Industrial Hemp Program

South Dakota Industrial Hemp Program

Any person or legal business entity in South Dakota shall obtain a license from the department to purchase, receive, or obtain industrial hemp, other than industrial hemp product for planting, storing, propagating, or processing industrial hemp. A growers license is not required for possession or distribution of hemp. Requirements for licensure and participation in the South Dakota Industrial Hemp plan can be found in the approved State Plan and the State Law and rules (ARSD 12:82) regarding industrial hemp.

Updates
The South Dakota Department of Agriculture and Natural Resources (DANR) has received final approval by the United States Department of Agriculture (USDA) for the South Dakota Industrial Hemp Plan.

Growers
Applicants must submit a non-refundable $50 application fee along with a completed Industrial Hemp Growers License application. State and federal background checks will be conducted by the South Dakota Division of Criminal Investigation and the Federal Bureau of Investigation for the applicant, key participants, and landowner. Once the background checks are cleared, the application can be accepted.

Upon notification of approval of a grower license, the applicant must remit to DANR a $500 license fee. License will be mailed via US Mail after payment is received.

Grower license is valid for 15 months from the date of issue.

Any change to the information on an approved license must be submitted to DANR within 10 business days using the Industrial Hemp Amendment Form.

Processors
Industrial Hemp Processors may submit an Industrial Hemp Processor Application at any time. Applicants must submit a non-refundable $50 application fee. State and federal background checks will be conducted by the South Dakota Division of Criminal Investigation and the Federal Bureau of Investigation for the applicant and key participants, and Landowner. Once the background checks are cleared and an application can be accepted.

Upon notification of approval of a processor license, the applicant must remit to DANR a $2000 license fee. License and memorandum of understanding will be mailed via US Mail after payment is received.

Processor licenses is valid for 15 months from the date of issue.

Any change to the information on an approved license must be submitted to DANR within 10 business days using the Industrial Hemp Amendment Form.

To mail in your application fee of $50 please mail a check to:

South Dakota Department of Agriculture and Natural Resources
Industrial Hemp Program
523 E. Capitol Ave.
Pierre, SD 57501

Inspection Fees

Planting Verification Inspection
Within 30 days of planting, each licensee shall file documentation with the department to identify the type and variety of industrial hemp seed planted with the corresponding lot. Upon receipt of this documentation a planting verification inspection will be scheduled. This inspection will verify the GPS coordinates of the growing sites and acreage or square feet planted. The licensee must be present at the inspection.

Grower Inspection Sample
Department of Public Safety shall conduct grower inspections and sampling of each lot not more than 30 days before the hemp is harvested. The licensee shall pay the department a grower inspection and sample fee of $250 per hemp lot inspected. No harvested lot of industrial hemp shall be comingled with another harvested lot of industrial hemp or other material. No industrial hemp may leave the dominion of control of the licensee until the licensee receives a laboratory result form DANR confirming that the lot complies with the law. The licensee must be present at the inspection.

Disposal or Remediation of Non-Compliant Plants
Industrial hemp plants exceeding the legal THC level must either be remediated or disposed under the oversight of DANR or DPS. Remediation is achieved by shredding the entire plant into a bio-mass material, then re-testing the shredded biomass material for THC compliance. Licensees must provide a plan for remediation or disposal of noncompliant industrial hemp. All disposal or remediation of non compliant industrial hemp shall comply with USDA and DANR guidelines. Disposal is required if post-remediated crop fails THC tests. These hemp lots must be chemically or mechanically destroyed and rendered non-retrievable, non-ingestible, and unfit to enter the stream of commerce using USDA approved disposal guidelines.

On-site disposal is also required for industrial hemp lots that have been destroyed due to pests, insects, weeds, disease, poor stand, or industrial hemp lots destroyed by natural disaster or weather events such as wind, hail, or flood. These hemp lots must be chemically or mechanically destroyed and rendered non-retrievable, non-ingestible, and unfit to enter the stream of commerce using USDA approved disposal guidelines. The disposal verification inspection will verify hemp lots being destroyed. The licensee must be present at the inspection.

Buying Industrial Hemp Seeds
Seed can be purchased and moved into South Dakota from any state or country; however, we urge caution in making seed purchases. We encourage bying seed from a reputable source and that the variety is known to have delta-9 THC levels below 0.3%. Please contact the DANR seed department for seed law information.

Buying Industrial Hemp Clones
Clones or seedlings may be brought into the state, however, you must possess a South Dakota Grower License to do so.

Selling Industrial Hemp Seeds
The Industrial Hemp program requires a seed permit for selling seeds. Contact DANR seed department to obtain a seed permit.

Industrial Hemp Information
Hemp includes varieties of Cannabis sativa that are intended for agricultural and industrial purposes. Industrial hemp is commercially grown in virtually every industrialized country in the world for the seed and fiber content, as well as byproducts. Industrial hemp fiber is used for textiles, rope, paper and building products. Hemp seed is used for food, feed and oil. Hemp oil is also the basis for pharmaceuticals, cosmetics, inks, lubrication, household detergents, stain removers, varnishes, resins, and paints. Industrial hemp may even prove significant in the biofuel industry.