California is slated to become the USA’s biggest hemp growing, consumption and production market. There are several advantages that the state of California enjoys when it comes to providing the ideal grown for the growth of hemp. California is the largest state in terms of population, third-largest in terms of area, and the biggest agricultural state with no frost or snow experienced in its prime agricultural growth areas. The other states like Oregon, Kentucky, and Colorado have been in the business of growing hemp for multiple years however California is tipped to take over all of these states, in terms of production as well as sales of the hemp in the coming years. In terms of production, it was estimated that 21,844 acres of hemp were grown in the state of California in 2019.
Understanding different aspects of the hemp industry and business in California
As it stands, CBD hemp is being grown and cultivated all over California however the industrial is just getting started to be grown in the state. There are several companies that are now entering the CBD hemp industry in California. One of the reasons behind the increased interest of these companies in the industry is that it has been legalized in the state and it also has less taxation as well as regulations in comparison to the CBD industry associated with medical cannabis. The licensed growers of medical cannabis only have the permission to grow one-fourth of the acre outdoors.
As far as the California hemp regulation goes it is legal for anyone to grow hemp in the state and in any of its 58 counties. However, one important thing to note here is that more than half of the California counties still have restrictions or temporary bans on the growth of hemp in their locations. The counties that have legalized the growth of hemp and promote the hemp industry have shown a clear advantage in terms of economic benefits resulting from the hemp. There are no special taxes that are levied or implemented on the growth of hemp in California.
The farmers can choose to grow any amount of hemp acres as they want on the land which is zoned and earmarked for agricultural purposes. For instance, the county of LA now provides for a 100-acre farm of hemp. The CDFA also is known as the California Department of food and agriculture is the agency of the state which is responsible for regulating hemp in California. The CDFA works and operates in tandem with the counties and their authorities for the regulations related to hemp agriculture and the registration process for its farming.
The farmers who grow hemp need to register with the commissioner of the local county agricultural department and these offices then share the registration fee with the CDFA. They also exchange information from the registration form. The fee for California hemp farming is approximately $900 each year.
The IHAB, also known as the industrial hemp advisory board is the voluntary board that advises the CDFA on the rules for hemp and the related regulations.