Illinois · Direct-to-Consumer ComplianceFARM EXEMPT / COTTAGE

Grains & Flour

Whole grains, dry beans, popcorn, milled flour and dry mixes

Whole grainFarm-exempt if unprocessed
Milled flourCottage registration
< 20 ppmGluten-free claim limit
Seed = permitPlanting seed follows the Seed Law

1What’s covered & what needs more

Covered under this path

  • Whole, unprocessed grains, seeds and beans (unsprouted) — allowed at markets with no restrictions
  • Popcorn kernels (popped popcorn is a processed food → cottage)
  • Milled flour, cornmeal, pancake and baking mixes — as cottage food
  • Bagged-at-sale bulk grains

Needs a different path

  • Sprouted grains or seeds → sprouts are prohibited under cottage law
  • Flour with added prohibited ingredients (dairy, eggs, meat) beyond permitted uses
  • Grain sold for planting → Illinois Seed Law labeling/permit rules
  • Large-scale milling or wholesale → IDPH manufactured-food permit

2Three steps to compliant sales

A

Sort raw from processed

Whole, unsprouted grains, seeds, beans and popcorn kernels are agricultural products. Milling, blending, seasoning or mixing makes it a processed food: register as a cottage food operation (or use a licensed facility).

B

Register & label

Cottage: CFPM + local health department registration, and the full cottage label with allergen callouts (wheat, soy, tree nuts, sesame…). ‘Gluten-free’ claims must meet FDA’s < 20 ppm standard.

C

Sell direct, in-state

Sell direct to consumers inside Illinois. Consider ‘raw flour — cook before eating’ handling guidance on packages. If a customer will plant the grain, follow the Illinois Seed Law.

3Quick-reference table

ItemRuleRegulator
Whole grains, beans, seedsUnprocessed, unsprouted: no restrictions at farmers markets; may be bagged at time of sale.Farm Products Marketing Act
Milled flour & mixesCottage registration; ‘physically altered’ food.Local health dept
Sprouted grainsProhibited under cottage law; special process under FDA.IDPH / FDA
Seed for plantingIllinois Seed Permit for anyone who labels/repackages seed; own-grown seed sold and delivered only on the farm is permit-exempt but must be tested and labeled.IDOA Seed Program
Label must-havesOperation name + local government unit; registration # + county/municipality; common name; every ingredient (incl. sub-ingredients) by weight; federal allergen labeling (milk, eggs, wheat, peanuts, soy, fish, tree nuts, shellfish, sesame); processing date (month/day/year); net weight; and the home-kitchen statement.IDPH / local health dept

4Frequently asked

Do I need a permit to sell whole wheat berries?

No permit at farmers markets if they’re whole, unprocessed and unsprouted — the Farm Products Marketing Act lists grains, seeds, beans and nuts.

Is stone-ground flour a cottage food?

Yes — milling is physical alteration, and cottage food covers everything not on the prohibited list.

Can I make ‘gluten-free’ flour claims?

Only if the product meets FDA’s gluten-free standard (< 20 ppm) and you can back it up.

Can I sell seed grain?

Only under the Illinois Seed Law (permit, testing, labeling), except own-production seed sold on the farm.

Printable checklist

  • Whole/unprocessed items separated from milled/mixed SKUs
  • Cottage registration + CFPM for milled/mixed items
  • Labels: ingredients, allergens, date, net weight, reg #
  • ‘Gluten-free’ only with proof (< 20 ppm)
  • No sprouted product without a commercial license
  • Seed Law compliance for any planting seed
  • Register with IDOR; grocery tax by delivery address
  • Home-kitchen notice at point of sale online
Sales tax: Groceries: Illinois’ 1% state grocery tax ended Jan 1, 2026, but many cities and counties (Chicago included) now levy their own 1% local grocery tax — check the rate for each delivery address. Register with the Illinois Department of Revenue (IDOR) through MyTax Illinois.
Selling on a marketplace: Cottage-food sales must be made by the registered operator (or a listed family member/employee) directly to the consumer, inside Illinois. Online listings work when the operator is clearly the seller and the home-kitchen notice appears at the point of sale. A platform can list and take payment, but should not take title, repack, or distribute the product.