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
Item
Rule
Regulator
Whole grains, beans, seeds
Unprocessed, unsprouted: no restrictions at farmers markets; may be bagged at time of sale.
Farm Products Marketing Act
Milled flour & mixes
Cottage registration; ‘physically altered’ food.
Local health dept
Sprouted grains
Prohibited under cottage law; special process under FDA.
IDPH / FDA
Seed for planting
Illinois 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-haves
Operation 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.