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Hemp - Adult Use Marijuana System FAQs

These FAQs only address hemp in the OLCC-licensed adult use marijuana system.
For questions about hemp in Oregon outside of the adult use marijuana system, see the General Market Hemp FAQs.

The primary agency that regulates hemp in Oregon is the Oregon Department of Agriculture (ODA). Persons who want to grow or process hemp in Oregon must obtain the appropriate license with ODA. ODA is also responsible for the testing requirements that apply to most hemp items.

OLCC is responsible for some of the regulations that apply when hemp items are sold to consumers. OLCC sets limits on the amount of THC in hemp items, and on “artificially derived cannabinoids” (substances created synthetically from hemp or marijuana).

OLCC is also involved when the hemp interacts with Oregon’s licensed adult use marijuana market. OLCC issues certificates to ODA-licensed hemp growers and hemp handlers. These certificates give the hemp business a Metrc account so they can enter hemp products that they intend to transfer to OLCC marijuana licensees. OLCC also has requirements that apply to any hemp that enters an OLCC-licensed premises or is sold by an OLCC-licensed marijuana retailer. OLCC rules cover what each license type is allowed to do with hemp, and under what circumstances a marijuana producer can be on the same tax lot as a hemp grow.

It depends. As an OLCC-licensed producer, you cannot grow hemp on your licensed premises. However, you may be able to obtain an ODA license to grow hemp in areas that are outside your licensed premises.

If the hemp grow will not be on the same tax lot as a marijuana producer license and will not be within the licensed premises of any OLCC marijuana license, then there are no OLCC rules that would prohibit you from growing hemp.

If you want hemp to be grown on the same tax lot where a marijuana producer license is located, the producer must have an approved control plan on file before obtaining the ODA hemp grower license. You cannot grow hemp in the area that you have licensed for marijuana production. If you want to grow hemp in an area that is currently part of your producer license, you would need to request and receive approval to remove that area from your licensed premises before obtaining the ODA hemp grower license.

No, a hemp control plan does not allow you to transfer hemp to OLCC licensees. If you want to transfer hemp to OLCC licensees, you will need to get an OLCC Industrial Hemp Certificate​ for your hemp business.

You must apply and be approved for an OLCC Hemp Certificate​ to be able to transfer hemp to OLCC marijuana licensees. ODA-licensed hemp growers with an OLCC hemp certificate can transfer raw industrial hemp to OLCC-licensed processors that have a hemp endorsement and to OLCC-licensed wholesalers. See the Division 25 rules​, especially OAR 845-025-2700 to -2785, for complete details.

You must apply and be approved for an OLCC Hemp Certificate to be able to transfer hemp to OLCC marijuana licensees. ODA-licensed hemp handlers can transfer raw industrial hemp or products made from hemp to OLCC licensed processors that have a hemp endorsement as well as to OLCC licensed wholesalers and retailers. You must apply and be approved for an OLCC hemp certificate to be able to transfer those items. See the Division 25 rules, especially OAR 845-025-2700 to -2785, for complete details.
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No. Even with an OLCC Hemp Certificate, a grower can only transfer “harvested industrial hemp” to OLCC licensees. Harvested industrial hemp means hemp that has not been processed or been only minimally processed. This does not include harvested material that has been dried, cured, and trimmed into usable hemp (smokable flower). Growers can only transfer your harvested industrial hemp to OLCC licensed processors and wholesalers, at which point a processor could process the hemp into a consumer-ready product.

Yes, as long as you also have an OLCC Hemp Certificate​. A handler with an OLCC hemp certificate can transfer hemp items to OLCC licensed retailers, wholesalers, and processors, including consumer-ready hemp items. Any item that is packaged for ultimate sale to consumers must be packaged and labeled in accordance with OLCC packaging and labeling rules. To comply with OLCC labeling rules, the item must either have an OLCC-approved label or use a valid “generic label.”

An ODA-licensed hemp handler with an OLCC hemp certificate can transfer any “hemp item" that is within the THC limits specified in OAR 845-025-2760. The term “hemp item" includes usable hemp, hemp concentrates, hemp extracts, and hemp cannabinoid products. Hemp items can be transferred to OLCC-licensed wholesalers and retailers as well as to OLCC-licensed processors with a hemp endorsement. Hemp handlers can also transfer “harvested industrial hemp" (unprocessed or minimally-processed hemp) to OLCC licensed processors with a hemp endorsement and to OLCC licensed wholesalers.

Not necessarily. OLCC rules set limits on the total amount of THC that can be present in a “container" – basically a packaged unit of sale ready to be sold to a consumer. Except for topicals and tinctures, hemp cannabinoid products packaged for sale to consumers can have no more than 10 mg total THC per container. If the product has servings, it can also have no more than 1 mg total THC per serving. Hemp tinctures are limited to no more than 100 mg total THC per container. Products that exceed these limits cannot be transferred to OLCC licensees and cannot be sold to consumers by OLCC retailers. See OAR OAR 845-025-2760 for details. 

There are also milligram limits for THC in certain hemp items sold to Oregon consumers in the general market, outside of the OLCC-licensed adult use marijuana system. See OARs OARs 845-026-0300 and -0400 for general market THC limits.




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Hemp certificate holders receive an account in Metrc, the marijuana tracking system used in Oregon, and can enter any hemp items that will be transferred to OLCC licensees into their Metrc account. Any hemp inventory that is entered into Metrc must be stored at the Oregon facility that holds the OLCC hemp certificate until it is transferred or otherwise removed from the certificate holder's Metrc inventory.

After the hemp or hemp item is entered into Metrc, it must undergo certain required compliance testing prior to being transferred to an OLCC marijuana licensee. At minimum, it needs to pass a potency test to make sure it's below the THC thresholds for hemp items that OLCC licensees are allowed to receive. Additionally, it needs to pass compliance testing for any other test that would be required for the equivalent marijuana item under OAR Chapter 333 Division 7. These requirements are essentially the same as the compliance testing requirements for hemp and hemp items under ODA's rules for hemp growers and handlers. A test performed by an out-of-state lab, or any lab not licensed by OLCC, cannot satisfy this requirement. The sampling and testing has to be performed by an OLCC-licensed ORELAP-accredited lab, and the transfer of the samples and the test results are all recorded in Metrc. Testing performed prior to entering the hemp or hemp item into Metrc cannot satisfy this requirement.

After the item has been entered into Metrc and passed the required testing, it can be transferred to OLCC-licensed marijuana Wholesalers, Processors, and Retailers as allowed under the privileges of the hemp certificate. See the Division 25 rules for details. OAR 845-025-2700 through -2785 in particular deal specifically with hemp.

If a hemp handler certificate holder intends to transfer any finished consumer-ready goods to OLCC marijuana licensees, note that hemp products being sold in the OLCC system need to comply with OLCC packaging and labeling requirements (OAR 845-025-7000 through 7190). This includes having specific information about ingredients, test results, nutritional information, and specific symbols and warnings. Anything other than a “generic label" (a label with no graphics or logos that contains only the information required by rule) needs to receive pre-approval from OLCC. Additional information about the packaging and labeling pre-approval process can be found on our Packaging and Labeling Pre-Approval page.​



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After being entered into Metrc, any hemp or hemp item intended for transfer to an OLCC licensee must undergo compliance testing for potency as well as for any other test that would be required for the equivalent marijuana item under OAR Chapter 333 Division 7. The Oregon Department of Agriculture has additional compliance testing rules that you should be familiar with as a licensed hemp grower or handler.

Compliance testing involves having an OLCC-licensed cannabis laboratory take representative samples from the entire batch being tested. R&D testing, where you select samples to send to the lab, does not qualify as compliance testing.

For the purposes of transferring products to OLCC marijuana licensees, the compliance testing must be done after the hemp or hemp item is entered into Metrc. Testing that was not recorded in Metrc cannot be used to transfer hemp or hemp items into the OLCC-regulated adult use marijuana system. A test performed by an out-of-state lab, or any lab not licensed by OLCC, cannot satisfy this requirement.​



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No. Only hemp or hemp items that you intend to transfer to OLCC marijuana licensees need to be tracked in Metrc. These can be entered into Metrc when you are ready to request testing prior to transfer. Prior to that point, there is no need to track them in Metrc.

For example: If you receive hemp biomass, process that biomass into a hemp concentrate or extract, then process that hemp concentrate or extract into a cannabinoid hemp product that you want to sell through OLCC-licensed retailers, only that finished hemp cannabinoid product needs to be entered into Metrc. You do not need to use Metrc to track the hemp biomass or hemp concentrate or extract. However, as an ODA hemp licensee, you need to comply with ODA’s recordkeeping requirements for tracking hemp.

Prior to receiving the hemp or hemp item from an ODA-licensed hemp grower or handler with an OLCC hemp certificate, you must receive a copy of the results of any test that has been conducted on the hemp or hemp item. For raw hemp, this includes a copy of the pre-harvest THC testing. Additionally, before receiving any hemp or hemp item, you must verify that the item has the appropriate testing recorded in Metrc and that the item is within the THC limits specified in OAR 845-025-2760.​

Yes. As long as the marijuana and hemp both have been tested as required under the testing rules, a processor with a hemp endorsement can combine hemp and marijuana when processing a cannabinoid product. Any item that contains both hemp and marijuana is considered a marijuana item.

No. Any hemp or hemp items entering a licensed premises must come via a licensed transfer in Metrc.

However, you can carry other hemp-derived products that do not qualify as “hemp items” without recording those products in Metrc. This includes products made from hemp seed or hemp fiber that do not contain any added cannabinoids. Examples include hemp clothing, hemp paper, hemp hearts, hemp seed oil, and soaps made from hemp seed oil.

You can apply for the Industrial Hemp endorsement by submitting a Change to Processor Endorsements form. If you are planning to receive hemp biomass for processing, you will likely also need to obtain an ODA hemp handler license as well. You can find the ODA hemp handler's application forms on their website: https://oda.direct/hemp​

You can receive “hemp items” from an OLCC-licensed processor with a hemp endorsement, from another OLCC-licensed wholesaler, or from an ODA-licensed hemp handler with an OLCC hemp certificate. You can receive “harvested industrial hemp" (unprocessed or minimally-processed hemp) from an ODA-licensed hemp grower or handler with an OLCC hemp certificate.​

No, the tax on the retail sale of marijuana items does not apply to hemp items. However, an item that contains both hemp and marijuana is considered a marijuana items and is subject to this tax. For example, a chocolate bar made with half hemp extract and half marijuana extract would be taxed as a marijuana item.

Yes, as long as your processor license has the Industrial Hemp endorsement. OAR 845-025-3320 describes how a processor can transfer hemp items to persons other than OLCC licensees. The item must have passed compliance testing and cannot exceed 0.3% total THC. These transfers must be recorded in Metrc and the items must be held onsite under camera coverage for at least three business days (not including weekends or holidays) after generating the manifest before they leave the licensed premises.
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Both parties are responsible.

The ODA-licensed hemp handler with an OLCC certificate is responsible for requesting the appropriate testing on the hemp item. Hemp certificate holders are prohibited from transferring any item that exceeds the THC limits in OAR 845-025-2760 to an OLCC licensee. OLCC licensees are also prohibited from receiving hemp or hemp items that exceed these limits.

The certificate holder is responsible for confirming that the item is within the THC limits before manifesting it out, and the licensee is responsible for confirming the THC limits before accepting the transfer. 



Any hemp items packaged for ultimate sale to a consumer need to be packaged and labeled in accordance with OLCC packaging and labeling rules. Any label other than a generic label must receive pre-approval from OLCC. To submit labels and packaging for approval, a hemp certificate holder will need to visit our Recreational Marijuana Licensing portal and select “Register for a BUSINESS account." Additional information about the packaging and labeling pre-approval process can be found on the OLCC Packaging and Labeling Pre-Approval page.

With the exception of OLCC-licensed processors being able to transfer out hemp items in some circumstances, hemp entering the OLCC-licensed system is basically a one-way street. OLCC-licensed retailers and wholesalers do not have the privilege to transfer hemp items back to a hemp handler.