New Mexico lawmakers authorized hemp production in 2017. In spring 2018, the Supreme Court overturned Gov. Susana Martinez veto and made New Mexico the 38th state to allow hemp production under the terms of the 2014 Farm Bill. New Mexico Department of Agriculture (NMDA) regulates industrial hemp cultivation.

In 2019, House Bill 581 Hemp Manufacturing Act was signed into law to grant NMDA and the New Mexico Environment Department the regulatory authority over manufacturers, processors, labs, researches and plant breeders. As of January 1, 2022, New Mexico is operating under a USDA-approved state plan administered by NMDA.

Hemp producers will have to pay:

• Annual production license: $800 per location.
• Continuous production license: $900 per location.
• Annual inspection fees for continuous and annual licenses per location:
  • Outdoor production: $6.00 per acre; minimum $6.00.
  • Indoor production: $0.75 per 1,000 square feet; minimum $5.00.
  • Additional varietal fee: $25 per variety in excess of one variety.

If third party testing reveals THC levels >0.3% then the crop must be destroyed.

According to NMDA, 408 hemp cultivation licenses were issued and over 7,000 acres were planted in 2019. There were about 1,446 acres of hemp grown in the state in 2020 based on VoteHemp data.

In 2021 and 2022, the amount of registered outdoor acreage and indoor square feet significantly declined as a result of oversupply and market correction across the industry. The National Cannabis Report shows about 260 acres were planted in New Mexico in 2021 and 26 acres in 2022.

There are currently about 150 CBD-related stores and 10 lounges operating in New Mexico.

New Mexico Hemp Industry Infographics

New Mexico Cannabis Market