Do I Need a License to Sell Eggs From Backyard Chickens?

By John Walker · Backyard chicken keeper in Dallas, Texas since 2017

Do I need a license to sell eggs from backyard chickens? In many parts of the United States, the answer is no — a small flock selling a few dozen eggs a week from the farm gate or a farmers market often needs no license at all. But the rules vary from state to state, and in some places they vary from county to county, so a keeper who sells eggs without checking can be breaking the law without knowing it. This guide explains the general pattern, the rules that apply in most states, the labelling and handling requirements, and how to check the rules where you live.

Do I need a license to sell eggs from backyard chickens?

Do I need a license to sell eggs from backyard chickens? In many US states, no, not for small-scale sales. Most states have an exemption for small producers who sell eggs directly to the end consumer, from the farm, at a farmers market, or through a farm stand, without going through a store.

The exemption usually has limits: a maximum number of hens, a maximum number of eggs sold per week, or a rule that the eggs must be sold directly and not through a shop. If you stay within those limits, you may not need a license, an inspection, or a grading certificate.

The rules are not the same everywhere, and that is the point that matters most. Some states require a license even for a small flock, some require registration, and some require a food handler's certificate. Some states set the limit at a certain number of hens, others at a certain number of dozens per week, and others at a certain amount of sales per year. A keeper in one state may need nothing at all, while a keeper in the next state over may need a license, a label, and an inspection. There is no single national rule for small egg sales.

The federal rules are less relevant than the state rules for a backyard keeper. Federal egg grading and inspection rules apply mainly to large producers who sell eggs across state lines or through stores, not to a small flock selling at the farm gate. The state rules are the ones that decide whether you need a license, and they are the ones you need to check. The United States Department of Agriculture publishes guidance, but the state department of agriculture is the authority that enforces the rules where you live.

This guide gives you the general pattern and the questions to ask, but it cannot give you the answer for your state, because the answer changes. The last section explains exactly how to check, and it is the most important part of the guide. Do not start selling eggs until you have checked, because the fine for selling without a license can be far more than the eggs are worth.

How the rules usually work

Most states draw a line between a small producer and a commercial producer. A small producer is a keeper with a few dozen hens who sells eggs directly to the people who will eat them. A commercial producer is a farm with hundreds or thousands of hens who sells eggs through a store, a distributor, or across state lines.

The small producer is usually exempt from the licensing and grading rules that apply to the commercial producer, as long as the sales are direct and the volume is small.

The exemption usually has conditions. The eggs must be sold directly to the consumer, not through a shop or a restaurant. The eggs must be clean, uncracked, and kept cold. The seller must label the eggs with their name and address, and often with the date and a statement that the eggs are ungraded. Some states also require the seller to keep a record of sales, or to complete a short food safety course. These conditions are not hard to meet, but they are conditions, and a keeper who ignores them is not covered by the exemption.

Some states have a cottage food law that covers eggs, and some do not. A cottage food law lets a home producer sell certain foods without a commercial licence, and eggs are included in some states and excluded in others. If your state has a cottage food law, read it carefully, because it will tell you what you can sell, where you can sell it, and what label you need. If eggs are not covered, the regular egg rules apply instead.

The number of hens matters. A flock of ten hens is clearly a small producer, and a flock of five hundred is clearly a commercial producer. The line between them is drawn at different places in different states, and it is often set at a number that surprises keepers: some states set the limit as low as a few dozen hens, while others set it much higher. Count your hens, and check the number against your state's limit before you sell.

Labelling, handling, and storage rules

Even when no license is needed, most states require the eggs to be labelled. A typical label includes the seller's name and address, the date the eggs were packed, the number of eggs, and a statement that the eggs are ungraded, or that they were produced by a small flock.

Some states require the label to say that the eggs have not been inspected, and some require a safe handling statement. The label does not need to be fancy: a printed sticker or a handwritten card is usually enough, as long as it has the required information.

Handling rules are about keeping the eggs safe. The eggs must be clean, with no droppings or dirt on the shell, and any egg that is cracked, leaking, or dirty should not be sold. The eggs must be kept cold, at fridge temperature, from the time they are collected until they are sold, and they should be transported in a cool box, not left in a hot car. A buyer who takes home eggs that have been sitting in the sun is buying a food safety risk, and the seller is responsible for that risk.

Storage rules are simple but strict. Eggs should be stored in a clean carton, with the pointed end down, in a fridge, and they should be sold within a few weeks of being laid. An egg that has been in the fridge for a month is still safe if it has been kept cold, but it should be checked before sale, and it should not be sold as fresh. Our guide on how to store fresh eggs explains the right way to keep eggs fresh, and our guide on how to tell if eggs are fresh explains how to check them.

Record keeping is a good habit even when it is not required. A simple notebook with the date, the number of eggs sold, and the buyer's name, if you know it, will help you if there is ever a question about your eggs, and it will also tell you how much you are earning and whether you are near your state's limit. If your state does require records, the notebook is already there, and you will not have to start from scratch.

Where you sell	License usually needed?	What to check
Farm gate, direct to buyer	Often no, for small flocks	State hen or volume limit, label rules
Farmers market, seller present	Often no, for small flocks	Market rules, label, cold storage
Through a shop	Usually yes	Grading, inspection, license
To a restaurant	Usually yes	Commercial standard, license
Online, shipped by post	Usually yes, and not advised	State rules, cold chain, breakage

Selling at a farmers market vs the farm gate

Selling at the farm gate is the simplest way to sell eggs, because it is the most direct. The buyer comes to your property, sees the flock, and buys the eggs from you. Most state exemptions are written with the farm gate in mind.

And they often require the sale to happen on the farm, or at a market where the seller is present.

A farm gate sale is also the easiest to manage, because you do not need a stall, a table, or a cool box for transport.

Selling at a farmers market is the next step, and it is usually covered by the same exemption, as long as the seller is present and the eggs are sold directly to the buyer. Some markets have their own rules, and they may ask for a copy of your license, or for proof that you are exempt. Check with the market manager before your first day, because a market that turns you away for missing paperwork is a wasted trip. Some markets also require the seller to have liability insurance, which is worth having in any case.

Selling through a shop, a restaurant, or an online platform is a different matter, and it usually takes you outside the small producer exemption. A shop that sells your eggs is a retailer, and the eggs it sells are subject to the commercial rules, including grading and inspection. A restaurant that buys your eggs is a food business, and it will need eggs that meet the commercial standard. If you want to sell through a shop, talk to your state department of agriculture first, because you will probably need a license and an inspection.

Online sales are a grey area, and the rules vary. Some states allow a small producer to take orders online and deliver them in person, while others require the sale to happen face to face. A keeper who ships eggs by post is almost certainly outside the exemption, and shipping eggs is a poor idea in any case, because the eggs can break and the cold chain is hard to maintain. Keep online sales to taking orders and arranging a local pickup, and check the rules before you do even that.

What happens if you sell without a license?

Selling eggs without a license, when one is required, can lead to a fine, a warning, or an order to stop selling. The fine is usually small for a first offence, but it can be larger if the seller keeps selling after a warning, or if the eggs are found to be unsafe.

A keeper who sells eggs that make someone ill can also face a civil claim, even if the eggs were sold in good faith, because the seller is responsible for the safety of the food they sell.

The risk is not only legal. A buyer who gets sick from your eggs will not buy from you again, and they will tell their friends. A small flock that sells eggs by word of mouth depends on trust, and a single food safety incident can destroy it. The rules are there to protect the buyer and the seller, and following them is the best way to keep the trust that makes a small egg business work.

Liability insurance is worth considering, even if it is not required. A small policy that covers food sales is not expensive, and it protects you if a buyer claims that your eggs made them ill. Some farmers markets require it, and some do not, but it is a sensible precaution for any keeper who sells food. Talk to your insurer about a policy that covers farm gate sales, and keep the paperwork with your records.

If you are unsure whether you need a license, the safe choice is to ask before you sell, not after. A phone call to your state department of agriculture, or a visit to their website, will give you the answer in a few minutes, and it will save you a fine and a worry. The rules are there to be followed, and the people who enforce them are usually happy to explain them to a small keeper who asks.

How to check the rules in your state

Start with your state department of agriculture. Search for the department's website and look for a page on egg sales, small producers, or cottage food. The page will tell you whether you need a license, what the limits are, and what label you need.

If the page is unclear, call the department and ask: the staff deal with small keepers every day, and they will give you a straight answer. Write down the name of the person you spoke to, and the date, so that you have a record.

Next, check with your county or city, because local rules can be stricter than state rules. Some counties require a business license for any sale, even a farm gate sale, and some cities have rules about selling food from a home. A quick call to the county office will tell you whether there is a local rule that applies to you. This is a step that many keepers skip, and it is the one that catches them out.

Ask Extension is a useful resource for small keepers, because the extension service answers questions about food safety and state rules. The Ask Extension website has answers to questions about selling eggs, and it can point you to the right state office. The extension service is a university service, not a regulator, so it will give you advice, not a ruling, but the advice is usually accurate and up to date.

Finally, check with your farmers market, if you plan to sell there. The market manager will know the local rules, and they will tell you what paperwork they need from you. A market that has been running for years will have dealt with small egg sellers before, and they will be able to tell you what to expect. Put all of this together, and you will have a clear answer for your state, your county, and your market, before you sell a single egg.

Sources: Ask Extension and USDA Food Safety and Inspection Service, shell eggs from farm to table

Related tools and guides

For more on the same topic, see Backyard Chicken Laws: Rules to Check First.

Frequently asked questions