How to Get a CBD License in Nebraska & Start Your Business

Read Time: 7 min

If you’re starting a CBD business in Nebraska, you need to understand the essential rules and steps. This guide explains how to get a Nebraska CBD license and make it big in the industry. Whether you’re already established or are just starting your CBD business, this guide will give you everything you need to dive into the CBD market in Nebraska.

How to Start a CBD Business in Nebraska

A green label vial of CDB that requires a CBD license to sell.

Begin by drafting a business blueprint encompassing your goals, product lineup, promotional approaches, financial predictions, and operational strategies. Then, choose an appropriate legal framework for your enterprise. Most merchants go for an LLC, partnership, or corporation. After that, register with the Nebraska Department of Agriculture. Securing an Employer Identification Number (EIN) from the IRS is equally vital to meet your tax obligations. Keep in mind that you’ll need a Nebraska CBD license before you can start cultivating or producing.

Subsequently, establish a dedicated business bank account. The bank account will help you gain access to commercial credit cards, loans, and an array of financing alternatives. It will play a substantial role in establishing and nurturing your business credit profile, a valuable asset that can significantly support potential future funding initiatives and expansion projects.

Upon venturing into the CBD business, the necessity for a license may fluctuate based on your particular objectives. If you’re vending hemp products, a license is not obligatory. Thanks to the 2018 Farm Bill, businesses can retail hemp products, provided their THC content remains under the 0.3% threshold. However, if your aspirations center around the cultivation or production of hemp, you’ll need a cultivator or a processor-handler license.

How to Get a CBD License in Nebraska

The Nebraska Department of Agriculture (NDA) handles all hemp license applications in Nebraska. To obtain a CBD license in the state, follow these steps:

  1. Determine Your License Type Understand the different types of Nebraska CBD licenses. The NDA offers licenses for hemp cultivation and hemp processing & handling.
  2. Prepare Required Documentation — Gather all necessary documents outlined in the respective guidance documents. This may include background checks, financial records, site plans, etc.
  3. Complete Application Form — Download the CBD license application form from the NDA website. Fill out the form accurately and completely.
  4. Submit Application and Fees — Submit your completed application form, the required documentation, and application fees to the Nebraska Department of Agriculture.
  5. Wait for Review — The NDA will review your application and conduct the necessary background checks. This process may take some time, so be patient.
  6. Inspection (if applicable) — Depending on the type of license you are applying for, the NDA might inspect your cultivation or processing facilities.
  7. Receive Approval — If your application is approved, you will receive your CBD license from the Nebraska Department of Agriculture.
  8. Renewal — Keep track of your license’s expiration date and renew it as required.
  9. Comply with Regulations — Once you have your CBD license, ensure you follow all regulations and guidelines set forth by the Nebraska Department of Agriculture. This includes proper labeling, testing, record-keeping, and other compliance requirements.
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CBD License Application Requirements for Nebraska

For a Cultivator Nebraska CBD license, you’ll need:

  • Application
  • Background Checks of All Individuals Involved
  • Criminal History Records of All Individuals Involved
  • GPS Coordinates
  • Site Plan and Layout — Provide a detailed site plan of your cultivation area, indicating the placement of each hemp planting area. The plan should also show buffer zones, irrigation systems, and other relevant features.
  • Plant Variety Information
  • Testing and Sampling Plan
  • Harvest and Disposal Plan — Outline your procedures for harvesting and disposing of non-compliant plants. This should include procedures to ensure that plants do not exceed the legal THC limit.
  • Records of Hemp Cultivation Activities

For a Processor-Handler Nebraska CBD License, you’ll need:

  • Application
  • Background Checks of All Individuals Involved
  • Criminal History Records of All Individuals Involved
  • Operational Plan — Develop a detailed plan outlining the processes, procedures, and equipment for hemp processing and handling. This plan should encompass extraction methods, product formulation, and packaging.
  • Facility Information — Provide information about the physical location of your processing and handling facility, including its address and layout. Attach facility diagrams or blueprints if required.
  • Product Testing Plan
  • Inventory Tracking
  • Records of Hemp Cultivation Activities

Below is a list of all the fees linked with obtaining a CBD license in Nebraska:

Fee TypeFee AmountDue Date
Application Fee$150 for bothAt the time of application
Cultivator Site Registration Fee$600/$1200 per site (Cultivator/Processor-Handler)At time of application
Site Modification Fee$75 for bothAfter license approval
Delinquent Fees for Renewals$187.50 – $750 / $337.50 – $1350.00 (Cultivator/Processor-Handler) depending on dateFeb. 1, March 1, April 1, May 1

Laws & Regulations for Selling CBD in Nebraska

Nebraska State Law (2-501 to 2-519) stipulates regulations covering hemp cultivation, processing, handling, and sales, encompassing Nebraska CBD License, testing, labeling, and compliance with THC concentration limits. This aligns the state’s hemp legal framework with the 2018 Farm Bill provisions.

The Nebraska State Hemp Plan, formulated by the Nebraska Department of Agriculture (NDA), adheres to federal mandates from the U.S. Department of Agriculture (USDA). This comprehensive plan outlines regulations governing the production, testing, transportation, and marketing of hemp and hemp products within the state. USDA Rules and Regulations establish federal hemp cultivation, processing, and sales guidelines. These regulations address licensing, testing, and procedures for disposing of non-compliant plants. Nebraska’s hemp producers must adhere to state and federal legal compliance requirements.

The 2019 Interim Final Rule (IFR), issued by the USDA, guides hemp production in line with the 2018 Farm Bill. It delineates parameters for sampling and testing hemp’s THC concentration, protocols for handling non-compliant plants, and the process of state hemp plan approval.

How to Renew Your CBD License in Nebraska

Renewing your Nebraska CBD License is a yearly process that requires proactive action. All hemp licenses expire on December 31, the year they were initially issued. It’s important to note that licenses do not automatically renew. To continue your hemp-related activities legally, you must reapply for a hemp license annually. This involves submitting a new application along with the relevant fees, regardless of whether your information and registered land area remain unchanged.

Applications for the upcoming year’s licenses will be available on or before November 1. To ensure a seamless transition and avoid interruption in your licensure, all current license holders must submit their renewal applications well before the December 31 expiration date.

Start Selling CBD in Nebraska

A tincture and dropper of CBD oil that would need a CBD license to sell.

Starting an online CBD store or building a physical store is a pivotal choice. Even when running a physical store, establishing an eCommerce presence is important in today’s dynamic business environment.

Creating a CBD sales website entails certain measures to establish a trustworthy and prosperous platform. Start by outlining your CBD products and gathering important product details with descriptions, pricing, and visual content. You can strengthen your customer’s trust through social validation by incorporating genuine customer testimonials and reviews.

Consider opting for hosting services that ensure optimal performance and unfaltering availability. Incorporating a dedicated blog section can help nurture connections with customers and potential collaborators, demonstrating industry expertise while driving traffic. It’s also important to understand that if your aspiration involves hemp production, the acquisition of a Nebraska CBD license is an indispensable requirement.

Strategically building an email list offers a direct avenue to sell customers CBD products, reducing reliance on external distribution channels. When evaluating eCommerce platforms, explore reputable solutions such as Shopify, WooCommerce, and BigCommerce. However, keep in mind that not all platforms are inherently aligned with CBD sales due to perceived risks. Teaming up with a repayment liable payment processor, especially one that provides a tailored CBD merchant account, can set your business on the path to success from the start!

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Nebraska CBD License: FAQs

Yes, CBD is legal in Nebraska. Both federal and state laws influence the legality of CBD in Nebraska. At the federal level, the 2018 Farm Bill legalized the cultivation and sale of hemp-derived CBD products as long as they contain less than 0.3% THC. Furthermore, the Nebraska Hemp Farming Act, LB657, was passed in 2019. This act aligns with the federal definition of hemp and allows for the cultivation, processing, handling, and sale of hemp and hemp-derived products, including CBD.

How much does a CBD license cost in Nebraska?

Various fees apply when obtaining a CBD license in Nebraska. The application fee is $150 for cultivators and processor-handlers, due upon application submission. Cultivators pay a site registration fee of $600 per site, while processor-handlers pay $1200, corresponding to the license type. A $75 site modification fee applies post-license approval. During renewal, delinquent fees apply if the deadline is missed. Cultivators’ fees range from $187.50 to $750, and processor-handlers’ fees range from $337.50 to $1350, based on the renewal date.

Can you sell CBD without a license in Nebraska?

You can do so if the product contains less than 0.3% THC. However, you’ll have to get a license to cultivate or produce it.

How long is a CBD license valid in Nebraska?

A CBD license in Nebraska is valid for one year till the 31st of December. Applications for permits in the following year will be accessible by November 1 at the latest. To ensure a smooth transition and prevent any disruption in your licensure, it’s highly recommended that all existing license holders submit their renewal applications well ahead of the December 31 expiration deadline.

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