South Carolina Hemp Legalization

South Carolina began licensing hemp farmers for the first time in 2018. The state licensed 40 growers to produce hemp in 2018, limiting each to 40 acres, for a total potential of 1,600 acres.

On March 28, 2019, Governor Henry D. McMaster signed into law a bill that expands the number of farmers who can participate in the state’s hemp program and the amount of acreage they can grow.

In 2020, the U.S. Department of Agriculture approved South Carolina’s Hemp Farming State Plan. The South Carolina Department of Agriculture (SCDA) regulates hemp production in South Carolina.

South Carolina Medical CBD/Low THC Law

In 2014, the South Carolina Legislature passed a law exempting patients diagnosed with Lennox Gastaut Syndrome, Dravet Syndrome, or “any other severe form of epilepsy that is not adequately treated by traditional medical therapies” from criminal penalties for using and possessing cannabis extracts that contain more than 15% cannabidiol and no more than 0.9% or less THC. The law went into effect on June 2, 2014.

Hemp Licenses and Permits Available in South Carolina

Each hemp farmer, processor, or handler shall obtain a permit from SCDA prior to engaging in the regulated activity.

A Hemp Farmer Permit issued by SCDA authorizes the Permittee to obtain hemp seed, possess hemp seed for planting, cultivate a hemp crop, harvest hemp plant parts, as well as possess, store, handle, transport, and market plant parts pursuant to the State Plan.

A Hemp Processor Permit issued by SCDA authorizes the Permittee to possess hemp plant parts, convert hemp plant parts to a Hemp Product, as well as possess, store, handle, transport, and market plant parts pursuant to the State Plan.

To be a Permitted Hemp Processor, you are required to obtain a South Carolina Dealer and Handler License, a South Carolina Weighmaster License and a Hemp Processor Permit.

There are several categories of Permitted Hemp Handler:

• Warehouse/Storage/Drying Facility
• Transporter
• Laboratory
• Seed Dealer/Supplier
• Other (Broker, R&D, Sales Rep)

A person applying for multiple permits must complete a permit application and submit the associated fee for each application:

• Application Fee – $100.
• Hemp Farmer Permit – $1,000.
• Hemp Processor Permit – $3,000.
• Hemp Handler Permit – $1,000.

South Carolina does not require a retail CBD license.

What Types of Hemp Products are Legal in South Carolina

“Federally defined THC level for hemp” means a delta-9 THC concentration of not more than 0.3 percent on a dry weight basis, or the THC concentration for hemp defined in 7 U.S.C. SECTION 5940, whichever is greater.

“Hemp products” means all products with the federally defined THC level for hemp derived from, or made by, processing hemp plants or hemp plant parts, that are prepared in a form available for commercial sale, including, but not limited to, cosmetics, personal care products, food intended for animal or human consumption, cloth, cordage, fiber, fuel, paint, paper, particleboard, plastics, and any product containing one or more hemp-derived cannabinoids, such as cannabidiol.

Hemp-derived CBD products are legal in South Carolina if their THC level not exceeding the 0.3% limit imposed by federal and state authorities.

South Carolina Solicitor General Robert D. Cook issued an opinion Sept. 16 2024 that it is legal to manufacture, distribute and sell nonalcoholic beverages containing hemp-derived delta-9 THC in compliance with the 2018 Farm Bill.

South Carolina Hemp Industry Statistics

Combined with the original 40 growers, who were issued permits in October of 2018, there were 114 permitted hemp farmers from across 35 counties in 2019.

Some 350 people applied to farm hemp in South Carolina in 2020 according to the South Carolina Department of Agriculture. There were about 270 permitted hemp farmers, 14 processors and 14 handlers.

In 2021-2022, the amount of registered outdoor acreage and indoor square feet significantly declined as a result of oversupply and market correction across the industry. In 2022, 190 growers, 8 processors and 9 handlers were licensed in the state. The National Cannabis Reports show about 320 acres were planted in South Carolina in 2021 and 350 acres were planted in 2022.

In 2023, 193 growers, 9 processors and 7 handlers received permits in the state, 175 acres of hemp were planted and 135 acres were harvested compared to 62 acres in 2022.

In 2024, there were 97 permitted hemp growers, 6 processors, 2 testing labs, 7 transporters, 1 research and development company and 1 broker.

Source: hempcbdbusinessplans.com

South Carolina Hemp Industry Infographics