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Legislation to expand home-baking businesses in Iowa

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March 30th, 2016 by Ric Hanson

The Iowa legislature is poised to give Iowans running a baking business out of their home a chance to boost their income. Under current Iowa law, “home food establishments” can only gross 20-thousand dollars a year. That’s not profit, but represents total sales of the home-made goods BEFORE any expenses are deducted. A bill that’s likely to gain final approval in the Iowa Senate soon would raise that limit to 35-thousand dollars a year.

Tod Bowman of Maquoketa drew laughter and groans as he asked his fellow senators to support the bill. “In this case, you can have your cake and eat it, too,” Bowman said. Representative Linda Miller, a Republican from Davenport, spoke just before the House passed the bill unanimously this week. “This is truly a bipartisan effort,” Miller said, “…because we all like pie.” There are 319 licensed “home food establishments” in Iowa today. Lana Shope, of Indianola, has one of them. In 2009, she won the American Pie Council’s top prize with her Harvest Apple Pie recipe.

“So you could say I was the best apple pie baker in America in 2009,” Shope says, with a laugh. “But I’ve won lots and lots of ribbons at the Iowa State Fair. I love to make pie.” Shope and a business partner got a state license to operate last year and their pie “coop” now has 35 customers. Another 30 people are on a waiting list and they might be able to get one of Shope’s monthly pies if this bill becomes law. Shope says it’s mostly women who are trying to make money selling baked goods out of their homes.

“It’s another way to support and promote small, independent businesses where people are really following a passion, doing things they love to do and pleasing people who want a more unique, fresh product as opposed to a mass production item,” Shope says, “which is kind of the trend in the world of food these days.”

(Radio Iowa)