Month: October 2023

From the Founding Fathers’ hemp fields to naval shipyards supplied with local hempen sails, Virginia has a long and rich history with the Cannabis sativa plant. Is Virginia still a fertile market, though, for starting a hemp business, or are there overwhelming impediments to making money with hemp in this highly taxed and regulated state?

In this guide, learn everything you need to know about the Virginia hemp market from cultivation conditions to local licensing requirements. By the end, you’ll be well-versed in the benefits and detractors of starting a hemp business in this state.

Virginia cannabinoid law overview

– In 2023, Virginia revamped its hemp laws in an attempt to crack down on illicit cannabinoid sales
– Hemp-related businesses have already begun shutting down¹ in the state
– Opponents contended that Virginia’s new hemp bill was too punitive against non-intoxicating products
– The bill was sustained, though, resulting in a much-more prohibitive environment for hemp entrepreneurs in Virginia
– Hemp products in Virginia must now not only contain less than 0.3% but also contain less than 2mg THC total per package²
– The only exception is when the overall CBD:THC ratio in the product does not exceed 25:1
– If edible products contain any THC whatsoever, they must have child locks
– Penalties start at $10,000 per day
– These new rules have illegalized upwards of 90% of hemp products sold in some Virginia stores

Can I sell CBD in Virginia?

Yes, it is still possible to sell CBD and other hemp products in Virginia, but with certain limitations. The ultimate reasoning remains inscrutable, and the contention was fierce, but the office of Virginia Governor Glenn Youngkin eventually signed a bill significantly restricting the THC content in CBD and other hemp products.

With lawmakers admitting that these new measures, complete with massive daily fines, are designed to make it too expensive for hemp businesses to continue operating, it is no stretch to suggest that even Virginia’s new hemp regulations might not be entirely straightforward. We will now carefully explain the framework of Virginia’s hemp laws to make sure that cannabinoid companies operating in the state have the best chance of remaining in business.

Virginia’s new CBD laws explained

In crafting its new cannabinoid and hemp legislation, Virginia began with the rubric provided by the federal government with the 2014 and 2018 Farm Bills. For the entire nation, the following rules apply: Cannabis sativa products are considered industrial hemp if they contain less than 0.3% delta-9 tetrahydrocannabinol (THC).

As the name suggests, industrial hemp is an industrial or commercial product that is not denoted as having any intoxicating or even medical purpose on the official level. With the understanding that THC is a potentially dangerous substance that should be avoided, CBD and other cannabinoid products are generally treated as innocuous and potentially very beneficial.

Virginia has taken things quite a few steps further, though, by applying additional restrictions on the THC concentrations allowed in its state. To understand how much THC is allowed in your CBD products in Virginia, you must use three different units of measurement: volume, mass, and ratio.

Based on the stringent nature of these criteria alone, it’s all the more reasonable to assume that Virginia’s new laws exist specifically to disincentivize hemp commerce overall. In a nutshell, cannabinoid products in Virginia must not only contain less than 0.3% (to satisfy both state and federal requirements) but must also contain less than 2mg THC per package.

This 2mg-per-package limit for THC is not universal, however. If it can be calculated that the ratio of CBD to THC in the package is no lesser than 25 to 1, Virginia’s 2mg THC limit can be exceeded.

How does Virginia’s 25:1 CBD:THC limit work in practice?

Let’s take a look at a theoretical example. A CBD gummy product currently on the shelves in Virginia contains 250mg CBD and exactly 0.3% THC, remaining within the federal limit. The overall volume of the CBD oil package, however, is 1000ml. At 0.3%, this means that the total THC content of the package is 3mg, exceeding Virginia’s 2mg-per-package limit.

If a shop owner is proficient at calculating ratios, they might be able to determine that the ratio of CBD to THC in this product is closer to 75:1 than 25:1. This same calculation must be performed for all CBD products offered in a shop, however, which is prohibitively time-consuming.

There’s also one important point we have yet to cover: All converted forms of THC are now also considered THC under Virginia’s new hemp law, including delta 8 and other analogues that have recently become popular. Plus, any edible CBD product — including gummies, tinctures, capsules, lozenges, etc. — must now be equipped with a childproof cap to be sold in Virginia if it contains any trace of THC at all.

Additional hemp commerce restrictions in Virginia

Here are some additional measures that may prohibit you from marketing hemp cannabinoid products in Virginia:

– All retailers of hemp products in Virginia must now submit an Edible Hemp Products Disclosure Form (PDF)
– New labeling requirements include the presence of a certificate of analysis (COA) from an approved independent lab
– Hemp producers must provide approved third-party lab reports for any product upon request
– All products containing synthetic derivatives of THC are banned
– Topical hemp products are now subject to strict labeling requirements

Hemp product fines in Virginia

Perhaps most important to note for prospective hemp producers in Virginia is that the state has set the base fine for hemp offenses at $10,000 per offense per day. As a result, some small businesses have already accumulated nearly $100,000 in fines3, no doubt succeeding in the Virginia legislature’s stated goal of shutting them down.

Is it legal to grow hemp in Virginia?

Yes, it is legal to grow hemp in Virginia4, and hemp cultivators are not as restricted in the state as hemp retailers. For the purposes of Virginia law, the point at which a hemp cultivator offloads their harvest to a hemp processor is not considered a “retail sale,” so farmers who grow hemp in the state do not need to make sure their biomass contains less than 2mg THC or has a 25:1 CBD:THC ratio.

Virginia’s other hemp restrictions only apply to farmers when they both cultivate and sell hemp for retail sale. As a result, the onerous restrictions Virginia has placed on hemp retailers will disincentivize many growers from increasing their scope of business by processing the hemp they grow into retail products.

Do you need a license to grow hemp in Virginia?

Yes, licensing is required to grow hemp in Virginia. Hemp licenses are issued by the Virginia Department of Agriculture and Consumer Services (VDACS) and cost $150 per year.

– Virginia Industrial Hemp Cultivator Application (PDF)

Virginia hemp cultivation license process

There is no yearly application deadline for hemp cultivation applications in Virginia, so applicants can provide the necessary documentation to VDACS whenever they choose. According to VDACS, it takes around 45 days for applications to be approved, and hemp cultivation registration lasts for exactly one year from the date of issuance.

Before VDACS can accept your hemp application, you must obtain and submit an FBI Identity History Summary, which must be dated no further than 60 days before the date of your application. This document from the FBI is only required once for each key participant in your hemp operation, however.

Put as simply as possible, the process of acquiring a hemp license in Virginia should look something like this:

– Decide you want to grow hemp in Virginia
– Acquire an FBI Identity History Summary
– Within 60 days, submit your application to VDACS
– Wait around 45 days for approval
– Plan to submit your next application at least 45 days before your current license expires

What requirements does Virginia have of its hemp cultivators?

Hemp cultivators in Virginia must submit regular reports of their activities to VDACS or risk their licenses being revoked. In addition to submitting an Industrial Hemp Registration Change Form whenever they expand into new fields or make any changes to existing cultivation setups, Virginia hemp cultivators must also submit planting reports within 14 days of planting seeds and harvest reports within 5 days of harvesting mature hemp. It is also necessary for Virginia hemp cultivators to test their harvested hemp before selling it.

What other types of Virginia hemp licensing are there?

In addition to its Industrial Hemp Cultivator licensing, Virginia also offers two other types of licenses that hemp professionals operating in the state may need to acquire:

Virginia industrial hemp handler application

Under Virginia law, someone is a hemp handler if they “temporarily possess industrial hemp grown in compliance with state or federal law” and the hemp has not been processed. So, this licensing is required for anyone aside from the registered cultivator of unprocessed hemp products (i.e. biomass) who possesses or transports them for any amount of time. Hemp handler licensing in Virginia costs $250 per person per year.

– Virginia Industrial Hemp Handler Application (PDF)

Virginia industrial hemp processor application

In Virginia, an industrial hemp processor is anyone who “converts industrial hemp into a hemp product.” So, any person involved in transforming unprocessed hemp into retailable hemp products in Virginia must acquire a hemp processor license, which costs $200 per year.

– Industrial Hemp Processor Registration Application (PDF)

Does Virginia have a good climate for hemp cultivation?

Yes, Virginia has one of the best climates in the nation for hemp cultivation, standing in stark contrast with the state’s highly restrictive regulatory environment as it pertains to hemp. Hemp has been grown in Virginia since the earliest days of colonization, making current attitudes in the state all the more perplexing.

The bottom line: Is starting a hemp business in Virginia a good idea?

At this point, we cannot recommend starting a hemp business in the state of Virginia. The new regulations that became law in 2023 have put a considerable damper on hemp enthusiasm in the state, and not without just cause. As a direct result of this legislation, it is undeniably harder to thrive or even survive as a Virginia hemp business — again, an explicitly stated goal of the bill’s proponents.

For those willing to toe the line to the furthest extreme, there may still be opportunity to be found in Virginia’s hemp market. With many states, however (even those with comparably ideal climates), offering far greater incentives to hemp businesses, Virginia may simply be a state to avoid during this current chapter of the history of hemp.

Sources

1. Webb, A. (2023, May 2). New VA law pulling CBD products off retail shelves. https://www.wdbj7.com. https://www.wdbj7.com/2023/05/02/new-va-law-pulling-cbd-products-off-retail-shelves/

2. Starting July 1, amendments to Virginia’s food and drink and industrial hemp laws take effect. (n.d.). https://www.vdacs.virginia.gov/press-releases-230615-hemp-product-enforcement.shtml

3. Israel, S. (2023, August 10). Virginia hemp product retailers slapped with fines under new law. MJBizDaily. https://mjbizdaily.com/virginia-hemp-product-retailers-slapped-with-fines-under-new-law/

4. Industrial Hemp. (n.d.). https://www.vdacs.virginia.gov/plant-industry-services-hemp.shtml

Oregon is famous for being one of the most hemp-friendly states. All of the nation’s preeminent hemp cannabinoid companies have emerged out of Oregon, and the consumer market within the state is very open to cannabis of all kinds.

Is it still worth staking a claim in the competitive Oregon hemp market, however, or is the bar to entry too high for an average entrepreneur? Learn if Oregon is a state where it makes sense to grow, process, or retail hemp over the course of this comprehensive guide.

Oregon cannabinoid law overview

• The only restriction Oregon has emplaced on hemp commerce is a requirement that sales only be made to individuals 21 years of age or older (PDF fact sheet)
• Oregon was one of the first states to create an adult-use cannabis program
• As a result, marketing cannabinoid products in the state is unlikely to be problematic in any way
• It is important to make sure state officials do not confuse your products with adult-use or medical cannabis products, however
• Great caution must, therefore, be taken to limit the THC concentration in cannabinoid products sold in Oregon to 0.3% or lower

Can I sell CBD in Oregon?

Yes, you can sell CBD products in Oregon, and the state generally provides a conducive environment for such business activities. The federal 0.3% THC restriction applies, of course, but aside from that, Oregon simply asks that you don’t sell CBD to minors.

Both culturally and geographically, Oregon has historically been adjacent to neighboring California, so its acceptance of CBD can be chalked up to a shared sympathy for the cannabis plant. As long as you adhere to the established legal parameters, Oregon regulators are likely to have minimal interference with your hemp business operations.

Is it legal to grow hemp in Oregon?

Yes, growing hemp is legal in Oregon, and the practice is even encouraged by the state government², which describes hemp cultivation as “another opportunity for Oregon agriculture to grow.”  In comparison to other states, Oregon provides a great deal of education to prospective hemp growers, and the application process is very clear. However, the fees associated with growing hemp in Oregon are relatively high.

Do you need a license to grow hemp in Oregon?

Yes, individuals involved in growing, processing, or breeding hemp in Oregon must be properly licensed to avoid facing considerable fines. In addition to imposing licensing requirements, the Oregon Department of Agriculture (ODA) also has a vast library of rules and regulations³ that any prospective hemp operator in the state should peruse carefully.

Simplifying the process considerably from the norm, Oregon has condensed its hemp licensing framework into just two main types of licenses, a Hemp Grower License and a Hemp Handler License, alongside a little-used Hemp Seed License. We’ll provide details on all three types of licensing below:

Oregon Hemp Grower License

Oregon defines hemp growers as businesses that grow, harvest, and dry hemp. Regardless of when you acquired your license, all Oregon hemp grower permits expire on December 31st of the year in which they were issued. Additionally, initial licensing and renewals must take place before May 31st of the year in which you intend to grow hemp.

Acquiring a hemp grower license in Oregon is usually simple and follows this general flow:

– Determine if the county in which you intend to grow hemp has imposed a moratorium on hemp cultivation
– As of 2023, the only counties to do so are Douglas and Jackson
– Download an Oregon Hemp Grower License Application (PDF)
– Submit the completed form along with a $350 hemp grower license fee and an $875 hemp grow site license
– A key participant fee of $75 is also required for each individuals in your company involved in growing hemp
– All these fees recur when you register again next year

Oregon Hemp Handler License

In Oregon, a hemp handler is any “business that processes cannabinoids from hemp.” This means that if your business is involved in removing and concentrating the cannabinoids present in hemp in any way, you need to acquire a Hemp Handler License. These rules apply to both hemp-related businesses and also individuals involved in refining cannabis products who are not affiliated with an Oregon-registered LLC.

As with the state’s licenses for hemp growers, Hemp Handler Licenses also expire on December 31st. There is no mandatory date each year by which hemp handlers must be licensed, but you must acquire a valid license number before handling hemp. Here’s how the process of acquiring an Oregon Hemp Handler license works:

– If your business is involved in the processing of hemp products in any way, you need a Hemp Handler License
– There are no county-based restrictions for this type of hemp licensing
– Simply download an Oregon Hemp Handler Application (PDF) and submit it, allowing enough time for approval before you begin handling hemp
– Hemp handler licensing costs $2,275 in Oregon and is accompanied by a “Hemp Handler Reciprocity License” that costs $875
– These fees recur the next time you register

Oregon Hemp Seed License

Hemp seed licensing is only required of individuals involved in the production or sale of hemp seeds, a type of activity that only larger hemp companies usually engage in. If you intend to produce hemp seeds for commercial purposes in Oregon, you will need all three types of licensing: a Hemp Grower License, a Hemp Handler License, and an Oregon Hemp Seed License (PDF). Hemp seed licenses in Oregon cost $875 per year.

Does Oregon have a good climate for hemp cultivation?

The climate in Oregon is absolutely ideal for hemp cultivation. Even compared to California, Oregon is more lush and verdant in its central region, filled with rolling mountains and hills in which other plants do not thrive but cannabis does.

Nonetheless, Oregon does have a distinct hemp growing season, a fact reflected in the state’s hemp licenses, which all expire at the end of each year. So, those hoping to grow hemp in Oregon nonstop throughout the year may be disappointed, but companies that respect the region’s unique ecosystem will find that the cannabis they grow thrives beyond their greatest expectations.

How to start a hemp business in Oregon

Culturally, Oregon is very permissive of cannabinoids. From a regulatory perspective, however, Oregon has erected intimidating barriers to entry that may either disincentivize hemp companies from starting up in the state or even cause established operators to meet with serious obstacles.

For instance, the seasonal nature of hemp licenses in Oregon combined with an unusually high fee scale penalizes both growers and handlers for submitting applications late, but any applications judged incomplete may be rejected at any time. On top of that, the rules Oregon imposes on its hemp professionals are unusually strict, potentially causing growers and handlers to become insolvent over repeated offenses.

Benefits of private labeling

For all these reasons and more, it may make more sense to work with an established hemp operator in Oregon rather than tackling the market on your own. All the best hemp growers and processors in the world are already gathered in Oregon, for one thing, providing both stiff competition and plenty of excellent products already there to choose from.

Consumers in Oregon value CBD and other hemp cannabinoids, so it certainly makes sense to market your products extensively in this state. It may be beneficial to familiarize yourself with the Oregon Department of Agriculture’s guidelines to ensure your fledgling business operates smoothly and without unnecessary complications.

The bottom line: Is starting a hemp business in Oregon a good idea?

If you intend to start from the ground up with the hopes of catching a wave of overall interest in cannabis, now may not be the most lucrative time to start a hemp business in Oregon. The Oregon cannabis economy, in general, is currently in free-fall⁴, and in combination with regulatory systems that have not become any more lenient over time, conditions are combining to make doing business difficult for hemp start-ups.

Oregonians, on the other hand, have not relaxed in their love and appreciation for cannabis. The current cannabis economy challenges in Oregon are not due to a lack of demand from consumers but oversupply by producers.

The solution in any oversupplied market is to make products that are better than the competition. Consumers will not be wowed by products they’ve already seen offered at the same prices. No matter how long they’ve loved cannabis, Oregonians won’t be able to help but notice if your hemp products are both less expensive and higher quality than competing products.

For now, the path of least resistance between the goals of hemp entrepreneurs and the needs of Oregon hemp consumers runs through those companies that can already be counted on to deliver excellent supplies of white-label products. Find the right backer to provide the top-tier products you need to win audiences and enter the already fertile Oregon hemp market with confidence.

Oregon Hemp Business FAQ

Make sure you’ve learned everything you need to know about starting a hemp business in Oregon:

Do you need a license to grow hemp in Oregon?

Yes, proper licensing is required for all businesses that seek to either grow, process, or produce seeds from hemp in the state or Oregon. Licensing costs in Oregon are quite high compared to other states, and all licenses only last a maximum of one year.

How much does it cost to get a hemp license in Oregon?

Acquiring an annual hemp license in Oregon can cost anywhere from $1,225 to $5,250 or even more depending on the number of “key participants” in your operation. The multiplicity of hemp licenses in Oregon combined with their yearly nature makes the state relatively unfriendly to startups and new businesses.

How many acres of hemp are grown in Oregon?

According to the National Agricultural Statistics Service⁵, 2,100 acres of hemp were planted in Oregon in 2022. This number remains unchanged from 2021’s reported acreage.

Sources

1. Sadiq, S. (2023, June 19). Portland State University researchers study the impact of Oregon’s drug decriminalization measure. Opb. https://www.opb.org/article/2023/06/19/psu-research-oregon-measure-110-drug-decriminalization/

2. State of Oregon: Hemp – About hemp. (n.d.). https://www.oregon.gov/oda/programs/hemp/pages/abouthemp.aspx

3. State of Oregon: Hemp – Hemp Laws and rules. (n.d.). https://www.oregon.gov/oda/programs/Hemp/Pages/HempLawsRules.aspx

4. Rogoway, M. (2023, July 17). Oregon’s cannabis economy is a wreck: ‘Everybody would say it’s in a crisis.’ The Seattle Times. https://www.seattletimes.com/business/oregons-cannabis-economy-is-a-wreck-everybody-would-say-its-in-a-crisis/?utm_source=flipboard&utm_content=other

5. PRESS RELEASE NATIONAL AGRICULTURAL STATISTICS SERVICE. (n.d.). NASS. https://www.nass.usda.gov/Statistics_by_State/Idaho/Publications/Crops_Press_Releases/2023/HEMP.pdf

As an early proponent of both medicinal and adult-use cannabis, expectations would be that Washington state is friendly to CBD sales. Observers of cannabinoid law in WA over the last decade or so can easily confirm, though, that things aren’t always as they seem with cannabis in this Pacific Northwest state.

While it may come as a surprise to many of those familiar with Washington state, CBD products are now almost entirely illegal for general sale in Washington, stymying the business efforts of entrepreneurs statewide. Now is, perhaps, the worst time in 21st-century history to market CBD products within Washington state’s borders, a claim we’ll support with evidence over the course of this guide.

Washington cannabinoid law overview

– The Evergreen State has declared that all products with any detectable THC are cannabis¹ and must be sold only through the state’s taxed and tightly controlled network of adult-use cannabis dispensaries

– Washington infamously eliminated its thriving medical cannabis industry the moment tax revenue began flowing in from recreational dispensaries in 2015²

– This recent move to eliminate untaxed CBD sales may not be seen as a surprise, therefore, but rather as an inevitability

– If shoppers in Washington state wish to buy THC-containing CBD products legally, they must now purchase them in recreational cannabis dispensaries

– This greatly reduces the convenience of purchasing cannabinoid products since all cannabis sales must be made in-person in WA — no deliveries³

– It is unclear whether this measure will truly make cannabinoid products safer for Washington residents or merely increase tax revenue for the state government

– What is abundantly clear, though, is that selling products containing any THC at all in Washington state directly to consumers is now a criminal offense

Can I sell CBD in Washington?

No, it is now illegal to sell CBD products in Washington without first receiving approval from the Washington state government, which will then only allow you to sell your products through state-taxed recreational dispensaries. Washington no longer has any patient cooperatives, so it is not possible to sell CBD through this type of storefront either.

All food co-ops, gas stations, and other businesses aside from state-approved adult-use dispensaries will need to remove cannabinoid products from their shelves if they contain any detectable THC at all. Otherwise, stiff penalties will be enforced, potentially leading to the closure of the offending business.

What is WA bill SB 5367?

SB 5367⁴ is the Washington state bill that amended the state’s definition of cannabis under Revised Code of Washington (RCW) 69.50.101 to include “any product intended to be consumed or absorbed inside the body by any means including inhalation, ingestion, or insertion, with any detectable amount of THC.” This is the piece of legislation that makes essentially all CBD products illegal in the state, putting near-complete control of CBD commerce in Washington in the hands of state regulators in Olympia.

Is it legal to grow hemp in Washington?

Yes, it is legal to grow hemp in Washington state. Until 2020, the state operated a research program for hemp cultivation, which was replaced with a comprehensive hemp cultivation program in 2020. Around 210 acres⁵ of hemp were cultivated in WA in 2022.

Do you need a license to grow hemp in Washington?

Yes, licensing is required if you wish to grow hemp in Washington state. Hemp growers and processors apply for the same licensing through the WSDA Hemp Program Portal⁶, and a $1,200 yearly fee is applied for licensed hemp businesses.

Washington hemp license process

The process of acquiring a hemp license in Washington is relatively straightforward. Simply navigate to the Hemp Program page provided by the Washington State Department of Agriculture (WSDA), and select the “Register and Apply” button if you intend to cultivate hemp.

Download and fill out the Hemp Processor Registration Application (PDF) if you intend to process rather than cultivate hemp in WA. Processor and grower applications are both accompanied by $1,200 fees, payable to the WSDA.

Does Washington have a good climate for hemp cultivation?

The climate in Washington state is reasonably good for hemp cultivation overall with the eastern half of the state being more amenable to agriculture of all kinds. Western Washington receives abundant rainfall but hardly any sunshine during its growing season, leading to issues like mold and rot in crops like cannabis that are harvested in the autumn. All areas of Washington have long winters due to the state’s latitude, restricting hemp cultivation to a single growing season.

How to start a hemp business in Washington

Starting or operating a hemp business in Washington is a remarkably difficult proposition at the moment. While the state will continue issuing hemp cultivation licenses in 2024, it is unclear where Washington’s hemp producers will unload their harvests since any hemp products containing any THC at all are now considered cannabis in Washington.

As for those intending to import CBD products produced elsewhere, your options are now extremely limited. Ingestible CBD products containing no THC whatsoever are theoretically still viable for general sale in Washington, so non-THC cannabinoid products containing isolate or broad-spectrum extracts should be admissible. Cannabinoid topicals can still contain up to 0.3% THC as well, just no ingestible products.

Even sellers of THC-free CBD products, however, must contend with the constant burden of state oversight, which could lead to the shutdown of infringing businesses. The presence of a few stray THC molecules was never previously much concern for either consumers or sellers of CBD products in Washington. Now, though, ingestible hemp products are illegal in Washington if they contain any THC, a remarkable reversal for one of the nation’s first adopters of pro-cannabinoid policies.

Benefits of private labeling

Established bulk cannabinoid producers have been grappling with the complexities of state and federal hemp law for nearly a decade. While hemp laws like Washington’s can seem almost incomprehensibly abstruse at first, larger hemp producers have entire legal departments dedicated to staying in compliance with laws and regulations.

If any producer can succeed in today’s severely tightened Washington state hemp cannabinoid economy, it will be an industry leader like GVB Biopharma. Backed with considerable financial capability and acting from years of experience, major hemp white-labelers can easily ensure that zero THC remains in hemp products, something that cannot be claimed by small-time producers.

The bottom line: Is starting a hemp business in Washington a good idea?

The prospects of starting a hemp cannabinoid business in the state of Washington could accurately be described as dismal at the moment. Hemp growers in the state are at a loss as to what to do with their THC-containing harvests, and local businesses more than likely rue the name of CBD as they face thousands of dollars in inventory losses due to new Washington state zero-THC guidelines.

Every cloud has a silver lining, though, and professionally made products containing absolutely no THC will be the focus of attention in the future of the Washington hemp industry. At any time, state regulators will be able to pull products off shelves if they are suspected of containing THC. If laboratory tests come back negative, there is nothing to fear — a tenuous but perhaps tenable situation for entrepreneurs intrepid enough to face down the odds.

It’s unavoidably ironic that CBD policies in Washington are now nearly as restrictive as those in neighboring Idaho, which has stayed stalwartly anti-hemp even as the rest of the nation moved gradually forward. It remains to be seen how the hemp situation in Washington will pan out in the long term: Operators in the state should maintain a stance of cautious optimism as they await a return to policies more in line with the needs of the state’s constituency.

Washington Hemp Business FAQ

Continue getting up to date with the hemp cannabinoid situation in Washington in the following FAQ section:

Is CBD legal in Washington state?

Yes, CBD is still legal in Washington state, but the state legislature severely curtailed CBD commerce in 2023. Now, most CBD products must be sold through the state’s recreational cannabis dispensaries, generating tax revenue for the state while making it harder for residents to buy CBD. The only types of ingestible CBD products that can still be sold outside of dispensaries in Washington are those that contain zero detectable THC — not a single molecule.

Can you buy CBD at gas stations in WA?

Yes, CBD will most likely remain available at many gas stations in Washington state, but all ingestible products containing any detectable THC will need to be pulled off the shelves. Many gas station owners may turn away from CBD due to concerns over testing by state regulators. In any case, only zero-THC products will remain available on the shelves of general businesses in Washington state — all THC-containing ingestible products must now be sold through adult-use dispensaries.

Can you buy CBD at Washington dispensaries?

Yes, it is possible to buy CBD products at Washington state dispensaries, but the process of doing so is cumbersome, and your selection is highly limited. Only products approved and tested by state regulators may be sold in Washington adult-use dispensaries, a process that many major national brands will be unwilling to go through just to reach Washington state’s 7 million residents⁷.

Can you buy CBD at 18 in Washington?

No, you must be at least 21 years old to buy CBD products containing any detectable THC due to 2023 Washington state legislation. Now, ingestible CBD products with THC (even less than 0.3%) must be sold in WA adult-use dispensaries, which deny entry to anyone under 21 years of age.

Sources

1. Scrantom, J. (2023). Washington upends its CBD industry. Harris Sliwoski LLP (Formerly Harris Bricken). https://harrisbricken.com/cannalawblog/washington-upends-its-cbd-industry/
2. “A failure”: How Washington’s cannabis program shut out Black business owners. (n.d.). KING5. https://www.king5.com/article/news/community/facing-race/washington-cannabis-program-shut-out-black-business-owners/281-319c9559-1733-4556-b702-87f2a48c34d8
3. Weed delivery in Washington | WashingtonStateCannabis.org. (n.d.). Washington Cannabis Information Portal. https://washingtonstatecannabis.org/delivery#:~:text=The%20state%20does%20not%20authorize,of%20the%20service%20in%20Washington.
4. Washington State Legislature. (n.d.). https://app.leg.wa.gov/billsummary?BillNumber=5367&Year=2023&Initiative=false
5. PRESS RELEASE NATIONAL AGRICULTURAL STATISTICS SERVICE. (n.d.-b). USDA. https://www.nass.usda.gov/Statistics_by_State/Idaho/Publications/Crops_Press_Releases/2023/HEMP.pdf
6. WSDA Hemp Program. (n.d.). https://agr.wa.gov/departments/agricultural-products/hemp#current%20hemp%20program%20activities
7. United States Census Bureau QuickFacts. (n.d.). U.S. Census Bureau QuickFacts: Washington. Census Bureau QuickFacts. https://www.census.gov/quickfacts/fact/table/WA/PST045222

Starting a hemp business in North Carolina might follow a slightly different process than in other states, but as one of the original American Colonies to engage in cannabis cultivation, hemp is still at the core of this coastal state’s culture. Grown in the reedy marshland along North Carolina’s coast, hemp became a staple crop for its usefulness in making strong and durable sailcloth.

Nowadays, North Carolina mainly turns to hemp for CBD, not canvas. This notably pro-commerce state remains stalwart in its defense of hemp, however, fully and permanently removing it from the North Carolina list of controlled substances in 2022¹.

That wasn’t the only major change to occur within the North Carolina hemp economy in 2022. With the state’s hemp industry now overseen directly by the federal government², how might the situation change for existing or prospective hemp producers? Learn all the details in this comprehensive guide to starting a hemp business in North Carolina.

North Carolina cannabinoid law overview

– Hemp cultivation and CBD commerce originally became legal in North Carolina in 2017 due to a state pilot program³
– This program expired in 2022, however, briefly raising concerns⁴ that CBD would be “illegalized”
– If the hemp program had expired without new legislation taking its place, CBD commerce would, indeed, have been affected since North Carolina is one of the few states where hemp itself was considered an illicit drug
– At the last minute, NC lawmakers came to a deal⁵ under which hemp and CBD products became permanently legalized in the state
– With the expiration of the hemp pilot program, however, the state elected to hand jurisdiction of its hemp industry over to the federal government
– Hemp cultivators and processors must now seek licensing directly from the USDA
– New hemp legislation⁶ would set standards for regulation of CBD products in North Carolina by 2024

Can I sell CBD in North Carolina?

Yes, it is legal to sell CBD products in North Carolina. In the absence of comprehensive state regulations, the position on CBD in North Carolina reverts to the federal level, at which the 2018 Farm Bill provides clear guidance for hemp CBD products. If products contain less than 0.3% delta-9 tetrahydrocannabinol on a dry weight basis, they are “industrial hemp” and not, therefore, governed by regulations pertaining to the illegal drug “marijuana.”

Now that CBD and hemp are permanently legal, North Carolina lawmakers are seeking to impose restrictions on the types of hemp products that can be marketed within their state and where they can be sold. The primary focus of this legislation is to crack down on sales of delta-8 and other THC-like cannabinoids, primarily for the purpose of keeping them out of the hands of minors.

Recent changes to hemp legislation in North Carolina only show that lawmakers in the state are becoming more friendly toward hemp over time and seek to expand cannabinoid commerce as long as it is done safely and appropriately. Expect certain restrictions to appear around the sale of CBD and other cannabinoid products in North Carolina in the near future, but also expect that these restrictions will not be aimed at limiting commerce but rather at maintaining consumer safety.

Is it legal to grow hemp in North Carolina?

Yes, growing hemp is legal in North Carolina. Since 2022, hemp cultivation in the state has been under the direct governance of the United States Department of Agriculture (USDA)⁷, which oversees the hemp programs in a variety of other states as well. New or existing North Carolina hemp cultivators seeking licensing will need to work with the USDA now since the North Carolina Department of Agriculture & Consumer Services no longer governs hemp production.

Do you need a license to grow hemp in North Carolina?

Yes, licensing is required to grow hemp in North Carolina. If a state does not choose to manage hemp licensing itself, governance falls to the USDA, which is in charge of issuing hemp licensing in North Carolina.

North Carolina hemp license process

The USDA has created a dedicated portal for all hemp licensing and registration activity called the Hemp eManagement Platform (HeMP). Aspiring hemp cultivators or processors in North Carolina must apply for licensing through this platform.

Many components of the USDA hemp licensing process are very similar to the processes used in other states: It is necessary, for instance, to pass an FBI background check and submit a thorough application. What entrepreneurs who have worked with hemp in other states might notice, though, is the lack of fees associated with applying for USDA hemp license in North Carolina.

Some fees may be applicable in certain situations, but it is also sometimes possible to become licensed by the USDA to grow or process hemp without paying any fees whatsoever. As more states lose their provisional hemp programs and gather under the USDA banner, expect the norms surrounding hemp licensing to change nationwide.

Does North Carolina have a good climate for hemp cultivation?

Yes, the climate in North Carolina has been considered ideal for hemp cultivation since the earliest days of American history. Many regions of this warm, coastal state are excellent for growing hemp, with estuary areas traditionally housing the bulk of hemp cultivation operations in North Carolina. While the growing season is long, North Carolina experiences winters cold enough to prohibit year-round hemp cultivation.

How to start a hemp business in North Carolina

At present, there are no significant obstacles whatsoever to companies that seek to sell CBD products or otherwise open hemp-related storefronts in North Carolina. So long as their products contain only 0.3% THC or less, North Carolina does not currently regulate the sale of CBD products.

The situation is expected to change in 2024, when North Carolina lawmakers have signaled they will meet to discuss comprehensive regulation of consumer hemp products in the state. Until then, the only hemp operators in North Carolina with hurdles to overcome are those who are growing or processing hemp.

In a way, now is a great time to become a hemp grower or processor in North Carolina. You’ll have an advantage over legacy operators who grew used to the old state-run system. It won’t be as much of a learning curve to adopt the state’s new USDA hemp licensing procedures if you never learned the old way of doing things.

Federal programs are, by their very nature, more monolithic than state systems. It’s true that, compared to certain highly optimized state hemp cultivation programs, navigating the USDA’s hemp licensing and compliance framework can initially be more imposing. On the other hand, keep in mind that the federal government has a far larger budget and staff than state programs, helping ensure that applications and questions are handled promptly and accurately.

Benefits of private labeling

Whether it’s the North Carolina state government or the USDA, it’s clear that applying for hemp licensing and staying in compliance with regulations takes a lot of effort. With all the opportunities of CBD commerce at your fingertips by other means, does it really make sense to start your own hemp cultivation or processing business in North Carolina just to get your products into the hands of the state’s customers?

At least until 2024, no regulations on CBD commerce in North Carolina are expected to be imposed. Now is certainly the time to access the state’s population of more than 10 million residents, building a following in North Carolina that will help maintain your brand’s popularity through any ensuring regulatory changes.

The best way to do so is to have your cannabinoid products made by another company in a different state — a company that has been producing hemp for years and is abreast of all pertinent regulatory requirements. Not only does private labeling hemp save costs otherwise spent on licensing and other forms of overhead, but it also ensures a level of professionalism in products that state regulators can’t help but appreciate.

The bottom line: Is North Carolina a good place to start a hemp business?

North Carolina is currently in the midst of many changes regarding hemp. And, whenever there is change, there is also opportunity for those who have the ability to see it.

None of the changes to the hemp economy in North Carolina have been negative. They all indicate that lawmakers in the state intend to make hemp more a part of agricultural operations once again. Handing over control of the state’s hemp industry to the federal government simply indicates that North Carolina takes hemp seriously and wants to manage it appropriately and responsibly.

It’s true that producing hemp in compliance with North Carolina’s standards may become considerably more difficult in the not-so-distant future. Plenty of companies already produce hemp products compliant with even the strictest state standards, however, eliminating this potential obstacle before it even appears.

Hemp has a long history in North Carolina that has not been forgotten. Both in the state’s coastal farmlands and in the thoughts of its people, hemp and its cannabinoids will have an enduring place in North Carolina. All it takes to succeed with hemp in this state is the vision to plot a course that fully harnesses these advantageous prevailing factors.

North Carolina Hemp Business FAQ

Learn more about starting a hemp business in North Carolina below:

1. What are the rules for CBD in North Carolina?

Currently, North Carolina does not impose any rules regarding CBD commerce aside from the federal requirement that hemp products contain less than 0.3% THC. This is expected to change, however, in 2024, when lawmakers intend to meet and discuss comprehensive hemp cannabinoid regulation measures.

2. How much does it cost to get a CBD license in NC?

No licensing is currently required to sell CBD in North Carolina. Vendors are simply limited to restrictions that apply to all other NC businesses along with the federal 0.3% THC limit.

Sources

1. Ingram, K. (2022, June 30). Hemp, CBD get permanent legal status in NC after 11th-hour rescue. Raleigh News & Observer. https://www.newsobserver.com/news/politics-government/article263021958.html
2. North Carolina Department of Agriculture & Consumer Services. (n.d.). https://www.ncagr.gov/hemp
3. Doran, W. (2022, June 22). Hemp and CBD could be illegal in NC by next week, if the legislature doesn’t act. Raleigh News & Observer. https://www.newsobserver.com/news/politics-government/article262770203.html
4. Dolder, L., & Doran, W. (2022, June 29). Hemp, CBD likely will be illegal in NC by Friday, barring last-minute legislative action. Raleigh News & Observer. https://www.newsobserver.com/news/politics-government/article262973833.html
5. Ingram, K. (2022b, June 30). Hemp, CBD get permanent legal status in NC after 11th-hour rescue. Raleigh News & Observer. https://www.newsobserver.com/news/politics-government/article263021958.html
6. Henkel, C. (2023). North Carolina lawmakers take first steps to regulate hemp-derived consumables, CBD products. NC Newsline. https://ncnewsline.com/2023/06/22/north-carolina-lawmakers-take-first-steps-to-regulate-hemp-derived-consumables-cbd-products/
7. For USDA licensed producers only | Agricultural Marketing Service. (n.d.). https://www.ams.usda.gov/rules-regulations/hemp/licensed-producers

Colorado was one of the first states in the nation where hemp commerce reemerged. Is Colorado, once a bastion of hemp cultivation, still a ripe land for starting a cannabinoid business? Learn all about the incentives and barriers that hemp cultivators might encounter in Colorado throughout this comprehensive guide.

Colorado cannabinoid law overview

– Colorado hemp commerce is overseen by two entities: the Colorado Department of Agriculture (CDA) and the Colorado Department of Public Health & Environment (CDPHE)
– CDA oversees hemp cultivation¹
– CDPHE oversees hemp processing²
– Hemp cultivation licensing costs $500 per year plus $5 per acre of outdoor cultivation or $3 per 1,000 square feet of indoor cultivation
– Hemp processing costs an annual fee of $1600 per registered business
– CDA also oversees hemp seed licenses³, which cost between $75 and $700 per year
– Consumer sales of hemp products are not overseen in Colorado, incentivizing operators to choose a white-label approach

Can I sell CBD in Colorado?

Yes, sales of finished CBD products to consumers are not overseen by any Colorado state government entity. In that regard, law defaults to the federal precedent, which dictates that CBD products are legal so long as they contain less than 0.3% THC.

Is it legal to grow hemp in Colorado?

Cultivating and processing hemp is under the jurisdiction of Colorado state law. Licensing must be acquired for either activity, which is inexpensive in relation to the national average.

Colorado holds steady as one of the most popular states for hemp cultivation with Cannabis Business Times⁴ reporting that 10,100 acres were planted and 3,100 acres harvested in the state in 2022. While the Colorado hemp market is no doubt competitive, those seeking to either cultivate or retail hemp within the state should find a highly receptive audience.

Do you need a license to grow hemp in Colorado?

Yes, licensing is required to cultivate hemp in Colorado. The Colorado Department of Agriculture generally makes it simple for hemp cultivators to acquire licensing, and fees are kept low to incentivize cultivators to enter the market.

Finding adequate acreage in prime arable land may be difficult, though, given the increased land acquisitions by affluent individuals⁵ in agricultural states like Colorado. Leveraging out-of-state hemp sources may provide an advantage over local producers lacking adequate land to achieve optimum output.

Colorado hemp cultivation license process

Acquiring a hemp cultivation license in Colorado is a relatively straightforward process overseen by the Colorado Department of Agriculture. A base fee of $500 per year is combined with a per-square-foot fee of $3 for indoor grows or a per-acre fee of $5 for outdoor operations. Licenses must be acquired and renewed on a yearly basis, and CDA generally either accepts or rejects applications within 45 days.

– Colorado Hemp License Application Portal

Colorado hemp processing license process

Processing raw hemp materials into extracts or finished products is overseen by the Colorado Department of Public Health & Environment, not CDA. The CDPHE also requires that hemp operators under its jurisdiction register their businesses, but only once, and the price for hemp processing registration in Colorado is only $1,600 per year.

As a result, Colorado would be an ideal state for processing bulk biomass into cannabinoid extracts. However, the state only allows hemp processors to choose from a very limited list of “approved sources⁶,” all of which are in-state growers of hemp. If you specify a hemp biomass source other than an approved business on your application, it may face rejection.

Colorado businesses seeking to process hemp must also understand the difference between Safe Harbor and Not Safe Harbor hemp processing operations. If a business produces products with more than 1.75mg THC per container, it is protected under Colorado state law and subject to a separate application process. Businesses producing products containing less than 1.75mg THC per volume must submit a Not Safe Harbor application instead.

Both application types cost $100 per application and $1,500 per registration per year. Registration periods generally begin on July 1st and end on June 30th of every year.

If you change your business name or start a new hemp processing business, you will need to re-register. The same rule applies if you change from a Safe Harbor to a Not Safe Harbor Colorado hemp processing business.

– Not Safe Harbor Colorado Hemp Processing Registration Form (PDF)
– Safe Harbor Colorado Hemp Processing Registration Form (PDF)

Colorado hemp seed labeler license

If you intend to produce hemp seeds for commercial distribution in Colorado, you are required to acquire a Colorado hemp seed labeler license. This license technically allows you to enter your seeds into Colorado’s approved registry of seed strains, thus the name “labeler license.” This type of licensing can cost as little as $75 for existing seed labelers opening new locations but may cost as much as $700 depending on the scope of your operation.

– Colorado Seed Labeler License Application Form (PDF)

Does Colorado have a good climate for hemp cultivation?

Colorado is generally considered to have a reasonably good climate for hemp cultivation. Parts of the state experience considerably frigid winters, but the summer growing season is more than capable of sustaining abundant crop growth with snow runoff from the Rocky Mountain chain, which bisects the state north to south.

Much of the cropland in Colorado has seen many generations of improper stewardship and may not be as arable as could be desired. With proper understanding of sustainable agriculture, it’s possible to revitalize even the most barren land and transform it into a hemp cultivation paradise. Smaller companies and start-ups lack the capital to finance these types of operations, however, making it more economical to import finished hemp products from other states.

How to start a hemp business in Colorado

When starting a hemp-related business in Colorado, the barriers to entry are the lowest when you limit your scope of operations to simply marketing finished hemp products to consumers. Sellers of CBD and other federally compliant hemp products do not need to register in Colorado, bypassing the requirement that producers limit their sources to state-approved companies.

Benefits of private labeling

One way to potentially bypass this requirement is to register as a seed labeler in Colorado and then use your registered seeds to grow your own hemp, which you then process in-state. Along the way, though, you will need to acquire three different types of licensing, all of which are renewed on a yearly basis. The logistical overhead of this approach alone should be enough to illustrate the profound benefits of importing finished hemp products into Colorado that were produced by a white labeler in a different state.

The bottom line: Is starting a hemp business in Colorado a good idea?

Culturally, Colorado is a very ripe market for cannabinoid commerce. It was both one of the first states to allow hemp cultivation and one of the first states to put in place an adult-use cannabis program. To residents of Colorado, even intoxicating forms of cannabis have become commonplace, making non-intoxicating cannabinoid products even more mainstream.

The quality of products produced within Colorado may be considerably lower than what is achievable in finished cannabinoid products imported from other states. While Colorado-made hemp products can only be produced by approved entities, products formulated in other states are drawn from a nationwide pool of highly competitive, large-scale hemp producers.

Savvy entrepreneurs will recognize the vast potential for growth within the Colorado hemp market while sidestepping the onerous burdens imposed by state regulators. The best way to achieve this goal is to purchase bulk finished products made by out-of-state producers and then market them to Colorado residents.

Colorado Hemp Business FAQ

Learn more about the process of producing or selling CBD in Colorado below:

1. Is hemp legal in Colorado?

Yes, industrial hemp is legal in Colorado. As one of the first states in the nation to legalize cannabis for recreational purposes, Colorado has been careful to delineate the separations between hemp and cannabis production since 2012. The State of Colorado directly oversees the state’s industrial hemp program⁷, and jurisdiction is then split between two state sub-agencies.

2. Is it legal to buy CBD in Colorado?

Yes, the only restriction Colorado has imposed on purchasing CBD or other hemp products is that purchasing individuals must be at least 18 years old⁸. Otherwise, the state’s position reverts to federal law, which simply stipulates that hemp products must contain less than 0.3% delta-9 THC to be sold as industrial hemp.

3. Do you need a special license to sell CBD in Colorado?

No, it is not necessary to acquire a special license to sell CBD or other hemp products in Colorado. The state simply asks that businesses do not sell products to individuals under 18 years old. This system greatly incentivizes businesses to import products from out-of-state sources since, otherwise, multiple forms of licensing may be required.

4. Do you need a license to process hemp in Colorado?

Yes, depending on the scope of your operation, you may need to acquire as many as three different types of licensing to grow or process hemp in Colorado with a combined cost of thousands of dollars per year. While Colorado’s hemp processing fees are lower than the fees imposed in some other states, lists of approved sources and other regulations are strict, making it easier to import finished hemp products that were processed in other states.

Sources

1. Hemp | Department of Agriculture. (n.d.). https://ag.colorado.gov/plants/hemp
2. Processing, Sales, and Distribution | Department of Agriculture. (n.d.). https://ag.colorado.gov/plants/hemp/processing-sales-and-distribution
3. Seed | Department of Agriculture. (n.d.). https://ag.colorado.gov/plants/seed
4. StackPath. (n.d.). https://www.cannabisbusinesstimes.com/news/montana-south-dakota-orgeon-report-most-acres-hemp-planted-usda-nass-survey/#:~:text=Colorado%20reported%2010%2C100%20acres%20planted,top%20three%20for%20both%20lists.
5. Orf, D. (2023, January 18). The Truth About Why Bill Gates Keeps Buying Up So Much Farmland. Popular Mechanics. https://www.popularmechanics.com/science/environment/a42543527/why-is-bill-gates-buying-so-much-farmland/
6. Workbook: Hemp_SourceList_Updated. (n.d.). https://cohealthviz.dphe.state.co.us/t/EnvironmentalProgramsPublic/views/Hemp_SourceList_Updated/HempSourceList?%3Aembed=y&%3AisGuestRedirectFromVizportal=y&%3Aorigin=card_share_link
7. Industrial Hemp | Colorado cannabis. (n.d.). https://cannabis.colorado.gov/industrial-hemp
8. Is CBD oil legal in Colorado? | ColoradoCannabis.org. (n.d.). Colorado Cannabis Information Portal. https://coloradocannabis.org/cbd

Ohio has been a nexus of American agriculture ever since the nation’s founding. Are this state’s fertile fields ready for hemp, though, and are the people of Ohio open to this cannabinoid’s benefits? Learn everything you’ll need to know to start a successful hemp business in Ohio over the course of this guide.

Ohio cannabinoid law overview

– Hemp cultivation and processing are legal in Ohio
– The state has also legalized the sale of hemp products
– Ohio does not impose considerable obstacles to hemp commerce
– All hemp products must pass inspection
– The Ohio Department of Agriculture provides comprehensive information1 for new hemp businesses
– Hemp cultivation licensing costs at least $725 every three years
– Hemp processing licensing costs at least $3,350 every three years
– Ohio has an excellent climate for hemp cultivation
– Overall, Ohio is one of the most amenable states to hemp commerce

Can I sell CBD in Ohio?

Yes, it is legal to sell CBD products in Ohio as long as they contain less than 0.3% THC. The state of Ohio defines “0.3% THC” somewhat differently from the federal government, however. While the federal definition of “THC” doesn’t include THCA at all, Ohio follows an alternative approach that has recently become more popular in the context of state laws.

Ohio calculates THC percentage using the following equation: Total THC = (THC + (THCA x 0.877). This equation can appear confusing at first, so let’s break it down.

To calculate THC percentage in Ohio CBD products, you first take the total delta-9 tetrahydrocannabinol (THC) percentage, which should be under 0.3%. Then, you take the delta-9 tetrahydrocannabinolic acid (THCA) percentage and multiply it by 0.877 before adding the resulting number to the amount of THC present in the product.

So, say a product contains 0.2% THC but 0.4% THCA. While its THC content is below the federally acceptable threshold, this product would still be inviable under Ohio state law since 0.4 x 0.877 = 0.35, making the combined “THC” content in the product 0.55%, which is more than the 0.3% total THC allowable under Ohio law.

Ohio law also stipulates that any CBD products sold within state lines must be inspected by “the appropriate local or state agency” and meet the state’s food safety standards. It’s even necessary to indicate on their packaging that CBD products comply with the state’s maximum THC concentration as defined by (THC + (THCA x 0.877). If you have any questions regarding this THC threshold policy, visit the official Ohio hemp program webpage2. 

Is it legal to grow hemp in Ohio?

Yes, hemp cultivation is legal in Ohio and is overseen by the Ohio Department of Agriculture (ODA). Hemp cultivators and processors must apply for separate licensing, but Ohio’s fees for hemp licensing are either lower or on par with the national average. Licenses must only be renewed once every three years with Ohio’s hemp licensing window lasting between November 1st and March 31st of each calendar year.

Do you need a license to grow hemp in Ohio?

Yes, it is necessary to obtain licensing to grow hemp legally in Ohio. Compared to the process of becoming a hemp processor in Ohio, applying for a hemp cultivation license is quite straightforward. Aspiring hemp cultivators in Ohio must simply apply for an OH|ID account, and then all required paperwork will become available through the state’s online portal. 

Ohio hemp cultivation license process

1. After registering with OH|ID, Ohio hemp cultivators must complete and submit a hemp cultivation application, which is accompanied by a $100 fee.
2. Then, a $500 fee is required per year per location. If you intend to grow hemp at one site over all three years of your application window, for instance, a fee of $1,500 will be required.
3. A $250 site modification fee is applied every time growers change their hemp cultivation locations.
4. A $150 pre-harvest lab testing fee is applied for each growing location per harvest.
5. Each key participant must undergo an FBI background check.
6. Applicants are required to provide detailed maps of their facilities.
7. For more information, visit the ODA’s official Hemp Cultivation webpage³

Do you need a license to process hemp in Ohio?

Yes, it is necessary to acquire proper licensing to legally process hemp in Ohio. Hemp processors must both pay larger fees than hemp cultivators and are subject to more stringent oversight. Just as is the case for Ohio hemp growers, however, hemp processing licenses last three years in the state compared to the national norm of one year.

Ohio hemp processor license process

1. Register for an OH|ID account, and navigate to Ohio’s official hemp processing webpage⁴.
2. Submitting a hemp processing application incurs a $100 fee. Applicants must pay $500 if they intend to process raw hemp grain and an additional $500 if they intend to process hemp fiber.
3. A fee of $3,000 is required of hemp processors that process the “raw floral component” of hemp, which includes both extraction facilities and smokable hemp producers.
4. From there, an additional fee of $500 is applied to hemp processing businesses that make cannabinoids into “human and animal food, dietary supplements, cosmetics and personal care products” on a wholesale basis. A fee of $250 is applied to businesses that intend to produce retail products.
5. All applicants and key participants must undergo background checks.
6. Applicants must also submit an Application for Certificate of Occupancy (PDF)
7. Once hemp processing applications are approved, processors must undergo a “label review” in which a food safety official will “conduct a label review of your hemp products along with reviewing your processes” with the goal of limiting hazards.
8. Another inspection occurs once product labels have been approved.
9. Processors must also put up a “surety bond” based on how much hemp they bought the previous year: $10,000 for $100,000 in hemp or less and $20,000 if the amount of hemp purchased exceeds $100,000.
10. Lastly, extraction facilities must provide detailed operation plans that comply with Ohio’s Administrative Code.

Does Ohio have a good climate for hemp cultivation?

Yes, the climate in Ohio is nearly ideal for hemp cultivation. It’s true that hemp grows best in biomes where the sun is always shining, but Ohio’s climate offers a very robust growing season that begins by early May and persists into late October.

Though hilly in some areas, Ohio is largely flat, allowing farmers to spread out over vast acreage with excellent lighting. Natural water sources are abundant, and the state economy is largely centered around agriculture, providing benefits and incentives to farmers.

How to start a hemp business in Ohio

The first step in starting a successful hemp business in Ohio is fully understanding the parameters of the situation. To that end, we’ll summarize our findings so far:

– Sales of CBD in Ohio are legal but considerably restrictive
– Hemp cultivation and processing fees are low in Ohio, but the level of government oversight is high
– Both Ohio’s culture and climate are largely friendly to hemp

Most important for prospective Ohio hemp entrepreneurs to consider are the considerable compliance requirements imposed by the state government. In addition to government-mandated training, Ohio hemp processors must submit to labeling requirements and post surety bonds in the tens of thousands of dollars.

Even if you fulfill all your obligations as an Ohio hemp processor, there are still the state’s highly specific labeling guidelines to consider. Instead of following the general definition of THC content in hemp products, Ohio also includes THCA, adding one more factor to keep in mind as an Ohio hemp processor.

Benefits of private labeling

It’s easy for all of this to seem overwhelming to a new hemp producer just now seeking to get started in Ohio. Those who have persisted within the CBD industry since its earlier days, though, are better equipped to tackle the regulatory complexity imposed by the hemp policies of states like Ohio.

In this state, it’s possible to lose your licensing status for seemingly minor code infractions. As a result, it’s a prudent move to rely on the expertise of a hemp cannabinoid white-labeler that has succeeded within the space for quite some time.

Major hemp producers have what it takes to adroitly navigate the regulatory environments imposed by states like Ohio, delivering products that not only meet but exceed state standards for quality and purity. This approach is the clear economic choice, and it makes even more sense to white label in states like Ohio, where initial oversights can significantly set back aspiring hemp entrepreneurs.

The bottom line: Will an Ohio hemp business be profitable?

All the factors are in place for any responsible hemp business to experience success in Ohio. The population is large, agriculture is encouraged, and the only issue is the burden imposed by state regulations and oversight.

If entrepreneurs simply make the right choices to ensure their products are compliant and in line with Ohio’s values, a population of nearly 8 million adults⁵ along with almost 900 million acres of arable farmland are at their disposal. The best way to make these wise business choices is to enlist the help of a trusted private labeler already operating successfully within the inter-state hemp economy.

Ohio Hemp Business FAQ

Familiarize yourself further with the ins and outs of operating an Ohio hemp business in the FAQ section below:

1. Can anyone grow hemp in Ohio?

Ohio does not make any specific restrictions against particular classes of individuals who can apply to become either hemp cultivators or processors. During the hemp license application process, however, you will be asked to submit to an FBI background check. A criminal history may result in your application being denied.

2. How much does a hemp license cost in Ohio?

Applying for a hemp license in Ohio costs at least $725 but may cost tens of thousands of dollars depending on the scope of your business. The Ohio state government only requires hemp licensees to renew every three years, however.

3. How many hemp plants can you grow in Ohio?

There is no limit to the number of plants that licensed hemp cultivators may grow in the state of Ohio. It is illegal to grow hemp without a license in this state, however.

Sources

1. Questions. (n.d.). https://agri.ohio.gov/divisions/hemp-program/faqs
2. Welcome to the Hemp program. (n.d.). https://agri.ohio.gov/divisions/hemp-program
3. Cultivation. (n.d.). https://agri.ohio.gov/divisions/hemp-program/cultivation
4. Processing. (n.d.). https://agri.ohio.gov/divisions/hemp-program/processing
5. United States Census Bureau QuickFacts. (n.d.). U.S. Census Bureau QuickFacts: Ohio. Census Bureau QuickFacts. https://www.census.gov/quickfacts/fact/table/OH/PST045222

Arkansas has both a climate and a regulatory structure that are friendly to hemp, but will the state’s culture or economy pose any impediments to companies offering cannabinoid products? These are the types of questions we’ll cover in this guide, which will unveil the ins and outs of starting a hemp business with operations in Arkansas. By the end, it may be apparent that white-labeling cannabinoid products imported from another state remains the best option at your disposal despite Arkansas’ best effort to incentivize hemp production.

Arkansas cannabinoid law overview

 – CBD products containing less than 0.3% are legal in Arkansas, legalized specifically by the Arkansas Agriculture Act of 2017¹
 – Even before the passage of the federal 2018 Farm Bill, Arkansas was already doing its best to revitalize local economies with hemp agriculture
 – Arkansas was at the forefront of the 2018-2020 hemp boom
 – Hemp commerce has since slowed down in the state, leading many farmers to abandon it as a cash crop²
 – The number of Arkansas hemp farmers has reduced from 125 in 2019 to less than 25 in 2022
 – Cultivators indicate that adhering to regulations has made hemp farming difficult in Arkansas
 – Raw hemp oversaturation remains an issue nationwide and is felt acutely in Arkansas
 – Hemp cultivation may be entering a depression in Arkansas, but hemp demand remains at an all-time high
 – The state government recently failed to ban THC derivatives³ in the state, indicating an unabated interest in cannabis-related topics

Despite ongoing challenges, hemp growers in Arkansas face additional hurdles due to strict lingering policies. 

Can I sell CBD in Arkansas?

Yes, it is fully legal to sell CBD products in Arkansas. Anticipating federal legislation that would legalize hemp nationwide the following year, Arkansas passed a law in 2017 that both legalized CBD commerce and allowed farmers in the state to start growing CBD-rich hemp plants.

At the time, Arkansas was experiencing an agricultural depression, which state regulators believed could be alleviated through hemp production. As a result, regulators in Arkansas confidently promoted the state’s fledgling hemp industry, contributing to an oversupply issue that has caused the number of hemp farmers in Arkansas to dwindle dramatically.

To be clear, there is great demand for high-quality, finished CBD products in Arkansas. The oversupply issue pertains to raw hemp biomass, often poorly cultivated and processed by farmers with no previous knowledge of hemp. There’s a significant demand in Arkansas for hemp products, and if the capability existed to process biomass into the types of high-quality finished hemp products produced in other states, hemp products would flourish in the state.

Is it legal to grow hemp in Arkansas?

Yes, growing hemp is perfectly legal in Arkansas, and in fact, the state government has gone out of its way to make the process simple and incentivized for growers who wish to cultivate the crop. The only stipulation made by the Arkansas state government is that dried hemp contain less than 0.3% THC, theoretically leading to Arkansas becoming a paradise for hemp cultivation.

Do you need a license to grow hemp in Arkansas?

Yes, it is necessary to become properly licensed if you wish to become a hemp cultivator or processor in Arkansas. Compared to other states, Arkansas makes it remarkably easy to navigate its hemp certification program with a simple diagram existing on the Arkansas hemp homepage⁴. Any prospective applicant can use it to quickly determine the workflow and fee schedule for their desired type of certification.

Arkansas hemp license process

If you intend to apply for a hemp cultivation or processing license in Arkansas, the first step is to navigate to www.agriculture.arkansas.gov and then find the tab for hemp program licensing. The state of Arkansas provides a very detailed Powerpoint presentation that applicants can review before applying, located at the top of the page.

Scroll down to view this year’s application deadlines, followed by a link to the following important documents:

 – Arkansas Hemp Application Instructions (PDF)
 – Arkansas Hemp Grower Application (PDF)
 – Arkansas Hemp Processor Application (PDF)

To determine how much you will need to pay to become certified, use the embedded JPG table located a bit further down the page. While potentially overwhelming at first, this diagram is very useful for determining how much you need to pay as a hemp processor or grower in Arkansas.

Starting from the top-left corner, take a look at the column labeled “fee description,” and determine which fees apply to your scope of business. All applicants, for instance, pay the “application fee” and “license fee,” which is indicated if you move a few columns over by the field indicated “license type.” If you need to pay a fee for both types of licenses, the entry under this field will be “both.”

Some fees may apply for certain years but not others, such as the “site modification fee” or the “GPS verification fee,” which only apply to new or modified facilities. Every year, though, hemp growers in Arkansas will need to pay the following fees:

 – Application fee: $50
 – License fee: $200
 – Acreage fee: $50-1,000
 – Sampling compliance fee: $100 per sample
 – Minimum total: $400

 Additional yearly compliance fees Arkansas hemp cultivators may accrue include:

 – Site modification fee: $200 per modification
 – GPS identification fee for new facilities: $100 per facility
 – Greenhouse fee: $100 per greenhouse

A separate, yet sometimes overlapping, set of fees apply to hemp processors, meaning business entities that handle harvested hemp in the process of turning it into high-CBD extracts and finished products. The following fees apply every year regardless of the scope of your hemp processing operation:

 – Application fee: $50
 – License fee: $200
 – Processor/handler fee: $500-1,500
 – Minimum total: $750

Additionally, the following fees could be applied to a hemp processing operation in Arkansas depending on the circumstances at hand:

 – Site modification fee: $200 per modification
 – GPS identification fee for new facilities: $100 per facility

Does Arkansas have a good climate for hemp cultivation?

Environmental conditions are highly conducive to hemp cultivation in most parts of Arkansas. The state can experience harsh winters and seasonal weather systems that occasionally damage crops or shorten growing seasons. Overall, though, hemp cultivators in Arkansas are theoretically capable of harvesting abundant yearly crops due to warm summers with reasonably high levels of rainfall throughout the state.

How to start a hemp business in Arkansas

This is certainly not the time to start from the ground up in the Arkansas hemp industry by growing and processing your own hemp in-state. Initial high hopes have been tempered by challenges of oversupply and the learning curve associated with a sensitive plant like cannabis.

At the same time that hemp farming in Arkansas is facing challenges, the people of the state are opening their eyes to the wonders of cannabinoids like never before. Many Arkansas residents got their first taste of CBD from products sold at their local food co-ops or natural food stores, many of which have now been pulled from the shelves as the state’s hemp economy has experienced a downturn.

Benefits of private labeling

A consumer niche has already been carved out in Arkansas that is receptive to hemp and frustrated by the lack of existing, high-quality products. This is an ideal time for cannabinoid companies, whether based within Arkansas or not, to introduce Arkansans to the type of artisan hemp products that are developed in states home to the world’s preeminent hemp producers.

The bottom line: Is starting a hemp business in Arkansas a good idea?

Starting a hemp business in Arkansas is still a good idea even today if you simply limit the scope of your business to the areas that are profitable within the state economy. Biomass producers in the state, for example, often search for wholesale contacts to distribute their inventory, making it a challenging period to introduce unprocessed hemp materials of any kind in Arkansas.

With many companies failing and local products going out of stock, however, there has never been a better moment to pick up the slack with better cannabinoid offerings produced in states like Oregon, which has been the epicenter of the hemp revolution since its inception. Arkansas shoppers are eager to embrace CBD, they just need exposure to the right products.

Arkansas Hemp Business FAQ

Learn more about the process of getting licensed and starting a hemp business in Arkansas below:

How do I get a hemp license in Arkansas?

The process of applying for a hemp license in Arkansas is generally very simple. Just navigate to the state’s hemp program homepage, check the diagram to determine which type of licensing and fees apply to your business, and download any forms you may need to fill out. Then, simply submit your finished application by mail or online along with any relevant fees. 

Can I get a hemp license in Arkansas online?

Yes, it is possible to go through the entire process of becoming a licensed hemp cultivator or processor in Arkansas completely online. All of the required paperwork is available on the state’s main hemp webpage, and fees can also be paid online. To ensure your application is processed in a timely manner, though, you may want to submit your application in person.

How do I get a CBD license in Arkansas?

There is no such thing as a “CBD license” in Arkansas. Any Arkansas business can sell CBD products to any individual regardless of age. No special licensing is required for the sale of CBD in Arkansas; licensing is necessary only if you intend to grow or process hemp in the state. 

Sources

1. Is CBD oil legal in Arkansas? | arkansascannabis.org. (n.d.). Arkansas Cannabis Information Portal. https://arkansascannabis.org/cbd#:~:text=Yes.,production%20within%20the%20state%27s%20borders.
2. Froelich, J. (2022, October 25). “Make or break year” for hemp farming in Arkansas. KUAF 91.3. https://www.kuaf.com/show/ozarks-at-large/2022-10-25/make-or-break-year-for-hemp-farming-in-arkansas
3. Roberts, C. (2023, September 8). Judge blocks Arkansas ban on delta-8 THC, other hemp products. MJBizDaily. https://mjbizdaily.com/judge-blocks-arkansas-ban-on-delta-8-thc-other-hemp-products/
4. Applications for hemp licensing – Arkansas Department of Agriculture. (2023, April 7). Arkansas Department of Agriculture. https://www.agriculture.arkansas.gov/plant-industries/feed-and-fertilizer-section/hemp-home/applications-for-the-hemp-program/