New Mexico Cottage Laws
Great news for New Mexico home bakers! The 2021 Homemade Food Act completely transformed cottage food laws in the state. What used to be one of the most complex systems in the country is now simple and entrepreneur-friendly!
What Can You Make and Sell?
New Mexico now allows all non-TCS (non-time/temperature control for safety) foods – basically anything that's shelf-stable and doesn't need refrigeration. The law doesn't provide a specific list but instead authorizes a broad range of food processes including:
Allowed Food Categories
- Baked goods that don't require refrigeration (breads, cookies, cakes, muffins, pastries)
- Candies and confections (chocolates, hard candies, fudge)
- Jams, jellies, and preserves (high-sugar varieties)
- Dried goods (granola, trail mix, dried fruits)
- Spices and seasonings
- Nonalcoholic beverages (certain types)
- Nut butters
- Pasta and noodles
Food Processes Allowed
The law specifically mentions: “baking, cooking, cutting, dehydrating, drying, fermenting, growing, mixing, preserving, raising or other process” – giving you lots of creative freedom!
What You CAN'T Make
TCS foods (foods requiring refrigeration) are prohibited, including:
- Cream-filled pastries, cheesecakes
- Pies that need refrigeration (banana cream, custard, etc.)
- Fresh dairy products
- Meat, poultry, seafood
- Foods with cream cheese frosting that requires refrigeration
- Cut fruits and vegetables
The Money Side: No Limits!
New Mexico has no annual sales limit – you can earn as much as your business can generate without any restrictions. This puts New Mexico among the most business-friendly cottage food states.
Where Can You Sell?
The 2021 law opened up selling opportunities significantly:
Direct Sales:
- From your home (pickup and delivery)
- Farmers markets
- Festivals and fairs
- Roadside stands
- Online sales (with mail delivery within New Mexico)
- Phone orders
What you CAN'T do:
- Wholesale to restaurants or grocery stores
- Use third-party vendors
- Sell out of state
Important note: Private venues (like farmers markets) can still choose not to allow cottage food sales, but they can no longer be banned by law.
Requirements to Get Started
The beauty of the new law is its simplicity. Here's all you need:
1. Food Handler Training (Required)
Everyone involved in making cottage foods must obtain an NMED-approved food handler card. This is the only formal requirement.
- Must be from an ANAB-accredited program
- Can be completed online in about 2 hours
- Costs around $10-15
- Must pass with 70% or better
- Keep certificate accessible and consider displaying it
2. Basic Kitchen Standards
Your kitchen must meet simple safety requirements:
- Clean and sanitary environment
- Protection from rodents and pests
- No children or pets present during food production
- Standard household equipment is fine
3. Proper Labeling
Each product must be labeled with:
- Product name
- Your name, home address, phone number, and email
- Complete ingredient list (from most to least by weight)
- Allergen information (if applicable)
- Required statement: “This product is home produced and is exempt from state licensing and inspection. This product may contain allergens.”
What You DON'T Need
- No state permits or licenses
- No home inspections (unless there's a complaint)
- No detailed business plans
- No expensive kitchen upgrades
- No annual fees
The Albuquerque Breakthrough
One of the biggest wins of the 2021 law was overturning Albuquerque's complete ban on homemade food sales. Before the Homemade Food Act, Albuquerque residents couldn't legally sell even a single homemade cookie!
Now, all New Mexico residents, including those in Albuquerque, can participate in cottage food businesses. Local governments can still require business permits, but they cannot ban cottage food operations entirely.
Getting Started: Your Action Plan
Step 1: Plan Your Products Decide what non-TCS foods you want to make and ensure they don't require refrigeration.
Step 2: Get Your Food Handler Card Complete an ANAB-accredited food handler training course online.
Step 3: Set Up Your Kitchen Ensure your kitchen meets basic cleanliness and safety standards.
Step 4: Create Labels Design labels with all required information, including the mandatory disclaimer statement.
Step 5: Check Local Requirements Contact your city or county to see if they require any business permits (they can't ban you, but they may require permits).
Step 6: Start Selling Begin with small batches at farmers markets or from home to test your market.
Labeling Example
Here's what your label should look like:
Chocolate Chip Cookies
Ingredients: Enriched flour (wheat flour, malted barley flour, niacin, iron, thiamin mononitrate, riboflavin, folic acid), butter (cream, salt), semi-sweet chocolate chips (sugar, chocolate, cocoa butter, milk fat, soy lecithin, natural flavors), brown sugar, granulated sugar, eggs, vanilla extract, baking soda, salt
Contains: Wheat, Milk, Eggs, Soy
Made by: Jane's Home Bakery
123 Main Street, Santa Fe, NM 87501
Phone: (505) 555-0123
Email: jane@homebakery.com
This product is home produced and is exempt from state licensing and inspection. This product may contain allergens.
Success Tips for New Mexico
Start simple: Begin with products you're confident making well, like cookies or breads.
Build relationships: Network at farmers markets and local events to build your customer base.
Use social media: Promote your products online (you can take orders by phone or email).
Stay organized: Keep good records for tax purposes and track what sells well.
Join communities: Connect with other cottage food producers for support and advice.
The Bottom Line
The 2021 Homemade Food Act transformed New Mexico from having one of the worst cottage food laws to having one of the best. The combination of no sales limits, broad product categories, multiple selling venues, and minimal requirements makes New Mexico an excellent state for cottage food entrepreneurs.
Perfect for: Anyone wanting to start a food business with minimal red tape and maximum growth potential.
Key advantage: The broad definition of allowed foods gives you more creative freedom than most states.
Remember: While the state requirements are minimal, always check with your local city or county about any business permit requirements.
New Mexico has truly embraced food freedom, making it easier than ever for residents to turn their culinary passions into profitable businesses. Whether you're a single parent looking to supplement income or an aspiring entrepreneur testing the waters, New Mexico's cottage food laws provide an excellent foundation for success.
Ready to start your New Mexico cottage food business? Get your food handler card from an ANAB-accredited provider, create your labels, and start baking! For questions, contact your local New Mexico Environment Department office. Happy baking!
