Author: GVB Biopharma

Austria, once the core of the vast Middle Ages nation of Bavaria, is still considered by some as the ancestral homeland of Bavarian culture, renowned for its strong grasp of science and the arts. Both the modern-day Germans and Austrians owe their culture to the Bavarians and their ancestors, who have used cannabis for thousands of years¹.

Modern-day Austria has become somewhat disconnected from its cannabis roots, but it was one of the first European nations to ease its cannabis laws. How has Austria’s unique stance on cannabis affected its presence in the international cannabinoid market? We’ll delve into all the relevant complexities over the course of this comprehensive guide.

Are cannabinoids legal in Austria?

³In regards to CBD and other hemp cannabinoids, Austria generally follows European Union guidelines, which were recently updated to increase the allowable amount of THC² in hemp products from 0.2% to 0.3%. The EU hasn’t ruled on cannabinoids like CBG and CBN, so Austria treats them similarly to CBD.

As far as THC goes, Austria decriminalized the possession of up to 20 grams of cannabis in 2016³. As a result, Austria’s stance on cannabis is lax, but supplying large amounts of cannabinoids may attract attention due to limited infrastructure.

History of cannabis in Austria

Europe’s borders have been redrawn so often that modern national affiliations should be viewed in light of recent events. Austria, the center of Bavaria since the Middle Ages, was politically dominated by the Hapsburg family and played a major role in World War I as the head of the Austro-Hungarian Empire.

Throughout all this upheaval, the people of Austria have remained largely indistinguishable from Germans in regard to ethnicity and culture. As a result, most aspects of German culture also apply to Austrian culture, including the shared fondness for cannabis.

The wider German cultural sphere has held cannabis in high esteem as both a medicament and intoxicant for centuries⁴ with cannabis cultivation comprising a significant portion of Austrian-German agricultural practices since time immemorial. Cannabis remained widely cultivated in Austria until the passage of the 1961 UN Single Convention on Narcotic Drugs⁵. From that point forward, the majority of European states began implementing measures to restrict the cultivation and commerce of cannabis, which was at that point defined as any derivative of the plant.

History of cannabis laws in Austria

Since 1961, Austria has generally treated cannabinoids as illegal substances. Toeing the line between the Allies and the Soviets during the Cold War, Austria did not take any steps to liberalize their cannabis policies until 2008 when the nation authorized cannabis to be cultivated for research purposes⁶ for the first time in decades.

In the intervening years, cannabis laws in Austria have become progressively more liberal. For instance, possession of up to 20 grams of cannabis is decriminalized, a quantity larger than most medical or recreational users typically possess at once.

As of 2016, cannabis is essentially legal in Austria, though felony offenses are still reserved for trafficking offenses. In essence, Austrian authorities no longer care if citizens use cannabis, but they do want to control the flow of large quantities of cannabinoids in and out of the country.

Which cannabinoids are legal in Austria?

For the most part, cannabinoid laws in Austria do not differ from the overall EU position, with Austrian positions on THC products being the main exception. The fact that Austria generally allows possession of quite high volumes of THC-rich cannabis essentially makes law enforcement in that area defunct.

Even the use of THC-alternative cannabinoids like THCA and delta 8 is unlikely to draw the attention of Austrian authorities. They’ll be more concerned about how these products entered Austria, which can be something of a touchy subject.

As long as your cannabinoid business is legitimate and you have the proper authorization to sell in Austria, you’re unlikely to face issues. Keep in mind that Austria is a “decriminalization” country, which makes its cannabinoid laws different from countries that have legalized cannabis for medical or adult use.

Is CBD legal in Austria?

Yes, Austria generally considers CBD legal for use due to the EU’s position on CBD and Austria’s overall decriminalization of cannabis. The law does not differentiate between cannabis containing CBD or THC — for consumer possession, all forms of cannabis are below legal scrutiny in Austria as long as they are possessed in quantities under 20 grams.

For import and mass-market sale, the key requirement is that CBD products processed through Austrian customs contain less than 0.3% THC. Despite decriminalization, THC is not outright “legal” in Austria, and authorities follow the EU’s stance on allowable THC concentrations in hemp products.

Is CBG legal in Austria?

The Austrian government does not make special concessions for any cannabinoid, including CBG. As a result, the only import requirement for hemp products containing CBG is that they contain less than 0.3% THC. Given the overall hands-off approach the Austrian government has taken toward non-THC cannabinoid products, it’s unlikely that CBD or CBG will be the subject of any further official attention until otherwise required by the larger European body.

Is THC legal in Austria?

As part of its overall push to research cannabis for medical purposes in 2008, the Austrian government also began a highly selective medical cannabis program. Receiving a medical marijuana prescription from the Austrian government is a lengthy and arduous process, however, and hardly any applicants are approved.

If approved, medical cannabis patients in Austria must abide by a framework of rules so abstruse that the black market has continued to thrive unabated. Or, perhaps we should say “gray market” since possession of even distribution quantities of cannabis (remember that an ounce is only 28 grams) is entirely permissible under Austrian decriminalization law.

Does Austria have adult-use cannabis?

Austria does not have an adult-use cannabis system, and the nation does not appear to have any plans to instate one soon. Austria has filled the gap other nations have filled using a recreational cannabis system with their own decriminalization laws, which do little to stop illegal drug trafficking but at least prevent unreasonable arrests of Austrian citizens for cannabis possession.

Can you import cannabinoids into Austria?

Yes, according to cannabinoid laws in Austria, imports of cannabinoid products are generally permitted as long as the products in question adhere to all other Austrian and EU import guidelines and contain less than 0.3% THC. Austrian authorities are unlikely to raise alarm about cannabinoid products if they are produced by a professional lab and accompanied by thorough lab reports.

Are there cannabinoid manufacturers in Austria?

The Austrian government has operated a minuscule medical cannabis research operation since 2008, but otherwise, cannabis and hemp cultivators and processors in Austria are few and far between. The Austrian CBD market is already largely serviced by foreign entities, but often at the cost of quality and dependability.

Working with an established manufacturer in the European Economic Area (EEA) is an immense advantage when approaching the Austrian market. Not only does it make this populous European nation easier to reach, but it also positions you to enter more than two dozen other national markets.

Austria: A land of unexpected cannabinoid opportunity

In the postwar period, Austria has largely receded from the political spotlight, which seems to have treated the nation well. It still has a long way to go, but at least the Austrian policy on cannabis is humane and thoughtful. No longer are innocent victims locked in Austrian prisons for the “crime” of using or possessing personal quantities of cannabis.

An increased presence of CBD products in the Austrian market would further demonstrate the harmlessness of cannabis, perhaps inspiring lawmakers to fully regulate an industry that currently still operates mostly under the table. Displaying the economic virtues of CBD commerce in Austria would illustrate the taxation opportunities present in a regulated cannabis economy, which could be the impetus the Austrian government needs to take the next steps.

For cannabinoid companies, the Austrian economy is certainly approachable if still a little bit clunky. In the United States, we’ve witnessed firsthand how cannabinoids can be powerful drivers for economic change, a reality that, if properly demonstrated, could inspire the Austrian cannabinoid industry to blossom.

Sources

1. Google Books. (n.d.). https://www.google.com/books/edition/Marijuana_Medicine/o_dKbMFRSzUC?hl=en&gbpv=1&dq=the+Healing+and+Visionary+Powers+of+Cannabis&printsec=frontcover

2. Posch, M. (2015, November 13). „Legalisierung light“: Cannabis in Kleinstmengen quasi straffrei. SALZBURG24. https://www.salzburg24.at/news/salzburg/grenznah/legalisierung-light-cannabis-in-kleinstmengen-quasi-straffrei-49325959

3. COMMISSION REGULATION (EU) 2022/1393. (n.d.). EU. https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32022R1393

4. Grotenhermen, F. (2002). The Medical use of Cannabis in Germany. Journal of Drug Issues, 32(2), 607–634. https://doi.org/10.1177/002204260203200218

5. SINGLE CONVENTION ON NARCOTIC DRUGS, 1961. (n.d.). United Nations. https://www.unodc.org/pdf/convention_1961_en.pdf

6. AFP: Austria allows cannabis for medical purposes. (n.d.). https://web.archive.org/web/20080905104155/http://afp.google.com/article/ALeqM5gMXaMnzKEu6FxfDVlCHd4xMcmEbg#

German culture is rich in historical traditions and is renowned for its long history of medical excellence. As a result, breakthroughs like cannabinoids are well-suited for German culture, but nonetheless, certain barriers remain in the way of a flourishing German cannabinoid economy.

As has always been the case in history, these barriers will be erased by the nuanced-yet-intrepid actions of individual companies as they expand the German cannabinoid economy. Along the way, specified knowledge will be required to avoid pitfalls and maximize successes. What is the current status of the cannabinoid market in Germany, and — specifically — how is German law shaping the evolution of the industry?

Are cannabinoids legal in Germany?

Yes, some cannabinoids are legal in Germany in certain contexts. For instance, Germany has adopted the general European Union (EU) position that non-food CBD products are usually acceptable for some form of reasonably unrestricted sale as long as they contain less than 0.2% delta-9 tetrahydrocannabinol (THC).

The German Bundestag is also hard at work on a major revision to the nation’s adult-use and medical cannabis laws. A series of two draft bills¹ are in the works that would, first, allow the reasonable possession of cannabis by German adults, and second, remove cannabis from the German Betäubungsmittelgesetz (BtMG) or narcotics code.

Germany remains restricted in its ability to legalize cannabis by overall EU legislation, which has a significant impact on economic relations between member countries. The first draft bill was revised to allow possession and the establishment of “grower clubs” with up to 500 members, instead of permitting commercial cannabis sales.

Among European nations, Germany is taking some of the greatest strides to accept cannabinoids. In the process, the prominent EU state illustrates the significant challenges still present in the European market — challenges that continued investment in German cannabinoids is expected to gradually relieve.

History of German Cannabis

In “Marijuana Medicine: A World Tour of the Healing and Visionary Powers of Cannabis,” author Christian Rätsch relates how² people living in Thuringia, Central Germany, must have discovered cannabis as far back as 7,500 years ago. Also, cannabis seeds were found in the ashes of a funerary urn discovered in Wilmersdorf dating back to 500 BC. Clearly, cannabis has played a major role in German culture since before recorded history.

It’s only recently, in fact, that cannabis use in Germany received any stigma whatsoever. From the days of the ancient alchemists to the more-recent physicians of the Enlightenment age, Germans did more to promote the ancestral understanding of cannabis³ and its medical uses than, arguably, any other historical people.

German physicians were just as well-versed on the physical healing powers of cannabis as they were aware of its spiritual or psychological capacities. Although cannabis is largely prohibited worldwide, Germany can rely on its ancestral reverence for the cannabis plant, making it unique among European nations.

History of cannabis laws in Germany

Cannabis first entered the lexicon of German law in 1981 with the introduction of the BtMG⁴, Germany’s overall narcotics law. Germany had a law against opium in place in 1929, but the BtMG marked the country’s first move to restrict the production, possession, and use of cannabis and derivative products.

Despite the BtMG, Germany has long been known for having some of the most lax laws on drug possession and use. To be clear, possessing most narcotics is just as illegal in Germany as it is in the United States, but laws are somewhat looser in the realm of enforcement and prosecution.

Germany displayed its overall laissez-faire toward cannabis (and perhaps revealed its ancestral history with the plant) in 2007 when it became one of the first nations in the world to legalize medical cannabis⁵. This legislation remained so limited in scope, however, that by 2015⁶, it was estimated that only 300 Germans had access to medical cannabis products.

That all changed when Germany “renewed” its medical cannabis legislation in 2017, massively expanding the program⁷. At this point, it essentially became legal for all Germans to buy and possess cannabis through the state medical system. Restrictions on applications became considerably looser, resulting in a massive expansion of the German cannabinoid industry at large.

Just how large was this expansion? In 2022, Statista⁸ estimated that more than 6.7 million Germans now use cannabis, an increase from just 600,000 patients right after the expansion of the nation’s medical-use program in 2017.

This makes Germany one of the largest global cannabinoid economies, trailing just behind Canada (~7.5 million users⁹). One day, it’s even possible Germany will rival America’s cannabinoid economy (~48 million users¹⁰), given the nation’s considerable population size over that of Canada’s (83 million vs. 38 million).

Now, as mentioned at the beginning of this guide, German legislators are preparing to open the country’s cannabis economy even further. This is certainly an excellent time to be learning more about Germany and the nation’s perspective on cannabinoids.

Which cannabinoids are legal in Germany?

The country’s perspective on THC products may be unique, but German views on CBD, CBG, and other non-intoxicating cannabinoids are relatively generic and unlikely to pose significant challenges. However, understanding German views on CBD and similar compounds requires considering the nation’s overall cannabis history. Below, we’ll take a look at the top three cannabinoids currently leading the international cannabinoid economy, diving deeper into the ways ancient German cannabis wisdom may be informing contemporary positions:

Is CBD legal in Germany?

Yes, CBD is legal in Germany both due to German law and the nation’s participation in the EU. CBD is not specified under the BtMG, so this German narcotics law has no bearing on the compound itself. Furthermore, EU regulations have long held that, under most circumstances, cannabis containing less than 0.2% THC (increased to 0.3% in 2021¹¹) is useable for industrial or scientific purposes, not for the purpose of intoxication.

German courts have a considerable history with CBD. In some cases, even CBD products containing less than 0.2% have been wrongly designated as having intoxicating value¹². Given the overall progression of EU cannabinoid law combined with Germany’s increased acceptance of Cannabis sativa in general, misunderstandings like these are certain to become increasingly uncommon.

Due to EU regulations, Germany views various categories of CBD products quite differently. Many orally ingested CBD products are considered for “industrial or commercial use,” but food-related products are ineligible for sale in Germany.

CBD gummies, for instance, are illegal in Germany since they violate EU code regarding CBD in food products. Cosmetics containing CBD are viewed differently from other CBD products, which is an important factor when entering the German CBD market.

Is CBD legal in Germany?

The CBD-adjacent cannabinoid cannabigerol (CBG) remains something of an unknown in Germany despite making considerable gains in American markets. Similar to CBD in being non-intoxicating but fully distinct in its effect and benefit profiles, CBG is certainly something Germans would be interested in under normal circumstances.

With CBD still on its way toward full acceptance in the country, however, attention for new cannabinoids remains divided. The challenge is to present CBG as something new and interesting for Germans to try without raising alarm among authorities that the cannabinoid is somehow more adjacent to THC than it is to CBD.

Is THC legal in Germany?

THC is not legal in Germany as an overall compound. The European country has massively expanded its medical cannabis industry in recent years with plans to expand it even more. THC-rich cannabis use in Germany remains restricted behind a strictly non-commercial wall, though — due to EU law, it is illegal to outright sell cannabis for general adult use within member states, a point it appears the Bundestag has currently chosen to accept rather than contest.

In summation, THC is only legal in Germany in the context of medical cannabis acquired via a state-run pharmacy. As this implies, a doctor’s prescription is also required to legally purchase THC-rich cannabis in Germany. While mainly a formality, this extra step creates extra legwork for consumers, a main driver behind recent legislation designed to revise the nation’s stance on cannabis.

Does Germany have adult-use cannabis?

No, adult-use or recreational cannabis is not legal in Germany. As a result, proper medical authorization is required to possess cannabis products, or the products must contain less than 0.2% THC in pursuance with EU code.

Lack of adult-use cannabis in Germany contributes to a persistence of access challenges for average Germans. Given the fact that the German government has moved so greatly in recent years to embrace cannabis, the proper stance is to simply empower Germans as allies in making their interest in cannabinoids heard.

Can you import cannabinoids into Germany?

According to cannabinoid laws in Germany, imports of cannabinoid products containing less than 0.3% THC generally follow EU code. The German government heavily regulates THC-rich cannabis imports but imposes no such rules on EU-approved industrial hemp products.

Are there cannabinoid manufacturers in Germany?

Cannabinoid manufacturers in Germany are generally restricted to medical or research purposes. Major cannabinoid manufacturers in neighboring European countries ensure steady access for German clients without relying on intercontinental trade.

Summary: Future prospects of German cannabinoid culture

Germany is a nation with a proud and complex history. Reluctant to appear too headstrong, German lawmakers tend to defer to EU positions.

This approach supports European unity but sometimes overlooks German distinctness in its unique relationship with cannabis. Germany’s distinct relationship with cannabis makes it an ideal candidate for the lifting of prohibition.

In approaching the German public or lawmakers regarding the issue of cannabis, this cultural distinctness may resonate strongly. Respect Germany’s diplomatic skill and support its people’s efforts to restore cannabis to their ancestral pharmacopeia.

In time, this disciplined and nuanced approach can’t help but develop Germany into the epicenter of the European cannabis industry that it was always fated to become. In the wider view, the complexities the German cannabinoid market currently faces are nothing compared to the future that is being sculpted by the industry’s visionaries.

Sources

1. Sabaghi, D. (2023, July 10). Germany Unveils Draft Bill To Legalize Cannabis. Forbes. https://www.forbes.com/sites/dariosabaghi/2023/07/10/germany-unveils-draft-bill-to-legalize-cannabis/?sh=1fc6fd0d2272#:~:text=Under%20the%20draft%20bill%2C%20adults,a%20maximum%20of%20three%20plants

2. Google Books. (n.d.). https://www.google.com/books/edition/Marijuana_Medicine/o_dKbMFRSzUC?hl=en&gbpv=1&dq=the+Healing+and+Visionary+Powers+of+Cannabis&printsec=frontcover

3. Grotenhermen, F. (2002). The Medical use of Cannabis in Germany. Journal of Drug Issues, 32(2), 607–634. https://doi.org/10.1177/002204260203200218

4. Details. (n.d.). https://www.unodc.org/LSS/Country/DetailsLegalSystem?code=DLIL&country=DE

5. Welle, D. (2007, August 21). Landmark drug ruling. dw.com. https://www.dw.com/en/germany-allows-patient-legal-use-of-cannabis/a-2746463

6. Welle, D. (2015, February 3). Cannabis in Germany. dw.com. https://www.dw.com/en/high-time-for-medical-marijuana-in-germany/a-18231922

7. Germany: Medical Marijuana Act Enters into Force. (2017, March 13). The Library of Congress. https://www.loc.gov/item/global-legal-monitor/2017-03-13/germany-medical-marijuana-act-enters-into-force/

8. Topic: Cannabis in Germany. (2023, June 13). Statista. https://www.statista.com/topics/11023/cannabis-in-germany/#topicOverview

9. Canadian Cannabis Survey 2022: Summary. (2022, December 16). Canada.ca. https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/research-data/canadian-cannabis-survey-2022-summary.html#:~:text=Significant%20difference%20between%20males%20and%20females.&text=Overall%2C%2019%25%20of%20Canadians%20age,from%2017%25%20in%202021).

10. Data and statistics. (n.d.). https://www.cdc.gov/marijuana/data-statistics.htm#:~:text=Marijuana%20is%20the%20most%20commonly,at%20least%20once%20in%202019.&text=Recent%20research%20estimated%20that%20approximately,marijuana%20have%20marijuana%20use%20disorder.

11. Sabaghi, D. (2021, December 14). European Union Increases THC Level For Industrial Hemp. Why Does It Matter? Forbes. https://www.forbes.com/sites/dariosabaghi/2021/12/14/european-union-increases-thc-level-for-industrial-hemp-why-does-it-matter/?sh=4721a5e8128b#:~:text=The%20European%20Parliament%20approved%20on,enter%20into%20force%20in%202023.

12. Cannabis law and legislation in Germany | CMS Expert Guides. (n.d.). CMS Law.Tax. https://cms.law/en/int/expert-guides/cms-expert-guide-to-a-legal-roadmap-to-cannabis/germany

New York State is the epicenter of big business in the United States. Providing you know the right people, there’s no better place in the country to court investment and start a business.

The state of New York is well aware of its popularity, however, and it has taken to taxing business owners heavily. If you decide to set up shop with a hemp or cannabinoid business in New York, you’ll find that for every opportunity that appears, a new obstacle will crop up as well.

In this guide, you will learn everything you need to know to start a hemp business in New York.

New York cannabinoid law overview

– Hemp cultivation and CBD commerce are both legal in New York State
– The New York state legislature¹ echoed the 2018 Farm Bill with a 2019 law regulating hemp cultivation
– Not only does New York carefully regulate hemp cultivation within the state, but it’s one of only a very few jurisdictions to impose a CBD seller fee
– Every aspect of the hemp supply chain is heavily taxed in New York
– Seed sellers, growers, processors, and retailers must all submit separate applications and pay separate fees 
– Medical and adult-use cannabis are now fully legal in NY
– Provisions for in-home cannabis cultivation in NY are separate from those applicable to hemp agriculture
– Entrepreneurs involved in the NY hemp supply chain must properly register with the state or face potential felony charges

Can I sell CBD in New York?

Yes, it is legal to sell CBD in New York. The state imposes a $300-per-year “CBD seller license²,” which any business selling CBD must pay if they want to remain in operation.

If you are determined to be selling CBD without a license in NY, you may be given an opportunity to acquire a CBD seller license on the spot. Officials can just as easily slap you with fines, however, or even confiscate your entire cannabinoid inventory.

Is it legal to grow hemp in New York?

Yes, it is legal to grow hemp in New York State. To do so, entrepreneurs must successfully apply for Hemp Grower Licensing³ through the New York Department of Agriculture. Applicants must submit a $500 application fee and undergo an FBI background check as part of the process.

Do you need a license to grow hemp in New York?

Yes, licensing is strictly required to grow hemp in New York State, as it is everywhere else in the nation. NY is particularly zealous about its hemp permitting process, however, and will actively pursue any perceived violations of the state hemp code. Unauthorized cultivation of hemp in the state of New York could lead to felony cannabis charges.

New York hemp license process

The New York hemp licensing process is quite arcane. There are at least four different types of licensing available, and you may need all four depending on the scope of your operation. The state of New York also keeps related information scattered across multiple web pages, making it hard to navigate to the information relevant to your business. Below, we’ve compiled everything you need to know about each type of licensing offered:

What is a New York Hemp Seed Seller License?

Even hemp seed sellers need licenses in New York. They aren’t as costly to acquire as other types of licensing, though.

– Link: agriculture.ny.gov/plant-industry/hemp-grower-licensing
– Price: $100 for three years
– Application: Downloadable PDF

What is a New York Hemp Grower License?

This is the main type of licensing hemp cultivators will need if they want to operate in New York State. It comes with a pricey upfront fee, but it lasts three years.

– Link: agriculture.ny.gov/plant-industry/hemp-grower-licensing
– Price: $500 for three years
– Application: Downloadable PDF

What is a New York Hemp Processor License?

This type of licensing is required if you intend to process hemp that has already been cultivated. It is an additional requirement on top of the cultivation license if you intend to both cultivate and process him in New York State.

– Link: cannabis.ny.gov/processors
– Price: $300 for two years plus a $100 licensing fee
– Application: Online form

What is a New York Cannabinoid Hemp Retailer License?

The NY Cannabinoid Hemp Retailer License, commonly known as a CBD seller license, is a requirement for any business seeking to sell cannabinoid products in the state of New York. In practical terms, licensing doesn’t do much to ensure the quality or safety of CBD products sold in New York State, but it does allow the state to keep track of CBD transactions and ensure that retailers are licensed to collect sales tax on behalf of the state treasury.

– Link: cannabis.ny.gov/retailers-distributors
– Price: $300 per year per retail location
– Application: Online form

Does New York have a good climate for hemp cultivation?

The climate in New York State is reasonably suitable for cultivation of all kinds. It is certainly not as ideal for hemp cultivation as more southerly locales like Virginia and the Carolinas, but with a proper understanding of the unique regional dynamics, it’s certainly possible to cultivate hemp in New York quite effectively.

Since the pandemic, commercial space in New York, especially in outlying areas, has become relatively inexpensive, making indoor hemp cultivation a viable option. Despite licensing fees and tax considerations, proper strategies and planning can unlock significant potential for a successful hemp business in the state.

How to start a hemp business in New York

The first step in the process of starting a hemp business in New York State is figuring out which type of licensing your business truly needs, a goal we hope we have assisted with by combining all relevant licensing information in one place. Depending on which components of the hemp cultivation and production process you want to take care of yourself, New York may apply any of the following licensing requirements and concomitant fees:

– A hemp seed seller license and fee
– A hemp cultivation license and fee
– A hemp processing license and fee
– A hemp retailer license and fee

If you were to acquire all of these licenses at once, the price would be $1,300. Some licenses stay valid for three years, others for two, and still others for just one year, making it inherently difficult to keep track of when it is time to renew each one.

Benefits of private labeling

Outsourcing some hemp production and sales processes to entities outside New York can help navigate these challenges. New York imposes fees on every retailer selling cannabinoid products, making annual state payments unavoidable for hemp sales.

You can avoid every other fee the state attempts to impose, however, by having your hemp grown and processed elsewhere. As long as your hemp concentrates arrive in a ready-to-mix form, the state will even unlikely be able to impose processing fees and related registration requirements.

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

The unavoidable truth is that New York is one of the most populous states in the nation, and its residents are unusually proud of their local state culture and economy. There are even plenty of New Yorkers who simply won’t trust anything unless it was made in New York State, paving the way for unique opportunities.

While New York’s local culture warmly embraces hemp businesses, the government could better align by revisiting its burdensome licenses and fees.

Even California, which is known for its high taxes, is less strict in its licensing requirements for hemp cultivators and processors. And, as is also the case in California and every other state, hemp businesses in New York must pay all applicable business and income taxes on top of hemp licensing fees.

With proper preparation, challenges don’t have to deter you from starting a hemp business or any venture in New York. NYC has always rewarded bold entrepreneurs, offering its wealth to those with courage and determination.

New York hemp business FAQs

Below, learn more about what it takes to run a hemp business in New York:

Can you grow hemp in New York State?

Yes, it is legal to grow hemp in New York State due to the 2018 Farm Bill. New York has, furthermore, passed its own piece of legislation supporting the hemp industry. New York presents more challenges to hemp businesses than other states, but capable entrepreneurs turn these challenges into opportunities.

Do you need a license to grow hemp in NY?

Yes, it is necessary to acquire proper licensing to grow hemp in New York. Depending on your type of hemp commerce, you may need up to four licenses, some requiring yearly renewal. Scroll up for New York State’s comprehensive hemp licensing database with relevant application links.

How do I get a license to grow hemp in NY?

The process of receiving licensing to grow hemp in New York is relatively straightforward, but it involves a few different steps, including:

– Submitting a completed PDF application
– An FBI background check for all “key participants”
– Maps and/or aerial photos detailing cultivation and storage locations

Once you have provided all the relevant submissions, the New York Department of Agriculture will consider your application and respond when it is ready.

How many hemp growers are in New York?

New York State is home to approximately 700 hemp cultivation operations. Considering the abundant cropland available in the upstate area, it’s clear that New York has far from reached the limit of its hemp cultivation capacity.

Sources

1. NY State Senate Bill 2019-S6184A. (n.d.). https://www.nysenate.gov/legislation/bills/2019/S6184#:~:text=This%20legislation%20establishes%20the%20regulation,of%20products%20and%20product%20labeling.

2. Retailers & distributors. (n.d.). Office of Cannabis Management. https://cannabis.ny.gov/retailers-distributors

3. Hemp grower licensing. (n.d.). Agriculture and Markets. https://agriculture.ny.gov/plant-industry/hemp-grower-licensing

Illinois might not be the first state you think of in association with cannabis, but it’s certainly on the map. Adult-use cannabis sales in the state reached $1.5 billion in 2022¹, spurring an overall adoption of cannabinoids, including non-intoxicating compounds like CBD and CBG.

It has a population of nearly 13 million, and it’s home to one of the biggest cities in the United States. Illinois shouldn’t be overlooked when considering locales to start a hemp business, especially with the freedom offered by white labeling. Learn the ins and outs of starting and operating a hemp business in Illinois to determine whether it’s the right path for you.

Illinois cannabinoid legality overview

– Illinois is home to both an adult-use and medical cannabis program
– Cannabis plants can also be grown indoors in Illinois in locked rooms
– Limit of 5 cannabis plants per home
– Illinois was one of the first states to allow hemp cultivation
– The Illinois Hemp Pilot Program² went into effect in 2015
– The Illinois Industrial Hemp Act³ followed in 2018
– This marked the expansion of an already thriving project
– The Illinois Industrial Hemp Program is currently undergoing a major retrofit
– Illinois hemp cultivation applications are filled out online
– Products must be tested through state-approved labs
– Licensing is not required to sell hemp products, only for cultivation and processing

Which cannabinoids can I sell in Illinois?

In Illinois, no distinction is generally made between cannabinoids that are not THC-adjacent, such as CBD, CBG, and CBN. Where things get more complicated is in the case of THC-adjacent compounds like THCA, delta 8, and HHC.

Under federal law, these substances are also generally considered to be “industrial hemp” since they contain less than 0.3% delta-9 tetrahydrocannabinol, the only substance strictly considered to be “marijuana” under federal law anymore.

The massive proliferation of cannabinoids like delta 8 within Illinois has led to significant controversy. Delta 8 became popular in the state originally due to sky-high prices at medical and adult-use dispensaries. Then, public outcry emerged over the regulation and safety of delta 8 products.

Most recently, cannabis reform legislation in Illinois was hamstrung⁴ in 2023 by internal disputes over whether to regulate delta 8 as cannabis or attempt to ban it outright. Our advice to anyone seeking to enter the Illinois cannabinoid market is to steer as far clear of this ongoing debacle as possible by sticking to strictly approved cannabinoids like CBD.

Can I grow hemp in Illinois?

Yes, hemp cultivation is legal in Illinois as it is everywhere else in the United States due to the 2018 Farm Bill. Illinois has, in fact, been leading the way in hemp cultivation since 2015, when the state enacted a pilot hemp horticulture program far before most others.

Illinois then echoed the 2018 Farm Bill by explicitly allowing hemp cultivation with its Industrial Hemp Act. Perhaps more than any other state, Illinois provides legal provisions making it abundantly clear that hemp cultivation is allowed within its borders. Reasonable restrictions do apply, however.

Do you need a license to grow hemp in Illinois?

Yes, proper licensing is required for hemp cultivation in Illinois. Failure to register your hemp cultivation operation with the state could lead to fines and legal injunctions, especially if your crop is confused with marijuana. Illinois makes it reasonably easy to apply for a hemp cultivation license online.

Illinois hemp licensing process

To apply for a hemp cultivation license in Illinois, follow this simple workflow:

1. Navigate to agr.illinois.gov/plants/industrial-hemp
2. Scroll almost all the way to the bottom, or search within the page for “Forms and Applications”
3. Choose the correct form, and click the link
4. You’ll now provide various details through an online form
5. It’s possible to save your progress at any point
6. Pay all relevant fees, and submit the form
7. Await the decision of the Illinois Department of Agriculture

How much does an Illinois hemp license cost?

Compared to other states, the price to acquire an Illinois hemp license is relatively abstruse. We’ll break it down below:

– A $100 application fee is charged for each submitted application
– Grower license fees are as follows:
– 1-year license: $375
– 2-year license: $700
– 3-year license: $1,000

Note how Illinois allows for licensing periods of up to three years, a significant departure from the procedures followed by most other states. A slight price break is given for longer licensing periods to incentivize growers toward three-year licenses.

Is the Illinois climate good for hemp cultivation?

Illinois is an acceptable climate for growing hemp. As part of the Great Plains region and also proximate to the Great Lakes, Illinois experiences extreme seasonal weather, making it ideal for hardier crops like corn.

Illinois allows cannabis to be grown in one annual cycle, limiting output compared to multi-crop regions like California and the Carolina coast. However, the state’s abundant cropland and flat landscape make transporting goods from rural areas to urban centers efficient.

How to launch a hemp business in Illinois

If you want to start a hemp business in Illinois, you’ll need to go through a lengthy series of steps. Some of the requirements are natural, but others are imposed by the state of Illinois. Here’s the general process laid out as simply as possible:

1. Acquire hemp cultivation licensing from the Illinois Department of Agriculture
2. This process will entail quite a few steps, such as:
3. Proving you have sufficient commercial space;
4. Demonstrating a comprehensive business plan;
5. Staying in compliance with all certification and regulatory procedures.
6. If you application is approved, you may begin operations
7. It will be necessary to hire employees, acquire farmland, and build out your processing facility
8. You can skip many steps by sourcing hemp raw materials elsewhere and processing or formulating them into finished products in Illinois.

Benefits of white labeling CBD in Illinois

In Illinois as in most other places in the nation, hemp cultivation and processing licenses are separate. If you only intend to process hemp and not sell it, you only need a processing license, not a cultivation license.

Furthermore, if your hemp raw materials arrive in a pre-processed state, you don’t even need a processing license. Simply combine bulk, white-label CBD extract with other ingredients to formulate products, and sell them in Illinois without any licensing whatsoever.

The other choice is to work with the state of Illinois as they hold your hand through a lengthy regulatory process. Decide which approach is best based on the needs of your particular business.

Summary: Should I start a hemp business in Illinois?

Illinois presents its own unique set of opportunities for hemp businesses. While there are challenges, as with any state, a deep understanding of the landscape can position a hemp or cannabinoid business for success in Illinois.

There’s certainly enough private investment to go around. Chicago is an old-money epicenter, and international investment continues to pour into Illinois year after year. CBD and cannabinoids are a hot topic in Illinois’s adult-use-saturated market, allowing cannabinoid brands to easily connect with customers.

For hemp cultivation, different regions offer varied advantages. Our advice is to set up shop in Illinois for access to the Chicago market and investment opportunities but to have your cannabinoid ingredients shipped in from a more suitable climate like Oregon.

Illinois hemp business FAQs

Focus in on the details of operating a hemp business in Illinois with this FAQ section:

Is it legal to sell hemp in Illinois?

Yes, it is legal to sell unprocessed or partially processed hemp products in Illinois in accordance with the 2018 Farm Bill and the Illinois Industrial Hemp Act. Any commercial or private entities doing so must first register with the state. These restrictions are not in place for sale of finished products containing CBD or other hemp cannabinoids.

Do you need a license to sell hemp in Illinois?

Yes, you can legally acquire licensing to sell hemp grown or processed in Illinois, as long as the hemp complies with the Illinois Industrial Hemp Act. Imported hemp products are generally exempt.

Do you need a license to sell CBD in Illinois?

No licensing is required to either buy or sell CBD in the state of Illinois. CBD is not a controlled substance, and as a finished product intended for consumer sale, it does not fall under the state’s definition of a hemp product cultivated or processed in Illinois. Individuals who wish to sell finished CBD products in Illinois should understand that no licensing from the state is required whatsoever aside from any general business licensing that would otherwise apply.

How much is a hemp license in Illinois?

In Illinois, acquiring a hemp cultivation or processing license can cost anywhere between $475 and $1,100. There is a $100 application fee for all hemp applications, and license pricing varies depending on the duration of the licensing window.

Sources

1. Adult use cannabis sales figures released for April 2023. (n.d.). https://idfpr.illinois.gov/news/2023/auc-sales-figures-april-2023.html

2. Illinois General Assembly – Illinois compiled statutes. (n.d.). https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=072005500K15.2

3. 505 ILCS 89/ Industrial Hemp Act. (n.d.). https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3910&ChapterID=40

4. Thomas, S. S. (2023). Delta-8 Dispute Gets In Way of Illinois Pot Reform. High Times. https://hightimes.com/news/delta-8-dispute-gets-in-way-of-illinois-pot-reform/

Georgia might not be the first state you think of in association with hemp, but it contains some of the best ecosystems in the country for growing Cannabis sativa. Recently, it has become more embracing of hemp and cannabis in general, with areas like Atlanta leading the way.

In recent decades, a wide array of industries have recognized Georgia’s potential — so, why not hemp? Learn the ups and downs of starting a hemp business in Georgia, the Peach State.

Georgia hemp law overview

– The 2019 Georgia Hemp Farming Act¹ echoed the 2018 Farm Bill, making hemp cultivation legal in Georgia
– Hemp cultivation in Georgia is centrally regulated by the state
– Georgia remains restrictive of cannabis in general, making proper licensing of extreme importance
– The state has a small medical marijuana program, but adult-use cannabis remains illegal
– Backyard hemp grows are strongly discouraged in Georgia due to the likelihood of mistaken identity with marijuana
– Possession of the quantities of cannabis usually associated with home grows is a felony in Georgia²
– Alarmism is on the rise³ as Georgia illicit cannabinoid sales soar
– Regardless, the state hemp program is in full swing

Can I sell cannabinoids in Georgia?

Yes, non-THC cannabinoids are generally viable for sale in Georgia. Local and state lawmakers have raised vocal concerns, however, over the unregulated status of cannabinoid products commonly sold in the state’s “gray markets.”
Sold out of stores with signs blaring “Recreational Dispensary,” these products contain delta 8, THCA, and other THC analogues that are offered thanks to vagaries of federal law. Georgia businesses like these have given cannabinoids a bad name, making it ideal to conduct your operations in as much privacy as possible.

If you do decide to sell cannabinoid products within the state, do so very carefully and only through legitimate retailers. Just as reasonable of an option, though, is taking advantage of Georgia’s significant business tax breaks and incentives⁴ to start a cannabinoid brand with national online distribution.

Taking this approach offers the best of both worlds. By operating and hiring locally, you’ll help the Georgia economy grow. You’ll also steer clear of the evolving drama surrounding gray-area cannabinoids in the Peach State, a wise move for any aspiring entrepreneur.

Is it legal to grow CBD hemp in Georgia?

Yes, you can grow CBD-rich hemp in Georgia in accordance with the state’s Department of Agriculture Hemp Program. As is the case in all 50 states, businesses that intend to grow or process hemp in Georgia must follow applicable licensing and regulatory procedures, which vary on a state-by-state basis.

In Georgia, the process begins by visiting the official Hemp Program website⁵. This portal contains links to all the resources you’ll need to successfully apply for a hemp cultivation permit in the Peach State.

Do you need a permit to grow hemp in Georgia?

Yes, acquiring and renewing a valid permit is a basic necessity of growing hemp in Georgia. The state provides a relatively straightforward program for hemp licensing, and fees are on a sliding scale to maintain fairness across operation sizes. Permits are acquired through the Georgia Department of Agriculture (GDA) and must be renewed on a yearly basis.

How to get a Georgia hemp license

The process of receiving a hemp cultivation license in the state of Georgia is quite straightforward:

1. Navigate to agr.georgia.gov/hemp-program
2. Make an account, which you will use to login to the system
3. Log in, and select either the Hemp Grower License or Hemp Processor Permit (or both) as applicable
4. Read up on all applicable laws and regulations to make sure you stay in compliance
5. Make a hemp business plan in accordance with Georgia state regulations
6. Submit the licensing paperwork accompanied by all relevant fees, and await response from the GDA

How much does a Georgia hemp license cost?

Annual hemp licensing fees in Georgia are based on the size of your operation. The fee is $50 per acre with a maximum yearly fee of $5,000. So, even if you intend to grow more than 100 acres of hemp at a time, your annual fee paid to the GDA will never exceed $5,000. This fee schedule was created to make it easier for smaller hemp cultivators to compete with large, corporate-backed entities.

Is Georgia a good place to grow hemp?

Overall, Georgia offers a nearly ideal environment for hemp cultivation. In the early history of the Americas, hemp was commonly planted all the way down the southern half of the Eastern Seaboard with the most fertile areas being the wetlands along the coast of the Carolinas and Georgia.

Not only is hemp well-suited for the Georgia climate, but planting hemp in Georgia also stays in keeping with one of the state’s oldest agricultural traditions. Even the mountainous, western regions of the state are reasonably good for hemp cultivation. The absolute best area for growing hemp in Georgia is the northeast coast outside Savannah.

How to launch a cannabinoid business in Georgia

Launching a hemp business in Georgia can either be arduous or simple depending on which segments of the process you handle out of state. It remains a fact that, culturally, Georgia is relatively antithetical to Cannabis sativa in general, a position that is not particularly helped by the sudden and recent proliferation of gray-market, intoxicating cannabinoids within the state’s borders.

That’s not to say growing and processing hemp buds in Georgia is absolutely a bad idea. Georgia remains a wonderful climate for growing cannabis after all, and all it takes is a certain degree of adroitness to stay clear of the unique challenges the Peach State’s social fabric imposes.

As one of America’s historical agricultural epicenters, Georgia is just as well known for its rich, fertile croplands as for its debutante balls. Companies that properly study the peculiarities of Georgia’s cultural and economic environments will thrive in the state — in fact, they’ll encounter opportunities that simply can’t be found anywhere else.

Benefits of white labeling CBD in Georgia

It’s a fact that Georgia goes out of its way more than most states to be welcoming to business culture. Lawmakers in Georgia have made it their mission to bring more money into the state by encouraging business operations with low taxes and abundant incentives.

In a purely economic context, there’s hardly any better state than Georgia to operate a hemp business out of. Whether it’s retaining employees, finding business space, or receiving generous lines of credit, Georgia does its best to help you get in and stay in business.

If you source your raw hemp materials from somewhere out of the state, handling all of your business operations within Georgia borders should be highly rewarding. Failing to do so adds a laborious layer to the process of running a hemp business in the state — one which can be entirely avoided with a modicum of business prudence.

The bottom line: Should I start a hemp business in Georgia?

Georgia is a rich — but often unexplored — land of opportunity. Should you choose to set up your hemp shop in Georgia, you will receive the type of welcome to which business owners have lately become unaccustomed.

No matter how state authorities may try to sweeten the deal, though, it’s essential to recognize the unique challenges of starting a hemp business in Georgia. The state languishes within a culture in which hemp is still very much associated with marijuana — and in which marijuana is tantamount to moral decay.

Your chances of experiencing unexpected pushback as a Georgia hemp business owner diminish with each passing year. Until the state totally normalizes its perception of hemp, however, you could be making a Faustian bargain by choosing the Peach State as your home base.

How long does it take to get a hemp license in Georgia?

Most Georgia hemp licenses are either approved or rejected within 30 days of submission. This period follows the full inspection of your facilities that is a required part of the Georgia hemp license application project. Contact the Georgia Department of Agriculture⁶ if you have any questions about a hemp cultivation or processing application you have already submitted.

Do you need a license to sell hemp in Georgia?

No, a license is not necessary to sell bulk hemp or processed hemp products in Georgia. Licensing only applies to when you grow or process hemp flower within the state’s borders — if you acquired your hemp products via any other means, licensing is not necessary to unload your wares.

Can anyone sell CBD in Georgia?

Yes, there are no particular limits on who can sell CBD in Georgia. You do not need to be a licensed hemp cultivator to sell CBD in the state. The only restriction, imposed by both Georgia and the federal government, is that CBD products contain less than 0.3% THC.

Is smokable hemp legal in Georgia?

Yes, thanks to the 2018 Farm Bill, smokable hemp is legal in Georgia and anywhere else it has not specifically been banned. Despite rampant misinformation, it is not “illegal to smoke hemp,” and Georgia has also not “legalized smokable hemp.” Smoking hemp is definitely not illegal anywhere in the country, and Georgia doesn’t need to legalize smokable hemp for the 2018 Farm Bill to apply.

How much CBD flower can you possess in Georgia?

There are no limits on CBD flower possession in Georgia since the state does not regulate this product category whatsoever. The only relevant restriction is that all CBD products contain less than 0.3% — whether in Georgia or anywhere else in the United States.

Sources

1. Georgia Hemp Farming Act. (n.d.). Georgia. https://www.legis.ga.gov/api/legislation/document/20192020/187562

2. Georgia Laws and Penalties – NORML. (2023, January 23). NORML. https://norml.org/laws/georgia-penalties/

3. Georgia Recorder. (n.d.). Georgia Recorder. https://georgiarecorder.com/2023/04/10/georgia-lawmakers-try-to-wrap-heads-around-regulating-hemp-based-recreational-products/#:~:text=It%27s%20illegal%20on%20the%20federal,a%20small%20amount%20of%20THC.

4. Incentives | Georgia Department of Economic Development. (n.d.). https://www.georgia.org/competitive-advantages/incentives

5. HEMP program. (n.d.). Georgia Department of Agriculture. https://agr.georgia.gov/hemp-program#:~:text=The%20Georgia%20Hemp%20Farming%20Act,Hemp%20Grower%20and%20Processor%20Rules.

6. Homepage | Georgia Department of Agriculture. (n.d.). https://agr.georgia.gov/

If you only consider cannabinoids when unraveling the mysteries of cannabis, you’re only looking at one side of the puzzle. Just as important are terpenes — far more volatile, but also vastly more aromatic than cannabinoids. Terpenes may be more like cannabinoids than we give them credit for, though: Find out exactly what terpenes are and compare the most popular terpenes in this guide.

What are terpenes?

Terpenes are volatile, aromatic compounds found in Cannabis sativa and a variety of other plant species throughout nature. In fact, you’d be hard-pressed to find any plant that does not contain any terpenes at all. These compounds are among the primary flavoring and aromatic agents used in nature, and in cannabis, they’re responsible for the delectable bouquet that accompanies each distinct strain.

Where do terpenes come from?

Terpenes naturally emerge during the maturation process in many plants. The moment that a plant begins to give off an aroma during maturation, it’s likely that terpenes are beginning to develop.

Even common flavors in herbs are present due to the presence of terpenes. Mint leaves taste minty, for instance, due to the presence of menthol — a terpene¹.

The development schedule of terpenes is different in each plant. Mint leaves have a mint flavor right from the start, for instance, while terpene production doesn’t begin in cannabis in earnest until the flowering phase begins.

Theories regarding the origins of terpenes vary. What’s clear is that these exceedingly simple compounds contribute a great deal to the complexity of our olfactory and culinary sensibilities as human beings.

What chemical structure do terpenes have?

Unlike cannabinoids, terpenes do not share a common basic structure. While usually quite simple in structure, terpenes span a vast array of different individual structural traits. Some feature cyclic rings while others do not. Still other terpenes consist of chemical pairings so unusual that the mysteries of nature distinctly deepen.

The end result, though, are flavors and aromas so potently sensate that it’s no understatement to say the world would be benighted by their absence. Such a vast body of human creative inspiration has been drawn from terpenes, and it also seems that these compounds have a power to heal that goes beyond merely smelling and tasting good.

What do terpenes do?

Despite their wildly varying structures, terpenes appear to universally exert some degree of antioxidant and anti-inflammatory potential. These benefits vary by terpene, but terpenes consistently reduce bodily inflammation and stress while providing aromatic and culinary advantages—a genuine scientific mystery.

Are terpenes the same as cannabinoids?

No, terpenes are quite a bit different from cannabinoids. That’s not to say they don’t also share similarities — we’ll compare the two categories of compounds in detail below:

Source

Cannabinoids and terpenes are both found in cannabis, but terpenes also occur in many other plants, unlike cannabinoids, which are unique to Cannabis sativa. Both compounds are typically naturally derived, though they can be synthesized if needed.

Structure

Cannabinoids all share a common “mold” or overall structure regardless of how individual cannabinoid structures may vary. The same cannot be said for terpenes, which run the gamut of structures. The structures of most terpenes are comparatively simple, however, while cannabinoids have larger structures with greater molecular mass.

Effects

In some cases, the effects of cannabinoids and terpenes can nearly overlap. The terpene caryophyllene, for instance, acts as a cannabinoid² in the brain and peripheral nervous system.

Generally, though, the simple structures of terpenes are not capable of eliciting the complex neurochemical reactions caused by cannabinoids. Terpenes rarely cause significant perceptual changes, unlike THC-family cannabinoids, whose psychoactive properties are so profound they are considered intoxicating.

Legality

There are significant legal and regulatory differences between terpenes and cannabinoids. Terpenes are generally unregulated, while some cannabinoids are classified as federally illegal drugs.

Until recently, regulators treated any unique compound from cannabis as equivalent to THC for legal purposes. With the 2014 Farm Bill, however, a separation began between THC and other cannabinoids that culminated four years later in the Agriculture Improvement Act of 2018.

Assuming all goes according to plan, a new Farm Bill should be due in 2023, which will hopefully push the regulation of cannabinoids further forward. Regulators still contextualize all cannabis-specific compounds by their association with THC, an association terpenes never had.

Safety

At natural concentrations in cannabis and hemp, terpenes and non-intoxicating cannabinoids appear safe. However, as volatile compounds, terpenes may combust if improperly stored. In a production sense, at least, terpenes are considerably more dangerous to handle than cannabinoids.

9 common & popular terpenes

Both as standalone ingredients and as additions to cannabinoid products, terpenes have skyrocketed in popularity over recent years. Familiarize yourself with the top 9 terpenes and their aromas below:

1. Limonene

– Found in Citrus fruits
– Potential Effects: Anti-inflammatory³, pain relief, focus & energy
– Flavor & aroma profile: Citrusy, sharp, sour, floral

2. Myrcene

– Found in: Mangoes, hops
– Potential Effects: Antioxidant, sedation⁴, pain relief
– Flavor & aroma profile: Dank, lush, murky

3. Caryophyllene

– Found in: Peppers, cloves
– Potential Effects: Anti-inflammatory, pain relief, CB2 activation
– Flavor & aroma profile: Spicy, peppery, cinnamon

4. Pinene

– Found in: Conifer pine needles & sap
– Potential Effects: Anti-inflammatory, neurocognitive, respiratory⁵
– Flavor & aroma profile: Pine, mint

5. Linalool

– Found in: Lavender
– Potential Effects: Pain relief, antioxidant, sedation⁶
– Flavor & aroma profile: Floral, sweet, lavender

6. Terpinolene

– Found in: Fruit trees
– Potential Effects: Relaxation, antioxidant, pain relief
– Flavor & aroma profile: Pine, citrus, other terpenes

7. Eucalyptol

– Found in: Eucalyptus trees
– Potential Effects: Cardiovascular, respiratory, neurological, cardiovascular benefits⁷
– Flavor & aroma profile: Eucalyptus

8. Borneol

– Found in: Ginger, thyme, other herbs
– Potential Effects: Pain relief, antioxidant, drug enhancement⁸
– Flavor & aroma profile: Camphor, sharp, balsamic

9. Nerolidol

– Found in: Ginger, jasmine, tea tree, and more
– Potential Effects: Sedation, antioxidant, antifungal⁹
– Flavor & aroma profile: Jasmine, lemongrass

How to use terpenes in products

Terpenes are increasingly in demand as ingredients in cannabinoid products. Shoppers are becoming aware that terpenes are naturally present in cannabis, and they do not believe they are getting the full cannabis experience without the presence of terpenes.

Generally, shoppers prefer cannabis-derived terpenes. However, botanical terpenes (meaning terpenes from non-cannabis sources) can usually be substituted without any reduction in product quality. To ensure that quality remains maximized, botanical terpenes should be mixed by a competent producer.

Terpenes can be added to tinctures to improve their flavor and effects. They can be added to topicals to make them naturally aromatic. Terpenes can even play a role in cannabis mints and tablets — the options are endless.

Summary: Are terpenes important?

Though they have historically been overlooked during the development of the cannabis industry, it’s certainly starting to appear that terpenes are just as integral to the beneficial effects of cannabis as cannabinoids.

Not only is cannabis stripped of its most flavorful and aromatic parts when terpenes are omitted, but its benefits are also purposelessly limited. While they might be perfectly fine as therapeutic substances on their own, cannabinoids seem to only reach their full depth of expression when accompanied by terpenes.

As time goes by, adding terpenes will become standard practice in the cannabinoid industry. Start incorporating terpenes into your products today rather than waiting to be swept away by this mounting trend.

Terpene FAQ

Finish out our inquiry into terpenes with these answers to common questions:

1. Are terpenes sativa or indica?

Terpenes are neither indica nor sativa in themselves, but they are nonetheless the compounds that cause indica or sativa effects in cannabis. By combining in hundreds of unique ways, terpenes elicit specific effects in cannabis that have been identified as “indica” or “sativa.” Without terpenes, all strains of cannabis would be roughly the same in terms of flavor, aroma, and even effects.

2. Are terpenes good for you?

All terpenes researched so far appear to offer at least some degree of beneficial effects in the human body. Even more impressively, not a terpene has been discovered that appears to be entirely bad for human beings.

That doesn’t mean you should consume terpenes at will, thinking they will always be good for you regardless of the circumstances. Only use professionally formulated products made by certified and trusted terpene manufacturers.

Sources

1. Kamatou, G. P., Vermaak, I., Viljoen, A. M., & Lawrence, B. M. (2013). Menthol: A simple monoterpene with remarkable biological properties. Phytochemistry, 96, 15–25. https://doi.org/10.1016/j.phytochem.2013.08.005

2. Aly, E., Khajah, M. A., & Masocha, W. (2019). β-Caryophyllene, a CB2-Receptor-Selective Phytocannabinoid, Suppresses Mechanical Allodynia in a Mouse Model of Antiretroviral-Induced Neuropathic Pain. Molecules, 25(1), 106. https://doi.org/10.3390/molecules25010106

3. Vieira, A. J., Beserra, F. P., Souza, M. H., Totti, B., & Rozza, A. L. (2018). Limonene: Aroma of innovation in health and disease. Chemico-Biological Interactions, 283, 97–106. https://doi.org/10.1016/j.cbi.2018.02.007

4. Surendran, S., Qassadi, F., Surendran, G., Lilley, D., & Heinrich, M. (2021). Myrcene—What Are the Potential Health Benefits of This Flavouring and Aroma Agent? Frontiers in Nutrition, 8. https://doi.org/10.3389/fnut.2021.699666

5. Surendran, S., Qassadi, F., Surendran, G., Lilley, D., & Heinrich, M. (2021). Myrcene—What Are the Potential Health Benefits of This Flavouring and Aroma Agent? Frontiers in Nutrition, 8. https://doi.org/10.3389/fnut.2021.699666

6. De Moura Linck, V., Da Silva, A. J., Figueiró, M., Caramão, E. B., Moreno, P. R. H., & Elisabetsky, E. (2010). Effects of inhaled Linalool in anxiety, social interaction and aggressive behavior in mice. Phytomedicine, 17(8–9), 679–683. https://doi.org/10.1016/j.phymed.2009.10.002

7. Seol, G. H., & Kim, K. Y. (2016). Eucalyptol and Its Role in Chronic Diseases. In Advances in Experimental Medicine and Biology (pp. 389–398). Springer Nature. https://doi.org/10.1007/978-3-319-41342-6_18

8. Zhang, Q., Fu, B. M., & Zhang, Z. (2017). Borneol, a novel agent that improves central nervous system drug delivery by enhancing blood–brain barrier permeability. Drug Delivery, 24(1), 1037–1044. https://doi.org/10.1080/10717544.2017.1346002

9. Bezerra, C. F., De Alencar Júnior, J. S., De Lima Honorato, R., Santos, A. T. L. D., Da Silva, J. B., Da Silva, T. R., Leal, A. C., De Freitas, T. S., Vieira, T. A., Rocha, J. E., Sales, D. L., Filho, J. F., De Sousa, G. R., Pinheiro, A. P., Ribeiro-Filho, J., Coutinho, H. D. M., Morais-Braga, M. F. B., & Da Silva, T. G. (2020). Antifungal Properties of Nerolidol-Containing Liposomes in Association with Fluconazole. Membranes, 10(9), 194. https://doi.org/10.3390/membranes10090194

Sunny California has been known as the spearhead of the cannabis movement since the late 1990s. Things may have taken a more-regulated turn recently, but nothing has changed about California’s ideal cultivation climate and hemp-friendly culture.

As any honest Californian will tell you, taxation and property value will likely be your biggest concerns when setting up shop in the Golden State. That’s outside the scope of our guide, however — below, we’ll simply outline the steps you should follow to secure licensing and efficiently position your new business within California’s bustling cannabis economy.

California cannabinoid legality overview

– In 1996, California voters passed Proposition 215¹, legalizing medical cannabis within certain parameters
– This was followed by Bill 420 in 2003², which expanded the state’s legal cannabis program
– These bills mainly pertained to intoxicating cannabis, however, leaving little provision for hemp
– The 2014 and 2018 Farm Bills legalized hemp cultivation nationwide
– California state law mainly stays within this framework, requiring that hemp cultivators report to counties but not directly to the state
– Hemp cultivation licensing in California is handled by county offices but subject to state government jurisdiction
– Fees, for instance, are standard, but each county has a different application process
– California has very different rules for cultivating hemp and “marijuana”
– Generally, California adheres to the federally backed definition of THC as “marijuana” and other cannabinoids as “hemp”
– A gray area is encountered, however, with “THC-alternative” cannabinoids like THCA and delta 8

Which cannabinoids can I sell in California?

Instead of enacting provisions for specific cannabinoids, California generally reverts to the federal government’s position on cannabinoid law — that delta-9 tetrahydrocannabinol is the federally illicit Schedule I drug “marijuana” but that most (if not all) other cannabinoids are “industrial hemp,” a new regulatory category originally carved out by the 2018 Farm Bill. 

California entrepreneurs are, therefore, unlikely to run afoul of local authorities by selling products containing popular hemp cannabinoids like CBD, CBN, and CBG. The situation becomes more tense the closer you get to THC, though.

This is the case elsewhere in the country as well, but entrepreneurs in California are especially advised to steer clear of intoxicating, THC-alternative cannabinoids to avoid stepping on the toes of local authorities. Space has been very meticulously cleared in California for adult-use cannabis dispensaries to operate with upstart delta 8 sellers often learning unfortunate lessons³.

It’s understandable if the situation seems illogical at first. As the first state to “legalize weed,” after all, why would California have a problem with people selling intoxicating cannabinoids within its borders?

The key phrase is “regulation.” California wants to make sure it has its hand on all cannabis transactions to ensure designated taxation and safety protocols take place. THC-similar cannabinoids like delta 8 both threaten adult-use cannabis revenue and introduce unregulated products into the market.

Is it legal to grow hemp in California?

Due to the 2018 Farm Bill, it is legal to grow hemp everywhere in the USA. California has not enacted any measures contradicting this federal law, so hemp cultivation is, therefore, legal in California.

As is the case nationwide, California hemp cultivation is regulated. Aspiring cultivators must submit appropriate licensing fees and forms to their local county offices, which then provide approval based on state guidelines. In a nutshell, it’s illegal to simply sprinkle hemp seeds in your backyard and start growing, but California is willing to accommodate would-be hemp growers through an approved regulatory process.

Do you need a license to sell hemp in California?

Yes, it is necessary to acquire a license if you want to either sell or produce hemp in California. It is important to note that this restriction does not apply to finished product manufacturers who use extracts made by other producers. You just need licensing if you intend to cultivate hemp or use it for extraction within California’s borders.

How to get a California hemp license

The California Department of Food and Agriculture (CDFA) maintains a comprehensive database of the information and forms you’ll need on its California Industrial Hemp Program (CIHP) website⁴. If you feel confident that you’re ready to begin the application process, however, you can go ahead and contact your local county offices.

Generally, finding the appropriate page is as simple as performing a web search for “hemp permit [your county].” If you have trouble finding the relevant forms or contact information for your county, contact the CDFA for assistance.

How much is a California hemp permit?

California requires that hemp cultivators pay $900 per year for an annual hemp cultivation permit. In addition, many countries impose their own fees, often in the order of $100-300 per year. Overall, you should expect to spend more than $1,000 per year on hemp cultivation licensing in California — assuming your application is approved.

Is California a good climate for growing hemp?

California is undeniably one of the best climates in the world for growing hemp or any other crop. Especially in the arable central regions of the state, crop cultivation of all kinds excels. Being a reasonably hardy plant, hemp can also grow in the colder northern regions and hotter southern regions of the state, but more attention will need to be paid to environmental conditions.

The reputation California has rightfully gained as an excellent state for agriculture means there is considerable competition for farmland. In addition, unwanted contaminants can migrate from neighboring farms, making it ideal to source already-extracted cannabinoid concentrates from sustainable or organic farms operating in other regions.

How to start a cannabinoid business in California

Starting a hemp business in California requires a significant series of steps:

1. First, you’ll need to find an appropriate plot of land for cultivation and processing
2. Considerations include improvements, maintenance, and property taxes
3. It will also be necessary to secure employees, navigating California’s labor laws
4. Then, apply for a hemp cultivation license through your local county office
5. If approved, you will then be allowed to sell hemp cultivated on your property
6. You will also be shielded from state law enforcement action as long as your operation remains within acceptable parameters
7. Once you have a finished product, you will need to find customers

To summarize, real estate, agriculture, manufacturing, and marketing are all skills you’ll need to use when establishing a hemp business in California (or elsewhere)

Why you should work with a white labeler

Given the relatively laborious nature of starting a hemp business in California, it’s only natural to consider other options. Hemp private labelers can take many of the most difficult components of operating a hemp business off your hands, providing a steady flow of cannabinoid extracts or even finished products with no need to operate vast tracts of farmland or massive warehouses.

In California, the pressure of government bureaucracy is greater than perhaps anywhere else in the country. It is especially beneficial, therefore, to California hemp businesses to outsource production to neighboring states. Even companies located as close as Oregon have much more leeway in their production processes while maintaining a standard of quality that even California’s storied excellence could not exceed.

Summary: Should I launch a cannabinoid business in California?

No matter what anyone may say, California remains the land of opportunity. More successful brands and companies have launched in California than any other state, and even its most fervent detractors must admit that California seems to naturally breed ingenuity and progress.

So, it’s certainly not a bad idea to launch a hemp business in California. It’s simply worth recognizing from the outset that the state’s current economic outlook and regulatory climate make it difficult to handle every single step of the process on home soil.

Hemp is just cheaper to grow and process in neighboring states like Oregon, for instance — which is why all the best hemp companies are located there. If California were to adopt more pro-business policies in the hemp space, the situation could be reversed. For now, though, we say this:

– Start a hemp business in California to gain direct access to the largest base of informed customers in the world;
– But outsource as much of the process as you can to avoid excessive tax and regulatory burdens.

California cannabinoid business FAQ

Fill out your dossier on California hemp regulations and economics in the following FAQ section:

1. How do I get a hemp license in California?

In California, hemp licenses are acquired through your local county office, not directly through the state. In the state-issued application, it is required that you demonstrate both the means and knowledge required to run a hemp operation.

A $900 fee must also be paid on a yearly basis, initially to receive licensing and then every 12 months thereafter to remain licensed. California county offices also impose their own fees, often in the order of $200 per year.

Once a completed application has been provided along with full fee payment, you will receive licensing to grow hemp in California — assuming your application is approved. If you have any questions about your hemp cultivation application after it is submitted, contact your local county office, not the California state government.

2. Can you grow hemp in your backyard in California?

No, it is illegal to simply begin growing hemp on your property in California without first acquiring proper licensing from the state government. During this licensing process, you must demonstrate that you have an adequate space for growing and processing hemp on a commercial scale — for most Californians, a backyard just won’t cut it.

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

No, it is not necessary to acquire licensing to sell CBD products in California. Licensing is only required if you intend to cultivate, process, and then sell CBD in the state. Counties and municipalities within California, though, may have imposed registration or taxation schemes on CBD sales. Check with your local chamber of commerce for more details.

4. Where can I find the California hemp permit form?

The form used to apply for a hemp cultivation permit in California is provided online on the CDFA website. Click here to be taken directly to the downloadable PDF form. While the same form is used statewide, individual California counties each have their own application processes. Visit your county’s webpage on hemp cultivation to learn more.

5. How do I get a San Diego county hemp license?

Everything you need to acquire a hemp cultivation license in San Diego county is available on the county’s Agricultural/Weights and Measures website. On this page, you can find links to all applicable forms as well as detailed educational information pertaining to hemp cultivation specifically in San Diego county.

Sources

1. CA Secretary of State – Vote96 – Text of Proposition 215. (n.d.). https://vigarchive.sos.ca.gov/1996/general/pamphlet/215text.htm
2. Vasconcellos. (n.d.). SB 420 Senate Bill – CHAPTERED. http://www.leginfo.ca.gov/pub/03-04/bill/sen/sb_0401-0450/sb_420_bill_20031012_chaptered.html
3. Lombardo, D. (n.d.). Delta-8 seller busted in Ocean Beach. San Diego Reader. https://www.sandiegoreader.com/news/2022/feb/11/stringers-delta-8-seller-busted-ocean-beach/
4. California Department of Food and Agriculture. (n.d.). CDFA – Plant – Industrial Hemp. https://www.cdfa.ca.gov/plant/industrialhemp/

Before it takes on its final form, every cannabinoid in Cannabis sativa begins as something else. Most of the cannabinoids we already know and love — CBD, CBG, and CBN, for instance — all come from a common source: CBG.

Cannabinoids in the “varin” family, however, trace their roots back to a different compound. In this guide, we’ll learn what CBGV is to find out where it fits into the modern cannabinoid pharmacopeia.

What is the cannabinoid CBGV?

Cannabigerovarin (CBGV) is a cannabinoid that naturally occurs in certain phenotypes of hemp and cannabis. Via enzymatic processes that occur either during the natural maturation of cannabis or in a laboratory environment, the precursor of CBGV, CBGVa, transforms into CBDV, THCV, CBGV, or most other cannabinoids in the “varin” subcategory.

Researchers are studying CBG as much for its role in cannabis maturation as for its individual benefits, and they have given considerable attention to CBGV despite its obscurity. They justify this focus by suggesting that “Varin” cannabinoids may offer superior alternatives to their conventional counterparts. Since CBGV plays a crucial role in the formation of these alternative cannabinoids, it’s of great interest in the context of laboratory synthesis.

Origins

CBGV naturally begins forming toward the end of the Cannabis sativa maturation process. CBGV is available in significant quantities in certain cannabis phenotypes but exists in trace amounts in nearly all known phenotypes.

As cannabis came into existence, it appears nature followed its usual path of trying out multiple simultaneous sets of relatively similar compounds. Cannabinoids in the “varin” family seem to be less evolutions of normal cannabinoids and more natural variations that might have unique properties.

Structure

Structurally, both CBG and CBGV are quite a bit different from CBD, THC, and most other cannabinoids. Like CBG, CBGV only sports one cyclic ring. The compound’s structure includes a long tail with the typical alkyl chain extending from the opposite side.

In the case of CBGV, this alkyl chain is shorter by two hydrocarbon groups. Scientists are still investigating the impact that this slight chemical difference might make, but shorter alkyl chains are a shared attribute among all “varin” cannabinoids.

Effects

In terms of experienced effects, CBGV remains too much of an unknown cannabinoid to make any definitive determinations regarding how it may feel different from CBG. On the other hand, research into CBGV’s potential medical benefits has helped distinguish it from CBG.

What does CBGV do?

Overall, the effects, uses, and pharmacokinetics of CBGV are firmly still under study. Unlike widely used cannabinoids like CBD, CBGV is much rarer and remains significantly under-researched.

Initial inquiries show, however, that CBGV may be like other cannabinoids in offering some degree of anti-inflammatory benefit¹. Due to the popularity of CBG in skincare, CBGV has also received attention in this context: The cannabinoid served as a focus of a 2016 study² into the usefulness of cannabinoids for acne, for instance.

Aside from this very limited scope of study, not much concerted effort has yet been put into firmly delineating the unique characteristics of CBGV. Increased popularity among consumers would certainly push the subject of CBGV more firmly under the eye of academia.

Is CBGV the same as CBG?

No, CBG and CBGV are very different cannabinoids. They each have unique chemical structures: Whereas CBG features the full alkyl chain sported by most conventional cannabinoids, CBGV features the shorter chain indicative of “varin” cannabinoids. Any difference between the cannabinoids in the context of experienced effects and medical benefits is still being determined.

CBGV vs. CBG

To better understand the differences between CBGV and CBG, we’ll compare the two cannabinoids in detail below:

Source

Inherently, CBGV and CBG are hardly different at all in regards to their source. The two cannabinoids might go through slightly separate developmental paths as they mature, but they both develop in Cannabis sativa during the normal process of maturation.

For practical purposes, on the other hand, CBG and CBGV are usually sourced differently. In selectively bred strains of cannabis, CBG is now abundant enough to be extracted and purified without any conversion process being necessary. There are no strains of cannabis yet, however, that naturally contain high concentrations of CBGV. As cannabinoids in the “varin” family gain popularity, the situation might change.

For the present moment, CBGV is usually converted from CBG or another similar cannabinoid. This enzymatic conversion process is generally considered safe, but it does add an extra step into the equation that might be worth keeping in mind.

Structure

Structurally, only a slight chemical change separates CBG from CBGV. Scientists are still determining how this difference might make varin cannabinoids uniquely useful for research and medical purposes, but it’s clear to see that cannabinoids like CBGV have different structures from their conventional counterparts.

Effects

Overall, it appears that the effects of CBGV are very similar to those of CBG — both in terms of experienced effects and potential neurochemical interactions. Just as the differences in effects between CBD and CBDV shouldn’t be overlooked, though, it’s important to consider how the slight chemical difference between CBG and CBGV might result in different effects.

Potency

There is no reason to believe that there is a considerable potency difference between CBG and CBGV. In the case of intoxicating cannabinoids like THCV, the varin counterpart is usually less intoxicating. CBG is not intoxicating at all, though, so it’s useless comparing it to CBGV on these grounds. Rather than being more or less potent than CBG, CBGV is most likely simply potent in different ways.

Legality

There shouldn’t be any legal or regulatory difference between CBGV and CBG. Both cannabinoids share equal distance from THC, after all, which is the only cannabinoid usually individually targeted for regulatory action. If CBGV is converted from another cannabinoid rather than naturally sourced, however, agencies like the FDA and DEA may view it somewhat differently.

Safety

There’s no reason to believe that a salient safety difference exists between CBG and CBGV. It’s worth echoing once more, however, that the equation changes slightly when you convert cannabinoids from other substances. Depending on how it is processed, conversion from CBG could introduce contaminants during CBGV production. That’s part of why it’s important to only work with large, established cannabinoid manufacturers.

Availability

Compared to CBG, the availability of CBGV is relatively poor. CBG-rich strains of hemp are now abundant, but similar strains rich in CBGV have yet to appear. Certain intrepid cannabinoid manufacturers, however, are starting to make CBGV available at the same caliber of quality that has become standard for CBG and other cannabinoids.

How to buy CBGV online

Despite becoming more mainstream, CBGV is still a relatively rare cannabinoid. Thus, it logically follows that only the largest, most-established cannabinoid manufacturers should offer CBGV. If this cannabinoid is offered by a smaller company with little-to-no track history of producing other cannabinoid products, you have every right to look into their background in more detail.

CBGV products should always be accompanied by thorough lab reports covering cannabinoids, terpenes, and contaminants. The labs that produce this rare cannabinoid should be thoroughly certified and use state-of-the-art equipment.

The bottom line: CBGV is the future of cannabis

Overall, CBGV sales may never make up an incredibly large portion of the cannabis economy. By saying that CBGV is the future, we rather mean that it’s part of a new generation of cannabinoids that will one day dwarf the pharmacopeia that we have so-far put to use.

Like most cannabinoids aside from CBD and CBG, there remains a massive amount to learn about CBGV. Working hand in hand with regulators, the most successful CBGV brands will be those who carefully express the cannabinoid’s unique benefits while simultaneously determining where it fits into the larger cannabis puzzle.

CBGV FAQ

To better understand what CBGV is and does, let’s take a look at a few related questions:

1. What are the benefits of CBGV?

So far, scientists believe that CBGV might have anti-inflammatory benefits that could be useful in the context of acne. The same can be said of most cannabinoids, however, showing that there’s plenty of room for further research to shed light on the unique properties of CBGV.

2. What is CBGVa?

Cannabigerovarinic acid (CBGVa) is the precursor compound to CBGV. Before it takes on the oxidized or decarboxylated form of CBGV, this cannabinoid begins its life as the acidic CBGVa, an ultimately unstable compound that changes into CBGV under normal conditions like most cannabinoid precursor compounds.

3. Where can I find CBGV for sale?

Online sources of this cannabinoid remain highly limited, but it’s certainly possible to find CBGV for sale on the internet if you look hard enough. As a general rule, cannabinoid manufacturers that already have a wide-ranging retinue of products are the most likely to also carry CBGV. If you aren’t sure whether your favorite cannabinoid manufacturer offers CBGV or not, it can’t hurt to ask.

4. Are there any CBGV strains?

No, we aren’t aware of any strains of hemp or cannabis that are particularly high in CBGV. Strains rich in CBG are now commonplace, but just as there are no high-CBDV strains despite the popularity of CBD, there are not yet any high-CBGV strains regardless of how popular CBG may have recently become.

Sources

1. Burstein, S. (2015). Cannabidiol (CBD) and its analogs: a review of their effects on inflammation. Bioorganic & Medicinal Chemistry, 23(7), 1377–1385. https://doi.org/10.1016/j.bmc.2015.01.059

2. Oláh, A., Markovics, A., Szabó-Papp, J., Szabó, P. T., Stott, C., Zouboulis, C. C., & Bíró, T. (2016). Differential effectiveness of selected non-psychotropic phytocannabinoids on human sebocyte functions implicates their introduction in dry/seborrhoeic skin and acne treatment. Experimental Dermatology, 25(9), 701–707. https://doi.org/10.1111/exd.13042