Merced County, CA Home Business: Cottage Food Operations (2026)

Section 18.60.060 of Merced County's Title 18 Zoning Code regulates cottage food operations, allowing low-risk food products to be made or repackaged at a private residence in residential zones for sale to consumers. The section recognizes both Direct Sales (in-person transactions between the cottage food operator and a consumer, such as at farm stands, certified farmers' markets, or community-supported agriculture subscriptions) and Indirect Sales (sales through a third-party retailer that holds a valid permit from the County Environmental Health Agency). The Zoning Code imposes three core requirements. First, cottage food operations must comply with Merced County Environmental Health requirements. Second, the approval of a Zoning Clearance through the Planning Department is required. Third, a cottage food operation may have one full-time employee, not including family members or household members. These provisions track California's Homemade Food Act (Health & Safety Code Section 113758 / AB-1616), which establishes the statewide cottage food program and the registration or permitting administered by the County Environmental Health Agency. In the residential use table (Table 2-3), the use is cross-referenced to Section 18.60.060, keeping it tied to the home and incidental to residential use.