Do You Need a License to Sell CBD in Tennessee

Do You Need a License to Sell CBD in Tennessee?

No, the Tennessee Department of Agriculture does not require licenses for the sale of CBD and hemp processed products. However growing or rooting CBD and hemp requires a hemp producer license from the Tennessee Department of Agriculture. 

Processing hemp does not require you to be licensed or registered with the Tennessee Department of Agriculture. However if you are making CBD oil products  for human consumption, you are required to be licensed as a food manufacturing facility. 

All of the information used to create this article comes straight from the Tenneessee hemp laws on the Tennessee government website to ensure all information included in this article is accurate.

Are hemp licenses necessary in Tennessee

Are Hemp Licenses Necessary in Tennessee?

If you are selling processed hemp cbd oil then it is not necessary for you to obtain a license to compete in the Tennessee hemp industry. However there are licenses required for growing, rooting, moving rooted hemp plants, and selling hemp seed in the state of Tennessee. You must obtain a license from the Tennessee Department of Agriculture to grow hemp.

How to get industrial hemp certified and licensed

How to Get Industrial Hemp Certified and Licensed?

The state of Tennessee as of March 21, 2021 is approved by the USDA to create an industrial hemp program and issue licenses for producers, propagators, and brokers of hemp within the state of Tennessee. To obtain a hemp producer license, hemp propagator license, or hemp broker license you could apply for the application here

Hemp Producer

Hemp Producer:

Any person that produces hemp for harvest aka an industrial hemp grower that grows industrial hemp certified crop is required to obtain a hemp grower license. 

Fees for licensing:

<5 acres: $250

5-20 acres: $300

>20 acres: $350

Hemp Broker

Hemp Broker:

Any person that purchases and sells hemp plants grown by others.

Hemp Broker Fees: $300

Hemp Propagator

Hemp Propagator:

Any person that produces clones or seedlings for retail sale.

To apply you are required to submit an application and aerial map for each physical address. Licensing fees are based upon the total acreage of growing areas for the corresponding physical address or the highest fee of license type(s). There are no refunds for licensing fees. 

The fees are the following:

Hemp Propagator fees: $300

University: waived

For example if you are growing 1 acre of hemp and have a greenhouse with 30,000 clones, you are required to obtain a propagator license. All licenses expire on June 30th the following year of issuance. If you are not an individual person you are required to prove that you have a general partnership, proof of incorporation registration, business license, and the EIN must be submitted. Each year a complete application, map, criminal history report, and fee must be received by June 30th. 

Do You Need a Certified Seed License

Do You Need a Certified Seed License?

Hemp seed is regulated by the Tennessee Department of Agriculture like any other seed in Tennessee. If you are putting your name on the seed label, you must obtain a Tennessee Seed Sellers License. To obtain a certified seed license you are required to complete and submit a Seed Dealer License Application. 

Seed Dealer License Application is defined as the following:

To authorize someone to manufacture, distribute, or label agricultural and/or vegetable seed as the guarantor Tennessee.

Contact Cissy Neely by phone at 615-837-5406 or by email at cissy.neely@tn.gov to obtain a Seed Dealer License Application. The Seed Dealer License is required in the state of Tennessee is legislated by by Tennessee Seed Licensing Rule: Chapter 0080-05-06-.14  and Tennessee Seed Licensing Law: Tenn. Code Ann. § 43-10-118 

How to Find Hemp Certified Seed

How to Find Hemp Certified Seed?

If you are interested in purchasing hemp certified seed from companies that sell hemp seed and hold a current Tennessee Seed Seller License here is the full list:

  • Arcadia Bioscience, Inc. (530) 750-7171
  • Beyond Hemp, LLC (615) 495-3343

  • Blue Forest Farms (720) 828-5923

  • Bomar Agra Estates, LLC (855) 720-4367

  • Buffalo River Hemp Company (423) 715-5934
  • Charlotte’s Web, Inc dba CW Hemp Supply Co. (720) 397-2946

  • Colorado Breeders Depot (646) 552-4699

  • Davis Farms of Oregon, LLC (541) 480-9702

  • EWAFUS dba Foundation Seeds (303) 598-8008
  • Frequenseeds, LLC (727) 798-0603

  • Gualdi, LLC/Fortuna (720) 372-9277

  • Hemp Seed Warehouse (615) 789-4367

  • HGH Seed, Inc. (808) 392-0472

  • Jack Hempicine dba Oregon CBD (208) 818-3567

  • KLR Farms, LLC (541) 272-2087

  • Sonya Nale (423) 618-6581

  • Sovereign Fields, LLC (541) 630-0000

  • State Line Remedy, LLC (615) 388-3599

  • Tennessee Hemp Seed (615) 477-5803

  • The CBD Group, LLC dba High Point Hemp (901) 486-6778

  • TN Hemp Genetics (865) 804-1881

  • Tree of Life Seeds (501) 408-2420

True South Seeds (229) 457-1136

Do You Need a License to Sell Hemp CBD Oil and CBD Oil Products

Do You Need a License to Sell Hemp CBD Oil and CBD Oil Products?

No, the Tennessee Department of Agriculture does not issue licenses to individuals or businesses selling processed hemp products cbd oil.

Frequently Asked Questions About CBD in Tennessee

Frequently Asked Questions About CBD in Tennessee

Is Cannabis Legal in Tennessee?

Cannabis for recreational and medical use is illegal in the state of Tennessee. The only exception is cannabidiol CBD derived from hemp which contains 0.3% of THC or less.

How Do I Start a CBD Business in Tennessee?

Since Tennessee has legalized CBD the industry has grown by over 1,100%. If you are thinking of starting a CBD business in the state of Tennessee market then here is how to get started.

  1. Create a corporate entity for your CBD business

    Since the CBD market is highly regulated incorporating your CBD business comes with a lot of advantages. The process for incorporation is facilitated through the Tennessee Secretary of State’s Office.

  2. Obtain all the necessary Tennessee CBD Licensing to Legally Operate Your CBD Company

  3. Educate Yourself on the Laws Around CBD Products in the state of Tennessee and Federally

    Even though CBD is legal federally by the Farm Bill passed under the Trump administration in 2018. There are various laws and regulations set forth at a state and local level that you are required to comply with to have CBD for sale. There are CBD advertising, CBD labeling, and CBD packaging regulations to comply with as well. For all the information you need on CBD advertising laws within Tennessee read our CBD Advertising Laws by State article and click ‘Tennessee’ in the table of contents.

  4. Acquire Funding to Develop and Create Your CBD Products

    The more capital your business has the more growth you could obtain and the longer runway you have to outlast economic downturns and learn from your mistakes. Since CBD is an industry with a lot of complicated financial regulation be sure to hire specialist attorneys to help you acquire capital for your budding CBD empire.

  5. Negotiate Contracts with Suppliers/Processors for Your CBD Products (Optional)

    Unless your CBD business is fully integrated from seed to shelf then you are going to need to negotiate contracts with suppliers and processors of CBD. Look for legal experts to help craft mutually beneficial contracts and agreements with growers, processors, suppliers, and retailers.

  6. Protect Your Proprietary CBD Products and Assets within the state and federally

    What makes your CBD and brand unique from other brands is your competitive advantage and protecting this proprietary information is crucial to the success of your CBD company.

  7. Overcome the hurdle of banking and payment processing CBD Products within the state and federally

    The FTC (Federal Trade Commission) has steep rules and regulations that come with harsh penalties if they are not followed. Due to this regulation most banks and payment processing companies will not work with you if you are selling CBD. Overcoming the hurdle of banking and payment processing is necessary to accept payments for your CBD.

  8. Hire an accountant for tax planning the sale of your CBD products

    Regulation from the Federal Trade Commission, States, and Local governments creates a spiderweb of tax requirements that are challenging to navigate. The worst event that could happen is for the IRS to audit your products due to poor accounting.

  9. Comply with regulatory employment laws in order to sell CBD

    There are strict employment regulation laws that vary state by state and federally. Tennessee has requirements for wages, health inspections, and employee benefits. Consider hiring a labor and employment lawyer that specializes in Tennessee employment laws to efficiently structure your operations.

  10. Get insurance to protect your company when selling CBD

    Unfortunately due to CBD being derived cannabis which is federally illegal most insurance companies will not write insurance policies that cover cannabinoids like CBD even if they do not contain THC or marijuana. More so, in the event of a claim many hemp companies are denied due to their products being considered a drug in some cases. 

Do I Need a License to Sell CBD in Tennessee?

No, you do not need a license to sell CBD in the state of Tennessee. However you do need a license to grow, root, move hemp plants, and sell hemp seed within Tennessee.

How Much Does a Tennessee Hemp License 2022 Cost?

The cost of complying with licensed hemp in Tennessee depends on the type of license you are acquiring. For instance, the cost of an license industrial hemp producer depends on the acres that you are producing. 

<5 acres: $250

5-20 acres: $300

>20 acres: $350

To become a licensed hemp propagator or hemp broker the fees are $300. If you are a university then all licensing fees are waived.