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The U.S. Department of Agriculture (USDA) announced on Thursday that it will be temporarily delaying enforcement of two provisions of its hemp regulations.

Hemp producers will not be required to use a laboratory registered with the Drug Enforcement Administration (DEA) to conduct potency tests on their crops, at least for now. And for the time being, they won’t have to dispose of so-called “hot hemp” containing excess THC through DEA or a law enforcement body.

“Because currently there isn’t sufficient capacity in the United States for the testing and disposal of non-compliant hemp plants, USDA has worked hard to enable flexibility in the requirements in the Interim Final Rule for those issues,” USDA Under Secretary for Marketing and Regulatory Programs Greg Ibach said in a press release announcing the enforcement decision.

These changes come in response to feedback from industry stakeholders, who argued that the policies included in USDA’s interim final rule on hemp would prove cost prohibitive for farmers and inhibit the growth of the market since the crop was federally legalized under the 2018 Farm Bill.

USDA received significant feedback from lawmakers and hemp interests during a public comment period that ended last month. The department said earlier this month that it was open to making certain changes based on those responses, but it also said certain proposed changes—such as increasing the threshold of allowable THC in hemp—are statutory matters that it cannot revise on its own.

A follow-up comment period will launch after this current planting season, USDA said.

In the meantime, the laboratory testing and disposal requirements are being delayed until October 31, 2021, or until a final rule is released. USDA said the delay will “serve as a temporary measure to allow a smooth transition into regular enforcement” and give DEA enough time to increase “registered analytical lab capacity.”

I applaud @USDA_AMS Under Secretary Greg Ibach and his team for releasing two new updates to federal rules for hemp production. Updates at the link, and my statement below. #KyAg365@USDA@NASDANewshttps://t.co/qllLNaigyGpic.twitter.com/d7WujpdtHG

— Commissioner Quarles (@KYAgCommish) February 27, 2020


“Through these conversations, we have learned that these provisions will serve as a significant hindrance to the growth of a domestic hemp market at this nascent stage,” USDA said. “For instance, we now better understand how the limited number of DEA-registered labs will hinder testing and better understand the associated costs with disposing of product that contains over 0.3 percent THC could make entering the hemp market too risky.”

“Because USDA is exercising its enforcement discretion to adopt a temporary policy of non-enforcement for producers who—due to the dearth of registered laboratories and limited access to reverse distributors or law enforcement disposal—are unable to comply with the testing and disposal procedures promulgated through the [interim final rule], we believe that this guidance is a statement of agency policy not subject to the notice and comment requirements,” the notice states.

Hemp will still have to be tested, and it must be disposed if it contains too much THC, but processors will be able to use other facilities and methods and still be in compliance.

The department stressed that laboratories that aren’t registered with DEA will have to “adhere to the standards of performance as outlined within the [interim final rule].” For example, they must test “total THC employing post-decarboxylation or other similarly reliable methods” and “make arrangements to be compliant with registration requirements before this period of delayed enforcement expires.” DEA will review applications from laboratories who wish to participate.

USDA also included a guideline for compliant, alternative disposal methods. The department’s intent is “that these methods allow producers to apply common on-farm practices as a means of disposal while rendering the controlled substance non-retrievable or non-ingestible,” it said. A list of alternative disposal options include burning, composting and burying hemp.

It added that the department will “conduct random audits of licensees to verify hemp is being produced in accordance with” regulations.

“One of the top considerations in making these changes was the desire to provide additional options that minimize, to the extent possible, the resource impact to state and local law enforcement in handling hemp that is out of compliance,” Ibach said. “We look forward to partnering with producers, states, tribes and other stakeholders to deliver regulations that work for everyone.”

The new announcement could help clear up some confusion about comments that Ibach made at an agriculture policy conference on Wednesday. According to the advocacy group Vote Hemp, there has been misreporting that suggested the official said the provision requiring DEA-registered labs to test hemp was being eliminated.


A recording of the discussion that Vote Hemp released shows that the undersecretary said enforcement of the provision would simply be delayed for the current planting season.

While USDA is still in the process of developing rules for the crop, it has started accepting state regulatory plans for hemp. Wyoming and Washington State became the latest to have their proposals approved. Previously, USDA accepted regulations from Texas, Nebraska, Delaware, Louisiana, New Jersey and Ohio, as well as several tribal plans.

Meanwhile, at the same agriculture conference that Ibach spoke at, the commissioner of the Food and Drug Administration admitted that it would be “a fool’s game” to try to keep hemp-derived CBD products off the market.

Number Of Banks Reporting Cannabis Business Clients Dips After Hemp Rules Change

Photo courtesy of Pixabay.

 
 
 

Mitch McConnell is all about hemp.

The Republican Senate majority leader has already successfully legalized the plant through last year’s Farm Bill, pushed for hemp crop insurance provisions in disaster aid legislation and passed a resolution commemorating Hemp History Week last month.

And now he’s personally leading the U.S. agriculture secretary on a tour of hemp facilities in his home state of Kentucky.

Sonny Perdue, who heads the U.S. Department of Agriculture (USDA), accompanied McConnell on a visit to the Commonwealth Extracts facility in Louisville on Tuesday, where the officials got a chance to see hemp-derived CBD products up close.

@senatemajldr, @KYAgCommish and @SecretarySonny discuss the future of hemp in the Commonwealth. pic.twitter.com/xTGjmSVV2s

— Kentucky NRCS (@NRCS_KY) July 3, 2019


Calling the hemp industry “already a terrific business,” McConnell said that the government is in the “final stages of getting us where we need to be” in terms of regulations.

“If you’re a football fan,” he said, “we’re in the red zone.”

But he did point out one ongoing issue: Hemp businesses’ access to financial services like bank accounts and credit.

“The big banks, related to credit cards, need to be convinced, and we hope to explain it to them,” he said. “The law is pretty clear. This is a legal product.”

Perdue agreed, noting that hemp is often “conflated with its illegal cousin” marijuana.  “The financial industry has to accept that this is legal crop,” he said.

.@UKAgriculture is the brain trust of the hemp industry. Hemp is an interesting burgeoning industry with a lot of opportunities & a lot of challenges — that’s why it’s important to get out & listen to the folks of KY ag. Appreciate Dean Cox hosting this important hemp roundtable. pic.twitter.com/jB9UMjitIJ

— Sec. Sonny Perdue (@SecretarySonny) July 2, 2019


The agriculture secretary gave McConnell credit for having “created a lot of interest all across the country in this product and in this crop.”

“We are hopeful it will be the real bonanza in so many products,” he said.

Accompanying McConnell and Perdue on the tour—which also stopped at the University of Kentucky’s hemp farm—was state Agriculture Commissioner Ryan Quarles.

It is a true honor to join @SenateMajLdr to show @SecretarySonny around Kentucky’s thriving ag industry. We started off this morning with a tour of a Jefferson County hemp processor. Kentucky hemp processors reported $57 M in gross product sales last year. #KyAg365pic.twitter.com/EsbswMa3bZ

— Commissioner Quarles (@KYAgCommish) July 2, 2019


The majority leader, for his part, said that the growth of the hemp industry “reminds me of where tobacco was when I went to the Senate.”

Contrasting declining workforce numbers in Kentucky’s tobacco industry, he said that “there are a lot of young farmers and processors here who are excited about [hemp], and we’re glad to be in the lead.”

And by checking out the groundbreaking hemp research being done by @UKAgriculture. #KyAg365 (3/4) pic.twitter.com/IjlED6EDgl

— Commissioner Quarles (@KYAgCommish) July 2, 2019


McConnell demurred when asked by a reporter if broader marijuana legalization is inevitable.

Perdue said he was glad to hear from hemp industry participants about “the challenges and opportunities in this burgeoning crop,” noting that in addition to financial services access problems, businesses also face “logistical issues over moving product back and forth.”

“This is not a controlled substance,” he said, noting that some hemp crops have been seized by local law enforcement officials who thought they were interdicting marijuana. “We’ve got some education for public servants across the country who think they’re doing their jobs.”

While Perdue previously said his department won’t rush hemp implementation despite a desire from McConnell and other lawmakers to get state programs up and running around the country, USDA is planning for national rules to come online in time for the 2020 planting season and last week quietly announced it intends to issue a final interim rule on the Farm Bill’s hemp provisions next month.

.@senatemajldr@KYAgCommish and @SecretarySonny are in Louisville discussing the final stages of getting hemp where it needs to be after legalization pic.twitter.com/76uZ1zzdrx

— Spectrum News 1 Kentucky (@SpectrumNews1KY) July 2, 2019


USDA has also begun accepting applications for hemp intellectual property protections and clarified that farmers can import hemp seeds from other countries. And in May, the department issued a memo ruling that states cannot block legal hemp shipments from crossing their borders, even if they do not allow cultivation of the crop.

Meanwhile, McConnell—who used a hemp pen to sign off on the official version of the Farm Bill last year—has made his successful fight to legalize the crop a centerpiece of his 2020 reelection campaign.

He is also pressing the Food and Drug Administration to swiftly enact regulations allowing the use of hemp-derived CBD in food products and dietary supplements.

This piece was first published by Forbes.

Photo courtesy of U.S. Department of Agriculture.

 
 
 

Senate Majority Leader Mitch McConnell (R-KY) said on Monday that he’s open to passing additional hemp legislation to resolve any “glitches” as the U.S. Department of Agriculture (USDA) develops regulations around the newly legal crop.

The senator made the remarks at a hemp panel in Kentucky, where he and the state’s agriculture commissioner discussed the rollout of hemp legalization under the 2018 Farm Bill. Agriculture Secretary Sonny Perdue also spoke at the event via a video stream.

“Hemp has a remarkable history in the Bluegrass State,” McConnell said in a press release. “Forums like this allow hemp growers, processors and interested parties to engage with federal agencies as they move forward with guidance that pave the way for the full realization of hemp’s potential in an open marketplace.”

What an honor it is for us to host @USDA_AMS Under Secretary Greg Ibach and Risk Management Agency Administrator Martin Barbre for a forum with Kentucky’s hemp community. The fact they chose KY for the first stop to learn about hemp underscores that we are a national leader. pic.twitter.com/7PLfOnyVmn

— Commissioner Quarles (@KYAgCommish) April 8, 2019


According to the Courier-Journal, the senate leader also talked about potential legislation to address problems that have emerged since hemp and its derivatives were federally legalized late last year. Specifically, he said it was important to clarify the rules governing interstate shipment of hemp products, which has led to some arrests after police mistook hemp for marijuana.

“We’re in the red zone, but there are some glitches,” he said. “Some of it may require legislation. If it does, I’ll be there to do it.”

McConnell and Sen. Ron Wyden (D-OR) sent a letter to the head of USDA in February, raising similar concerns. In the letter, the senators emphasized the need to “expeditiously” develop a regulatory framework for hemp that provides for the lawful interstate shipment of the crop as well as banking access for hemp businesses.

The banking issue also came up in a separate letter that the bipartisan pair sent to federal financial regulators last week.

.@senatemajldr Mitch McConnell & @KYAgCommish Ryan Quarles host @USDA officials at #Kentucky#hemp event to update and hear directly from Kentucky hemp farmers, processors and manufacturers #kyag365#kyproud#HEMPPEN!!!! https://t.co/mHXfh6xL4Cpic.twitter.com/iKoOlLfAXk

— Senator McConnell Press (@McConnellPress) April 8, 2019


While hemp is legal, the USDA must still enact regulations before the industry reaches its full potential. Questions remain as to what’s permissible and what’s restricted for hemp cultivators and product manufacturers under the Farm Bill, and that’s not limited to USDA operations. The Food and Drug Administration (FDA) is also exploring regulatory options for hemp-derived CBD, which is another area of serious interest among retailers and distributors.

Great to have the ag community weigh in as we move forward on hemp production and regulations. For more info, check out the 2018 Farm Bill Webinar on the Domestic Hemp Production Program: https://t.co/0L8G5EMkswhttps://t.co/MrzsUvwnbC

— USDA Ag Mktg Service (@USDA_AMS) April 8, 2019


On several occasions, outgoing FDA Commissioner Scott Gottlieb has indicated that Congress may have to pass separate legislation in order for CBD to be allowed in the food supply or as dietary supplements. It’s not clear if McConnell is actively considering introducing any bills to that end, however.

“Leader McConnell and [Kentucky Agriculture Commissioner Ryan Quarles] understand the importance of this growing crop in our broader farm economy and I’ve been clear about the need to establish the regulatory framework for future certainty and opportunity in the production of industrial hemp,” Perdue said in a press release. “Listening sessions like this are very helpful in assisting our staff to gain a better understanding of your needs as we develop rules in accordance with the mandates in the 2018 Farm Bill.”

U.S. Senators Push Federal Bank Regulators To Clarify Rules For Hemp Businesses

Photo courtesy of Senate Majority Leader Mitch McConnell.

 
 
 

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