Vermont legalized hemp with the passage of S.157 in 2013, marking the state as an early adopter of hemp cultivation for industrial and commercial use. This legislative move aligned with broader national trends culminating in the federal 2018 Farm Bill, which federally legalized hemp by removing it from the list of controlled substances. This bill defined hemp as cannabis containing less than 0.3% THC, thereby distinguishing it from marijuana. The Vermont Agency of Agriculture, Food and Markets (AAFM) is the primary regulatory body overseeing the state’s hemp program.

Types of Licenses

The AAFM offers two primary types of licenses within the hemp industry:

• Hemp Grower License: This license permits the cultivation of industrial hemp. Growers must comply with stringent THC testing protocols to ensure their crops do not exceed the 0.3% THC threshold. The licensing fees are tiered based on the size of the cultivation area.
• Hemp Processor License: This license allows for the processing of hemp into various products, including fibers, seeds, and extracts. Processors must adhere to state and federal regulations regarding THC levels and product safety standards.

Costs of Acquisition

• Hemp Grower License:

• • Application Fee: $100 (non-refundable)
  • Annual Licensing Fees: Range from $25 to $1,500, depending on the size of the cultivation area.

• Hemp Processor License:

• • Application Fee: $100 (non-refundable)
  • Annual Licensing Fees: Range from $25 to $1,500, based on the scale of the processing operation.

Application Process

The application process for obtaining a hemp business license in Vermont involves several key steps:

• Pre-Application Preparation:

• • Research Requirements: Understand all relevant state and federal regulations pertaining to hemp cultivation and processing.
  • Secure Location: Ensure the proposed site complies with local zoning and land use regulations.
  • Develop Business Plan: Prepare necessary documentation, including security plans, operational procedures, and financial plans.

• Submit Application:
  • Complete Forms: Fill out the appropriate application forms available on the AAFM website.
  • Pay Fees: Submit the non-refundable application fee.
  • Provide Documentation: Include detailed site plans, proof of legal access to the cultivation or processing site, and any other required documentation.

• Application Review:
  • AAFM Review: The AAFM reviews applications to ensure compliance with state and federal laws.
  • Background Checks: Conducted on all applicants and key personnel to ensure eligibility.

• Inspection:
  • Site Inspection: The AAFM conducts on-site inspections to verify compliance with regulatory standards and ensure proper implementation of security measures and operational protocols.

• Licensing:
  • Issuance: Upon successful review and inspection, the AAFM issues the license, allowing the business to commence operations.

Restrictions and Compliance

Hemp businesses in Vermont must adhere to various restrictions and compliance requirements:

• THC Testing: All hemp and hemp products must be tested to ensure THC levels do not exceed 0.3% on a dry weight basis. This testing must be conducted by an AAFM-approved laboratory.
• Record Keeping: Licensees must maintain detailed records of planting, harvesting, and processing activities, which must be made available to the AAFM upon request.
• Reporting Requirements: Regular reports detailing cultivation and production activities must be submitted to the AAFM to ensure ongoing compliance.
• Zoning and Land Use: Cultivation and processing sites must comply with local zoning regulations, including restrictions on proximity to schools, residential areas, and other sensitive locations.