At the invitation of USDA Secretary Vilsack (right), NIHC joined a stakeholder call on Monday to discuss issues of interest to U.S. Agriculture Trade. The call included an update from the Secretary on his recent meetings at the G-20 Agriculture Ministers’ meeting in Italy last month and the Biden Administration’s goals for trade with China. The Secretary also previewed some of his goals are for the upcoming COP-26 meetings in November.

As a government cooperator through USDA’s Market Access Program (MAP), it’s important for the NIHC to be on these calls and hear updates directly from the Secretary as we begin to promote American hemp in the global marketplace. NIHC is following up with USDA to get answers to some of the most important questions facing the hemp industry on regulatory oversight and standardization as hemp emerges as an American agricultural commodity.

Currently, 25 percent of the world’s hemp cultivation occurs in Europe with the French leading with 40% of that cultivation, followed by the Netherlands, Lithuania, and Romania. In total, 20 different countries are cultivating hemp on the European continent. As popular as cannabinol (CBD) is, hemp is mainly being cultivated by the Europeans for industrial applications including paper, pulp, and bio composites for auto manufacturing. Hemp shivs also have long-established commercial uses in Europe for animal bedding and the manufacturing of construction materials – mainly insulation.

A change in public opinion throughout Europe has led to a widespread acceptance of appropriate regulatory guidelines for cannabidiol in Europe. It’s now widely accepted that the hemp processing sector will undergo significant expansion and ownership consolidation, but the latter may still be several years off. If true, that means a significant expansion in the industrial uses of hemp in the European market can be met with U.S. grown hemp and U.S. led companies.

But without regulatory certainty coming from Washington, U.S. farmers could be at a competitive disadvantage when it comes to competing on the world stage if Europe finds other sources for raw material to meet its growing demand for hemp and hemp-derived products. That is why NIHC is continuously advocating on behalf of the entire hemp industry.

Please Join Us!

We welcome you to join us at the next NIHC Trade and Marketing Committee Meeting on Wednesday, October 13th at 1:00 pm EST, especially if you have an interest in the development of domestic and international trade in the hemp industry. Click here to add this committee meeting to your calendar.

The committee is also looking forward to meeting in person at the NIHC Hemp Business Summit in NovemberClick here to register and see a list of speakers at what promises to be one of the most informative events in the hemp industry this year.

If you would like to receive updates and invites from NIHC on trade and marketing, please email Grace Johnson, NIHC Director of Government and Industry Affairs, at gjohnson@hempindustrial.com. For questions on trade development, please contact Kevin Latner at klatner@hempindustrial.com.

NIHC: “The safety profile of Delta-8 THC products is questionable”

 

WASHINGTON – Last week, the National Industrial Hemp Council (NIHC) met with over 20 state regulators at the National Association of State Departments of Agriculture (NASDA) conference on what is working and not working in their state hemp programs. We repeatedly heard their deep concerns about the impact of delta-8 tetrahydrocannabinol (Delta-8 THC) on public health, and the need to revise the Federal definition of hemp.

In light of those meetings, and after statements of similar concerns recently made by the Food and Drug Administration (FDA) and the Centers for Disease Control (CDC), NIHC issues its position on Delta-8 THC:

“NIHC continues to believe that consumer safety is paramount for all products in the hemp market.  The safety profile of Delta-8 THC products is questionable, and we believe that they should not be sold or marketed as hemp-derived products.

“The clearest pathway to protect consumer safety and create a hemp economy that works for everyone is to revise the federal definition of hemp to include all tetrahydrocannabinols, as recommended by NASDA with the bipartisan support of 45 states, and as broadly supported by stakeholders throughout the industry, regulatory officials, and in both chambers and parties on Capitol Hill.  Such a clarification in statute would unequivocally prevent the sale of products containing unsafe concentrations of Delta-8 THC as hemp.

“Delta-8 THC has flooded the market because of the lack of regulatory certainty from the FDA on cannabidiol and other hemp-derived products. Along with Congress changing the statutory definition of hemp to one percent total THC, the FDA can do its part to protect consumer safety by making clear guidelines for hemp-derived products as Congress intended in the 2018 Farm Bill.”

The NIHC Government Affairs committee continues to have conversations and look at more intricate policy solutions on Delta-8 THC. The committee will release more details in the coming weeks. In the meantime, the mid-November Hemp Business Summit in Washington, D.C. offers opportunities for NIHC members, industry stakeholders, and regulators to actively engage with each other in person on how to regulate Delta-8 THC.

About the National Industrial Hemp Council: The National Industrial Hemp Council provides high-quality networking and resources for its members, from farm to consumer. Its leadership is composed of leading international, federal, state, private industry, and government professionals throughout the sector. The organization is dedicated to furthering market development, assisting members in entering the industry, and educating consumers on industrial hemp and its applications. For more information please go to www.hempindustrial.com.

Louisville, KY – The National Industrial Hemp Council (NIHC) this week has been convening a series of discussions with state regulators alongside the annual meeting of the National Association of State Departments of Agriculture (NASDA).

The purpose of the meetings has been to obtain feedback from state regulators on the individual hemp programs they administer in order to find out what’s working and what’s not with regard to the 2014 Farm Bill hemp pilot program authorities and the 2018 Farm Bill authorities as implemented by the USDA Final Rule on hemp production. U.S. Senate Agriculture Committee staff requested such input as their work gets underway to develop the next Farm Bill towards anticipated enactment in 2023.

“The one phrase we’ve been hearing throughout the week has been ‘regulatory inconsistency’,” said Government Affairs Co-Chairs Herrick Fox, CEO and Founder of Meristem Farms (VT) and Graham Owens, President of Delta Agriculture (TX) who have been leading these conversations at NASDA. “States are frustrated by continuing inaction by FDA and the costs, logistics and technical challenges of implementing hemp programs under the USDA Rule. We’re hearing valuable feedback that we believe will help Congress write and pass a farm bill that will create a hemp economy that works for everyone.”

Thus far, NIHC staff and the Government Affairs Committee has met with regulators from Wisconsin, Alaska, Virginia, Florida, West Virginia, Pennsylvania, New Mexico, Colorado and Kentucky. There are more meetings scheduled to be taking place throughout the week.

At its Hemp Business Summit in Washington, D.C. in November, NIHC will offer more opportunities, bringing members, industry stakeholders and regulators together to engage with each other to continue these discussions.

For more information about NIHC’s participation at NASDA, including interview requests, please contact Larry Farnsworth at lfarnsworth@hempindustrial.com.

About the National Industrial Hemp Council: The National Industrial Hemp Council provides high-quality networking and resources for its members, from farm to consumer. Its leadership is composed of leading international, federal, state, private industry, and government professionals throughout the sector. The organization is dedicated to furthering market development, assisting members in entering the industry, and educating consumers on industrial hemp and its applications. For more information please go to www.hempindustrial.com.

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NIHC continues our work to serve as a credible resource to government officials in developing sound, common-sense regulations of America’s hemp economy. As part of those efforts, we have continued to engage the U.S. Senate Committee on Agriculture on a range of issues that have the potential to be included in 2023 farm bill development and negotiations anticipated to begin as early as this fall.

Relating to this, and to language in FY22 Appropriations bill extending 2014 Farm Bill authorities for another year through 2022, NIHC has been asked by Senate Ag committee staff to solicit feedback and comments from state regulators. This will help them compile the comments on what is and isn’t working in their state hemp plans under the 2014 pilot authority and the 2018 authority, as implemented by the USDA Final Rule.

On September 18, NIHC staff and members of our Government Affairs committee will be attending the annual meeting of the National Association of State Departments of Agriculture (NASDA) in Louisville, Kentucky. At NASDA’s meeting, NIHC will have a breakout room available to us to meet with individual states to hear their concerns and discuss proposed solutions. After NASDA’s annual meeting, NIHC will compile comments from state regulators and deliver them to Senate Ag committee staff.

This is a value-add to the hemp industry as a whole and NIHC is proud to lead these efforts and be your voice to the Senate Ag Committee, NASDA and the states that we believe will deliver workable solutions that will create a hemp economy that works for everyone.

If you plan to be at the NASDA meeting and would like to meet with NIHC to discuss how hemp is being regulated in your state, please contact Grace Johnson at gjohnson@hempindustrial.com so we can deliver your feedback to Washington and make sure your voice is heard on Capitol Hill.

This week, NIHC submitted comments to Senate Majority Leader Chuck Schumer (D-NY), Senators Corey Booker (D-NJ) and Ron Wyden (D-OR) and the Senate Finance Committee on the 2021 draft of the Cannabis Administration and Opportunity Act (CAOA).

As part of their efforts to put together substantive and meaningful legislation, the sponsoring offices put out the draft to solicit feedback from the stakeholder community. As we’ve previously seen with the hemp industry, the policy making process can be nuanced and difficult. While this step to gather feedback wasn’t necessary on the part of the bill’s authors, we value their approach and both believe and hope that it will help make for a more comprehensive piece of legislation to be officially introduced.

This draft legislation, designed to overhaul the nation’s cannabis laws, has many provisions that address industrial hemp. NIHC provided feedback through our government affairs committee. Our feedback included the following suggestions to the sponsoring offices:

  1. Rather than vesting authority for licensing cannabis cultivation in the Treasury Department, NIHC encourages the Sponsoring Offices to consider vesting this authority in the Department of Agriculture, while reserving the involvement of Treasury, Justice and FDA for taxation and public health and safety when cannabis products enter the marketplace, as is routine with tobacco, wine grapes, etc.
  2. The bill should revise the Federal definition of hemp by specifying the threshold in terms that are complementary to what it provides for cannabis, with a threshold of one percent total concentration of tetrahydrocannabinols rather than the current parameter of 0.3 percent for only delta-9 THC.
  3. The provisions relating to cannabidiol (CBD) should reflect the approach taken in Senator Wyden’s own S. 1698, by allowing all hemp-derived products, including CBD, as both food and supplement. The draft legislation proposes to allow only CBD, with no provision for other hemp-derived products that are not intoxicating or otherwise subject to abuse, and would allow CBD only as supplements, and not as food.
  4. The tax structure proposed in the bill is too onerous and severely disadvantages small and minority-owned businesses, which will promote rather than reduce illicit production.

Though NIHC identifies several specific issues requiring careful further attention, and do not doubt that our colleagues in the high-THC cannabis industry do so as well, we believe this draft covers most, if not all, pertinent issues that Federal regulation of cannabis will have to address. As you know, our organization does not engage in high-THC cannabis, but we believe that our industry’s experience in the Federal regulation of hemp to date is replete with lessons learned that will be of great value as Congress and stakeholders chart a course for the future of cannabis regulation in our country.

As for next steps, the sponsoring offices will now review the feedback they’ve no doubt received from numerous stakeholders, and the timetable for official introduction of legislation remains in their hands. Until then, NIHC will continue to engage with Capitol Hill to advocate for our positions that we believe will be most beneficial to our members and the hemp industry.

To read our press release and full comments on the Cannabis Administration and Opportunity Act, please click here.

Watch the announcement of the legislation here.

WASHINGTON – The National Industrial Hemp Council today submitted comments to Senator Cory Booker (D-NJ); U.S. Senate Finance Committee Chairman Ron Wyden (D-OR); and Senate Majority Leader Chuck  Schumer (D-NY) on their proposed draft of the Cannabis Administration and Opportunity Act (CAOA).

“NIHC appreciates Majority Leader Schumer, Chairman Wyden and Senator Booker for their thoughtful and forthright outreach on the CAOA,” said NIHC President and CEO Patrick Atagi. “Though we believe the bill requires further work and revision in several key respects, this proposal is among the most comprehensive and far-reaching treatments of Federal cannabis legalization to date and the sponsoring offices have gone above and beyond to solicit feedback on this important and complex policy issue.”

The highlights of NIHC’s comments to Senator Booker, Chairman Wyden and Majority Leader Schumer are:

  1. Rather than vesting authority for licensing cannabis cultivation in the Treasury Department, NIHC encourages the Sponsoring Offices to consider vesting this authority in the Department of Agriculture instead, while reserving the involvement of Treasury, Justice and FDA for taxation and public health and safety when cannabis products enter the marketplace, as with tobacco, wine grapes, etc.
  2. The bill should revise the Federal definition of hemp by specifying the threshold in terms that are complementary to what it provides for cannabis, with a threshold of one percent total concentration of tetrahydrocannabinols rather than the current parameter of 0.3 percent for only delta-9 THC.
  3. The provisions relating to cannabidiol (CBD) should reflect the approach taken in Senator Wyden’s own S. 1698, by allowing all hemp-derived products, including CBD, as both food and supplement.  The draft legislation which proposes to allow only CBD, with no provision for other hemp-derived products that are not intoxicating or otherwise subject to abuse, and would allow CBD only as supplements and not as food.
  4. The tax structure proposed in the bill is too onerous and severely disadvantages small and minority-owned businesses, which will promote rather than reduce illicit production.

“Though NIHC identifies several specific issues requiring careful further attention, and do not doubt that our colleagues in the high-THC cannabis industry do so as well, we believe this draft covers most if not all pertinent issues that Federal regulation of cannabis will have to address,” Atagi continued. “Though our organization does not engage in high-THC cannabis, we believe that our industry’s experience in the Federal regulation of hemp to date is replete with lessons learned that will be of great value as Congress and stakeholders chart a course to the future of cannabis regulation in our country.”

You can read NIHC’s full comments to the sponsoring offices of the Cannabis Administration and Opportunity Act below.

 

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Products Added to the Oregon Guide List for Pesticides and Cannabis

The guide list was updated August 3, 2021. The intent of the list is to assist growers in distinguishing those pesticide products whose labels do not legally prohibit use on cannabis (hemp and marijuana) from those that clearly do not allow use. The list is not an endorsement or recommendation to use these products in the production of cannabis or hemp in Oregon.

You can view the guidance from the Oregon Department of Agriculture here.

On August 23, NIHC Staff, along with Government Affairs Committee Chair Rick Fox of Meristem Farms in Vermont, and NIHC Members Delta Ag, Santa Fe Farms, Scotts Miracle Gro and representatives from Oregon State’s Global Hemp Innovation Center (GHIC) met for a substantive discussion on hemp oversight with the USDA Office of Research, Education and Economics (REE). A representative from the National Association of State Departments of Agriculture (NASDA) was able to provide key context on hemp policy at the state level, which NIHC delivered on NASDA’s behalf.

The meeting was in response to a request from USDA as the department moves forward to develop a comprehensive plan to manage its hemp portfolio.

Topics of discussion included the need to: 

  • Develop a whole-of-government approach to systematically developing funding and procurement opportunities for hemp fiber v.v. FY22 appropriations and Infrastructure funding;
  • Implement policies to ensure the competitiveness of U.S. hemp in the global market;
  • Coordinate establishment of regional R&D Centers of Excellence in hemp fiber processing, led by land-grant institutions and HBCUs; and to
  • Ensure implementation of FY22 appropriations provisions directing USDA to review the 0.3% THC threshold, to dual-designate hemp as both commodity crop and specialty crops, to ensure the eligibility of hemp for all funding programs (specifically including those administered by USDA Rural Development), and to carry out the intent of Congress that USDA serve as the government’s primary authority on hemp production, to which other agency policies must align.

Per USDA’s request NIHC will follow up to the Department with a briefing document that elaborates on these priorities with specific actions the Secretary can implement immediately.

By Graham Owens

While Americans have only recently started to notice the increased prices of basic food staples like eggs, poultry, meat and milk, the writing has been on the wall for a long time among our nation’s food suppliers. The winter storm that hit Texas this year wiped out about $600 million in food, not to mention $300 million in long-term livestock losses. All of this is occurring while many Western states and regions – including West Texas – are engulfed in extreme or exceptional drought. Then, there’s also the ongoing global pandemic, which itself has been a stress test for global food supply chains.

These and other factors have collectively wreaked havoc on numerous supply chains and the effects will likely reverberate for years to come. Few are feeling the impact more than the grain market, which is critical to maintaining the livestock Americans depend upon to keep food on their tables and at a reasonably affordable price.

In a struggle to meet demand, many American operators are importing vast quantities of grain. One leading poultry provider was forced to secure more than 30,000 metric tons of Brazilian soybeans in order to feed its livestock. That’s right – Brazil. But aren’t soybeans a staple American crop? Historically yes: U.S.-grown soybeans typically account for over 40% of the world’s exports – which is why this illustration speaks volumes about the scarcity facing our nation’s farmers.

Although the feed shortage is a global problem not unique to the United States, our nation is uniquely situated to be a leader in solving the problem. And that solution can be found in the hemp plant – which ironically enough was illegal to grow in the U.S. until very recently.

Hemp has all of the nutritional traits of other grains used for animal feed – and then some. It is richer in nutrients than many compounds consumed by our livestock, which is why you’ll find hemp-based nutritional supplements in just about any grocery store. Hemp feed is high in protein, contains high amounts of omega-3 and omega-6 fatty acids, and it can be made into different forms of animal feed, including grains, cake, and meal. Several studies show that animals’ health improved when fed hemp-based diets.

Yet, despite hemp’s known nutritional value, despite the fact that its legal for human consumption, and despite the progress that has been made to reform laws surrounding hemp production, it remains forbidden as an ingredient in livestock feed because the Center for Veterinary Medicine (CVM), a branch of the U.S. Food and Drug Administration (FDA), has been slow to approve hemp for livestock purposes.

With hemp’s change in legal status ought to come a more concerted effort to use hemp to address the global livestock feed shortage. It is projected that there will be 201 million pounds of excess biomass in the supply chain prior to the 2021 planting season. On top of that, the FDA actually has rule-making power to issue an emergency declaration that would allow for hemp-derived animal feed until a longer term regulatory solution is finalized. The solution to the shortage is right in front of us and we can be tapped almost immediately.

That is why Delta Agriculture is leading an effort alongside industry leaders as part of the newly formed National Feed Consortium to urge policymakers to encourage hemp-based feed production in the United States, especially in the short term to address the global feed shortage. Doing so would not only provide much needed relief to American farmers struggling to feed their livestock, it would create jobs, support American hemp farmers, and also support American consumers by keeping the costs of food down. It’s a win-win-win-win solution.

Further, gaining federal approval for hemp to be used as animal feed would also provide researchers the much-needed real opportunities to study hemp feed’s effects on livestock and pave the way to potentially opening up a vibrant industry to U.S. farmers and feed producers.

U.S. policymakers must position our farmers as leaders in the production of hemp – our nation’s food suppliers and family pocketbooks will depend on it.

Graham Owens is President of Delta Agriculture, the largest industrial scale hemp raw goods producer in the United States.

Photo Courtesy of Delta Agriculture.

The National Industrial Hemp Council (NIHC) has been busy throughout the year planning for our annual meeting. We are also forging ahead with our long-term strategies that aim to put hemp farmers and those doing business in the hemp industry in a better position to be successful. Additionally, we are working to remove barriers for those seeking to enter the market.

We have so much to share, and these snippets that you read about in our weekly newsletter are the tip of the iceberg of the great work that NIHC is doing.

At our annual meeting in Washington, D.C. on November 14-16, you’ll hear in more detail from thought leaders in the hemp industry – some of whom are your colleagues in membership with NIHC – about the exciting initiatives we have planned for the rest of 2021 and into 2022. Whether you’re interested in our state, federal or international work, promoting the brand of hemp, learning the ins and outs of hemp financing, promoting consumer safety or just entering the industry, there is plenty to learn at NIHC’s 2021 Hemp Business Summit.

If you’re interested specifically in policy, you’ll receive a detailed update on policy from our government affairs committee. If you’re interested in learning more about how to better promote the brand of hemp, you’ll want to hear about how you can become involved and help lead the effort to form a hemp checkoff program task-force. If you are interested in learning about the financial sector, you will learn more on this, as well.

In fact, recently, there was a memo circulated from the Farm Credit Administration (FCA) that gives lending guidance to financial institutions dealing with hemp. The memo created some questions and potentially provides opportunities. That’s why we’re particularly excited about the panel discussion shaping up on hemp financing. You’ll hear from the CEO of the largest farm credit association and a panel of lending experts that can answer your questions as you navigate the regulatory challenges of financing your farm and hemp business

If you’re on the consumer facing side of hemp, we will be announcing some big “breaking news” for the hemp industry that we believe will boost consumer confidence and help set the standard for consumer safety by making it easier to sell your products either at your brick-and-mortar location or online platform.

We will also be sharing exciting progress about our international program and our partnership with USDA as a government cooperator. The efforts by NIHC on the international front aren’t just an opportunity to expand your customer base and open markets overseas, but they’re a chance to provide your input on how to reduce non-tariff trade barriers and make it easier for U.S. farmers to access these international markets.

You’ll want to be to here in D.C. for all of these exciting developments, as well as spending time meeting and networking with fellow NIHC members.

As the event inches closer and the agenda grows even more robust, you’ll want to keep an eye on your inbox for updates. After over a year without in-person meetings, we’re so excited and we can’t wait to see you in person.

To conclude, when we last published our newsletter, we shared a piece from NIHC Chief Economist Beau Whitney on the setbacks the hemp industry has faced since the 2018 farm bill, particularly as other commodities have continued to succeed. He predicted that there will be 201 million tons of excess hemp biomass in the market at the beginning of the 2021 harvest season.

So, we hope you’ll find intriguing the piece below from Delta Ag – one of NIHC’s newest members – where their President Graham Owens provides a unique perspective on an emergency use declaration to utilize some of the biomass, which will boost the U.S. food supply and benefit American hemp farmers.