NIHC URGES USDA TO MODERNIZE HEMP REPORTING REQUIREMENTS WITH FIT-FOR-PURPOSE FRAMEWORK
WASHINGTON, March 30, 2026 — The National Industrial Hemp Council (NIHC) today submitted formal comments to the U.S. Department of Agriculture’s Agricultural Marketing Service (AMS), calling for modernization of federal hemp reporting requirements to better reflect the realities of today’s evolving industry.
The comments were submitted in response to USDA’s request for revision and extension of information collection under the Domestic Hemp Production Program, a process that determines how hemp producers, regulators and state programs report key data such as acreage, production and compliance. This data plays a critical role in how USDA evaluates the needs of the U.S. hemp industry and informs future policy decisions.
NIHC emphasized that the current reporting framework, originally developed following the 2018 Farm Bill, applies a uniform, THC-centric model across all hemp production. While appropriate in the early stages of program implementation, this approach no longer reflects the diversity of the industry, which now includes distinct sectors such as fiber, grain and cannabinoid production.
“Hemp is not a single market, and it should not be regulated as one,” said NIHC President & CEO Patrick Atagi. “A fit-for-purpose approach ensures that oversight is aligned with risk, while giving U.S. producers the ability to compete, innovate and scale across multiple industries.”
At the center of NIHC’s recommendations is a Fit-for-Purpose (FFP) framework, which would align reporting requirements with production type, intended use and compliance risk. Under this approach, lower-risk sectors such as fiber and grain would be subject to streamlined reporting, while higher-risk categories would maintain appropriate levels of oversight.
NIHC outlined several key recommendations to USDA, including:
- Implementing tiered reporting requirements based on risk profile
- Aligning reporting systems between AMS and the Farm Service Agency (FSA) to eliminate duplication
- Improving data segmentation to distinguish between fiber, grain and cannabinoid production
- Expanding the use of automation and digital tools to reduce administrative burden
NIHC also raised concerns that current reporting requirements impose disproportionate compliance costs on low-risk production systems, particularly fiber and grain, placing U.S. producers at a competitive disadvantage relative to international markets where hemp is regulated as a conventional agricultural commodity.
NIHC noted that USDA’s current burden estimates significantly understate the real-world time and resources required for compliance, particularly for producers managing multiple lots or navigating duplicative reporting across agencies.
“This is an opportunity for USDA to modernize the program in a way that improves data quality, reduces unnecessary burden and supports the long-term growth of the industry,” Atagi added.
As a USDA cooperator actively engaged in global market development through the Market Access Program (MAP) and Regional Agricultural Promotion Program (RAPP), NIHC emphasized the importance of aligning domestic policy with international market realities to ensure U.S. hemp remains competitive.
NIHC will continue to engage with USDA and policymakers to advance a regulatory framework that is practical, science-based, and designed to support the full spectrum of industrial hemp applications.
Read NIHC’s full comments here.
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The National Industrial Hemp Council is the trusted voice of America’s industrial hemp industry. We bring together growers, processors, manufacturers, and policymakers to build a marketplace based on consistency, transparency, and consumer trust. As a vetted partner of the federal government, we use federal funds to support our mission: to give consumers confidence, provide businesses with clarity, and position U.S. hemp as an essential part of the global economy. We achieve this through guidance from subject matter experts, industry experience, and science-based programs. To foster a thriving global industry, we work with international hemp partners through our membership and participation in the Federation of International Hemp Organizations (FIHO), the Asian Industrial Hemp Federation (AIHF), as well as ASTM International, the American Society for Testing and Materials, and A2LA, Assessment Accreditation Services.