Colorado authorized hemp cultivation in 2012. The plant was growing in experimental plots by spring of 2013 and the first registrant began to farm in 2014. In 2014, the first operational year of Colorado’s hemp program, 1,811 acres were registered for hemp cultivation.

On June 18th, 2020, Colorado submitted the Colorado State Hemp Management Plan and appendix to the USDA. In July 2021, Colorado Department of Agriculture’s hemp plan was approved by the U.S. Department of Agriculture’s (USDA).

The Colorado Department of Agriculture (CDA) regulates industrial hemp cultivation. The state requires separate licenses for cultivation and processing hemp. Each license costs $500 per registration plus $5 per outdoor acres and $3 per 1,000 sq. ft. for indoor.

According to a search of the Colorado Department of Agriculture (CDA) database, the number of acres registered with CDA for hemp cultivation grew exponentially in the following years, however, in 2020 and 2021 the amount of registered outdoor acreage and indoor square feet significantly declined as a result of oversupply and market correction across the industry.

The state issued 564 hemp growers licenses to plant 19,700 acres for the 2021 season compared to 1,254 growers and 36,225 acres in 2020. In 2022, there were 188 hemp registrants and Colorado saw a 75% reduction in acreage to 4,727 acres licensed. 10,100 and 1,600 acres of hemp were planted in 2021 and 2022 respectively.

In 2023, there were 132 active registrations for Industrial Hemp Cultivation Program with around 1,200 licensed acres and 772 planted. The percentage of hemp fiber acreage increased to 30% from 10% a year earlier, though 70% of Colorado’s hemp acreage remains devoted to the cultivation for CBD and other cannabinoids.

Colorado Hemp Industry Infographics

Hemp CBD Manufacturing Business Plan Sample, Colorado

Cannabis business plan templates are available at cannabusinessplans.com.

Colorado Cannabis Market