Per the Ohio Department of Agriculture, "The Hemp Program was created to allow licensed individuals to grow and process hemp for fiber, grain production, and dietary needs in Ohio." An Ohio hemp processor bond is required of all candidates that seek to operate as a purchaser of raw, unprocessed hemp plant material. Ohio hemp cultivators are not obligated to meet the same requirement.
Pursuant to §901, (B) "Each licensed processor having sold one hundred thousand dollars ($100,000) or less of raw, unprocessed hemp plant material in the previous calendar year must file a surety bond in the amount of ten thousand dollars ($10,000). Each licensed processor having sold more than one hundred thousand dollars ($100,000) of hemp plant must file a hemp surety bond in the amount of twenty thousand dollars ($20,000). The Ohio hemp processor bond must be executed by a corporate surety company that is authorized to do business in the state. The Department may make a claim against the surety bond only upon a suspension, revocation, or insolvency of a licensed processor for the purpose of repaying the processor's obligations to creditors that are licensed cultivators. The code does NOT allow forfeiture of the surety bond but rather only the amount equal to the claims made by licensed cultivators. The obligation is continuous in nature and non-cumulative as stated expressly in the statute. The hemp bond is cancelable subject to a notice period of thirty (30) days notice to the processor and to the Department.
Ohio allows hemp crops for the purposes of harvesting fiber, seed and metabolite extraction. The application process is online. Per the Department, "The Ohio Department of Agriculture Hemp Program will accept applications for the 2021 growing season beginning Monday, November 9, 2020 through Friday, April 9, 2021. New applicants and renewals can apply at the hemp licensing portal on ODA’s website. All current licensees must also complete the annual update form by April 9, 2021." Inquires may be directed to:
Ohio Department of Agriculture
Applying for an Ohio hemp processor bond should be accomplished through a surety bond underwriter with knowledge and experience in the agricultural sector and more specifically cannabis and/or hemp operators. Ohio surety bond leader, Surety One, Inc. offers both the surety and fidelity bonds needed by farm trade professionals and hemp operators in every state where required by law. Questions about an industrial hemp bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat. Industrial hemp and CBD product legalization is creating new economic opportunities for farmers and agricultural product intermediaries. We are available to help you understand the Ohio hemp processor bond process.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.