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Working Together Works

At NIHC, our motto is “Working Together Works.”

We believe that as the hemp industry unites, the power of its potential in the United States, and worldwide, is undeniable. Our work turns that potential to progress, effort by effort, country by country, and state by state. It’s not easy work, but with a global reach, we’re grateful for our members and industry companies who trust us to jointly make the impact needed.

In light of that spirit, we want to recognize those companies who are making our work possible. We would not be successful without partners like FSNS – Food Safety Net Services, our stellar 2021 Annual Sponsor, and our amazing 2021 Hemp Business Summit Sponsors, who have joined with us and currently include Gordon Rees Scully Mansukhani, LLP,  Beveridge & Diamond PC and Vicente Sederberg LLP.
 


There is room for you! We welcome forward thinking companies who want to join our efforts to advance U.S. Industrial Hemp!

Download our Sponsorships for the upcoming Summit here.

REGISTER NOW TO GET YOUR SPOT – THIS EVENT WILL SELL OUT!

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Change and Patience

As someone in the hemp industry, you know that change doesn’t come easy.

Our industry fought long and hard to ensure that Americans had an opportunity to grow, process, sell and buy hemp-derived materials. Since the passage of the 2018 Farm Bill, the hemp industry continues to mature and innovate.

At NIHC, we’re helping to lead that maturation of the hemp industry through numerous initiatives. Facilitated by staff, board members, experts, our members, trusted partners, consultants and contributors who have aligned with our mission – NIHC is working to move industrial hemp forward into becoming the valuable commodity crop we all know it has the potential to be.

Part of work includes an immediate focus on a variety of legislative initiatives. Our NIHC government affairs committee and leadership are working diligently every day, meeting with lawmakers, regulators and industry stakeholders. We’re working to provide input in legislative language when asked and we’re briefing and updating the agencies that oversee our industry, including USDA and FDA.

But the value-add for the entire industry is more than just our work in hemp policy. Through our participation in the USDA’s Market Access Program (MAP) we’re educating international suppliers and customers in the global marketplace on American industrial hemp. What that means is if you’re in the hemp industry, you will be able to have access to international marketing and promotional opportunities, including but not limited to trade missions that will allow you to share your technical expertise about the U.S. Hemp industry with foreign negotiators.

We’re still working on a domestic checkoff program that will fund key industry research, consumer education initiatives, and promotion of hemp-derived products that will benefit everyone in the hemp industry.

Lastly, we’ve been busy at work exploring standards and certifications and what a program might look like to ensure there is transparency for the products sitting on store shelves. Everything we do at NIHC is rooted in the belief that the consumer has a right to be fully informed and the right to feel safe. We look forward to our standards committee reporting some progress to you soon.

As we look back on this year, we start to realize all that we’re accomplishing, and we’re grateful for your trust in us to represent you as an industry.

In the month of August, NIHC will be scaling back our newsletter to every other week as things slow down a bit. But you will see our updates on NIHC’s 2021 Hemp Business Summit. When we are back in full force in September, we’ll be moving full steam ahead continuing straight into our annual 2021 meeting where we can’t wait to see you and share in more detail all that we are doing.

We hope you have a great end of summer and we look forward to seeing you in the fall – in person.

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Strong Demand for Commodities Slowing Growth in the Hemp Industry

By Beau R. Whitney, NIHC Chief Economist

The growth and expansion of the hemp industry has received some tough setbacks over the past three years. From regulatory uncertainty and an immature infrastructure to the lack of standards and oversupply of CBD biomass, the industry has not seemed to catch a break. This is typical for a nascent industry and there is always a learning curve.

One thing that has seemingly been overlooked by many about the hemp industry is that it is an agricultural-based industry and is subject to the whims of mother nature. Even though there are regulatory and business dynamics, it is still a crop that is influenced not only by other ag industries, but also the sun and the rain.

The influence of pandemic, economic and environmental factors.
The pace of growth has been influenced by many factors outside of the business and regulatory environments and these factors have showed signs of slowing the growth of the industry. The true extent of this will not be quantified until this fall once more of our research on licenses, supply and operator sentiment has been completed.

The COVID-19 impact on commodity prices.
The COVID-19 period created some head winds when it came to the perception about hemp investment. While higher THC cannabis was given essential business designations, hemp was not so lucky. Without essential status, hemp operators struggled to get the word out. Investment into the hemp industry slowed, as did access to retail channels. Hemp product manufacturers had to pivot and find new channels for distribution. This had a ripple effect throughout the value chain from processors to cultivators.

As the hemp industry struggled, other commodities flourished. A surge in demand for other commodities based on pandemic-related panic buying coincided with historic low prices for hemp. Commodity prices for corn, soy, wheat all surged due to the increase in demand. This is reflected in the price of cereals, tortillas, flour and other consumer staples to such an extent that it has sparked fears of sustained inflation in the broader economy.


Economics: With rising prices, traditional farmers stayed the course.
With rising prices for other commodities, those farmers who were considering transitioning some acreage over to hemp are no longer, at least not in the short run. As prices rise in traditional agricultural commodities, farmers that would have engaged in hemp are now disincentivize to do so.

Recently, when discussing their strategy regarding hemp, a farmer summed it up rather succinctly, “Farmers rarely plant crops without having a buyer or contract in place. With the demand dynamics favoring corn and soy, we are staying the course.”

Farmers rarely plant their crop without a buyer… unless you are in hemp.
While having a contract in place is common throughout the agricultural industry, for some reason hemp is different. In consecutive surveys from 2019 and 2020, 65% of hemp cultivators did not have a buyer for their crop. This has led to oversupply, falling prices and uncertainty in the hemp industry. The slowdown in the transition to hemp has as much to do with a profit margins as it has to do with a lack of buyers.

At some point, those who remain steadfast in the hemp market will be rewarded. The potential of hemp is too great to ignore. … There will be a point where the entrepreneurial spirit will prove to be irresistible.

 

Environmental: Wildfires, floods and extreme heat have also contributed.
Also contributing to the rise in prices for commodities has been the extreme weather events. Wildfires, floods and extreme heat have impacted traditional crops, tightened supplies and driven up prices right when hemp farmers would be planting. With the certainty associated with traditional commodities, and the uncertainty associated with hemp, expansion of the hemp industry has slowed. This pricing dynamic is something hemp farmers must factor into their strategy for the foreseeable future.

The unintended consequences on fiber and grain.
While CBD oversupply and price declines tend to dominate the headlines and instilling uncertainty in the hemp opportunity, fiber and grain have also been caught up in the fray. Entering into the 2021 season, there was an estimated 201 million pounds of excess CBD biomass supply in the market. This excess has created an additional disincentive to cultivate hemp, even fiber or grain. With the potential of fiber and grain in such massive markets such as automotive, construction, animal feed and plastics, it is unfortunate that surging prices for other commodities are overshadowing the true potential of hemp, right at a time when investment is needed most.

Challenges create opportunity.
At some point, those who remain steadfast in the hemp market will be rewarded. The potential of hemp is too great to ignore. With significant consumer demand and a strong drive towards at a sustainable economy, there will be a point where the entrepreneurial spirit will prove to be irresistible. So even though there have been some major headwinds slowing the growth of the market, there is positive momentum nonetheless. Calmer waters are ahead and for those that are able to overcome these present challenges, those hemp operators will be leagues ahead of the competition.

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NIHC Welcomes Julie Lerner to the 2021 NIHC Hemp Summit Speaker Lineup

SPEAKER SPOTLIGHT

Keynote: Less Talk, More Action –
Fundamental Hemp Market Issues and Opportunities

 

Julie Lerner is the Founder and CEO of PanXchange, a trading platform and market structure solution for physical commodities that specializes in bringing liquidity and efficiencies to thin and/or nascent markets. She was selected as a Futures Industry Association (FIA) Innovator and selected in the inaugural class of the Most Admired CEOs by the Denver Business Journal. She holds two U.S. patents on the PanXchange platform, with another pending. She is a regular contributor to industry trade publications, the Wall Street Journal, Financial Times and Bloomberg TV.

Ms. Lerner began her career with Cargill International (Switzerland) and later became the senior trader for Cargill’s Latin American sugar markets, where she focused on the development of origination markets with successful financing programs and warehouse and distribution programs. She has also held several positions in trading and business development with companies such as XL Financial (weather derivatives) and Sempra Energy Trading (electricity).

Ms. Lerner has extensive experience in regional and international agricultural and energy markets. Geographically, her area of expertise covers the U.S., Europe, Latin America and East Africa. She is an advisor to early-stage companies, offering a 360-degree perspective from entrepreneurs to angel investors, and from smallholder farmers to Fortune 100 executives.

LEARN MORE ABOUT PANXCHANGE

REGISTER NOW TO GET YOUR SPOT – THIS EVENT WILL SELL OUT!

 

We Have A Lot of Work to Do, Walking the Halls of Congress on Cannabis Bill

Hall of Fame Football Coach Lou Holtz took football powerhouse, Notre Dame, from a 5-6 win/loss record in 1985 to a National Championship three years later. Incredibly enough, he is maybe even better known as a world renowned motivational speaker. One great quote from Coach Holtz stands out and is always relevant. He said, “I never learn anything talking. I only learn things when I ask questions.” It’s particularly relevant as NIHC advocates on behalf of the industry.

Last week we wrote to you about some of the highlights from the draft Cannabis Administration and Opportunity Act (CAOA) unveiled by Senate Majority Leader Chuck Schumer (D-NY) and Senators Corey Booker (D-NJ) and Ron Wyden (D-OR). We raised some of what we thought were interesting questions

As the Capitol and Congress opens their door for discussion on this draft bill, NIHC has been walking congressional halls in-person. We’ve been meeting with Members of Congress and their staff this past week. Like Lou Holtz, the NIHC is asking questions to lawmakers, as well as industry stakeholders, on the hemp-related provisions of the CAOA. The more we engage in Washington, the more questions we had about the bill, the more it’s leading us to ask more detailed questions.

What we wrote in last week’s e-newsletter bears repeating. Hemp policy is complicated. A cookie-cutter approach doesn’t work. We’ve learned over the last three years that the regulatory scheme that governs the hemp crop doesn’t keep pace with industry innovation and how consumers use our product. That leads to a myriad of unintended consequences including a lack of transparency that should inform the end users of our crop and products.

On that note, we are soliciting industry, consumer, grower, and retailer input. Have you read the Schumer-Booker-Wyden bill? What are your thoughts? What stands out to you? What do you see as a concern?

As we continue to engage Washington, it’s helpful to hear feedback from our members and industry partners. We have a lot of work to do, so please take time to read the bill and share your thoughts with our government affairs committee at info@hempindustrial.com.

Comments on the bill are due back to the sponsors of the legislation by September 1.

Read the NIHC Press Release on CAOA.

Consumer Brands Releases White Paper on CBD

The Consumer Brands Association this week released a white paper on CBD policy with some interesting statistics. Of the consumers polled on CBD, 74% of respondents either incorrectly assumed that CBD was regulated or didn’t understand that CBD was not yet regulated by the FDA.

On a scale of one to ten, consumers admitted their knowledge on CBD and CBD products was only at a collective score of 3.3.

The results of the Consumer Brands Association/Ipsos poll that interviewed 1,000 consumers showed similar results to a benchmark poll conducted by the same two organizations in December of 2019. In that poll, 40% of respondents believed CBD was another name for marijuana while 51% believed that CBD had an intoxicating effect.

The poll further solidifies NIHC’s belief in the need for more consumer education about CBD and hemp-derived products. Consumer education would be a key component to the checkoff program that the NIHC is currently pursuing with other industry stakeholders.

For more information, you can read the press release and the full paper from the Consumer Brands Association.

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NIHC Welcomes Brett Davis – Vice President of New Holland North America – to the Speaker Lineup

You Will Want to Hear This Session:

“Hemp is Now: Here to Stay”

Brett Davis (pictured right) was named Vice President, New Holland North America in April 2019. Brett has served as President of CNH Industrial Capital LLC since March 2015. In October, 2017, he was elected to the Equipment Leasing and Finance Association Board of Directors and serves as the Board Liaison to the Captive and Vendor Finance Business Council.

Brett relocated from Curitiba, Brazil, where he served as President of Banco CNH Industrial Capital S. A. since August 2011. Brett joined the company in 1996 in New Holland, Pennsylvania, as Assistant General Counsel. In 1998 he was appointed United States Western Region Operations Manager. Thereafter, Brett relocated to Buenos Aires, Argentina, assuming responsibility for establishing and leading the CNH financial services business. In 2001, Brett moved to Curitiba, Brazil to serve as Director of Operations for Banco CNH Capital.

From 2005 to 2007, Brett served as Managing Attorney and Assistant Secretary for CNH Capital North America. Later Brett assumed responsibility for the North American Commercial Lending Business.
Prior to joining CNH Capital Brett worked in the corporate finance department at the McNees Wallace & Nurick law firm in Pennsylvania.

Brett holds both a law degree and a bachelor’s degree from the Pennsylvania State University. He is also conversant in Spanish and Portuguese.

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A Pathway Forward for Hemp and CBD

If you pay attention to cannabis policy and follow its progress on Capitol Hill, this week was an exciting week for our industry. It’s been long-rumored that Senate Majority Leader Chuck Schumer (D-NY), Senator Corey Booker (D-NJ) and Senator Ron Wyden (D-OR) would be introducing the Cannabis Administration and Opportunity Act (CAOA) – legislation to decriminalize marijuana. At NIHC, we don’t have as much to say about that as our cousins in the high-THC business do; but we are certainly minding its portents for the hemp industry. There’s a lot to love in the bill, and many questions too.

The co-sponsors of this bill released their legislation in draft form which means that it hasn’t been formally introduced. NIHC applauds this as a smart and strategic approach that embodies the hard lessons we’ve all learned about the complexities and pitfalls of hemp policy by releasing a draft form of the legislation and seeking industry feedback. As we all know, hemp and higher-THC derivatives are extremely complicated, particularly when regulatory authorities are trying to catch up to industry innovation and we’re operating off of a state-by-state patchwork of laws. Therefore, we much appreciate this approach from the sponsors, and NIHC will continue to engage lawmakers and provide input on the many technical provisions of the bill that relate both directly and indirectly to the hemp industry.

At first glance, the draft legislation contains many positive elements, but it also understandably raises a significant number of technical questions that require careful consideration. We’re hopeful that our history of navigating the regulatory challenges over the last three years and the feedback that we can provide will be a value-add to the entire hemp industry, because there are many important things to consider.

For instance, the draft legislation would allow hemp-derived CBD as a dietary supplement. But it would not explicitly allow other hemp products, as does the bill introduced earlier this summer by Senator Wyden along with Senators Merkley and Paul. The draft legislation introduced this week also would not allow for the inclusion of CBD to be an ingredient to food as the Merkley-Wyden-Paul bill does. So as an industry, we need to work through those differences by soliciting feedback from you and determine the best course of action going forward.

Another curiosity coming out of CAOA is the mandate for ‘cannabis’ (meaning high-THC cannabis and excluding hemp) cultivation to be administered by the Treasury Department, in connection with ATF/TTB authority that will be extended to cannabis. What will it be like for hemp cultivation to be administered by one Department (USDA), and high-THC cannabis cultivation to be administered by another? How will the two coordinate, and what opportunities and pitfalls might our respective industries encounter? Much to ponder.

Meanwhile, another element that appears promising is the bill’s provision for ‘hot’ hemp crops (over the THC limit) to be eligible for diversion into the cannabis value chain. While we all appreciate the sponsors’ evident intent to take another opportunity to help hemp farmers mitigate their risk of hot crops, we should be clear-eyed in recognizing that this may be of little solace. There would likely be little value to hemp farmers who already have extremely low THC in their crops in a market where high THC potencies are the stock in trade.

By far the simplest and most expedient way to relive hemp farmers of the risk of ‘hot’ crops is to change the Federal definition of hemp from an upper limit of 0.3% delta9-THC to one that limits the concentration of all tetrahydrocannabinols to 1%, as many stakeholders have long advocated (including, as of February 2021, 45 State Agriculture Commissioners). And, by the way, it’s worth noting that the CAOA’s removal of all tetrahydrocannabinols from the Controlled Substances Act further supports the need for such a change. NIHC continues to work on this very closely with key Members in the Senate and House; watch this eNewsletter for more developments.

There are many other questions for our industry to consider and, to be frank, our NIHC staff and government affairs co-chairs Rick Fox of Meristem Farms and Jeff Sands of Columbia Care are still parsing through the bill to identify technical issues, provide feedback to Hill staff, and contemplate new questions that arise. Be on the lookout in next week’s newsletter for an in-depth interview with Rick Fox after we’ve had time to parse the individual provisions in the 167-page bill.

Regardless, we’re going to need your input. You can view the 20-page factsheet here and read the text of the legislation by clicking on the hyperlinks. It’s important to take the time to review this draft and let us know your thoughts. Please email your comments to info@hempindustrial.com if you find something that is concerning to you or if you identify items that you believe need to be addressed.

Have a great weekend and happy reading! We look forward to hearing from you.

Hemp Industry Response to the Cannabis Administration and Opportunity Act

FOR IMMEDIATE RELEASE

July 14, 2021

CONTACT:  Larry Farnsworth, (703) 489-9633

 

WASHINGTON – The National Industrial Hemp Council (NIHC) Board Chair Patrick Atagi released the following statement after the Cannabis Administration and Opportunity Act was released in draft form by Senate Majority Leader Chuck Schumer (D-NY), Senator Corey Booker (D-NJ) and Senator Ron Wyden (D-OR): 

“On first glance, the draft contains many positive elements, and we’re pleased the approach of the sponsors is to solicit technical input before releasing final legislation.  The accumulated experience of the hemp industry and its regulators over several years of navigating the tribulations of hemp policy will surely offer important insights as this legislation and subsequent regulations are developed, refined and implemented.  

“Right now, hemp farmers around the country struggle with a patchwork of state and Federal laws because technical details and regulatory uncertainty have created confusion for the hemp industry at all levels of government.  We hope this draft legislation will begin an opportunity for our industries to build and improve upon the experience of Federal regulation in hemp to promote consumer safety and transparency, to level the playing field for farmers and growers, and to create workable regulatory delineations and pathways so that businesses of all shapes and sizes can flourish while redeeming the promise of this new yet ancient crop. Indeed, the plants from which we make our products are cousins—hemp and marijuana are plants of the same species Cannabis sativa L.—and so too are our respective industries-distinct, but similar.  

“The NIHC will continue reviewing the draft of this legislation, working with our membership in the hemp industry to provide feedback to lawmakers on Capitol Hill, and bringing our many lessons learned from the tribulations of hemp regulation. The NIHC believes we can work collaboratively with our counterparts in the high-THC cannabis industry toward realizing a sound regulatory vision for the future of legal cannabis in all its forms.” 

 

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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You Get Rewards For Working Together – “Why YOU Should Join the NIHC”

By Patrick Atagi, NIHC Board Chair

As I have stated in past newsletters, membership with the NIHC yields tangible rewards. Associations in general, like the NIHC work to ensure that there is a level playing field for all participants by helping to create a system where products and services can move through consistently the stream of commerce.

Yet, association membership isn’t all about business. And rewards are not always tangible. In fact, the most enjoyable part of being a part of the NIHC for me, personally, is the people.

Surrounding myself with smarter people than I has taught me more than you can imagine, as well as provided the ability to get to end results faster and with greater success. We have achieved so much already in our short time as an organized association because of the expert board members, volunteers, consultants, staff, and members who have joined the effort to establish sustainable opportunity in hemp-driven markets.

Therefore, the last piece of NIHC membership to consider is Personal and Professional Development.

Professional associations provide many collaborative opportunities for both personal and professional development that enrich you, teach you, and lead you to a higher level of understanding than you could achieve on your own.

Opportunities for valuable participation include:

  • Leadership Opportunities: Many associations have chapters, and almost all have boards of directors. Both are generally staffed by volunteers who believe in the mission of the association and are willing to spend the time to push it forward. NIHC is working toward a vibrant national network of like-minded organizations, and we need your expertise to guide the efforts at the state, national or international levels!

 

  • Training: Associations offer formal training on topics related to their focus and mission. Training is also much more than getting a dozen or so people in a conference room for a few days. Training can be attending an annual conference, listening to an association webinar, or reading an eBook. And it can be speaking, delivering, or writing the above as well.The best training happens in environments like we are developing for our 2021 NIHC Hemp Business Summit. You will want to be in the room with your peers on November 14-16 in Washington, D.C. to hear the stellar line-up of speakers, to visit with the best companies exhibiting in our Networking Concourse, and to develop deeper relationships with other movers and shakers in hemp industry.

 

  • Opportunities for Thought Leadership: Associations, and especially the NIHC, are always in need of valuable content. We want to share your story and your experiences in a blog post, on a webinar, or at a conference breakout session. After all, it’s one thing to blog on a personal or business blog with perhaps a narrow scope. It’s another thing to blog on the association’s platform, which might be read by thousands of readers, many of whom are thought leaders in their own right.In fact, right now we have opportunities to write or be interviewed for our newsletter or upcoming publications. Each week, we strive to provide an “NIHC Member Spotlight.” If you are a member and want to share your story, contact us today! If you have something to contribute on a topic, please reach out to Caryn Smith, NIHC Communications, with your ideas to be considered.

 

  • Subject Matter Expertise: Last yet not least, associations are always in need of subject matter experts to serve on committees and task forces responsible for developing training, standards, bodies of knowledge, etc. This offers a very unique opportunity for personal and professional development, as well as recognition and high-level networking opportunities. If you look at the top tier of any industry, you will find leaders who serve and help develop the industries they hope to thrive within. If you see areas you can contribute to the industry, we invite you to serve on a committee.

If you are looking for personal satisfaction and professional advancement, look no further than membership in the National Industrial Hemp Council (NIHC).

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The Regulatory Anvil Around Hemp’s Declining Market Value’s Neck

By Beau R. Whitney, NIHC Chief Economist

This year’s legislative cycle at the state level has seen a lot of legislation proposed or enacted to severely curtail the growth and development of the hemp industry. It appears that state legislators are genuinely trying to address aspects of the hemp industry that they perceive as public safety issue. These efforts are misguided attempts to drive clarity or create stop-gaps in policy that has been created due to the lack of structure and leadership at the federal level. States are looking to control a market at the state level that has already deployed nationally. These efforts have proven to have significant, yet seemingly unintended consequences on U.S. hemp.

Multiple states are defining extracted and processed materials differently.
For example, California’s AB45 legislation appears on the surface to be an attempt to put the hemp genie back into the bottle and regulate it like higher THC marijuana. The law would likely limit nearly all extracted hemp CBD, with the exception being highly refined THC free Isolate. Combined with a proposed ban on smokable hemp, as well, it is looking more and more like the California hemp market would be virtually destroyed. Trying to carve out niches in the processing industry is creating a ripple effect in the $5.8 billion U.S. market, a market that has seen its value erode by $9.9 billion since October alone.

Figure 1: Total Market Value of U.S. CBD Licensed Processing Capacity

Total Potential Capacity Kg of Capacity Total Value of Processing Capacity
Crude 4,377,246 $555,910,302
Distillate 12,820,139 $3,525,538,176
Isolate 4,767,489 $1,763,970,976

 

Similar bans or laws curtailing the market are being proposed across the country, from New York to Texas and in Oregon. In fact, by April, no fewer than 15 states had introduce legislation to restrict hemp processed products in some shape or form. These bills are common in the sense that they seem to try to provide clarity particularly around how products should be categorized or defined. However, it is through this definition process that the unintended consequences occur and this is impacting the national hemp industry even though it is derived from local legislation.

How states are negatively impacting the national hemp market.
The economic impact on the hemp industry comes from the lack of nationwide common definitions or common interpretation of what hemp and hemp derived products actually are. When there is a lack of clarity at the federal level and definitions are left up to interpretation by each state, there will inevitably be mismatches from state to state. This is similar to what occurred when there was a lack of definition of hemp under the 2014 Farm Bill versus the 2018 Farm Bill.

Different definitions impact interstate commerce.
Having different definitions in different states poses a serious threat to interstate commerce. We saw the effect in 2020 when a truck driver was arrested in Idaho for trying to transport legal hemp from Oregon to Colorado. Idaho laws made hemp illegal, even though it was permitted to be grown and processed nationally. This state versus federal commercial rub was eventually clarified, but problems in other areas remain.

The hemp industry needs federal leadership, quickly.
Much of this confusion can easily be cleared up with swift action at the federal level. Unfortunately, the federal government is not known for being this nimble. By clearly defining regulatory definitions and quickly deploying guidance at the federal level, the USDA, FDA and DEA can resolve this legal and regulatory ambiguity that the states are trying (unsuccessfully) to address. It can start by clarifying the definition of post-harvest, value-added products at being hemp derived and can also adopt the National Association of State Departments of Agriculture (NASDA) proposed definition of hemp raising total THC limits from 0.3% to 1.0%.

The hemp industry needs national standards.
In addition to clarifications at the federal level, the hemp industry needs to quickly agree to and adopt national standards for definitions, and testing so that the states do not have to attempt this exercise themselves. The National Industrial Hemp Council (NIHC) is working with others to develop and deploy these standards. These efforts will be a service to not only the industry but also to state and federal governments who are struggling right now to keep pace with the development of the U.S. hemp industry. Standards will also help build confidence in hemp and hemp derived products for individual consumers who have a right to know that the products they’re purchasing are tested and safe.

This and more will be discussed at NIHC’s 2021 Business Summit in Washington, DC on November 14-16. It would benefit you to be there.

 
 

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202-919-3750
Info@HempIndustrial.com

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