Key Takeaways

• Regulations: The WSDA Hemp Program currently operates under Washington State’s approved USDA Hemp Plan.
• Licensing:
  • You can apply for a hemp producer license using an online application at https://fortress.wa.gov/agr/apps/Hemp. Annual License Fee: $1200. All applications must be accompanied by a criminal history report completed within sixty days of the application date.
  • Hemp processors can register with the WSDA, and receive a registration certificate.
• Products legal:
  • FDA and WSDA do not permit CBD to be added to food and beverages or sold as a dietary supplement.
  • CBD products like tinctures, lotions, and topicals are allowed.
  • WSDA licensed food processors can currently use other hemp products in food, such as hulled hemp seeds, hemp seed protein power and hemp seed oil, provided they comply with all other requirements.
• Reporting: Licensed producers must report their hemp crop acreage to the FSA.

Washington Hemp Legalization

On April 26, 2019, the Senate Bill 5276 was signed into law by Gov. Jay Inslee, “authorizing hemp production in conformance with the agriculture improvement act of 2018 (2018 Farm Bill).” On February 20, 2020, the USDA issued its approval of Washington’s Hemp Plan. The Washington State Department of Agriculture (“WSDA”) Hemp Program only licenses Hemp Farmer’s.

A new state law allows hemp production, consistent with the federal Farm Bill. It also authorizes the WSDA to regulate the processing of hemp for food products that are allowable under federal law in the same manner as it regulates other food processing. If the FDA approves food ingredient uses for hemp extracts like CBD, those uses would be allowed under state law.

The federal Food and Drug Administration (FDA) and WSDA do not permit CBD to be added to food and beverages or sold as a dietary supplement. The FDA is the overall authority for CBD products derived from Hemp. CBD products like tinctures, lotions, and topicals are allowed.

While CBD is not allowed as a food ingredient, WSDA licensed food processors can currently use other hemp products in food, such as hulled hemp seeds, hemp seed protein power and hemp seed oil, provided they comply with all other requirements.

Washington Hemp Industry Stats

In 2019 the state issued approximately 150 hemp-related licenses. The Capital Press reported that Washington farmers have agreed to plant more than 6,000 acres of hemp in 2019 comparing to 140 acres in 2018 and 175 acres in 2017.

In 2021-2023, 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 Hemp Reports show 360 acres were planted in Washington in 2021, 375 acres in 2022 and 335 acres in 2023. The WSDA has issued 33 hemp producer licenses for the 2023 growing season.

According to the National Hemp Report, 1,850 acres of hemp were planted in 2024 with 1,300 acres of hemp harvested, nearly four times more than the previous growing season. Almost 100% of the harvest was floral hemp which is a considerable increase from the 60% share that floral hemp accounted for in the 2023 hemp harvest.

Washington Hemp Industry Infographics

Hemp CBD Products Manufacturing Business Plan Sample, Washington

Cannabis business plan templates are available at cannabusinessplans.com.

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