Industrial Hemp Program


On May 14, 2018 Senate Bill 1098 was signed by Governor Ducey that will authorize the Arizona Department of Agriculture to license qualified applicants to grow and process industrial hemp starting in the Summer of 2019.


The time between May 2018 and the Summer of 2019 will allow the Department to:

  •         Establish Rules
  •         Create an industrial hemp licensing program
  •         Appoint membership to the Industrial Hemp Advisory Council
  •         Develop an application and review process
  •         Develop a fee schedule


EFFECTS OF THE 2018 FARM BILL: On December 20, 2018 the 2018 Federal Farm Bill was signed into law and legalized industrial hemp ("hemp") by excluding it if from the definition of marijuana. It also expanded the definition to include seeds, all derivatives, extracts, cannabinoids (including Cannabidiol (CBD)), isomers, acids, salts, and salts of isomers. There are also several other changes made that will open up the commercialization of hemp, without the limitations of an industrial hemp agricultural pilot program. However, there still remains the need for legitimate research to further the development of this crop in Arizona.

What does this mean for Arizona?

  • The Arizona Department of Agriculture will still retain primary oversight of a licensing and compliance program
  • Growers, harvesters, transporters and processors are still required to be licensed by the Department
  • Allows for the commercialization of industrial hemp
  • Allows for the interstate shipment of industrial hemp under the provisions of a licensing program
  • Crops are eligible for USDA-FSA crop insurance
  • Future USDA grant opportunities
  • Plus More (Click Here to be Directed to the 2018 Farm Bill Website)

Why is the effective date referred to as "Summer of 2019"?

In the legislation passed in 2018, the effective date was designated as August of 2019. In the current legislative session there is a Senate Bill to move that effective date to May 31, 2019. So, if this new bill is passed through the legislature and is signed by the Governor, then the new date will be May 31st. Otherwise, it will remain August 4th.

More information can be found here: 

Things to Know About the Arizona Industrial Hemp Agricultural Pilot Program (IHAPP)


Help Us Plan

The AZDA and the Industrial Hemp Program Rules Committee would like to hear about your knowledge and interest is in the Industrial Hemp Agricultural Pilot Program.

Please complete this voluntary questionnaire to help us plan and make preperations to meet the demands of our future customers. 

Instructions: Click on the document, HempPrgmQues.pdf to open the file. Save the file to your local computer. Open the file from your computer and complete the questionnaire. Once finished, save the file and email a copy to [email protected]. This questionnaire will also be available during Committee meetings and outreach events.

HempPrgmQues.pdf <-------


Industrial Hemp Program Rules Committee

The Department has appointed a seven member advisory committee tasked in providing input on the development of rules to license and regulate Industrial Hemp Growers, Harvesters, Transporters and Processors.

The Committee's primary responsibilities include:

  • Review draft administrative rule language as provided by Department staff.
  • Provide input and comments on the draft administrative rule language.
  • Coordinate with the Department staff on recommendations for program fees and terms of applicant eligibility.
  • Upon the completion of the development of draft administrative rules, and other feedback items, provide a summary of comments.

For more information regarding the Industrial Hemp Program Rules Committee and upcoming events, please click here: Industrial Hemp Program Rules Committee

UPDATE: You must complete a speaker card and submit to Comittee staff, prior to the start of the meeting.


DATE: February 22, 2019 @ 10:00AM

LOCATION: Arizona Department of Transportation

Human Resources Development Center

Grand Canyon Room

1130 N. 22nd. Ave.

Phoenix, AZ 85009




If you have questions regarding the Industrial Hemp Program please contact Brian McGrew, at 602-542-3228 or [email protected](link sends e-mail)

Information, and the full context of the bill, can be found on the Arizona State Legislature’s website at:

Arizona Revised Statutes for the Industrial Hemp Program will be under Title 3. Agriculture, Ch. 2, Art. 4.1

The Arizona Department of Agriculture will not be issuing program licenses until the Summer of 2019.

Check back to this page for periodic updates and information.

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