Crops & Industry

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Hemp

The Arkansas Hemp Program licenses state residents to grow, process, or handle industrial hemp in Arkansas. The program is authorized by the Arkansas Hemp Production Act of 2021 and the 2018 Farm Bill. The program does NOT issue licenses to companies selling, storing, or transporting finished hemp products.

  • Licensed Hemp Growers: Can legally produce hemp crops.
  • Licensed Hemp Processors: Can legally purchase hemp crop materials and convert it into publicly marketable hemp products such as seed oil or CBD oil.
  • Licensed Hemp Handlers: Can legally possess and manage hemp materials, e.g., seed cleaning, seed storing, lab testing, harvest drying/storing, etc.

Contact Us: [email protected] or call 501-219-6375.

Program and Industry Background

In 2019, Arkansas started issuing licenses for hemp production under the 2014 Farm Bill, ending over 80 years of prohibition in Arkansas. The Arkansas Hemp Research Pilot Program ended in 2021 with the 2018 Farm Bill and the Arkansas Hemp Production Act of 2021.

After USDA approval in December 2021, the Arkansas Department of Agriculture continued regulating hemp production under more commercialized rules. 2022 marked the first year of commercial hemp production in Arkansas, thus creating the Arkansas Hemp Program.

The hemp industry in Arkansas and the United States is still somewhat in its infancy, and there is still much to learn. Be cautious when entering this industry as there are many uncertainties and financial risks involved. Supply chains are still developing, hemp varieties are unpredictable, and many regulatory issues remain unsolved at the federal level.  Market options for fiber and grain/seed are extremely limited, and prices of floral material have drastically declined within the last few years.

The Department asks farmers/producers to really consider the financial risk before entering the industrial hemp industry.  “Don’t plant more than you can afford to lose!”

Resources

State Hemp Resources

Federal Hemp Resources

Additional Resources