Hemp Laws - Production and Licensing

Hemp Laws - Production and Licensing

This document provides a general overview of the legal framework governing hemp production and licensing.

Federal Regulatory Landscape

Hemp, defined as Cannabis sativa L. and any part of that plant, including the seeds and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, with a delta-9 tetrahydrocannabinol (THC) concentration of not more than 0.3 percent on a dry weight basis, was legalized at the federal level under the 2018 Farm Bill.

The USDA oversees the national regulatory framework, including the requirement for states and Indian tribes to submit plans for USDA approval or elect to operate under a federal plan.

Key Federal Requirements

• Licensing: Producers must be licensed by the State, Tribe, or USDA.
• Testing: Hemp must be tested to ensure it does not exceed the 0.3% THC limit.
• Disposal: Procedures are required for the effective disposal of plants that exceed the acceptable THC level.

State-Specific Licensing Requirements

While the 2018 Farm Bill provided federal guidelines, state and tribal governments have the authority to establish their own regulations and licensing programs, provided they meet federal minimum requirements.

Interested parties should consult the specific State or Tribal plan approved by the USDA, which can often be found in the State Department of Agriculture or equivalent regulatory body.

State Program Component	Description	Responsible Agency
License Application	Details on the required forms and fees for obtaining a producer license.	Department of Agriculture
Background Checks	Requirements for criminal history checks on key personnel.	State Police/Law Enforcement
Sampling and Testing Protocols	Procedures for collecting and analyzing samples for THC concentration.	State Laboratory or Approved Third-Party Labs
Reporting Requirements	Mandated reporting of acreage, harvest dates, and disposal.

Production Regulations

Producers must comply with rigorous production standards to maintain compliance with both federal and state laws.

Cultivation Site Requirements

All land used for hemp production must be clearly defined and reported to the licensing authority. The exact legal boundaries and GPS coordinates of the growing area are typically required in the license application.

Handling and Processing

Hemp may only be handled or processed by individuals and entities with the appropriate license, as determined by state or tribal law.

Interstate Commerce

The 2018 Farm Bill explicitly prohibits states from interfering with the interstate transportation of legally produced hemp. However, individual state laws can still affect the end products or where hemp is processed.