Iowa Hemp Industry – Business Plan Templates

Iowa Hemp Industry Legalization

Iowa Senate File 599, known as the hemp bill, passed through the Iowa Senate and Iowa House of Representatives during the 2019 Legislative Session. Gov. Reynolds signed the bill into law on May 13, 2019. The bill enables an individual farmer with a license from the Iowa Department of Agriculture (IDALS) and Land Stewardship to grow up to 40 acres of hemp in the state.

In March 2020, the Iowa Department of Agriculture and Land Stewardship’s hemp production program was approved by the USDA.

The law legalizes the production (up to 320 acres of hemp for an individual farmer), processing and marketing of hemp with THC levels of 0.3 percent or less. It does not legalize the recreational use of marijuana, smokable hemp, nor the use and sale of hemp and hemp derivatives for animals. Plants with THC levels above 0.3 percent are still considered controlled substances in the state of Iowa and must be destroyed. Hemp products intended for inhalation are prohibited, regardless of the amount of THC isomers/analogs/derivatives in the product.

Farmers must have a license from the Iowa Department of Agriculture and Land Stewardship to grow hemp. License application fees are $500 (up to 5 acres)-$750 (up to 10)-$1,000 (up to 320) + $5 per acre. IDALS also charges a base fee of $500 to inspect and test pre-harvest.

On March 3, 2021, the Department of Inspections and Appeals (DIA) administrative rules take effect, legalizing the processing, manufacture and retail sale of hemp products for human consumption.

Iowa Hemp Industry Stats

In 2020, the state licensed 86 producers to grow about 733 acres of hemp, of which 680 acres were planted. In 2021 and 2022, the amount of registered acreage significantly declined as a result of oversupply and market correction across the industry, with 160 and 115 acres planted in Iowa, respectively, according to the National Hemp Report.

Iowa Hemp Industry Infographics

Hemp Cultivation and Nursery Business Plan Template Sample, Iowa

Shop

'70% ready to go' business plan templates

Our hemp/CBD financial models and business plan templates will help you estimate how much it costs to start and operate your own hemp/CBD business, to build all revenue and cost line-items monthly over a flexible seven year period, and then summarize the monthly results into quarters and years for an easy view into the various time periods. We also offer investor pitch deck templates.