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I did look into this a while ago as I have an amazing family recipe for granola. Colorado does have a "cottage foods" industry, which does allow for some foods to be made in a home kitchen and sold to individuals within the State. I do tend to lean towards regulating the food industry due to my experiences travelling abroad - me being the only person to not get food poisoning from the fish tacos for example... That being said, there are ways or loopholes around some of the regulations larger business would have to adhere to, but it would take the want and drive to find them.

https://www.colorado.gov/pacific/cdphe/cottage-foods-act

I can’t help but wonder what the age demographic is for the small towns that you referred too. There’s been a trend for the past few decades for young people to leave rural areas to move to cities for various reasons. I believe that innovation and ingenuity tend to follow youth. In small towns, where there are few young people, there would be the feeling that the community isn’t going to carry on. That alone would kill innovation. Perhaps now with more people able to work remotely, and being able to live wherever they like, we’ll start to see the rejuvenation of small-town America.

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