USDA Releases First Public Draft Regulation for Hemp

The United States Department of Agriculture (USDA) issued an Interim Final Rule, with a request for public comment, titled, the “Establishment of a Domestic Hemp Production Program” (Interim Rule). The Interim Rule is the first rule to establish a national hemp regulatory program after the 2018 Farm Bill. The 2018 Farm Bill removed hemp from the Schedule I controlled substances list and directed the USDA to draft rules to regulate the nationwide production of hemp.
 
States are encouraged by the USDA to submit their own, potentially more restrictive, hemp programs. Generally, the Interim Rule details the following requirements for these state hemp programs:

• Collection of data for land used to produce hemp;
• Procedures for sampling and testing of THC levels;
• Procedures for disposal of non-compliant crops;
• Compliance and enforcement measures;
• Information sharing; and
• Resource sufficiency certifications.

 
The Interim Rule also makes a series of other clarifications for states on issues such as the interstate transportation of hemp, and the expiration of existing state programs.
 
Critics argue the patchwork of state rules could potentially limit growth of the hemp industry, given a lack of a uniform national standard on certain complex issues.  However, experts predict states with larger markets for hemp, such as California and Texas, will set the tone in their own regulatory programs on these issues. States with smaller markets are expected to follow in their footsteps. The Interim Rule, effective immediately, is subject to a 60-day public comment period, after which changes are likely to occur.
 
Additional information:
 
https://www.ams.usda.gov/sites/default/files/media/AMS_SC_19_0042_IR.pdf.
https://www.lexology.com/library/detail.aspx?g=349f1ece-0f69-40ff-bc73-8e44f861936d.   

If you are interested in regulatory products for this industry, the Isosceles Group provides a number of tools. Please contact Brittany Palmer at 617.330.2800 or bpalmer@theisogroup.com for a customized quote.

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