Hemp Legalization in North Dakota

1999. North Dakota Legislature passed HB 1428 which legalized and reclassified hemp with less than 0.3% THC content as a commercial crop. The NDDA (North Dakota Department of Agriculture) began licensing hemp producers in 2007 but correct permits from the U.S. DEA (Drug Enforcement Administration) could not be obtained.

2015. After the 2014 Farm Bill was passed, HB 1436 was signed into law and made changes to the existing law of North Dakota, including the removal of the DEA license requirement for hemp growers.

2016. The NDDA created the Industrial Hemp Pilot Program to research the cultivation and marketing of industrial hemp in North Dakota.

2019. Two house bills were passed: HB 1349 and HB 1113. HB 1349 was signed into law in March 2019 and it legalized the growth, production and transportation of industrial hemp and hemp-derived CBD. It also created a regulatory framework for licensure of hemp growers and processors, supervised by the North Dakota Department of Agriculture. The bill defines hemp as any part of the cannabis plant with less than 0.3% THC. HB 1113 was passed in April 2019 and it removed hemp and hemp-derived CBD from North Dakota’s list of controlled substances.

2021. HB 1045 was signed into law on April 26, 2021. It redefined THC to include, in addition to delta-9, all of its isomers which includes delta-8 and delta-10 THC. It prohibited the creation or sale of hemp products that have undergone chemical isomerization.

2023. Senate Bill 2096 was signed into law on April 24, 2023. It excluded all products containing delta-8 THC or other chemically derived cannabinoids from the definition of “hemp”, consequently classifying them as controlled substances.

North Dakota has a USDA approved State Hemp Plan.

Hemp Licenses Available in North Dakota

There are two types of hemp licenses in North Dakota: hemp grower and hemp processor. Retailers in North Dakota are not required to have a license to sell hemp or hemp-derived CBD products. Licenses are issued by the NDDA.

Application Process:

1. Submit a completed application, along with the required documents and a non-refundable money order or check for a background check. These forms must be mailed to the address stated on the NDDA website. Alternatively, applicants can submit their application online. The NDDA has a guide for applying online.
2. The NDDA will review the complete application to ensure it complies with all program requirements.
3. Once the review is complete, the applicant will be notified of the outcome.
4. If the applicant is approved, the license will be issued.

Each application and renewal application for Hemp Grower or Hemp Processor licenses must include:

• The name, physical address and contact information of the applicant.
• The legal description of all fields or buildings where they plan to grow or process hemp, along with GPS coordinates for those locations.
• If the applicant is a business entity, the full name of the business, address of the principal business location and full name and title of the key participants.
• Documents for a criminal history record check. Individuals who have been convicted of a felony relating to controlled substances in the previous 10-year period will not be approved for a hemp license.
• If the applicant is an entity, only a “key” individual selected by the business will submit documents for a criminal history record check.
• 2 sets of fingerprints.
• Required license fee.
• A non-refundable payment for a background check.

Licensed growers must submit their hemp crop acreage to the local Farm Service Agency office.

The cost of renewal is the same as the initial license fee.

What Hemp Products are Allowed in North Dakota

• Hemp processes through retting or other processing such that it is a suitable fiber for textiles, rope, paper, hempcrete or other building or fiber materials.
• Cured flower that has not been treated with any extracted cannabinoids.
• Hemp seed processed such that it is incapable of germination and processed such that is suitable for human consumption.
• CBD and CBG products that are:
  • Broad Spectrum or,
  • Full Spectrum or,
  • Isolate and,
  • Have a total THC level not to exceed and amount determined by the Ag Commissioner.

Prohibited hemp products include vapes and vape cartridges, any product containing chemically derived cannabinoids (Delta-8 THC, THC-O Acetate, THC-O, HHC, THCP), dietary supplements and products with medical claims.

North Dakota Hemp Industry Stats

According to the 2020 U.S. Hemp Crop Report from Vote Hemp, in 2020, there were 81 licensed farmers and nearly 5,000 licensed acres for growing hemp in North Dakota, compared 3,700 in 2019, 2,778 in 2018 and 3,020 in 2017. In 2021, the amount of approved acreage declined as a result of oversupply and market correction across the industry.

As of 2023, 8 hemp processors have been licensed, including 6 for CBD, 1 for fiber, 1 for grain and seed and 1 for other hemp flower.

In 2023, 740 acres of industrial hemp was planted, and 730 acres were harvested in the open area according to the National Hemp Report.

North Dakota Hemp Industry Infographics

Hemp (Biomass, Fiber, Grain) Cultivation and Processing/ Manufacturing Business Plan Sample, North Dakota

Cannabis business plan templates are available at cannabusinessplans.com.

North Dakota Cannabis Market