Samantha Bayer
Clearing Up Confusion: Cottage Foods, Farm Stands & Farm Stores
If you’re a property owner, we know that trying to understand Oregon’s land-use system can feel like an uphill battle. The current confusion surrounding HB 4153 isn’t anyone’s fault— it’s the result of a complicated, broken regulatory framework that places restrictions above individual property rights.
While the system is frustrating, this bill was designed to create more breathing room for farm families who are operating permitted farm stands.
Since the public hearing last week, we have spent time collecting the most common questions and concerns we have heard – especially from property owners who cannot meet the minimum-farming thresholds in the bill or those operating small cottage foods businesses.
Here is information to keep in mind:
- Does HB 4153 “shut down” roadside farm stands selling berries or U-Pick operations?
No. Selling what you grow on EFU land is protected “farm use” under ORS 215.203. Under both current law and HB 4153, you do not need a permit for:
- Roadside Sales: Selling produce, eggs, or flowers grown on your farm.
- U-Pick: Allowing customers to harvest their own crops on-site.
- Bulk/Wholesale Sales: Selling crops, livestock, or stock raised on your property to other farms or the public.
- When is a farm stand permit required right now?
Under existing law, a farm stand permit may be required if your operation functions as a retail store or event venue. This includes:
- Re-selling crops or products you did not grow to the public.
- Selling processed goods (oils, jams), food items or bottled drinks, or merchandise.
- Charging for promotional activities like corn mazes or farm-to-table dinners.
However, this is not the only type of permit state law allows for these activities on EFU zoned land. HB 4153 does not change this.
- Why doesn’t HB 4153 explicitly state that roadside stands don’t need permits?
HB 4153 only shows the specific sections of the law being changed (ORS 215.283 & 213). It does not list the definition of “farm use” (ORS 215.203) because that law is not being amended. Since selling your own crops is already legal under “farm use,” there was no need to include it in the bill text.
One of the main reasons for changing the name from “farm stand” to “farm store” is to eliminate confusion at the local level. By creating a clear distinction, we prevent counties from overreaching and demanding land-use permits from farmers who are simply selling their own crops or doing U-Pick operations.
- Will HB 4153 shut down existing-permitted farm stands?
No. If you have a valid farm stand permit under ORS 215.283 or ORS 215.213, your rights are protected. HB 4153 does not cancel existing approvals; it simply offers an optional pathway for those who wish to expand into activities not covered by current farmstand laws. Counties will not be “shutting down” existing permitted farm stands because of this bill.
- If I am operating a farm stand without a permit now, but I want to get a farm stand permit under existing law, can I still get one?
Yes. If passed, the effective date of HB 4153 will not be until January 2, 2027. Which means that property owners who didn’t realize they needed permits or who wish to opt into the current law have the time to do so.
If property owners want to take advantage of the new opportunities in the law – namely not being held to the current income restrictions in existing law or getting more use out of structures – they will need to meet the standards of HB 4153, which requires more farming to be taking place on the property. As explained below, this was a necessary legislative trade-off.
- Does HB 4153 affect all rural properties?
No. HB 4153 applies only to Exclusive Farm Use (EFU) and mixed farm/forest zones, which are “resource lands” protected by law for agricultural production. Unlike rural residential zones or commercial zones in town, EFU properties are strictly regulated to prevent non-farm development to ensure the land remains dedicated to Oregon’s agricultural economy for commercial farming enterprises.
Property owners should not assume that their property is zoned EFU! Many properties, especially smaller lots, have been rezoned from EFU to a more appropriate zoning designation like rural residential! This bill also does not affect non-resource lands inside of cities.
- I thought the cottage foods law allows me to sell my home-made food items directly to the public? Does HB 4153 change that?
Much of the confusion regarding HB 4153 stems from the recently passed “Cottage Foods” law. While that law relaxed food safety licensing for home kitchens, it did not change land-use permit requirements.
Under existing land use law, if you are using your home kitchen to make and sell bread, jams, jellies, and chutneys, you still need county land use approval to use your house to do so. See ORS 215.448. HB 4153 doesn’t change that.
State law allows you to use a dwelling for a home-business as a “home occupation” on EFU zoned land. Generally, a home occupation permit allows you to make your products, sell your product, have customers visit your property, and even host classes or events for supplemental income. You can even use your home and/or other buildings on your property – like barns – to run your business. Your county will dictate the scale of what is allowed.
Home occupations are really important permits for property owners – especially farmers. They are what allow cottage businesses to thrive on EFU zoned land. This is why OPOA fought so hard to stop SB 77 from last session – a bill that would have made it extremely difficult for property owners including farmers to run home businesses. Learn more here: Do You Run a Home Business? Not For Long If SB 77 Passes. – Oregon Property Owners Association
Ironically, that bill was championed by the same organizations trying to kill HB 4153. Luckily, they did not bring it back this Session.
- Does my farm stand permit absolve me of having to get a home occupation permit to use my home for my cottage foods business?
Likely not. If your property is zoned EFU and you are using a dwelling to operate a cottage food business or other home business; you likely still need to get a home occupation permit or other land use approval. HB 4153 doesn’t change that.
- But some property owners won’t be eligible for a farm store permit. Why does OPOA still support the bill?
Because the farming thresholds are what is required to get this bill passed and the problems with existing law solved.
Oregon’s land-use system mandates that EFU land be used for commercial agriculture. These mandates are strict and have been put in place for over 50-years by organizations who don’t want anyone to use their properties for anything other than commercial farming.
Current law is filled with strict financial and acreage thresholds before non-farm uses are allowed. For example, a property owner must generally prove at least $80,000 in gross farm income before they are even allowed to build a home on EFU land. As a property rights organization, OPOA hates these types of mandates, but that is the political reality of Oregon.
Unless things in Salem change drastically, there is no reality where the state would allow property owners more opportunity on their EFU-zoned land, without requiring that farming remain the primary focus of the property.
Current law does this by strictly limiting a family farm’s income and banning the use of farm stand structures for basically anything other than selling goods. These restrictions are proving to be extremely problematic for farms with these permits, who are facing enforcement actions, lawsuits, and bullying from organizations who are weaponizing these prohibitions against them.
The minimum 10-acre/$10,000 sales threshold in the -2 version of the bill is necessary to get the bill passed. Without it, the bill would never have gotten broad support from organizations who do not historically agree with OPOA on and land use, which means it probably would have never gotten a public hearing – which is what happened to it last Session.
You can read more about why this bill is necessary here: What We Lose If HB 4153 Fails – Oregon Property Owners Association
The opinions expressed in this post are those of the author and do not represent the opinions or positions of any party represented by the OPOA Legal Center on any particular matter