Michigan Farmers Market Vendor Requirements for Cottage Food Sellers

State Requirements vs. Market Requirements

Michigan does not require a state cottage-food license, permit, or pre-inspection for cottage food sellers at farmers markets. The cottage food exemption under MCL 289.4102 covers sales at farmers markets, roadside stands, craft fairs, festivals, and pop-up events. As long as your products are non-potentially hazardous and properly labeled, MDARD does not impose additional rules for market vendors specifically.

But individual farmers market boards set their own participation rules — and they can be significantly stricter than state law. Every market operates under a vendor agreement or set of bylaws, and those documents often require things the state does not.

What Markets Commonly Require

Requirements vary by market, but here is what you should expect to encounter when you apply for a booth:

Product liability insurance. Many markets — especially larger urban markets and those affiliated with municipalities — require vendors to carry general liability and product liability insurance. Some specify minimum coverage amounts (commonly $1 million per occurrence / $2 million aggregate). Standard homeowners insurance does not cover business activity. Food-specific policies from providers like FLIP or Insurance Canopy typically cost around $299/year and provide instant Certificates of Insurance (COIs) that markets can verify.

Compliant labeling. Market managers frequently review labels before approving a vendor. Your cottage food labels must include the product name, net weight in both US customary and metric units, complete ingredient list, allergen declaration, your name and address (or MSU Product Center registration number plus phone number), and the mandatory MDARD disclaimer in at least 11-point font.

Product list approval. Some markets require a complete list of the products you plan to sell, and they may restrict certain categories. If the market also hosts licensed food vendors, they may limit cottage food sellers to specific product types to avoid competitive overlap.

Booth setup standards. Markets may require tents, tablecloths, product signage, and specific display configurations. Some require that all products be elevated off the ground and protected from direct sun exposure.

Food safety training documentation. While Michigan does not require food safety training for cottage food sellers, some markets ask vendors to show proof of completing a food safety course — such as an MSU Extension cottage food workshop — as a condition of participation.

Insurance: Why It Matters Even When Not Required

If a market does not require liability insurance, you should still carry it. Here is why: if a customer has an allergic reaction, chokes on a nut, or claims your product made them sick, your personal assets are exposed. Standard homeowners policies explicitly exclude business activity. Without a food business liability policy, a single claim could reach your savings, your home, or your car.

A food-specific general liability policy with product liability coverage handles exactly this scenario. For cottage food operators, the annual cost is typically $250–$350. The policy covers legal defense costs and settlements up to your coverage limit, and it provides the COI documents that markets, venues, and event organizers routinely request.

Consignment Sales Are Not Allowed

A question that comes up often: can you place your cottage food products on consignment at a store, coffee shop, or another vendor's booth?

No. The cottage food exemption requires direct-to-consumer sales. You — the producer — must be the one selling to the end customer. Consignment, wholesale to retailers, and having another vendor resell your products all violate the exemption. If a coffee shop wants to carry your granola on their shelf, that is a wholesale arrangement that requires a licensed commercial kitchen and an MDARD food establishment license.

Similarly, you cannot sell cottage food products to restaurants, bakeries, or catering companies for use as ingredients. Every transaction must be a direct sale from you to the person who will consume the product.

Finding Markets to Sell At

The Michigan Farmers Market Association maintains a directory of active markets across the state. County MSU Extension offices are another good resource — they often know about smaller community markets, seasonal pop-ups, and church or school craft fairs that accept cottage food vendors.

When evaluating a market, ask about vendor fees (typically $15–$50 per market day), insurance requirements, the application deadline, and how many cottage food vendors they already have. Some high-traffic markets have waitlists, so applying well before the season starts gives you the best chance.

The Michigan Cottage Food & Home Food Business Guide includes a complete market preparation checklist, label templates, and the insurance and recordkeeping tools cottage food vendors need to stay compliant at every sale.

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