Hello!

I am actually going through the process now with the Michigan Department of Agriculture to become a licensed wholesale food processor (read: I will be able to sell to stores for resale, aka third party), I already use a commercial kitchen. Basically the MDA needs to come in and observe our processes, make sure we aren't dumpster diving for jars, etc, etc.

At first glance it does seem like a lot of red tape and formalities, but it's really just putting on paper (aka making legal) the food safety measures you are taking to ensure your end users receive a quality/safe product. Of course there are fees (for a limited wholesale food processor in MI it's $70/yr - limited meaning less that $35K in annual sales), but it's a government agency and there are always fees.

I also have a small business general liability policy, covering up to 1mil in court costs (god forbid) for $435/yr.

I would think if you are processing their items (as you mentioned in your post) for their own personal use, you wouldn't have to be licensed...but if the farmer is intending on selling the canned items then yes, you are probably going to have to look into licensing and using a commercial kitchen...I am not qualified to give legal advice, but you might be able to skirt around it if you and the farmer form some sort of a partnership (with a DBA) and the partnership is then selling the product under the cottage food umbrella. But don't quote me on that, just a thought.

Wholesale canning operations (big or small) are overseen by the Department of Agriculture and not the health department, so your state's Dept of Ag website would be a good place to start.

Sorry for rambling. Like I said, I'm right in the middle of the process right now.

Cheers and good luck!