Arizona authorized the cultivation of industrial hemp for experimental purposes on May 14, 2018 when Gov. Doug Ducey signed SB 1098. The Arizona Department of Agriculture’s (AZDA) regulates industrial hemp cultivation.

There are five types of licenses:

• Grower – for qualified applicants interested in the growth and propagation of industrial hemp (license fees $1,000).
• Nursery – for qualified applicants interested in the growth of hemp seedlings/clones (license fees $650).
• Harvester – for qualified applicants interested in providing harvesting services to a licensed industrial hemp grower (license fees $100).
• Transporter – for qualified applicants interested in providing shipping and transport services of harvested industrial hemp from a licensed grower to a licensed processor (license fees $100).
• Processor – for qualified applicants interested in the processing of harvested industrial hemp into hemp products or hemp seed (license fees $2,000).

The Industrial Hemp Program has received more than 450 license applications and Arizona farmers planted approximately 5,430 acres of hemp in 2019. In 2020, the state issued 157 hemp growers licenses and 60 processors licenses while hemp acreage decreased to 1,130 acres.

In 2021, the state issued 196 licenses, including 88 grower licenses, 24 nursery licenses, 13 harvester licenses, 29 transporter licenses and 42 processor licenses. The National Hemp Report shows that 790 acres were planted in 2021.

Administrative Rules for regulation industrial hemp were updated on September 17, 2021. On December 28, 2021, USDA approved the State Hemp Plan for Arizona that went into effect starting January 1, 2022. Starting in 2022, Arizona hemp growers can commercially produce hemp microgreens and hemp greens that comply with state and federal regulations.

In 2022, AZDA issued 92 licenses, including 38 grower licenses, 12 nursery licenses, 5 harvester licenses, 14 transporter licenses and 23 processor licenses.

As of February 2024, AZDA has issued 92 licenses, including 18 grower licenses, 6 nursery licenses, 3 harvester licenses, 9 transporter licenses and 12 processor licenses.

Arizona Hemp Industry Infographics

Arizona Cannabis Market