Oregon's New "Farm Store" Law Expands Opportunities for Farm Operators

Today, Governor Kotek signed HB 4153 into law, marking a significant change in Oregon's agritourism regulations. The law signals the state's alignment with farm stand operators who, for more than 30 years, have navigated an increasingly complex regulatory framework. HB 4153 grants farm operators greater flexibility to engage the public and expand opportunities to diversify income from their farms.

HB 4153 introduces a new land use: the "farm store." The law does not change the existing farm stand statute or rules. Instead, it allows Oregon counties to approve farm stores as nonfarm uses on lands zoned for exclusive farm use or mixed farm and forest use.

Under the new law, farm stores must sell farm products produced by the farm operation hosting the farm store. Enclosed structures, including the farm store and accessory structures, may not exceed a total of 10,000 square feet.

To ensure continued agricultural use, the law requires that a portion of land supporting the farm store be dedicated to farm use. For example, a farm store may be located on a 20-acre tract of land, provided that at least 15 acres are dedicated to farm use. Alternatively, a farm store may be located on a less than 20 acres if: (1) at least 10 acres are dedicated to farm use, or (2) the farm store operates as part of a farm unit that has generated at least $10,000 in cumulative gross farm income over the preceding two years.

Under the new law, farm stores may:

• Sell farm products and processed farm products produced in the local agricultural area, defined as Oregon or an adjacent county in California, Idaho, Nevada, or Washington that borders the Oregon county in which the farm store is located;
• Sell retail (non-farm products) items within a permanent enclosed structure, provided that such items occupy no more than 25% of the structure's floor area. This square footage threshold replaces existing income-based limitations on incidental items and fees from promotional activities and eliminates the potential for counties to require ongoing financial compliance documentation;
• Sell beverages and prepared food items that are cooked or otherwise ready for immediate consumption;
• Host agritourism activities that promote the farm operation and the sale of farm store products and offer commercial, entertainment, or educational value. Examples include farm tours, educational exhibits or classes, crop mazes, play structures, farm-to-table meals, animal petting and feeding exhibits, hay or tractor rides, and other seasonal or holiday events. The law does not contain a limit on the number of agritourism activities that may be held;
• Use enclosed structures for public gathering and entertainment purposes, which is prohibited under the farm stand statute; and
• Use temporary or unenclosed structures, including mobile vending units, for farm store uses, except for the sale of retail (non-farm product) items.

Consistent with existing farm stand regulations, counties may impose site design, noise management requirements, and hours of operation limitations on farm stores, but not in a manner that would prohibit the siting or operation of farm stores. Counties will likely adopt land use requirements applicable to farm stores.

Under HB 4153, farm operators can seek approval from their county planning departments to operate a farm store. The new law provides farm operators with the ability to diversify income streams and greater flexibility to engage the public in agriculture activities, helping to cultivate a shared understanding of the value of agricultural land and supporting continued operation of Oregon farmland.

For farm operators, landowners, and investors, this law creates new opportunities—but also introduces new land use considerations and local permitting requirements that should be evaluated early in the planning process.

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If you have questions about how HB 4153 may impact your operations, or if you are considering applying for a farm store permit, please contact any of the authors: Elaine R. Albrich, Caroline Cilek, and Madeline Marcellino. We would be happy to assist with land use strategy, permitting, and compliance considerations. To receive future updates, sign up for our alerts.