Arizona is the latest state to allow farmers to grow industrial hemp.

Gov. Doug Ducey on Monday signed legislation that funds a pilot program for growing hemp. The fiber form of marijuana can be used to create a variety of products like building materials, food, paper, and textiles.

Ducey's office says at least 34 states have passed legislation related to industrial hemp, and that the product will benefit Arizona's economy.

The new law says hemp grown here cannot contain more than .3 percent THC, which is the psychoactive element of marijuana.

Growers, harvesters, processors, and transporters will be required to get a license from the state agriculture department. The legislation also spells out penalties for anyone who violates the licensing requirements.