Tag Archive for: USDA

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NIHC Leads the Way: Rome Wasn’t Built in a Day

There has been some recent chatter in our industry about creating opportunities to export U.S. industrial hemp. This week, we’re happy to share an update from Kevin Latner, NIHC’s Senior Vice President of Trade (see his blog post).
 
We can’t emphasize this fact enough. The NIHC is participating in the USDA’s Market Access Program (MAP) which means we are sitting at the international negotiating table with U.S. trade representatives representing you and bringing opportunities to open markets abroad for U.S. grown hemp and hemp-derived products. 
 
Participation in the MAP program means that the USDA recognizes the NIHC as an official government cooperator. It is a huge responsibility and one that we don’t take lightly, which is why we often inform you of not only what’s happening here at home, but on developments happening internationally. As we seek to advocate before U.S. regulators, we also need to be aware of how U.S. policies will affect markets overseas if they’re not harmonized with European or Asian regulations. We also want to ensure that the fine print in proposed regulations or legislation will not indirectly cause a technical barrier to trade. 
 
And, it’s not just the MAP funding where NIHC is participating.

The NIHC has, not one, but two representatives sitting on the USDA’s Agricultural Technical Advisory Committees (ATAC). These are important committees inside the USDA that advise both the Secretary of Agriculture and the United States Trade Representative (USTR) on technical points on hemp. Kevin Latner sits on the ATAC for Processed Foods which includes jurisdiction for things like CBD and CBD-infused products, including food. Patrick Atagi, NIHC Board Chair, sits on the ATAC for Cotton, Tobacco and Peanuts. Recently, Patrick proposed to his colleagues on the Cotton, Tobacco, and Peanuts subcommittee that they include hemp in the name – and we’re happy to report that they overwhelmingly agreed. There are a few more steps in the process, but we hope to report soon that Patrick will be sitting on the newly named Cotton, Hemp, Tobacco, and Peanuts subcommittee that will be advising the Secretary of Agriculture and the USTR. 

These are big opportunities for the industry and, specifically, NIHC members, who will learn of critical information first.

We are often asked when discussing policy with the media or other stakeholders, “What does this mean for hemp?” As an industry and as advocates, we must get out of that mindset. Hemp has been legalized since 2018 and we should start to recognize all the benefits that come with this.

Rather, the question we should all be asking is, “How does this benefit hemp and move the ball forward for our industry?” The USDA in both the Trump and now the Biden administrations recognized the benefits to the overall Ag economy by including hemp within the numerous programs at USDA. It means the world to us that we have the trust of not just our members who we advocate for, but also of the USDA, the USTR and other government regulators. 
 
In December of 2018, the Agriculture Improvement Act of 2018 was finally signed into law by President Trump. While the rest of the Ag community was plugging in and moving along, the hemp industry was just getting started.

 With the world finally opening up from the 2020 devastating effects of the once-in-a-lifetime pandemic, markets are opening back up, too. We hope our efforts and careful planning will open opportunities around the world for the job creators in the hemp industry.

The point is: We’re moving in the right direction and we’re making progress every day at NIHC both at home and abroad. Some have recently stated and written in interviews about how the hemp industry needs to have leadership in Washington to better grow the industry. As you know, we’ve been here all along. We must remember that all great American success stories took time to overcome obstacles and become the great industries that they are today. 
 
As the old adage goes, Rome wasn’t built in a day.  

NIHC On The Road Again

Seeing Old Friends and New Members!

By Patrick Atagi, NIHC Board Chair

 

United States Senator John Boozman (R-AR) with NIHC Board Chair Patrick Atagi.

This week, I attended the in-person Southern Association of State Departments of Agriculture (SASDA) annual meeting in Little Rock, Arkansas. It was valuable for NIHC to re-connect and get facetime with the heads of the 16 Southern State Departments of Agriculture from Kentucky, to Florida, to Texas. There really is nothing like shaking hands and talking to colleagues one-on-one. On a personal note, it was great to reconnect with so many old friends from my days working in the National Association of State Departments of Agriculture (NASDA)’s policy shop.

Of note, I had the chance to have a lengthy conversation about the future of hemp with United States Senator John Boozman (R-AR) who is the ranking member on the U.S. Senate Committee on Agriculture, Nutrition and Forestry. Separately, I had a good conversations with former Obama Administration U.S. Department of Agriculture (USDA) Deputy Secretary and current Secretary of Agriculture of Delaware, Michael Scuse; Kentucky Agriculture Commissioner Ryan Quarles and his Chief of Staff Keith Rogers; and North Carolina Commissioner of Agriculture Steve Troxler.

Kentucky Agriculture Commissioner Ryan Quarles with Atagi.

We had many other conversations with state regulators about both the short and long-term outlook for hemp. For the short term, there is positive momentum for our industry. For instance, in Louisiana, an effort is beginning to include hemp into animal feed. Many folks I met with this week asked about overcoming the many policy and logistical issues that need to be addressed for the success of the industry over the long term. There is a lot of interest at the state level in regulating and managing the agricultural production of hemp, but a lot of work needs to be done. NIHC’s outreach is critical in ensuring we educate regulators about the benefits of hemp and the implications of their policy decisions.

One thing we did learn was that many states want to be able to find ways to promote their hemp farmers and products on a global scale. So, there was great interest in the NIHC’s status as the only hemp organization that is listed as a government cooperator through the  USDA’s Market Access Program. In fact, after our conversation, Commissioner Troxler joined NIHC, (seen right) so we’d like to welcome the North Carolina Department of Agriculture as one of our newest members!

North Carolina Commissioner of Agriculture Steve Troxler, and new NIHC member, with Atagi.

It was good to get out of D.C. and learn in person with what’s going on at the state level. NIHC will be traveling again in the next few months and reconnecting with state regulators and industry thought leaders throughout the summer as we begin to open back up to in-person meetings. To quote Willie Nelson and take a line from his song, “On the Road Again,” it’s a great feeling being out on the road and networking, again. So, we hope to see you on the road!

Speaking of traveling, if you haven’t yet, I’d like to encourage you to register today to come see us in our nation’s Capital in November. Our NIHC in person meeting will be November 14-16, 2021 in Washington, D.C. You can learn more here.

 

 

Beveridge & Diamond PC Creates Pathways for Industrial Hemp Businesses

NIHC recently spoke with Mackenzie Schoonmaker (at right), Principal, BEVERIDGE & DIAMOND PC, to discuss how they are helping businesses make their way through the complexity of state and federal laws to achieve their goals in the industrial hemp space. Beveridge & Diamond is also a sponsor of NIHC’s 2021 Hemp Business Summit, November 14-16 in Washington DC. Here is what she had to share.

How did you or your firm come to be members of NIHC?

Beveridge & Diamond has a decades-long practice supporting businesses in the agriculture industry on environmental issues. With the legalization of hemp in the U.S. in 2018, it was a no-brainer to evolve our practice to support hemp producers. As we evaluated associations to join to support our growing practice, NIHC was an obvious choice given its focus on growers of industrial hemp.

What value do you see being a part of this organization?

NIHC has given us several opportunities to speak at conferences, present webinars, and publish articles and blog posts on federal and state-level environmental issues facing the hemp industry. For example, during our first year of membership in 2019, we had the privilege of presenting at the 2019 NIHC Hemp Business Summit. NIHC has also helped us expand our relationships in the hemp industry, and more importantly, given us the chance to learn directly from hemp producers about what challenges are top of mind for them so that we can better serve our clients. B&D is excited to be a sponsor of the upcoming 2021 NIHC Hemp Business Summit.

Tell us about your firm.

B&D’s more than 120 lawyers across the U.S. focus on environmental and natural resources law and litigation. We help clients around the world resolve critical environmental and sustainability issues relating to their products, facilities, and operations.

What is the nature of your work within the Industrial Hemp industry?

B&D’s Industrial Hemp & Cannabis industry group assists growers, manufacturers, and suppliers of cannabis and cannabis products and ancillary businesses that support the industry (such as product packaging suppliers and manufacturers of fertilizers, pesticides, and plant nutrients) with federal and state-level environmental compliance, product liability, project planning, environmental risk avoidance, and, when appropriate, litigation and defense against state-level environmental enforcement actions. For example, we advised a bast fiber producer on environmental regulations regarding hemp seeds, and for an agricultural organization we drafted comments on the on the U.S. Department of Agriculture’s Interim Final Regulations on the Establishment of a Domestic Hemp Production Program.

What do you see are the biggest obstacles and opportunities for the hemp industry?

As the hemp industry expands, it will have to navigate a complex framework of U.S. Department of Agriculture, U.S. Environmental Protection Agency, U.S. Food and Drug Administration, and other federal and state level requirements. We expect the hemp industry, like comparable industries, will become a highly regulated space.

However, the opportunities that are fueling this expansion will only increase. As companies respond to growing consumer demands for sustainably-sourced materials, clothing and textile manufacturers are turning to using hemp in their products. With the threat of climate change, climate-smart agriculture (such as hemp) is even more important. And, hemp-derived CBD products are becoming more pervasive, as scientific research is ongoing regarding CBD’s potential to treat various health issues.

Where do you see the industry in 5 years, either from a regulatory or business aspect, or both? How will you or the firm have a role in that development?

As noted above, we believe the industry will only continue to grow (pardon the pun!) into a ubiquitous industry subject to the same regulations as other agricultural products. Given our deep experience supporting the ag industry on environmental, health, and safety issues, B&D is well-positioned to help hemp businesses anticipate and comply with those environmental regulations without hindering business operations and growth.

Any other comments that NIHC members should know about you?

B&D regularly publishes news alerts about environmental developments relevant to the hemp industry, and you may sign up to receive them here. We welcome the opportunity to meet more NIHC members and hope you don’t hesitate to reach out!

You can reach the firm at https://www.bdlaw.com.

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FUTURECAST: Corporate Sustainability Efforts Increases Industrial Hemp Opportunity

Levi’s Commitment to Sustainable Agriculture an Example to Corporate America

It’s been a slow week in Washington DC with Congress on recess and an absence of activity happening at the regulatory level in recent weeks. However, the market never takes a recess as it continues to recognize the consumers preference for sustainability and corporate responsibility.

Case in point, Levi Strauss Company late last month unveiled its “Buy Better, Wear Longer” campaign to address how consumers buy too many clothes; don’t wear them long enough; and, eventually discard garments. The company believes this practice leads to greater pollution and environmental unsustainability.

“Ultimately, Levi’s® denim is meant to be worn for generations, not seasons,” Jen Sey, brand president of Levi’s, said in the companies press release kick starting the campaign.

One of the commitments to sustainability practices that Levi’s has made is offering products derived from hemp fiber. Their goals are to reduce the overall impact on climate with more sustainable production practices. This includes investing in new materials (i.e. hemp) and new production practices such as their new “Water<Less” technology. While it’s good to hear Levi’s making that kind of commitment, it’s having an even larger effect than the even the company might realize.

Levi’s says in their press release announcing the “Buy Better, Wear Longer” campaign that their manufacturing practices have resulting in the saving of nearly 4 billion liters of water and it has led to the recycling of nearly 10 billion more liters. That’s just for the manufacturing process and by using hemp as a fiber; the company is also seeing affects at the farm.

In comments filed to the USDA last week, NIHC recommended that the USDA take a science-driven approach to hemp and consider data that shows hemp is a less water intensive textile. We can find the data by looking to partners in Europe. For example, the Stockholm Environment Institute says that growing hemp requires half as much water as cotton. Beyond reducing water usage, The European Industrial Hemp Association says that every 100 acres dedicated to hemp can sequester up to 15 tons of carbon dioxide.

Therefore, companies that are committed to sustainability initiatives like using less water and curbing carbon dioxide are also making a change further down the supply chain and potentially a greater impact than they might realize. At NIHC, we believe that’s a good thing.

“As a whole, ‘Buy Better, Wear Longer’ is meant to evoke a sustainable future where companies and consumers around the world come together to rethink fashion,” Levi’s says in a press release.  “And Levi’s® offers the kinds of products that are there with you for the long haul.”

And with those kinds of commitments, corporate America can ensure that it’s not just the products that are with us for the long haul, but the long-term health of our environment too.

To learn more about the Levi’s “Buy Better, Wear Longer” campaign and the company’s commitments to sustainability, click here.

To be a part of the discussion on the future of industrial hemp, make sure to register for NIHC’s 2021 Hemp Business Summit. Sustainability and other forward-thinking strategies will be the focus as we all continue make headway towards a vibrant and profitable industrial hemp economy.

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Hemp as Climate Change Solution

NIHC Responds to USDA’s Request for Comments on Climate Smart Ag  

The National Industrial Hemp Council (NIHC) this week submitted official comments to the United States Department of Agriculture’s (USA) request for stakeholder feedback on developing climate smart agriculture practices and ways these practices can meet the needs of disadvantaged communities around the country.

“USDA is committed to addressing climate change through actions that are farmer, rancher, and forest landowner-focused and that create new market opportunities for the sector in a fair and equitable way,” said Vilsack at the time of release requesting comments. “We want your ideas on how to position the agriculture and forestry sectors to be leaders on climate smart practices to mitigate climate change. This includes making the most of USDA programs, developing new USDA-led climate strategies, strengthening existing markets and developing new markets that generate income.”

The NIHC provided detailed input in three areas the Secretary asked for and provided suggestions about how to better use existing USDA programs to address climate change through the U.S. domestic hemp industry. The three areas that NIHC provided information on include: climate-smart agriculture and forestry; biofuels, bioproducts, and renewable energy; and meeting the needs of disadvantaged communities through USDA’s climate strategy.

“NIHC is proud to represent the U.S. domestic hemp industry through our position as a government partner through USDA’s Market Access Program and serving on the Secretary’s technical advisory committees,” said NIHC Board Chair Patrick Atagi. “NIHC understands the USDA; it’s programs; how they work and our comments are a continuation of the constructive dialogue we’ve been having all year with USDA and the Biden Administration about how to make progress is reducing climate change.

To read the NIHC’s comments in full, please click here.

“Hemp is such an amazingly versatile commodity and when included in the appropriate framework of USDA’s programs, can really be the gold standard for climate smart agriculture,” Atagi concluded.

NIHC Board Member Patricia Sheikh Brings International Trade Expertise to the U.S. Industrial Hemp Sector

 

We caught up with busy Patricia Sheikh, NIHC board member and Senior Vice President, Programs, for Roots of Peace, to discuss NIHC, diversity and the future of industrial hemp.

In her work in the agricultural sector, Roots of Peace is a non-profit organization, with headquarters in California, that helps conflict and post-conflict regions and countries. Their philosophy is to provide market-driven solutions tailored to farming communities of war-torn lands, serving as a catalyst for industry-wide development. By improving farm techniques, addressing supply chain gaps, and supporting local exporters in reaching high-value markets, the organization improves livelihoods and contributes to building peace in war-torn lands.

“The conflict area we are currently focused on is Afghanistan, and the post-conflict country is Vietnam. You would think we wouldn’t have to go there,” Sheikh says referring to Vietnam, “but there are still issues related weapons of war still in the ground that adversely impact smallholder farmers.”

“Root of Peace helps countries rebuild and modify agricultural systems,” she says. “We help them build back their agricultural economy – things like convert from one crop to another – then export it. We look at the full value chain, seed to table. Small holder farmers are not left out of the equation, and they get a return on their money.” A strong agricultural system helps a county increase economic independence and thereby reduce potential for future conflict.

Here is our interview with Sheikh.

What is your view of the work of NIHC, and how you came about being involved?
I am a retiree of Foreign Agricultural Service, USDA. When NIHC board chair Patrick Atagi was a political appointee under President George W. Bush, I got to know him. He was serving as Deputy Director, Intergovernmental Affairs, USDA. I was then Deputy Administrator, International Trade Policy, Foreign Agricultural Service, USDA. Our interactions go that far back.

When he launched NIHC, he thought of me for the board position because I know international trade very well. At that point in my career, I oversaw all international trade – mostly trade with Asia. Personally, I like working in the big markets like China, Japan and India.  Patrick knew that my background could prove beneficial once industrial hemp industry comes into full potential.

What inspired your work with hemp conferences, you have moderated and participated in several, how do events like this help hemp the industry?

I see the hemp commodity as a very important export. It has the ability like no other crop to revitalize the U.S. agricultural sector. I participated as the event moderator in the February 2021 Oregon State University Global Hemp Innovation Center’s National Hemp Symposium because it was an opportunity to hear from many of the sectors in which industrial hemp has great opportunity.

The crop spans many industries, and we heard from energy and biofuel, manufacturing, automotive and transportation, retail, apparel, health and beauty sectors – even the defense sector presented. I have never seen a crop like hemp and it’s exciting; we needed something that can boost our agricultural sector and hemp can do it.

We have to keep the conversation moving forward in the United States. China, the EU and Canada all have vibrant hemp programs. They didn’t experience a shutdown of the crop like the U.S. who made it illegal due to the drug aspect of the plant. We cannot be frightened by the work ahead to catch up; we must keep a steady pace. NIHC is a big part of that effort, especially on the regulatory and trade aspects due to the experience of the entire board and the NIHC team. Patrick wants board members to network and lend guidance on other advisory boards, representing the work of NIHC, when they arise.

What are your views of minorities and women in agriculture and how is it changing?

Ag is a very conservative industry. There are very few women at the top of agricultural companies or even on boards, as well as other minorities. As the first – not the only – woman in the NIHC board, it doesn’t bother me. I will offer suggestions in the future for other women to join our board if their experience fits the needs, but I have to say Patrick has been keen at making sure we have a diverse group, and we have a board of various backgrounds and ethnicities. NIHC is leading and paving a path forward.

To encourage hemp farming among diverse groups of people, including minorities, I think there has to be increased education about hemp. There is still so many misconceptions of hemp. I have to correct people on the product. I am not sure how informed African-American farmers and others are about this particular commodity.

I think seeing the potential in all these sectors mentioned at Oregon State University’s conference was so powerful for participants. It shows that that there is room for everyone. We warmly invite more people to the table.

Tell us about your work with former Ambassador from Zimbabwe to U.S. on hemp industry and other initiatives in which you may be involved in?

That is a very interesting question. Ambassador Mutembwa was Zimbabwe’s Ambassador to the United States. He was very familiar with hemp because of his country’s interest in ramping up growing this commodity.

The Ambassador was looking for people who wanted to invest in their country’s hemp production. Because of my background in developing countries and agricultural systems, we connected on that effort. They were not necessarily looking to export to U.S. since their natural market is the EU. He really saw, as a developing country, how hemp could help propel economic development in his country.

Unfortunately, the Ambassador has completed his assignment in U.S., and is now Zimbabwe’s Ambassador to Brussels. I am hoping the new U.S. Ambassador will pick up on the effort, but it is too early to tell.

Where do you see the industry in five years?

If we play our cards right and produce more positive messages about hemp– especially the farmers potential to grow hemp and monetarily profit from doing so – and additionally having a market for it which is still in development, the hemp industry will grow very large.

Unlike cotton and other crops, hemp doesn’t need as much water to grow,  It is a crop that is environmentally-friendly and as I have said previously it has a multitude of uses. We will get to a comfortable position for this commodity, it just will take time combined with consistent effort by leadership organizations such as the NIHC.

What are the pathways to a thriving industrial hemp economy?

One thing is advising government. We have begun that process as NIHC is serving on some advisory committees for U.S. government agencies that are addressing hemp and agriculture.

Positive safety initiatives is another. We must get the FDA to engage and intensify its efforts. To ensure the consumer is safe when hemp is used in products they ingest or use topically. Some products are in the marketplace that have not been fully vetted. It is a great sign that these are appealing to the public, but we need consistent standards set by the federal government to continue to grow the marketplace.

We need to keep interactions with Congress moving forward. Hemp has bipartisan support, as seen by both sides overwhelmingly voting in favor of the Farm Bill. As you know recently, it has been a challenge to obtain bi-partisan support for legislation.

States that are hesitant will come along once they see momentum building and factual support for this commodity. They will have to.

Getting factual data is a must. It is exciting to see University’s like Oregon State gearing up their research so we can have this data. Having our own data will corroborate what we know from the European research already available.

Trade competition is a healthy instigator. China is moving full steam ahead. EU and Canada are too. This should inspire action from the U.S.

Are you excited to attend the NIHC 2021 Hemp Business Summit?

I was at the first summit in 2019, where we had to turn people away because we had exceeded our capacity level. It was a great success and there was so much enthusiasm and support among attendees. I look forward to the next one in November, and I know the information shared will take us further along this exciting journey. The conference will benefit anyone in the industry who is looking at the potential of hemp for their company or for their state.

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Safe Banking and Hemp: Working Toward Resolution

At present, most if not all banking service providers take a risk-management approach to hemp business customers that presumes that they may be held liable for their clients’ compliance with USDA regulatory requirements, even though these laws have no explicit bearing on the legality of hemp in commerce. (All hemp is legal for commerce nationwide if it meets the statutory definition of hemp, without regard to the USDA Rule).

This creates an onerous burden on banking service providers and their clients that is a significant (perhaps the most significant) factor contributing to the refusal of many providers to offer services to hemp businesses, and explains the excessive fees charged by those providers who do choose to offer them. Thousands of hemp business all across the country contend with this issue, particularly with respect to obtaining payment processing for credit card transactions, which are the lifeblood for most hemp businesses.

These problems arise largely from the duality in current law pertaining to hemp: one legal standard for hemp products—the Federal definition of hemp in statute—and another for hemp production in the U.S.—the USDA Hemp Rule, which applies only for production on a small percentage of acres licensed for such production.

While NIHC remains hopeful that legislation will soon rectify this duality by redefining hemp such that the USDA Rule will be revised to reflect the same legal standard, this has yet to occur and this duality will nevertheless persist for products made before such a revision is enacted.

NIHC strongly supports the normalization of banking services for hemp businesses, and we welcome the concerted effort by proponents of the SAFE Banking Act to achieve this through the bill’s hemp provisions (Section 11).  Despite the unambiguous Federal legalization of hemp in 2018, businesses engaged in hemp commerce continue to face great difficulty accessing banking services due to the perceived lack of regulatory clarity. Even when businesses are able to access banking services, the costs are exorbitant—much like the struggles faced by businesses engaged in marijuana, which remains illegal under Federal law. By providing regulatory clarity to banking services providers, the bill would go a long way toward relieving these difficulties.

However, we are concerned that the bill’s definition of ‘hemp-related legitimate business’ will cause the bill to fall short in achieving this desired outcome. This is because the definition will exclude businesses that buy or sell hemp produced on 76% of the acres licensed for hemp nationwide and as hemp produced outside the U.S. That would significantly hinder the industry’s domestic growth and potentially erecting a technical barrier to trade (TBT) in hemp on the export market as well.

The problem presented by the proposed legislation is that hemp produced on 76% of the acres licensed for hemp nationwide in 2020 (including 4 of the country’s 5 largest state programs) is not subject to USDA regulations pursuant to the 2018 Farm Bill because they are in states currently under 2014 Farm Bill authorities for hemp production. Even after the 2014 authorities expire at the end of 2021 (unless Congress extends them again), hemp goods that were produced under 2014 authorities will remain lawfully in commerce long thereafter. Hemp produced outside the U.S. is also not subject to the USDA regulations.

Even though the definition states “where applicable,” this re-introduces the regulatory uncertainty that caused banking problem in the first place. Banking services will either continue to shun hemp businesses, or incur excessive costs for risk mitigation, based on the perceived hazard that the bill’s protections may not apply where the business engages in hemp whose production is not subject to the USDA regulations.

We also see cases where regulators themselves adopt a similar risk-mitigation posture. A case in point is the policy promulgated by USDA Rural Development that excludes hemp producers in 2014 Farm Bill states from eligibility for funding under the Value-Added Producers Grant program, thus depriving most of the industry and state economies of much-needed investment in hemp processing capacity.

If regulations issued by USDA are vulnerable to such misinterpretation, then regulations by other agencies with far less understanding of these complexities (such as those that will administer the SAFE Banking Act) are all too likely.

Ironically, without these technical corrections, the SAFE Banking Act could normalize banking services for legitimate marijuana commerce and fail to do so for most legitimate hemp commerce.

The NIHC continues to work with policy makers in both the House and the Senate to look for ways to make these technical changes become law.

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Hemp Keeps Up Quick Pace

The hemp industry is moving at the speed of change.

Our industry has faced its own unique set of challenges since the passage of the 2018 farm bill and these growing pains are to be expected. NIHC’s core mission is to be your collective voice in front of lawmakers and regulators. Yet, NIHC can’t be your voice without your input and participation to solve these hurdles, current and new.

Some issues have yet to be resolved.

For instance, businesses in the hemp economy need equal access to the banking sector. The CBD market needs regulatory certainty; specifically whether or not CBD can be sold as food, or a supplement, or perhaps both? Because hemp looks like marijuana; we need safe transit resolved because on the spot, law enforcement can’t tell the difference. This is why we’re in constant conversations in Washington, DC and with states about testing and proper documentation. This will ensure that those involved in hemp commerce, including law enforcement and the financial markets, can distinguish between hemp and marijuana. This includes the controversial Delta-8.

The USDA continues to promulgate approvals for state programs to license farmers while other federal agencies lag behind in regulations for downstream businesses. We need certainty, but we need patience and a thoughtful approach. Last years’ election brought significant change to Washington with a new President who is still filling important roles and a new Congress. Patience is a virtue.

We are excited to see and be a part of the National Association of State Departments of Agriculture (NASDA) initiative on one percent. But what our industry needs is a coordinated state and federal strategy. We still have state legislators introducing a patchwork of laws governing our industry at the local level all across the country.

 

What our industry needs is a coordinated state and federal strategy. We still have state legislators introducing a patchwork of laws governing our industry at the local level all across the country.

 

To illustrate, here are just two of many examples of what is happening at the state level.

In New York state, Governor Cuomo recently signed into law an adult use marijuana legislation which creates a new state regulatory agency for both hemp and cannabis. That might make it easier to have one regulatory agency with jurisdiction over hemp and cannabis, but we need to better understand the role of the state department of agriculture. We also need to answer the question, what will happen to the hemp industry? It now appears it’s more lucrative to grow high-THC products in the second largest state in the country. Is the compromise on smokable hemp (that smokable hemp can only be sold in dispensaries) a positive thing for the hemp industry? Only time will tell.

In Alabama, there is a new bill that has been introduced in the state Senate that would add delta-8 and delta-10 to the list of controlled substances in the state. We can applaud the Alabama state legislature for trying to tackle the problem of delta-8. But, we believe the Alabama state senate is going down the wrong road to solve an easy problem. Delta-8 THC, per the 2018 farm bill, is a legal part of the hemp plant that exists in the plant’s natural form in only a minuscule amount that has no psychoactive effect. The problem is that some in our industry are taking advantage of a loophole in the law to manufacture artificially high concentrations of delta-8 and add them to hemp products, resulting in levels of 10% delta-8 and higher to create a psychoactive effect that would not occur otherwise. Changing the statutory definition of hemp from .3 percent delta-9 THC to one percent total THC, as has been proposed by NASDA and other stakeholders, would eliminate this loophole and prevent psychoactive delta-8 THC products from entering the market as hemp or any other non-controlled substance.

NIHC is a growing by the day.

We have a ten-year plan and have consistently exceeded our advocacy and policy goals in our nation’s Capitol. In our plans, our policy and operating budget didn’t include state advocacy. That means we don’t have the full-time staff yet hired to monitor legislation at the state level. We have been working since the beginning of the year to build and execute a strategy for successful state advocacy, it just needs to be resourced.

We realize there is a lot going on in our industry and we’d love to have NIHC member feedback on what we should be engaging on in your specific state. If you think we need to engage on a particular issue, please email us at info@hempindustrial.com.

If you haven’t become a member yet, please consider joining NIHC so we can all work better together. 

Growing the Hemp Industry Begins with Quenching the Farmer’s Thirst for Knowledge

An Interview with NIHC Board of Director Robert White

As in most farm bureaus, at the Indiana Farm Bureau (INFB), they have a vision to keep agriculture in Indiana strong and vibrant, to provide quality food to Indiana residents and to protect the rural life they love. They are the largest grassroots farm organization in the state with more than 250,000 members, and offices in all 92 counties. Started in 1919, INFB is well-positioned as the Voice of Indiana Farmers, and well-equipped to assist the farmer to leverage industrial hemp.

NIHC caught up with board member Robert (Bob) White, INFB’s Director of National Government Relations, to discuss the state’s progress with the crop and the outlook for the future. In his current role, White is responsible for keeping the Indiana Congressional Delegation abreast of INFB policy. In 2017, he was chosen to be on the AFBF farm bill working group whose task it was to help shape the possible outcomes of the current farm bill. It was the sixth farm bill that White has worked on.

NIHC hopes that more Farm Bureaus get involved in the organization to bring unity and cohesion to the hemp farming community. “Indiana Farm Bureau has been a great partner and can show how a collaboration with other state-based Farm Bureaus can help promote the hemp industry overall,” says Patrick Atagi, NIHC Board Chair.

Here are Bob White’s thoughts.

Early Adaptor

White saw potential for hemp farming early on and has worked to keep his finger on the pulse of the movement. “I met Patrick Atagi, NIHC Board Chair, at a USDA’s Agricultural Outlook Forum about 5 years ago, and he told me of his idea to launch the organization. We have been connected ever since. I came on as a board member early on,” says White. White believes hemp has a big future ahead, once regulatory challenges can be ironed out. While all that’s being accomplished, White wants farmers and other farm bureaus to work together to get knowledgeable on the nuances of growing the hemp plant.

Being in the heart of the country’s farmland, White and the INFB want to help bring the state into industrial hemp farming with success.

“Indiana farmers have been discussing industrial hemp for quite a while. We are always looking for diversification away from corn and soybean, especially when prices were in the dumps about 8 years ago. We began talking about it then in Indiana through our participation in the Midwest Hemp Council. One of our INFB members, Jamie Campbell Petty, is its Executive Director, and has been working on state legislation as well as the ’18 farm bill, all to support the growth of industrialized hemp here.”

“Being involved with NIHC has also been a great resource,” says White. “One of the benefits of belonging to an organization like NIHC is that you are on the inside track on what is happening,” says White. “NIHC has basically stood the test of time as an organization. It is dedicated and deeply invested to keep industry moving forward. It provides good and factual information sources instead of disinformation, which flows from everywhere right now.”

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“There is a solitude about growing hemp that is attractive.”

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Hemp Rising

The thirst for knowledge on growing industrial hemp is growing, and many different avenues of education are available. “Even land grant colleges are getting involved,” says White. “They are spreading the word to educate farmers, along with local community colleges near rural areas. People want to know how to grow it and what to do with it. At the last Midwest Hemp Council meeting, we had close to 500 attendees, and half were farmers within 8 states. And, there were some who have never farmed.”

White noted how people who are not farmers by trade are leaving longstanding careers to grow hemp, mostly for CDB. “Many people want to see the fruits of their labor at the end of the day, instead of work that sometimes can take 5-6 years to see results. There is a solitude about growing hemp that is attractive.”

The lack of education and experience has unfortunately led to some of the failures of the industry that any budding niche might experience. It has also led to some of the misinformation that is pervasive in the industry today. To combat this, White wants to see more people getting educated on agronomics of hemp.

Hemp Agronomics 101

While the industry looks attractive and has that instant gratification appeal, White notes it takes more time to develop a business than most have given it so far. “It takes a while to learn to grow it. Early on, it took special treatment for soy and corn, too. We learned and they grew as commodities. There is still a lot of agronomics on the growing, planting, harvesting and processing of hemp to learn,” says White.

Farmers who are agriculturally-motivated to do something different with their land have so far tested the waters and planted crops. But the missing piece is demand. “Strong demand is missing. It takes a lot of capital investment to set up a fiber processing facility, which our state of Indiana needs. We have not reached a critical mass, not at that tipping point. More people will get involved, and as we learn, we will do what we farmers always do – we will turn it into a commodity,” notes White.

He even predicts the industry early adopters will reap the most significant profits of the industry expansion. “Hemp is a finicky crop. Those who are working out the growing process now will be able to jump back in successfully when things start to heat up. They will be ready to bring a harvest to a supplier with efficiency. It is important that farmers figure this out now while we wait for demand to rise.”

Resolving Issues

Industry obstacles are currently on their way to being resolved, slowly but surely, White says. “Organizations like the NIHC are at the forefront of these practical, legal and consumer awareness hurdles, and there is a future for industrial hemp on the horizon.”

“Legally, I don’t get much involved on that front – only when we lobby for leeway in THC levels. Right now in Indiana, we see a lot of crops being destroyed as the go-to law enforcement directive. There are other ways to handle the crop where the farmer doesn’t lose their whole investment, such as taking it to a fiber processing plant, where they take a ding on the price, but can still sell it as fiber as opposed to CBD.”

Law enforcement in Indiana, like elsewhere in the nation, is asking for testing options. They want to be able to test it on the spot to determine a course of action. “There needs to be a better certification process, for sure, and a path for law enforcement that doesn’t lead to all loads being destroyed or buried.”

On the consumer front, White sees promise in NIHC’s Hemp Checkoff program. “I think we need a checkoff just like other commodities. Farmers do see valuable benefits to a checkoff; we just want to get the timing right to launch it. Soybean, corn, beef and milk have successfully educated people about the products, and farmers saw a return on their investment.”

In the short-term, White believes farmers need to focus on the agronomics of industrial hemp – the growing, harvesting, processing, and sale. “Farmers cannot grow it and hope someone will buy it, maybe like they have done with other crops,” White says. “Let demand grow, and then plant it. Then the marketplace will also work out the issues like THC, certification, transportation and more to accommodate the end uses.”

“I think in 3 to 5 years, this industry will come into its own for the farming community,” White concludes. “They should keep paying attention, learning, discover their market, be conservative until all that is determined. Only then they can grow 1,000 acres of it.”

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“Hemp Industry is a Solid Product and a Rapidly Growing Market” – An interview with Doug Farquhar

NIHC caught up with board member Doug Farquhar, J.D.,to discuss his involvement in the council and the industry. He is an attorney with close to 30 years’ experience working with policy makers on environmental and health issues, primarily working with state legislatures.

In his prior work, for 21 years Mr. Farquhar directed the Environmental Health Program at the National Conference of State Legislatures, where he worked on the issue of cannabis edibles. The EHP performs legislative analysis and outreach on state and federal environmental, health and trade laws; focusing on the delegation and authorization of federal and state laws; and provides legal and technical assistance to state legislators and agency staff on state, federal and international environmental, environmental health, and trade policies. He also has provided expert testimony before state legislative committees and task forces; reviews and comments on legislation and regulations, drafts memos, articles and books on state environmental health policies; and represents state interests before federal and international bodies.
As director of Environmental Health he worked closely with federal counterparts at the Food and Drug Administration (FDA), U.S. Department of Agriculture (USDA), Centers for Disease Control and Prevention (CDC), U.S. Environmental Protection Agency (EPA), Department of Housing and Urban Development (HUD), and the Commission for Environmental Cooperation (CEC).

Now, he is currently Director of Government Affairs for the National Environmental Health Association.

What about the industrial hemp industry has compelled your involvement with NIHC?

This industry really appeals to me as an exciting emerging area; it is a rare thing to be on ground level of an industry such as hemp and cannabis provides.

It was very much untouched from a state level until the passage of 2018 Farm Bill allowing hemp to be sold and declassified as a schedule 1 drug. This opened a whole avenue for industrial hemp. It is a rare opportunity.

I have worked on the state level in health policies for a good portion of my career. It is at the state levels that the industry will have a chance to thrive. And, I think there is real opportunity for NIHC to 1) help states know how to track what they are doing and 2) prepare states on how to address the issues.

“NIHC has a clear role in creating opportunity in the marketplace though educating lawmakers and regulators on intended and unintended consequences of certain legislation. They can navigate the way through many of the agencies that have a card in the hemp deck to play.”

How can your experience help NIHC drive the hemp industry forward?

The federal government will do some of the work, but it primarily lies with the state and local governments to do most of the heavy lifting, which is where my expertise lies. State legislators want hemp to grow as an industry and want to promote it as a sustaining crop for their state. Yet, there are still so many unknowns with it that need to be worked through.

The state-to-state issue is also working itself out. It would normally take a federal law to bring about swift and sustainable state to state harmonization, but Congress typically hates to do that. They usually allow each state to work out issues within their boundaries when there is no overarching need for federal intervention. Hemp does not have a public health issue attached to it, for instance, that would necessitate such federal action.

But to give you an example of how the federal government couldcome into play in states’ harmonization, we can look at the labeling on biotechnology. It wasn’t until Vermont became the first state to make it mandatory by law that Congress that it passed their own law in a matter of weeks. There was direct incentive to harmonize biotechnology, where hemp doesn’t provide that immediate need right now. I really don’t see the federal government regulating hemp, at least for now.

States need to address industrial hemp from a marketing point of view. NIHC and the checkoff program can help.

If hemp is restricted on how it is grown and sold, people will not want to do it. Most importantly, those who would normally invest in industry-wide growth of new products will invest in tight regulatory environments. It is too risky. Plus, there is lack of available data to inspire what investors, farmers and producers they cando. These were some of the problems we saw with the edible cannabis issue that we had to overcome.

Early on, the state of north Dakota conducted a huge effort to get the ag community to grow hemp. They saw it as a viable market and encouraged the farmers to grow hemp. They did all kinds of stuff to encourage it, but the then-federal restrictions held it back. The barrier is now removed with the 2018 Farm Bill, but there is still work to do. The states have to get busy forming their programs.

What is the role of NIHC from your perspective?

NIHC has a clear role in creating opportunity in the marketplace though educating lawmakers and regulators on intended and unintended consequences of certain legislation. They can navigate the way through many of the agencies that have a card in the hemp deck to play.

From an environmental perspective, the growing of hemp is an extremely good product for agriculture. Whatever we can do to encourage this marketplace will be beneficial for farmers and for consumers. It is a very viable ag product, which is why the states are so interested in it. It will grow with the marketing and promotion of it, which NIHC can also play a critical role though the promotion of the checkoff program.

NIHC can be a guiding force as the industry evolves and matures. We don’t know what we don’t know yet, such as what pesticides are best and which fertilizers are suited for hemp. From an ag standpoint, there is much to learn, and data is coming sparingly. But there is no doubt we will learn what will make hemp industry prosper; people will figure it out.

What do you think is the most important aspect concerning the industrial hemp industry today?

Its growth and marketing. Getting it out there and people using it for products. Showing that it isa viable product. Breaking the stigma for investors to contribute. Anything to get it out there and get it known. The wonderful thing is that it does not have issues attached to it that could make it problematic from a public health and environmental standpoint, both which can be huge obstacles in other circumstances like we saw with genetically-modified foods.

There needs to be a proof of product that using hemp is better than what is currently being used.

 
 

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