Cannabis Business in Nebraska

Cannabis Business in Nebraska

While marijuana is not legal in Nebraska for medical or recreational purposes, it has been decriminalized for possession of small amounts. If you are caught with less than an ounce of cannabis, it is considered an infraction, and you will be subject to a fine and a drug education course. If caught with cannabis a second time, it will be treated as a misdemeanor or felony with associated fines and jail time.

Several attempts have been made to legalize medical marijuana in Nebraska, but none have succeeded. Currently, there are no medical marijuana or recreational marijuana businesses in Nebraska.

Hemp-Derived Products

Hemp-derived products are legal in Nebraska. However, the state is transitioning its Hemp Program from the Nebraska Department of Agriculture (NDA) to a United States Department of Agriculture (USDA) program. As a result, all processor-handler and broker licenses for hemp issued by the NDA will expire at the end of 2024 and will not be renewed. Producers interested in growing hemp in Nebraska can apply for a license from the USDA in the fall of 2024 to receive a license in 2025. The NDA advises anyone interested in processing hemp to consult with an attorney about the legality of these activities in 2025.

CBD oil is legal in Nebraska if it is derived from hemp and contains less than 0.3% THC. Anyone in Nebraska can legally possess hemp-derived CBD products. While the state licenses the cultivation and processing of hemp, municipalities can decide where hemp farms and processing facilities can be located.

If interested in a cannabis business for sale, consider a hemp-derived business as there are many that are currently licensed in Nebraska. You can buy and sell hemp products, such as smokable hemp, as long as the sale takes place on private property. You can also ship hemp across state lines.

Hemp Business Licenses

Those looking to take part in the hemp industry in Nebraska can apply for two different licenses from the NDA:

• Cultivator License: This license is needed to grow any amount of hemp in the state. It also allows the license holder to sell hemp plants and propagules.
• Processor-Handler License: This license is needed to process hemp. There are several activities that fall under processing and handling hemp. Examples include extracting cannabinoids and handling hemp plants.

Below is a list of activities that require a license from the NDA and those that do not. Keep in mind that this list is not comprehensive, and you should consult with an attorney before starting any type of cannabis business.