Utah Hemp Industry – Business Plan Templates

Key Takeaways:

Hemp Industry Regulations:
- 4-41 Hemp and Cannabidiol Act
Licenses, permits and registrations available:
- USDA Hemp Producer License
- Cannabinoid Product Processor License
- Hemp Retailer Permit
- Industrial Hemp Testing Laboratory Permit
- Industrial Hemp Producer Registration
Products that CANNOT be registered for sale:
- Products that use a cannabinoid as a food additive.
- Hemp products intended for use as a conventional food UNLESS they are in gummy form (shaped as a basic geometric shape) or a liquid suspension.
- Smokeable flowers.
- Hemp products with a combined concentration of total THC and any THC analog higher than 0.3% on a dry weight basis.
- Hemp products with a combined amount of total THC and any THC analog higher than 10% of the total cannabinoid content.
- Hemp products with a total of THC and any THC analog higher than 5 milligrams per serving and 150 milligrams per package.
In Utah, it is required that cannabinoid products are registered annually with the UDAF before they can be offered for sale in the state. As of August 2025, there were around 690 cannabinoid products registered for sale in Utah.
As of August 2025, there were 46 USDA licensed hemp growers and 960 stores with hemp retail permits from the UDAF.

Utah Hemp Legalization

Under House Bill 3001, passed by Utah lawmakers on December 3, 2018, legal possession of hemp extract, or CBD oil, containing less than 0.3% tetrahydrocannabinol (THC) no longer requires a hemp extract registration card.

In September 2020, the U.S. Department of Agriculture (USDA) announced the approval of Utah’s state hemp plan. Initially, the Utah Department of Agriculture and Food (UDAF) was responsible for regulating the processing, testing, and distribution of hemp-based products in the state.

However, as of May 2022 (H.B. 385 Hemp and CBD Amendments), the UDAF is no longer responsible for regulating and licensing hemp cultivators in Utah. All interested cultivators need to apply for and obtain a USDA license. A USDA license allows the growing and storage of own biomass only. Other activities such as receiving or storing biomass or concentrates requires a cannabinoid processor license issued by the UDAF.

The UDAF is still responsible for regulating the processing, testing and distribution of hemp-based products. Utah’s industrial hemp program is governed by the state law 4-41 Hemp and Cannabidiol Act:

Industrial hemp can only be cultivated with a USDA license.
Industrial hemp can only be processed with a cannabinoid processor license.
Cannabinoid products can only be sold by a retail establishment with a retail permit from the UDAF.
Cannabinoid products may only be sold in the state of Utah if they are registered with the UDAF.

Restrictions on Hemp Products that are Legal in Utah

The following hemp products CANNOT be registered for sale in Utah:

Products that use a cannabinoid as a food additive.
Hemp products intended for use as a conventional food UNLESS they are in gummy form (shaped as a basic geometric shape) or a liquid suspension.
Hemp flowers.
Hemp products with a combined concentration of total THC and any THC analog higher than 0.3% on a dry weight basis.
Hemp products with a combined amount of total THC and any THC analog higher than 10% of the total cannabinoid content.
Hemp products with a total of THC and any THC analog higher than 5 milligrams per serving and 150 milligrams per package.

Hemp and CBD Licenses, Registrations and Permits Available in Utah

USDA Hemp Producer

This license, issued by the USDA, allows to grow hemp.

Application Process:

Create an account on the USDA’s website.
Submit a complete USDA hemp application along with the required information (mentioned below) through the Hemp eManagement Platform or by mail.
The USDA will review the application for completeness and to determine if the applicant is eligible.
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.

Information required 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.

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.

CBD Product Processor

There are 4 tiers of processing licenses:

Tier 1:

Allows to receive, store, extract, transport and sell industrial hemp material as well as manufacture finished cannabinoid products.
License fee: $2,500

Tier 2:

Allows to receive raw plant material, extract it into raw concentrate and store, sell or transport the raw concentrate.
License fee: $2,000

Tier 3:

Allows to receive bulk cannabinoid products and store, package and label finished cannabinoid products.
License fee: $1,000

Tier 4:

Allows to receive, store, transport and sell raw concentrate and raw plant material as well as sell finished cannabinoid products to a retailer and carry out minimal processing for storage only.
License fee: $750

Instructions on how to apply for the license can be found on UDAF’s official website.

Eligibility criteria:

The applicant must be at least 18 years of age.
The applicant must not have been convicted of a drug-related felony or its equivalent.

Information required to be submitted with the application:

GPS coordinates, facility map and a physical description of the processing facility.
The street address of each building or site where industrial hemp or cannabinoid products will be processed, handled or stored.
Where industrial hemp material is planned to be sourced from.
Statement of the intended end use or disposal of each part of the industrial hemp plant and hemp material.
A nationwide criminal history report from the FBI for the applicant and any key participants, obtained no more than three months before the application.

A Tier 1 processor can receive raw concentrate with more than 0.3% THC concentration from another Tier 1 processor or a Tier 2 Processor.

Applicants for Tier 1, Tier 2 and Tier 3 licenses should register as a food establishment under Section 4-5-301.

Hemp Retailer

This permit allows to sell cannabinoid products.

Permit period: Valid for up to a one-year period. The registration must be renewed on or before December 31 of each year.

Permit fee: $50

The permit must be obtained for each individual store. Along with the application, the applicant should provide to the UDAF their name, the address of the location of the proposed retail establishment and written consent allowing a representative of the UDAF to enter any premises where the applicant will sell cannabinoid products.

Instructions on how to apply for the permit can be found on UDAF’s official website.

Testing Laboratory

This permit allows a laboratory to receive industrial hemp or industrial hemp products from licensed industrial hemp growers or processors and perform compliance testing on them.

Permit period: Valid until December 31 of the year of issue.

Permit fee: $2,500

Information required to be submitted with the application:

Proof of Drug Enforcement Administration registration.
Standard Operating Procedures for all tests that will be conducted and for retesting hemp material.
Quality Assurance Protocols.
Proof that the proposed laboratory has obtained and maintained the ISO 17025:2017 Accreditation.
Blueprint of the laboratory.
A completed criminal history report from the FBI, obtained no more than three months before the application.

Before the permit is issued, the UDAF will inspect the proposed premises.

Hemp Product Manufacturer

This registration allows to manufacture industrial hemp products which include fiber for textiles, rope, paper, hempcrete, or other building or fiber materials, hemp seed incapable of germination and processed to make it suitable for human consumption, and hemp seed pressed or otherwise processed into oil.

Registration period: Valid for up to a one-year period. The registration must be renewed on or before December 31 of each year.

An applicant for the registration must provide to the UDAF the applicant’s name, the address of the proposed site where industrial hemp products will be manufactured and written consent allowing a representative of the UDAF to enter the proposed site where industrial hemp products will be manufactured.

How to Register Hemp Products in Utah

In Utah, it is required that cannabinoid products are registered annually with the UDAF before they can be offered for sale in the state. The registration is valid for one calendar year. Industrial hemp products that do not contain any cannabinoids do not need to be registered.

Product registration fee: $325 (registration fee of $250 + service fee of $75)

Instructions on how to register a cannabinoid product can be found on the UDAF’s official website.

Along with the application, the following information has to be provided to the UDAF:

The name and address of the applicant.
The name and address of the person whose name will appear on the product’s label, if different from the applicant.
The name of the product.
The type and use of the product.
A complete copy of the product’s label.
The product’s National Drug Code number, if available.
A certificate of analysis from a third-party laboratory for the product.

Utah Hemp Industry Stats

According to VoteHemp, 1,566 acres of hemp were grown in 2020 in Utah. In 2021 the amount of acreage totaled 2,500 acres planted and 2,150 acres harvested with 128 farmers licensed to grow hemp. Around 3,3 million pounds of floral hemp produced was utilized with a value of $21.68 million. There were 97 licensed hemp processors. In 2022, the amount of approved acreage declined as a result of oversupply and market correction across the industry. The 2022 harvest from open field cultivation gave 23,000 pounds of floral hemp, 20,000 of which was utilized – valued at around $2 million – while harvest from greenhouse and indoor cultivation brought 3,000 pounds of floral hemp, 2,694 of which was utilized – valued at approximately $1.4 million. As a result, only 74 acres were planted and 63 acres of industrial floral hemp were harvested, according to the National Hemp Report. The negative trend continued in 2023 with 50 acres planted and 39 acres harvested.

In 2024, there was a slight rebound to 56 acres planted, all of which were successfully harvested.

As of August 2025, there were around 690 cannabinoid products registered for sale in Utah. There were 960 stores with hemp retail permits. According to the USDA search tool, as of August 2025, there were 46 licensed hemp producers in Utah.

Utah Hemp Industry Infographics

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