Minnesota authorized hemp cultivation in 2016. The Minnesota Department of Agriculture (MDA) regulates industrial hemp cultivation and processing. All individuals or businesses that wish to grow, process, research, or test hemp, must obtain an MDA Hemp Program license. Each grower license costs $150 plus $250 for each grow location and processor license costs $250.

On October 31, 2019, the USDA released the Interim Final Rule (7 CFR part 990), which formed the regulatory framework for all hemp cultivation nationwide. The Minnesota State Plan was approved in July 2020 and became effective January 1, 2021.

On January 15, 2021, the USDA released the Final Rule (86 FR 5596). The revised Minnesota State Plan, updated to incorporate the federal Final Rule for commercial hemp regulation was approved by USDA and went into effect on May 6, 2021.

According to a search of the MDA database, 237 growers and 150 processors were licensed in 2022 comparing to 348 and 247 correspondingly in 2021. There were 1,897 acres harvested in Minnesota in 2021. Minnesota came in third in the number of acres harvested in 2021, following Colorado and Montana. 52% acres were planted for CBD, 39% for grain, 6% for fiber and 3% for CBG.

A law passed by state lawmakers in May (Laws of Minnesota 2022, chap. 98) allows consumers age 21 and older to purchase edible products that contain THC derived from hemp beginning July 1, 2022. Products must contain no more than 5 milligrams of THC per serving, with a maximum of 50 mg of THC allowed per package.

Per Minnesota statute, effective Oct. 2, 2023, all establishments that sell hemp-derived cannabinoid products must register with the State of Minnesota before they sell any hemp-derived cannabinoid product.

In 2022, the amount of approved acreage declined as a result of oversupply and market correction across the industry and totaled 710 acres planted and 455 acres of industrial floral hemp harvested, according to the National Hemp Report. There were 142 grower licenses, 54 processor licenses and 94 grower/processor licenses issued in the state.

In 2023, 229 growers were licensed, and the number of outdoor acres planted increased to 887 acres.

Minnesota Hemp Industry Infographics

Minnesota Cannabis Market