Hemp Legalization in Indiana

On March 26, 2014, Governor Mike Pence signed the “Industrial Hemp” bill into law, IC 15-15-13, authorizing the Office of Indiana State Chemist & Seed Commissioner to obtain the necessary permits and authorizations for and production and regulation of industrial hemp in Indiana.

Senate Bill 516 was signed into law as presented to Indiana Governor Eric Holcomb on May 2, 2019. The bill enables parties with a license from the State Seed Commissioner to grow and handle industrial hemp in the state. It also establishes the Indiana Hemp Advisory Committee, which will advise the Office of the State Seed Commissioner on Indiana’s hemp laws.

In October 2020, the U.S. Department of Agriculture approved the Indiana State Hemp Plan for commercially growing and processing hemp.

Hemp Licenses Available in Indiana

In Indiana, hemp processing and production are regulated through the Office of the Indiana State Chemist (OISC). All growers and handlers must obtain a license. Those engaged in the production of agricultural hemp seed must also have an agricultural hemp seed production license.

“Grower” means a person who conducts any hemp growing activity. This includes Agricultural Hemp Seed Production grower activity, clone production, whether in a field or a greenhouse or other enclosed facility.

“Handler” means a person who receives hemp for any purpose and who is not the grower of the hemp but who is providing a service to or transacting with another person. This includes processing, drying and transporting for others, etc.

A background check is required for any key participant listed on the license. The background check must be dated within 60 days of the application per USDA rules.

Application requirements include the following:

1. An applicant for a license may be not less than 18 years old.
2. An applicant shall provide the state seed commissioner with the following information on hemp production sites, on an official form provided by the state seed commissioner: legal description of the land; geospatial location coordinates in decimal format; and the county. These records must be retained by the applicant and by the state seed commissioner for at least 3 years.
3. An applicant must provide a valid and accurate state or federal government issued identification, such as a state driver’s license, a passport, or a government identification card.
4. Not more than 60 days before submitting an application for a hemp license, the applicant must apply for a background check through the Federal Bureau of Investigation’s Identity History Summary. All background checks must be paid by the applicant to the issuing agency.
   An applicant must successfully pass a background check, including a review of 10 years from the date of application that the applicant does not have a conviction for drug related felony or drug related misdemeanor. A person with a state or federal felony relating to a controlled substance is ineligible to participate in the Indiana State Hemp Program plan for 10 years from the date of the conviction. However, an exception applies to a person who was lawfully growing hemp under the 2014 Farm Bill before December 20, 2018, and whose conviction occurred before that date.
5. An applicant must pay a nonrefundable application fee of not more than one thousand dollars ($1,000) made to OISC at the time the application is made.
6. After December 31, 2022, an applicant must declare and attest to a United States Drug Enforcement Administration registered laboratory to conduct analytical testing for total THC. An applicant must present as part of the application a crop testing plan that includes regular monitoring by the grower or receiving handler of the crop during growth and a plan to take the crop down if the crop trends in exceedance of the acceptable hemp THC level.
7. Each applicant must agree to provide an annual harvest and disposal report to be provided on an official form of the state seed commissioner.

A license expires on December 31, in the year for which the license is issued, unless revoked for cause.

Indiana Hemp Industry Stats

The Vote Hemp reported that 5 acres of hemp were grown in Indiana in 2018 and in 2017.

In 2019, the Office of the Indiana State Chemist granted 140 licenses to grow about 5,300 acres of industrial hemp in the state with 35% focused on growing hemp flower for CBD production.

For 2020, 192 licenses have been approved for farmers to grow hemp in Indiana that total 6,000 acres.

In the 2021 season OISC issued 79 licenses, including 44 growers, 21 handlers and 14 grower/handlers. 1,945 acres of outdoor sites and 181,688 square feet of indoor sites were licensed.

In the 2022 season OISC issued 87 licenses, including 38 growers, 30 handlers and 19 grower/handlers. 3,045 acres of outdoor sites and 117,660 square feet of indoor sites were licensed, with 646 actual acres and 20,133 actual square feet were planted. Hemp fiber accounted for about 39% of the total licensed outdoor area, hemp seed oil for 33%, and hemp edible grain for 20%, while hemp flower accounted for nearly 50% of the total licensed indoor area.

Indiana Hemp Industry Infographics