Month: August 2023

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/