North Dakota has lowered fees on hemp farmers and lifted a ban on flower and CBD production.
The state ranked seventh in hemp acreage in 2018, even though the law previously limited hemp production to fiber and seed products.
Gov. Doug Burgum signed the measure into law earlier this month.
The changes take effect for the 2019 growing season, ahead of expected guidelines from the U.S. Department of Agriculture.
North Dakota has allowed hemp production since 2016. Last year, it reported 2,778 acres, according to hemp advocacy group Vote Hemp.
The new law also dramatically lowers fees farmers must pay. The fees are now:
- Capped at $350, down from a $150 application fee plus a $25-per-acre licensing fee, with no upper cap.
- $350 for hemp processors, who are free to process flower for cannabinoid extraction. North Dakota did not previously license hemp processors.