. boxes are not acceptable here)
4. Mailing address of the producer — if it's different from the physical address of production (P.O. boxes are fine for mailing)
5. Telephone number of the producer
6. Date the product was made or processed
7. Ingredients — listed in descending order of predominance by weight
8. Refrigerated/frozen directive — if you're selling foods under § 34-18-36.1 (TCS baked goods, fermented foods, frozen produce), you need a clear instruction like "Keep Refrigerated" or "Keep Frozen"
9. The verbatim disclaimer (see below)

Notice two things South Dakota requires that many states don't: the physical address of production, the mailing address of the producer, and the date the product was made or processed. If your production and mailing address are the same, format the label so that one address clearly satisfies both roles; if they differ, include both.

The Required Disclaimer

South Dakota requires a specific allergen-inclusive disclaimer on every label. Your label must display this exact statement:

"This product was not produced in a commercial kitchen. It has been home-processed in a kitchen that may also process common food allergens such as tree nuts, peanuts, eggs, soy, wheat, milk, fish, and crustacean shellfish."

SDCL § 34-18-37. Do not paraphrase.

This disclaimer is unique to South Dakota — the allergen list is baked right into the required language. You can't shorten it, reword it, or substitute your own allergen statement. Print it exactly as written.

Recommended vs. Required

South Dakota law is specific about what's required, but here are some best practices to consider:

Common Labeling Mistakes

As you build your first South Dakota labels, watch for these easy-to-miss mistakes:

• Forgetting the mailing-address line. South Dakota lists the physical address of production and the producer's mailing address as separate label elements. If they are the same, make that clear; if they differ, include both.
• Paraphrasing the disclaimer. Even slight rewording — "made in a home kitchen" instead of "not produced in a commercial kitchen" — doesn't cut it. The law wants the exact words.
• Omitting the production date. SDCL § 34-18-37 requires the date made or processed. It's easy to forget, but it's not optional.

Now That You Know the Rules — Here's How to Start Selling in South Dakota

Navigating South Dakota's cottage food laws — the training tiers, the labeling specifics, the no-shipping rule — is just the first step. Here's how to actually get your home bakery up and running.

Your Startup Sequence

1. Know your products. Figure out which of your products require the $40 food safety training. If you're only making cookies and bread, you don't need it. If you're canning jams or making cheesecake, you do.
2. Complete training if needed. Sign up for the SD DOH-certified online course ($40, valid 5 years). Or, for canned goods, consider the free SDSU Extension processing authority review instead.
3. Get your sales tax permit. Register with the South Dakota Department of Revenue before your first sale. This is separate from cottage food compliance — it's a standard tax requirement.
4. Prepare a South Dakota label checklist. Make sure every label includes all nine required elements, including the production address, mailing address, date made, and verbatim disclaimer. Here's our full labeling guide to help you format the basics while South Dakota-specific printable labels remain a manual review item.
5. Set up your public menu. Create your MyPorch online storefront to advertise your products and coordinate local pickup or personal delivery. Keep payment and handoff practices aligned with South Dakota's physical-presence/personal-delivery rule.
6. Plan your sales channels. Focus on in-person sales — your home, farmers' markets, roadside stands, temporary venues, or personal delivery. Use online tools for coordination, but don't ship.
7. Price smart. Not sure how to price your goods? Our guide on how to price baked goods for your home bakery covers costs, margins, and market positioning.

Frequently Asked Questions

Recent Law Changes (Changelog)

Hey — let's talk about what's changed (and what hasn't) in South Dakota recently.

2025 Legislative Session

House Bill 1179 was introduced in January 2025 to clarify labeling requirements and expand sales channels. It would have changed the disclaimer wording, added third-party retail sales, allowed placard and web page disclosures, and introduced a $75 civil penalty. On February 10, 2025, the House Commerce and Energy Committee voted to defer the bill to the 41st legislative day — a procedural move that effectively killed it. HB 1179 did not become law. The current law remains HB 1322 (2022). If you've seen references to the proposed disclaimer changes or third-party retail expansion, know that none of those provisions are in effect.

House Bill 1187, which would have authorized the sale of home-processed poultry and pork, also died in committee during the 2025 session.

House Bill 1022 (Chapter No. 168-2025) was signed into law and took effect July 1, 2025. It addresses misbranding of cell-cultured protein products — not a cottage food issue, but a food law change worth knowing about if you're following South Dakota food regulations broadly.

2024 Legislative Session

Initiated Measure 28, a ballot measure to prohibit state sales taxes on most groceries, was defeated by voters in November 2024. This doesn't directly affect cottage food law, but it would have changed the economics of food sales in the state.

The Bottom Line

South Dakota's core cottage food framework — no sales cap, no state license, tiered training for certain products, and physical-presence/personal-delivery sales — has been stable since the major 2022 reform (HB 1322). The failed HB 1179 in 2025 shows there has been legislative interest in modernization, but the cottage food rules above remain the current operating framework.