How to Start a Hemp Farm in Kansas: USDA Producer License, Acreage Reporting and Testing

If you want to grow hemp in Kansas, the license comes from the federal government. Since January 1, 2025, the USDA has run hemp producer licensing in Kansas, and the Kansas Department of Agriculture (KDA) no longer issues producer licenses. Growers who apply to the wrong agency, or who plant before approval, lose the season. This guide covers the steps in the order you should take them, the Kansas filings that sit alongside the federal license, and the points you need to confirm directly with the agency that controls them.

This article is informational content, not legal or tax advice. Hemp rules change, so confirm current requirements with USDA, KDA and a qualified attorney or CPA before you plant or sell.

What You Need Before You Start

Gather these items before you file anything. Missing one of them is the most common reason a first application stalls.

• Eligibility confirmation. You cannot be licensed if you have a controlled substance felony conviction in the past 10 years. Review your own record before you spend money on land or seed.
• Land documentation. A deed or written lease for every field you plan to plant, with the legal description and location of each field.
• A USDA account on the Hemp eManagement Platform (HeMP). This is where the producer application is filed.
• Entity paperwork, if you form a company. For an LLC, that is Articles of Organization, Domestic (Kansas) Limited Liability Company (Form DL), with a resident agent at a Kansas street address.
• Tax registration. A Kansas Department of Revenue business tax registration, which is free, and a sales tax permit if you will sell taxable goods.
• A certified sampler and a testing lab. Producers pay these independently for compliance testing, so line them up before harvest.
• A field map and planting records. You will report acreage to the Farm Service Agency (FSA) and need to show where every planted acre sits.

Step 1: Confirm Eligibility and Land Status

Start with two checks that can end your plans before they begin.

First, the federal rule bars anyone with a controlled substance felony in the past 10 years from holding a hemp producer license. This applies to the individual, so if you form a company, look at who will hold control and what their records show. If you have a question about your record, ask a criminal defense attorney before you apply.

Second, check where the land sits. Hemp grown on land of the Prairie Band Potawatomi Nation or the Iowa Tribe is licensed by the tribe, not by USDA or the state. If any field is on tribal land, contact the tribe before you plant. Do not assume a state or federal license covers that acreage.

Step 2: Choose a Business Structure and Register It

You can farm as a sole proprietor, an LLC or a corporation. Most growers who plan to borrow money, bring in partners or sign leases in the company name choose an LLC. The Kansas Secretary of State handles the filing, and these are the figures it publishes:

Item	Amount or deadline	Agency
LLC Articles of Organization (Form DL) filing fee	$85	Kansas Secretary of State
Name reservation (lasts 120 days)	$35	Kansas Secretary of State
Biennial Information Report (Form ILC for LLCs)	$90, due every two years by April 15	Kansas Secretary of State
Corporation Articles of Incorporation (Form AI) filing fee	$85	Kansas Secretary of State

Some points that trip up growers:

• The LLC name must include L.L.C., L.C., LLC, LC, LIMITED LIABILITY COMPANY or LIMITED COMPANY. The Secretary of State checks it against registered entities. If a similar name is in use, you need a Consent to Use of Similar Business Name (Form CN).
• Kansas calls the registered agent the resident agent. The registered office must be a Kansas street address where the agent can be regularly present. A PO box does not qualify.
• The recurring filing is the biennial Information Report, not an annual report. An LLC formed in an even year reports in each succeeding even year. Set the reminder when you file.
• Kansas has no state-level DBA filing. If your farm operates under a name other than the legal name, check city and county requirements, and consider a Secretary of State trademark or service mark registration to protect the name.

Tax treatment also differs by structure. An LLC is a pass-through entity for Kansas income tax, so members report Kansas income on individual returns at 5.2% on Kansas taxable income up to $23,000 for single filers or $46,000 for married filing jointly, and 5.58% above those thresholds. A corporation pays the 3.5% normal tax plus a 3% surtax on Kansas taxable income over $50,000. Kansas has no LLC franchise tax. Confirm which structure fits your financing and liability needs with an attorney and your tax choices with a CPA.

Step 3: Check Local Land Use Rules

Kansas has 105 counties and 624 cities. Every incorporated place is legally a city, so a farm either sits inside a city or in unincorporated county land, and the local rules that apply depend on which. Call the county planning and zoning office for the field locations, and call the city if any field is inside city limits. Ask specifically about agricultural use, any permit you need for structures or equipment storage, and any requirement tied to processing or selling on site.

Be careful with the Kansas City name. Kansas City, Kansas and Kansas City, Missouri are different cities in different states. Only Kansas City, Missouri has a city earnings tax, so a Kansas farm does not owe that tax because of the name.

Step 4: Apply to USDA Through HeMP Before You Plant

The USDA hemp producer application is filed through its Hemp eManagement Platform (HeMP), and the application must be approved before planting. Do not rely on older Kansas guidance. The former KDA window from January 1 to March 15, and the $100, $1,200 and $47 fee schedule that went with it, no longer apply because KDA stopped issuing producer licenses. The USDA's Domestic Hemp Production Program sets the current rules, and the USDA publishes its own application fee, if any, and processing times. Confirm both on the USDA page before you budget for the season.

When you complete the application, expect to provide the entity name and ownership details, the legal description and location of each field, and the acreage you plan to plant. Keep copies of everything you submit, along with confirmation messages. If USDA asks for a correction, respond in writing and keep the response in your file.

Step 5: Register for Kansas Taxes

Kansas issues no general statewide business license. What you register for depends on what you do, and the Kansas Department of Revenue (KDOR) handles the tax registrations. Business tax registration is free. If you will sell taxable goods, you need a sales tax permit. The Kansas state sales tax rate is 6.5%, and local rates can add to it. Ask KDOR whether your specific sales are taxable before you set prices, since the answer can differ by product and buyer.

Register through the KDOR business registration page at https://www.ksrevenue.gov/busregistration.html. Use the main KDOR business page at https://www.ksrevenue.gov/business.html to find the other tax obligations that apply to your structure.

Step 6: Plant With Records You Can Defend

Plant only after your USDA license is approved, and only in the fields you listed. Keep these records for every field:

1. The seed or cultivar name, the supplier and the purchase date.
2. The planting date and the exact acreage planted in each field.
3. Any change to the plan, such as a field you added or dropped, with the reason and date.
4. Notes on the crop's progress, including any problems with off-type plants or other concerns.

Ask your seed supplier for the documentation it has on the cultivar's THC testing. Supplier data does not replace the compliance testing you must arrange, but it helps you explain your plan if a sample comes back high.

Step 7: Report Acreage to Your FSA Office

Producers report planted acreage to their local Farm Service Agency office. Make this report on time and in writing, and keep a copy. Acreage reporting is separate from your USDA license, so do not assume that approval alone satisfies it. Call your FSA office to confirm the reporting deadline for your crop and what forms it needs. If you plant more acreage than you reported, update the report promptly rather than waiting for the sampler to find the difference.

Step 8: Arrange Compliance Testing

Compliance testing checks whether your crop stays within the legal limit. Under Kansas law, industrial hemp means cannabis sativa L. with not more than 0.3% delta-9 THC on a dry weight basis (K.S.A. 2-3901). Producers pay certified samplers and labs for this testing, and the costs are not included in the state filing fees above, so get written quotes early.

Work with your sampler to set the sampling date. Plan the harvest around that visit, and do not move or harvest a field before the sampler has taken its samples unless your sampler and USDA have approved it in writing. Ask the lab for its reporting format and turnaround time, and keep every report in your records.

Step 9: Handle a Failed Test Correctly

A test above the limit does not end the season by itself, but it does trigger rules you must follow exactly. USDA sets the requirements for remediation and disposal of a crop that exceeds the THC limit. Do not destroy or sell the crop until you have written instructions from USDA, and contact an attorney experienced in hemp law before you take any action. The reader should confirm current requirements with USDA because the rules have changed since the program began.

Step 10: Processing, Retail and Other Licenses

Growing and selling raw hemp is different from processing it. Anyone processing hemp in Kansas must register with the State Fire Marshal (K.S.A. 2-3907). This applies to extraction and similar operations, so confirm the requirement before you install equipment.

If you plan to sell retail CBD or delta-8 products, read the state's hemp retail guide and check KDA's industrial hemp page for current rules. If you make food or feed, KDA licenses those businesses separately. City and county rules may also apply to on-farm sales and retail spaces.

What Results to Expect

A licensed, tested hemp crop gives you a documented path to sell within the rules. It does not guarantee a buyer, a price or a profit. Market demand, processing capacity and testing costs all affect the outcome, so build a budget with a buyer or processor in view before you plant.

Be cautious about health claims. The FDA has not approved CBD as a dietary supplement or as an ingredient in food, and it has stated that CBD products should not be marketed with unproven health claims. Describe your product by what it is and what has been tested, and avoid language that says it treats, cures or prevents any condition. The FDA's position may evolve, so confirm current guidance before you write product copy.

Tips for a Smoother First Season

• Start the entity filing and the USDA application at the same time. Both take time, and the USDA approval controls when you can plant.
• Ask your county and city offices for their zoning and agricultural-use requirements in writing.
• Book your sampler and lab early, since testing windows can be tight near harvest.
• Keep one folder per field with the legal description, lease or deed, planting records, FSA report and test results.
• Calendar the Information Report deadline of April 15 every two years, and the FSA reporting date for your crop.

Common Mistakes to Avoid

• Planting before the USDA license is approved. Starting early is the costliest error in this process.
• Applying to KDA. KDA no longer issues producer licenses, so an application to it does not license your crop.
• Using the old fee schedule to budget. The $100, $1,200 and $47 figures no longer apply.
• Ignoring the felony bar. A disqualifying record discovered after planting still leaves you exposed.
• Forgetting tribal land. Fields on Prairie Band Potawatomi or Iowa Tribe land need the tribe's license.
• Skipping FSA reporting or letting it lag. Late or incomplete acreage reports create problems at testing and at settlement.
• Harvesting before sampling. Move the harvest date only after your sampler and USDA have confirmed the sequence.
• Processing without the Fire Marshal registration. Anyone processing hemp must register under K.S.A. 2-3907.
• Using a PO box as the resident agent address. The Secretary of State requires a Kansas street address.
• Making health claims. Unproven claims create FDA exposure and can cost you your buyers.

Who to Contact

• Kansas Secretary of State business services: https://sos.ks.gov/business/business.html
• Kansas Department of Revenue business page: https://www.ksrevenue.gov/business.html
• Kansas Small Business Development Center: https://www.kansassbdc.net/
• KDA industrial hemp page: search the Kansas Department of Agriculture website for its current hemp guidance
• USDA Domestic Hemp Production Program and the Hemp eManagement Platform: search the USDA website for current application and fee information
• Your local Farm Service Agency office, for acreage reporting

Hemp farming combines federal licensing, state registration and local land rules, and the details change. If you hold land under a lease, have a prior record, or plan to process or sell retail products, talk with a qualified attorney and a CPA before you commit money to the season.