Many New Jerseyans may have found themselves lost in the weeds these past few months as our world adjusted to life during a pandemic like no other before it. As our “new normal” emerges, businesses in New Jersey and elsewhere seek new opportunities. In this month’s edition, we present a primer to explain New Jersey’s new Hemp Program. Through it, hemp growers, producers and retailers alike may capitalize on new hemp-based business opportunities in New Jersey. With annual revenues expected to exceed $11 billion by 2024, the hemp market looks ripe for commercialization in New Jersey, thanks to the “Farm Bill” act of 2018.
In 2018, the federal government passed the Agriculture Improvement Act of 2018, better known as the “Farm Bill.” This Act legalized hemp by removing it, and its derivatives (CBD), from the legal definition of “marijuana” under the Controlled Substances Act. It further provided a framework for the cultivation of hemp in the United States. Although the United States Department of Agriculture (USDA) is the regulatory authority at the federal level, states are given the option to regulate within their borders by submitting a plan for approval to the USDA.
The New Jersey Department of Agriculture (NJDA) enacted its Hemp Farming Act in August of 2019 in compliance with the Farm Bill. By Dec. 27, 2019, New Jersey became one of the first states to receive the green light from the USDA to move forward with its hemp program. The goal of the program, codified at N.J.A.C. 2:25-1.1 et al, is to provide licenses for growing, processing, and handling hemp legally within New Jersey. Unlike the Request for Applications process in New Jersey, where applicants may apply to obtain a license to operate an alternative treatment center (“RFA Process”), the process to obtain a license under the hemp program is structured and easy to follow. However, in both processes, each applicant is required to undergo a background check, secure site control, and demonstrate prior history or experience in hemp cultivation.