In 2020, South Dakota approved its first hemp law – House Bill 1008, contained in Chapter 38.35 of the South Dakota Codified Laws. That same year, the South Dakota Department of Agriculture and Natural Resources (DANR) received final approval by the United States Department of Agriculture (USDA) for the South Dakota Industrial Hemp Plan.

Any person or legal business entity in South Dakota shall obtain a license from the department to purchase, receive, or obtain industrial hemp, other than industrial hemp product for planting, storing, propagating, or processing industrial hemp. A grower’s license is not required for possession or distribution of hemp seed. Grower and processor licenses are valid for 15 months from the date of issue.

Hemp products containing a maximum THC concentration of 0.3% are legal in the state. South Dakota residents may sell and use hemp products such as topicals and edibles, however, the sale or use of smokable hemp flowers is illegal in the state.

The number of hemp producers in the state doubled from 20 in 2021 to 40 in 2022. South Dakota reported 2,540 acres harvested in 2022, up from 1,674 in 2021, according to DANR. In 2022, South Dakota was second in terms of acres of hemp planted and first in hemp harvested.

The South Dakota Industrial Hemp Association reported a 42 percent increase in acres of hemp planted in 2023. This year, DANR issued 45 industrial hemp licenses to farmers. License holders have planted about 3,000 acres, according to SDIHA.

South Dakota Hemp Industry Infographics

Hemp Fiber Production and Manufacturing Business Plan Template Sample, South Dakota

Cannabis business plan templates are available at cannabusinessplans.com.

South Dakota Cannabis Market