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The MDA Hemp Program only covers hemp cultivation, processing, and marketing within the state of Minnesota. The United States Department of Agriculture (USDA) Domestic Hemp Production Program has federal oversight. Hemp is federally legal and interstate commerce is permitted. Please visit USDA's website for additional information.

The shipper should always carry a copy of the grower's license, a copy of the receiver's license, and the Fit for Commerce certificate or certificate of analysis from an accredited lab showing that the material was tested and is at or below the 0.3% Total THC threshold. 

Please contact the buyer and/or the receiving states' hemp regulatory program to find out specific rules or requirements that they might have. The shipper should always carry a copy of the grower's license, a copy of the receiver's license, and the Fit for Commerce certificate or certificate of analysis from an accredited lab showing that the material was tested and is below the 0.3% Total THC threshold. 

The Hemp Program does not provide grants nor do we facilitate granting opportunities. However, the MDA’s Ag Marketing Division does facilitate a variety of grants, which could be applied for and used by a license holder. Please visit the MDA’s Grant Opportunities page to learn more about this opportunity.

The Agriculture Utilization Research Institute (AURI) is a nonprofit created by the Minnesota state legislature to help develop new markets for Minnesota-grown agricultural products. They have resources and funding opportunities that are accessible to those who qualify for AURI assistance. Please visit AURI’s webpage to learn more.

Prices for hemp grain are widely fluctuating in the U.S. and in Minnesota specifically due to the infancy and constant development of the industry. According to the Alberta Agriculture and Forestry Department, the average hemp grain price in 2015 in Alberta was $0.74 per pound. Typical returns for hemp grain in the U.S. have been between $0.40-0.70 per pound for conventional, and $0.75-1.00 per pound for organic. Due to the volatile nature of the current U.S. hemp industry, growers are advised to secure a contract before they plant.

For high-CBD hemp, the market is changing very rapidly for a variety of factors. There is an exploding demand for CBD products and also an exponential growth in the number of hemp growers and processors each year, not just in Minnesota, but nationwide. Prices for high-CBD hemp flower in 2019 ranged between $3.00-$4.00 per pound of flower, per percent of CBD. For 10% CBD flower, this would equate to approximately $10,000- $60,000 per acre. Please refer to the Hemp Benchmarks website for up-to-date information regarding spot pricing for hemp.

The Alberta Agriculture and Forestry Department reported an average total production cost for hemp seed grown on dryland in 2015 at $409 per acre. With an average grain yield of 1,074 pounds per acre, that amounted to $0.38 per pound of hemp seed produced.

In Minnesota, hemp seed prices are widely variable based on the variety and the source. Imported seed has additional shipping and customs fees above and beyond domestically produced seed. Farmers should also consider the possibility of needing to buy or rent new harvesting equipment if they grow hemp. In 2016, hemp producers in Minnesota reported costs per acre between $970- $2,500 per acre. In 2017, initial reports indicate production costs of between $300- $600 per acre (does not include land cost).

When growing high-CBD hemp, the initial seed or plant cost is very high. At $1- 5 per seed, and 1500 plants per acre, the costs for seed alone is $1,500- $7,500 per acre. Costs for planting clones can be $10,000- $15,000 per acre. The labor costs are very high compared to conventional farming as well.

The market for hemp in the United States is growing and remains variable as the industry continues to develop. We encourage interested individuals to contact a hemp trade association to learn more about marketing opportunities, such as the U.S. Hemp Grower Association, the Hemp Industries Association, or the National Hemp Association. Minnesota has several associations that can help as well, including the Minnesota Cannabis Association (formerly MN Hemp Association) and the Minnesota Industrial Hemp Association.

Yes, certain hemp products may be exported to other countries, such as processed hemp foods, hemp grain, seed, fiber, etc. The requirements for export vary by the specific product and the importing country. Please contact the MDA’s Export Certification Program for more information.