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GOP HOUSE LEADERS PROPOSE REDUCING REGULATORY BARRIERS FOR SOME HEMP GROWERS IN
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POLITICS


GOP HOUSE LEADERS PROPOSE REDUCING REGULATORY BARRIERS FOR SOME HEMP GROWERS IN
DRAFT FARM BILL

Published

3 seconds ago

on

May 17, 2024

By

Kyle Jaeger

GOP House leaders have released a draft version of large-scale agriculture
legislation that could reduce regulatory barriers for certain hemp farmers and
scale-back a ban on industry participation by people with prior drug felony
convictions. The legislation also omits any provisions that would ban
hemp-derived cannabinoid products that some parties have pushed for.

The House Agriculture Committee unveiled the draft 2024 Farm Bill on Friday—just
days before a scheduled markup next week. It would build upon the federal
legalization of the crop under the 2018 version of the legislation in several
meaningful ways, though hemp stakeholders caution there may be attempts to
undermine the industry with amendments.

One of the key changes that’s included in the current draft would revise the
definition of hemp, creating separate categories for producers who grow the crop
for cannabinoid extraction for human and animal consumption and for “industrial
hemp” producers who cultivate it for fiber, grain, oil and seed not intended for
consumption.

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Under the draft legislation, those who are licensed as “industrial hemp”
producers could see reduced regulatory restrictions, with the U.S. Department of
Agriculture (USDA), states and Indian tribes empowered to authorize visual
inspections and “performance-based sampling methodologies” for compliance
purposes.

Farmers growing hemp to extract cannabinoids for human or animal consumption,
however, would continue to be subject to more intensive inspections and
laboratory testing as prescribed under the 2018 Farm Bill.



The revised inspection and testing provisions were “inspired” by a bipartisan
bill titled the “Industrial Hemp Act” that was introduced last year by Reps.
Matt Rosendale (R-MT) and Chrissy Houlahan (D-PA), a section-by-section summary
says.

Also, the newly released legislation would allow USDA to independently accredit
laboratories to conduct the sample testing. That would help resolve
bottlenecking issues that’s beleaguered the industry, as the current law
requires farmers to have their products tested only by a limited number of Drug
Enforcement Administration- (DEA) certified labs.



Another proposed change to federal hemp statute would make it so USDA, states
and tribal entities could choose to eliminate a policy that prevents people with
felony drug convictions in the past 10 years from being licensed to produce
industrial hemp.

However, advocates are hoping to see more expansive language, such as what’s
described in Senate Democrats’ recent summary of their forthcoming Farm Bill
draft. Under that plan, there would be a mandate to eliminate the ban, rather
than simply authorizing it, and it would cover all hemp producers, not just
those growing it for non-extraction purposes.

That said, the Senate Agriculture Committee has not yet released the draft text
of their bill, so it remains to be seen if the summary description matches what
will ultimately be released. Bipartisan House lawmakers filed standalone
legislation last year that would broadly lift the felony ban for would-be hemp
producers.



While the House bill contains a number of priorities that a coalition of hemp
organizations and businesses had put forth, the industry is especially
encouraged by what’s not in the draft legislation: a ban on most hemp-derived
cannabinoids.

Paradoxically, select marijuana businesses have found themselves on the same
side as prohibitionists in pushing such a ban. In a letter to congressional
leaders last month, the U.S. Cannabis Council (USCC) proposed specific language
they wanted to see included that would place hemp-derived cannabinoids
containing any amount of THC under the definition of federally illegal
marijuana.



While they’ve focused on the need to address public safety concerns related to
unregulated “intoxicating” cannabinoid products such as delta-8 THC, some hemp
industry advocates say the effect of the proposed language could be a ban on
virtually all non-intoxicating CBD products as well, as most on the market
contain at least trace levels of THC, consistent with the Farm Bill definition
of hemp that allows for up to 0.3 percent THC by dry weight.

Hemp industry stakeholders have recognized that there’s a need to address
legitimate concerns related to the unregulated market that’s proliferated since
hemp was federally legalized, but the solution they’ve put forward is to enact
strategic regulations to ensure product safety and prevent youth access.

“We are very pleased with this draft,” Jonathan Miller, general counsel for the
U.S. Hemp Roundtable, told Marijuana Moment on Friday. “Four of our top
priorities that we joined with 33 other organizations on are found in this bill,
which is really exciting.”



He added that his organization is particularly pleased to see that there’s
“nothing negative” in the draft text that “could potentially ban popular hemp
products, as has been rumored.”

“However, there is an amendment process, and we’re going to be vigilant to try
to oppose anything that would wreak havoc on that product industry,” Miller
said.






The House Appropriations Committee draft bill also includes a provision that
says businesses that “knowingly” misidentify themselves as “industrial hemp”
producers potentially subjected to reduced restrictions “shall be ineligible to
participate in the program established under this section for a period of 5
years beginning on the date of the violation.”

Another component of the legislation would prevent state agencies from denying
public assistance benefits to people simply because they have a felony drug
conviction or because they’ve failed to “satisfy an action required under a
Federal, State, or local law relating to a means-tested public assistance
program that was required as a result of a felony drug conviction.”

Meanwhile, state marijuana regulators have proposed updating the agriculture
legislation with provisions clarifying states’ rights to enact their own
regulations for hemp-based intoxicating cannabinoids, citing instances where
there’s been litigation asserting that federal law preempts such rulemaking.



“Federal clarification of states’ existing authority is thus essential to allow
states to continue to protect public health and integrity in the hemp
industry—as the 2018 Farm Bill always intended,” three executives with the
Cannabis Regulators Association (CANNRA) said in a recent letter to
congressional leaders.

CANNRA had previously recommended to Congress in a letter last year
that lawmakers adjust the federal definition of hemp and modify rules around
hemp-derived cannabinoids.

Lawmakers and stakeholders have also been eyeing a number of other proposals
that could be incorporated into the Farm Bill—and which could come up as
proposed amendments as the proposal moves through the legislative
process—including measures to free up hemp businesses to legally market products
like CBD as dietary supplements or in the food supply.



—
Marijuana Moment is tracking more than 1,500 cannabis, psychedelics and drug
policy bills in state legislatures and Congress this year. Patreon supporters
pledging at least $25/month get access to our interactive maps, charts and
hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to
get access.
—



Meanwhile, the hemp market started to rebound in 2023 after suffering
significant losses the prior year, the latest annual industry report from the
U.S. Department of Agriculture (USDA) that was released last month found.

The data is the result of a survey that USDA mailed to thousands of hemp
farmers across the U.S. in January. The first version of the department’s hemp
report was released in early 2022, setting a “benchmark” to compare to as the
industry matures.

Bipartisan lawmakers and industry stakeholders have sharply criticized FDA for
declining to enact regulations for hemp-derived CBD, which they say is largely
responsible for the economic stagnation.

To that end, FDA Commissioner Robert Califf testified before the House Oversight
and Accountability Committee last month, where he faced questions about the
agency’s position that it needed additional congressional authorization to
regulate the non-intoxicating cannabinoid.

USDA is also reportedly revoking hemp licenses for farmers who are
simultaneously growing marijuana under state-approved programs, underscoring yet
another policy conflict stemming from the ongoing federal prohibition of some
forms of the cannabis plant.

For the time being, the hemp industry continues to face unique regulatory
hurdles that stakeholders blame for the crop’s value plummeting in the short
years since its legalization. Despite the economic conditions, however, a recent
report found that the hemp market in 2022 was larger than all state marijuana
markets, and it roughly equaled sales for craft beer nationally.



Meanwhile, internally at USDA, food safety workers are being encouraged to
exercise caution and avoid cannabis products, including federally legal CBD, as
the agency observes an “uptick” in positive THC tests amid “confusion” as more
states enact legalization.

> 69% Of American Voters—Including Majority Of Republicans—Support Marijuana
> Legalization, Fox News Poll Finds



Marijuana Moment is made possible with support from readers. If you rely on our
cannabis advocacy journalism to stay informed, please consider a monthly Patreon
pledge.
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Don't Miss

69% Of American Voters—Including Majority Of Republicans—Support Marijuana
Legalization, Fox News Poll Finds

Kyle Jaeger


Kyle Jaeger is Marijuana Moment's Sacramento-based managing editor. His work has
also appeared in High Times, VICE and attn.



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