Sam Diaz | 7-minute read
This post is continuously updated as the DLCD rulemaking process takes place.
Update: On July 25, DLCD, on behalf of Governor Kotek, announced it is pausing the rulemaking process on farm stands. Read their statement here.
Agriculture is one of Oregon’s backbone economies, and family farms are the pride of this state’s agricultural community. Oregonians love visiting their local farms and participating in the many activities those farms have to offer, and it’s our land use system we have to thank for that access.
Farm stands are an option for farmers to connect with the community through direct sales from the farm property. Right now, the Department of Land Conservation and Development (DLCD) is undergoing a process to clarify what types of activities are allowed under a farm stand permit in Oregon. The process is policy-heavy and the current rules are vague. Here is our breakdown of what the proposed rules are suggesting, what farm stand activities would be affected if the rules are adopted, and what will remain untouched.
The bottom line
The proposed rules would help farmers quickly understand what permits they need for certain activities, or if they need one at all.
The proposed rule revisions apply only to new farm stand permits.
DLCD is not proposing any new permits or fees.
DLCD is not proposing to ban any agritourism activities that are already allowed on farmland.
1000 Friends of Oregon is not affiliated with DLCD. We are not drafting or writing any rules or proposals. We are part of the Rules Advisory Committee, alongside 22 other individuals and organizations like the Oregon Property Owners Association, farmers, and county planners, to help make recommendations to DLCD.
What's allowed on farm land
The following are just some of the activities allowed on farm land, no permit needed: growing crops, selling crops, U-picks, Christmas tree sales and U-cuts, CSAs, and free educational tours. (See page 1 of the DLCD draft proposal, in red text). These activities, and other activities listed under farm use statute, are unaffected by the proposed rule changes.
What is a farm stand?
Farm stands are a way for farmers to sell their products directly to the public without the need for going through a third party like a grocery store or a restaurant. Legally, they are defined as “structures designed and used for the sale of farm crops or livestock grown on the farm operation, grown on the farm operation and other farm operations in the local agricultural area”. (See the full definition). In order to maintain the integrity of Oregon’s valuable farmland, Oregon protects agricultural land for farming and ranching through exclusive farm use (EFU) zones. Residential, commercial and industrial uses unrelated to agriculture are limited in these zones, though over 60 such uses may be allowed.
Farm stands in EFU zones are allowed to sell processed as well as fresh farm crops and livestock, but prepared foods are not allowed due to state statute
In addition to farm products, farm stand operators may sell other retail items, as well as host activities to promote sales of their farm products, within limits set by the legislature. The types of promotional events typical at farm stands include corn mazes, hay rides, pumpkin patch events, farm animal exhibits, and farm food prep demonstrations.
Farm use vs. farm stand vs. agritourism: Why it matters
Farm use, farm stand, and agritourism statutes exist to ensure activities on EFU-zoned land remain related to agriculture, and that the nonfarm uses allowed do not negatively impact surrounding farm operations. Agricultural land is also taxed at a lower rate than commercial or residential in order to make farming more accessible for farmers. Nonfarm commercial operations should not qualify for the tax breaks that farms do.
Farm stands are only one of many pathways provided by Oregon law for hosting commercial events and other agritourism activities on agricultural lands zoned for exclusive farm use. State statute also authorizes nonagricultural commercial activities on farmland, as well as wineries, breweries, and cideries that each have a separate authorization for agritourism activities. These businesses can offer activities, like tastings or tours, if they meet certain legislative requirements.
Why do the rules need to be clarified? Who is asking for this process?
Because it is currently unclear which type of permit is appropriate for what type of activity, county planners from around Oregon came to the Land Conservation and Development Commission (LCDC) in 2023 asking for clarification of these many provisions for agritourism. LCDC adopted some minor clarifications in December 2024 – but many questions remain.
In 2025, a bill was introduced in the Oregon legislature that would have vastly expanded the types of nonfarm activities that could occur at farm stands, as well as removing the current cap on the sale of nonfarm items. In response, the governor helped bring together a legislative working group to address the issue. That group referred the matter to the LCDC to address. While farm stands were not part of the agency’s five-year work plan, it agreed to take up the issue at the 2025 Legislature’s request.
What's currently going on with the DLCD rulemaking?
DLCD is now working with a Rules Advisory Committee (RAC) composed of farmers, county planners, property rights activists, tourism representatives, state agencies and land use activists to review Oregon’s regulations around farm stands. The department’s proposed rules maintain the existing statutory definition of farm stands, i.e., structures designed for the sale of farm crops and livestock grown on the farm and other farms in the area. The proposed rules also make no changes to existing legal limits on the quantity of incidental retail sales and promotional activities allowed at farm stands. Instead, the proposed rules suggest clearer definitions to help distinguish between what’s allowed at a farm stand and what is considered an agritourism event. Specifically, the department’s draft rules propose:
- Incidental items must have a direct relationship to the farm’s goods. Selling a T-shirt with your farm’s logo on it, or a pumpkin-carving kit on your pumpkin patch? You’re good to go. Selling Italian pasta, imported pottery, or random trinkets? That’s not a farm stand. See page 3 of the DLCD draft proposal, in red text.
- Promotional activities at farm stands should encourage the sale of farm goods or livestock. Events like fundraisers, dinners, or concerts can be great ways to connect people to farmland, and they are allowed under existing agritourism or commercial event permits – but they aren’t considered farm stand activities. The rule changes simply clarify which permits are needed for these types of events. See pages 3-4 lf the DLCD draft proposal, under "The relationship between promotional activities and farm stand products."
- Local agricultural area: The farm stand statute authorizes farm stands to sell crops and livestock grown in the local agricultural area. DLCD’s existing and proposed rules expand the definition of local agricultural area to the entire state of Oregon plus counties in bordering states. See page 2 of the DLCD draft proposal.
If adopted, would these rules create new fees or endanger agritourism?
No. Farm use activities like U-pick berries, pumpkin patches, and educational tours have always been allowed in exclusive farm use zones and will not require additional permitting to keep operating under DLCD’s proposed rules. The rules also won’t change what’s required for commercial events or agritourism activities that already need a separate permit.
The proposed rule revisions apply only to new farm stand permits. That is, when a farm operator wants to build a structure in the EFU zone in order to sell farm crops and livestock that are produced on that farm and other area farms, the revised rules would apply. If a farm wants to expand their offerings to include activities the don't already provide, they may need a new permit.
A farm might face new costs if they’ve been hosting commercial events or agritourism activities under a farm stand permit under current regulations – when they actually should have had an agritourism permit. In those cases, the farm would need to correct the permit, whether or not DLCD’s new rules are adopted. The existing laws for agritourism permits are not addressed in the proposed rules.
Maintaining the balance
The proposed rules support farmers by fleshing out what is clearly allowed at farmstands and U-pick operations and what requires an agritourism permit. They also aim to protect farmers from inappropriate commercial development under the guise of a farmstand permit. Farmers who want to make their living just farming should be able to operate their farms without the threat of sprawl and unlimited commercial activities next door. Farmers who want to operate farmstands or conduct agritourism activities will still be able to do so under the proper permits.
The updated rules aim to protect the integrity of Oregon’s farmland while ensuring farmers can keep doing what they do best: growing food, welcoming and educating visitors, and sustaining our rural communities for generations to come.