From the Illinois Department of Agriculture Rules and Regulations: https://www2.illinois.gov/sites/agr/Consumers/FarmersMarkets/Pages/Rules-and-Regulations.aspx.

Included sections:
A Guide to Illinois Laws Governing Direct Farm Marketing
Common Farmers Market Food Items and Who Regulates Them
State Public Health Role in Food Safety Inspections
IDPH - Technical Information Bulletin / Food #30
Weights and Measures Regulations
IDOA General Standards for Eggs
IDOA Application for Egg License

For as long as there have been farmers and people who eat, farmers have been selling products directly to customers. This guide seeks to inform farmers and growers about what they need to know to legally sell farm products directly to consumers. Organized by topic, it contains a checklist of issues to consider before selling your farm products directly.

The guide primarily focuses on sales that are made on the farm or at the farm gate to consumers because, in general, this option gives farmers the least restrictive mechanism of selling directly. The growing interest in eating locally and in local food systems makes knowledge of these rules and issues particularly important to anyone who wishes to develop a direct marketing enterprise on their farm. The guide can also serve as a road map for those who are interested in selling farm products at a farmers market or processing locally grown foods. As with many legal and regulatory issues, especially when you are moving beyond on-farm sales to selling farm products at farmers markets or processing locally grown foods, you should check with your local county and city governments regarding any additional rules and regulations that may apply.

Selling farm products directly to consumers benefits both consumers and farmers. Direct farm sales let consumers purchase fresh local products ordinarily not available to them, while allowing growers and producers to capture more of the food dollar than they would by selling to distributors. Direct food marketing means selling food to the consumer who is going to eat the food or to a restaurant or retail food establishment that is located either in the same state as the person or business that sold the food, or not more than 275 miles from the person or business, and where the food is being purchased for sale directly to consumers at the restaurant or retail food establishment. Federal, state, and local government entities, however, regulate food sales from the perspective and focus of food safety and public health. All three levels of government have specific powers and areas of responsibility for enforcing health and public safety laws and regulations.

So it pays to know the rules before developing your farm and food enterprises that rely on direct sales. This guide is divided into four sections. The first section serves as an introduction and a general overview. The second section provides an overview of key regulatory points. The third section discusses regulations for specific products. The last section is a checklist of issues that farmers and growers should consider as they plan their activities, as well as a list of selected federal and state laws that control direct farm sales.

The biggest change in Illinois and U.S. food policy is the Food Safety Modernization Act (FSMA). The passage of this major food law should serve to caution Illinois food and agricultural entrepreneurs of all sizes that now is the time to reengage and reevaluate risk management planning — regardless of whether they are exempt or not. Direct food sellers in Illinois should have active risk management plans that address the possibility of food borne illness and that detail their ability to recall their food products and document the steps they take to produce safe food. They should know and practice in a way that insures the goals of Good Agricultural Practices (GAP), Current Good Manufacturing Practices (CGMP) Standard Operating Procedures (SOP) and Hazard Analysis and Critical Control Points (HACCP) like planning are met. One of the key take away points of FSMA is that the law emphasizes preventing food borne illness.

Depending on where and what is sold, a particular product may be extensively regulated, minimally regulated, or fall somewhere in between. One general point to keep in mind is that a product sold in Illinois could be regulated by the state or local authorities as well as the federal government. The federal government may regulate any product sold across state lines because the federal government regulates commerce between the states.
As a general rule, state and local government entities such as county health departments control commerce within the state, and the federal government regulates commerce between states. In addition, someone selling food products can expect that the more potential his or her product has to harm people, the more intensively regulated the product will be. For example, whole raw vegetables were in the past exempted from many rules because they pose a comparatively low threat to human health; they are not as likely to harbor harmful bacteria and because many people will wash them. Raw milk, however, is highly restricted. As a product, it poses a greater potential threat from bacterial contamination and because the general public would presumably not be willing, able or likely to pasteurize it themselves.

In the aftermath of the events of September 11, 2001, the U.S. government enacted new legislation that impacted food processing and sales: Public Health Security and Bioterrorism Preparedness and Response Act of 2002. This act gave the Food and Drug Administration (FDA) increased powers to insure the safety of the American food system. Based on this act, the FDA required food industry players to keep records, register their facilities, and give prior notice of importing food into the United States. If food processing entities failed to meet these requirements, the FDA had the power to administratively detain their food products and prevent them from shipping their food products. These powers are carried forward and expanded under FSMA.

There have been two major changes since the first publication of this guide. The first is the passage and implementation of the Illinois Cottage Food Law, which makes possible the sale of many processed homemade food items at farmers markets. The second is the passage of the Food Safety Modernization Act (FSMA) which on a very broad level does several big things for the U.S. Food and Drug Administration and its regulation of the U.S. processed food and produce sector. It gives the FDA the authority to order mandatory food recalls, and it imposes food safety protocols that reflect Good Agricultural Practices (GAP) on produce and practices that resemble Hazard Analysis & Critical Control Points (HACCP) on processed food. GAP is a system of procedures and protocols designed to ensure farms practice good food safety techniques, and HACCP is a system designed to make sure food safety gets built into all the steps that go into making food. Both GAP and HACCP are designed to prevent food-borne illness. In addition, food providers should be aware of the importance of standard operating procedures and how they can increase food safety.

The authors of A Guide to Illinois Laws Governing Direct Farm Marketing acknowledge the kind assistance of the many people who helped in this project. Illinois Stewardship Alliance also recognizes the many organizations and agencies that contributed either time or funds to make this guide a reality. 

Additional information can be found at:

http://www.idph.state.il.us/pdf/IDPH_FDD_TIB_30_Farmers_Markets_051613.pdf (Illinois Department of Public Health Office of Health Protection Division of Food, Drugs and Dairies)

https://dph.illinois.gov/sites/default/files/publications/Farmers-Market-Food-Safety-Guide.pdf (Illinois Farmers Market food safety. A Guide for Vendors, Market Managers and Consumers)

410 ILCS 625/3.3, Farmer’s Markets.