Illinois · Direct-to-Consumer ComplianceFARM EXEMPT / COTTAGE

Nuts & Seeds

Raw nuts, roasted & flavored nuts, nut butters, trail mix, seeds

Whole rawFarm-exempt
Roasted / flavoredCottage food
$10Retail seed-dealer permit
Jul 1 – Jun 30Seed permit year

1What’s covered & what needs more

Covered under this path

  • Whole, unprocessed, unsprouted nuts and seeds — unrestricted at farmers markets
  • Roasted, salted, candied or flavored nuts; nut butters; trail mix — cottage food
  • Edible seeds (sunflower, pumpkin) roasted or seasoned — cottage food

Needs a different path

  • Sprouted seeds/nuts → sprouts are prohibited under cottage law
  • Seeds sold for planting → Illinois Seed Law (permit, testing, labeling)
  • Products with prohibited ingredients (dairy, eggs, meat)
  • Nut-butter wholesale → IDPH manufactured-food permit

2Three steps to compliant sales

A

Raw or processed?

Whole raw nuts, seeds and beans are agricultural. Roasting, seasoning, grinding into butters or mixing makes them processed food: register as a cottage food operation (or use a licensed facility).

B

Get allergen labels perfect

Tree nuts, peanuts and sesame are major allergens: list them by name in the ingredient list or a ‘Contains:’ statement, in addition to the home-kitchen statement (which flags shared kitchens).

C

Handle seed-for-planting separately

Anyone who labels, repackages or sells seed for planting needs an Illinois Seed Permit ($10 retail). Selling pre-packaged seed from a permitted supplier doesn’t; own-grown seed sold only on the farm is permit-exempt but must be tested and labeled.

3Quick-reference table

ItemRuleRegulator
Whole nuts/seedsUnprocessed, unsprouted: no restrictions at markets; may be bagged at sale.Farm Products Marketing Act
Roasted, flavored, nut butterCottage registration; ‘condiments’ including nut butters are permitted.Local health dept
AllergensTree nuts, peanuts, sesame etc. labeled per federal law.FDA / IDPH
Seed for plantingIllinois Seed Permit ($10 retail; $30 wholesale); permit year July 1–June 30.IDOA Seed Program
TraceabilityNut butters are on FDA’s Food Traceability List — compliance July 20, 2028 (small-farm exemptions apply).FDA
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

Is a nut butter a cottage food?

Yes — condiments including nut butters are allowed if you make them in your registered home kitchen and label them correctly.

Can I sell sprouted almonds?

No. Sprouts are prohibited under cottage law and treated as a special process under FDA rules.

Do I need a permit to sell vegetable seed packets?

If you label or repackage seed, yes. Pre-packaged seed from a permitted supplier doesn’t require a permit.

How do I handle sesame?

Sesame is the ninth federal major allergen — list it clearly on every label if present.

Printable checklist

  • Whole/raw vs. processed SKUs separated
  • Cottage registration for roasted/flavored/butters
  • Allergen call-outs: tree nuts, peanuts, sesame
  • No sprouted nuts or seeds
  • Seed Law permit if labeling/repackaging planting seed
  • Label: ingredients, allergens, date, net weight, reg #
  • 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.