Nebraska Hemp Farming Act (LB 657, 2019)

Last verified: May 2026

The Statutory Framework

LB 657 (2019), now codified at Neb. Rev. Stat. §§ 2-501 to 2-518:

• Defines hemp as Cannabis sativa L. plant + "all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers" with delta-9 THC concentration ≤ 0.3% on dry-weight basis.
• Designates hemp as an "agricultural commodity."
• Excludes compliant hemp from the state’s controlled-substances "marijuana" definition.
• Authorizes the Nebraska Department of Agriculture (NDA) to administer hemp licensing, tracking, and testing.
• Requires cultivation, processing, and transport licenses.
• Requires samples tested at NDA-approved labs prior to harvest.

The Federal Framework

LB 657 conformed Nebraska to the federal Agriculture Improvement Act of 2018 (the "2018 Farm Bill"), which:

• Removed hemp (cannabis ≤ 0.3% delta-9 THC) from the federal Schedule I list under the Controlled Substances Act.
• Authorized USDA to develop a federal hemp-cultivation framework.
• Permitted state-level hemp programs under USDA-approved state plans.
• Did not regulate downstream hemp-derived products at the federal level (creating the regulatory gap that produced the delta-8 / delta-9-hemp / THCA-flower industry).

LB 262 (2024) Updates

LB 262 (2024) repealed several earlier sections of the Hemp Farming Act — the Hemp Commission and the original program fund — to align Nebraska with USDA-approved tribal and state programs. The repeal streamlined the regulatory framework but did not change the underlying definition of hemp.

NDA Hemp Program Administration

The Nebraska Department of Agriculture (NDA) administers the hemp program through its Plant Industry Division:

• Cultivation licenses — required for any person growing hemp.
• Processing licenses — required for any person processing hemp into product.
• Transport licenses — required for transport of pre-tested hemp.
• Sample testing — samples must be collected within 15 days of anticipated harvest and tested at an NDA-approved lab for THC content.
• "Hot" crops (testing above 0.3% delta-9 THC) must be destroyed under NDA supervision.

USDA-Approved Tribal Programs

Within Nebraska, federally recognized tribes operate hemp programs under USDA-approved tribal plans. The Winnebago Tribe’s Ho-Chunk Farms participated in the state hemp pilot program and continues to grow industrial hemp. The Omaha, Santee Sioux, and Ponca tribes have not yet enacted tribal hemp programs as of May 2026 (though the Omaha Tribe’s July 15, 2025 Title 51 cannabis legalization extends to hemp by implication).

The Delta-8 / Delta-9-Hemp / THCA-Flower Market

Because LB 657 mirrored the federal Farm Bill’s "all derivatives, extracts, isomers, cannabinoids" language and pegged legality to delta-9 THC content (not "total THC"), a thriving market in:

• Delta-8 THC (an isomer of delta-9 THC, mildly psychoactive, derived from hemp CBD via chemical conversion).
• Delta-10 THC, HHC, THC-O (other hemp-derived intoxicants).
• Hemp-derived delta-9 edibles (compliant by weight if not by potency — large gummies that contain ≤ 0.3% delta-9 by package weight but enough delta-9 per serving to be intoxicating).
• THCA flower (raw cannabis flower low in delta-9 but high in THCA, which converts to delta-9 when smoked or heated).

...developed in Nebraska through 2023-2025. The market is sold in smoke shops, vape stores, gas stations, and liquor stores. Products are not subject to age verification at the point of sale (other than 21+ minimums in some local ordinances), no statewide regulatory framework, no THC-content cap, no labeling-accuracy requirements.

The 2023 LB 28 / 2025 LB 316 / 2026 Pending Hemp Battle

Nebraska legislators have repeatedly attempted to ban hemp-derived intoxicants:

• LB 28 (2023) sought to ban hemp-derived intoxicants. Died in committee.
• LB 316 (2025) — sponsored by Sen. Kathleen Kauth (Omaha-Millard) and prioritized by Sen. Jared Storm (David City) — would have redefined most "hemp" products as "marijuana" and prohibited raw hemp above 0.3% THC of any kind, capping processed hemp at 0.3% THC by total weight or 10 mg per package, effective January 1, 2026. Advanced 33-13 first round but passed over on May 30, 2025 when Sen. Kauth withdrew it after failing to secure 33 cloture votes. See LB 316 page.
• 2026 session — revised hemp-restriction bill pending; outcome uncertain as of May 2026.

The Hilgers Enforcement Posture

In the absence of state-law ban, AG Mike Hilgers has used the Consumer Protection Act, Uniform Deceptive Trade Practices Act, and Pure Food Act to pursue retailers selling hemp-derived intoxicants on the theory that lab testing shows many products exceed 0.3% delta-9 THC and are therefore unlawful "marijuana" under state law. As of June 2025, the AG’s office had sent cease-and-desist letters to 204 retail locations; at least 16 lawsuits filed; civil penalties up to $4,000 per individual sale. See Hilgers enforcement page.

The Cavanaugh $10M / 2,000-Jobs Estimate

Sen. John Cavanaugh (D-Omaha), in his complaint against proposed NDA hemp regulations, estimated that hemp businesses bring in roughly $10 million in annual sales taxes to Nebraska and employ approximately 2,000 Nebraskans.

The Federal November 12, 2026 Cliff

Federal H.R. 5371 § 781 (signed by President Trump November 12, 2025) caps THC in nationally sold hemp products at 0.4 mg per package effective November 12, 2026 per CRS Report IN12620. If the cap takes effect on schedule, it will eliminate most current hemp-derived intoxicant products nationally including in Nebraska. See federal cliff page.