Two farmers on Hawaii island and one on Kauai are the first approved growers of industrial hemp under a state-sanctioned pilot project to determine if Hawaii can be a viable commercial producer of the versatile crop.

The state Department of Agriculture said on Friday that it issued licenses to three farmers so far, after soliciting applications in April.

The department said it has received about a dozen applications to date and plans to issue licenses to qualified applicants quarterly.

Each license is valid for two years and costs $250 annually plus $2 per acre. There also is a $500 application fee.

The three farmers are Gail Baber and Thomas Pace on Hawaii island and Raymond Maki on Kauai. Each plans to grow hemp on 10 acres.

Under the program, crops will be inspected and sampled for testing. Growers also must report production information that includes water use, pest management, labor, marketing, security and other costs.

The state’s industrial hemp project is the product of a law passed by the Legislature two years ago. About 38 states already allow or are proposing to allow industrial hemp cultivation, according to the Agriculture Department.

Initial harvests are expected in three to six months.

“With this new agricultural crop, the program aims to monitor and assess the best methods of cultivation in Hawaii’s growing conditions,” Scott Enright, Agriculture Department director, said in a statement. “The program will also follow the crop from seed to the development, manufacturing and marketing of hemp products.”

Gov. David Ige said in a statement that the licensed growers will help demonstrate industry potential locally. “We look forward to the entrepreneurial spirit that will help to invigorate and strengthen agriculture across the state,” he said.

More information about the program is available at hdoa.hawaii.gov/hemp.