Nebraska Hemp Industry Regulations

In May 2019, Nebraska legislature legalized the cultivation of hemp. LB657, passed by the Legislature and signed into law by Governor Pete Ricketts, adopted the Nebraska Hemp Farming Act and amended existing statutes to establish a state hemp program within the Nebraska Department of Agriculture (NDA). The legislation gave NDA the authority to regulate the growing, harvesting and processing of hemp for research purposes in Nebraska under a licensing agreement until further action is taken by the U.S. Department of Agriculture.

The Nebraska Department of Agriculture submitted the state hemp program to the United States Department of Agriculture in 2019 and it was approved in 2020.

The LB262 was approved by the Governor of Nebraska on 16 April, 2024. This bill, among other things, transfers regulatory authority over the cultivation of hemp in Nebraska to the United States Department of Agriculture (USDA) on January 1, 2025. Nebraska applicants may submit their hemp producer application to the USDA in fall 2024 so they can receive their license on January 1, 2025.

All processor-handler and broker licenses issued by the NDA will expire on 31 December, 2024, and will not be renewed. The NDA recommends consulting an attorney regarding the legality of those activities in 2025.

How to Start a Hemp Business in Nebraska?

Application Process:

1. Create an account on the USDA’s website.
2. Submit a complete USDA hemp application along with the required information (mentioned below) through the Hemp eManagement Platform or by mail.
3. The USDA will review the application for completeness and to determine if the applicant is eligible.
4. The USDA will notify the applicant by mail or email to inform them whether their application has been approved or denied. If the application has been approved, a producer license will be issued.

There is no application fee.

If the license application is denied, applicants may appeal the denial in accordance with Subpart D of Part 990 of the Domestic Hemp Production Program.

Required information to be provided with the completed application form is not limited to:

• Contact information of the applicant.
• If the applicant is a business entity:
  • Full name of the business.
  • Address of the principal business location.
  • Full name and title of the key participants on behalf of the entity.
  • Email address (if available).
  • Employer Identification Number.
• FBI criminal history report for an individual or, if the applicant is a business entity, all key participants, issued within 60 days of the application submission date.

Applicants must also certify that they will adhere to the USDA Domestic Hemp Production Plan.

Information that a USDA licensed hemp producer must report to the Farm Service Agency (FSA) is not limited to:

• Their hemp crop acreage.
• The specific location where hemp is produced.
• The acreage, greenhouse, building or site where hemp is produced.

Hemp producer licenses must be renewed every three years. The expiration date of a hemp producer license is on December 31 of the year that is at least three years after the license is issued. Applications for renewal must have the same information as required for the initial application. There is no renewal application fee.

Nebraska Hemp Industry Statistics

According to the Nebraska Department of Agriculture’s list of licensed hemp cultivators 176 applications were received and 10 approves for the 2019 growing season. In 2020, Nebraska issued licenses to 84 growers and there are 56 total licensees for 2021.

In 2022, the NDA Hemp Program saw the number of licensees decrease for a second consecutive year. Of the forty cultivator licensees, twenty-five planted hemp on about 280 acres.

In 2023, there were 30 licensed cultivators, 11 licensed processor-handlers and 4 licensed brokers. According to the Hemp Public Search Tool on USDA’s website, as of September 2024, there are 21 active hemp licensees in Nebraska.

Of the 766.5 licensed outdoor acres, 278.69 acres of hemp were planted, and 265.69 acres were harvested in 2023.

Nebraska Hemp Industry Infographics

Nebraska Cannabis Market