Biden's admin greenlights the "new as it is stifling" 2021 USDA hemp regulations
The US hemp industry has been held back by regulation since the farm bill of 2014 under the bill the government was meant to establish a hemp infrastructure and conduct research. What has actually happened is the govt has been accused of stifling the industry Initially the fda had authority over hemp but the usda has been transitioned into that role. Hemp has been removed from the list of narcotics and is now federally legal
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The agency's independent Office of Advocacy said that while it
appreciates that USDA reopened a public comment period on its Interim
Final Rule for the crop, small businesses “remain deeply concerned about
the impact this rule will have on their ability to legally grow hemp
should the rule be finalized without any modifications.”
“The rule has already stifled the industry as many farmers have
chosen not to grow hemp this year until they are certain about what the
requirements are, and whether they can produce compliant crops without
the risk of a total loss of their investment due to mandatory
destruction of hot crops,” it said in a comment submitted on Thursday,
referring to plants that exceed allowable THC limits. “In some
instances, [businesses] have noted that the rules are so stringent that
they feel as though they are being set up to fail.”
https://hempindustrydaily.com/new-usda-confirms-looming-nationwide-hemp-rules/amp/
In its latest comment,
SBA focused on five proposed rules that it hopes USDA will revise. That
includes regulations concerning prescribed hemp sample collection
methods, disposal requirements for so-called “hot hemp,” the 15-day
harvest window and the requirement that crops be tested only by labs
registered with the Drug Enforcement Administration (DEA).
“Advocacy appreciates [Agricultural Marketing Service] reopening the
comment period to consider additional comments and recommendations in
advance of issuing a final rule,” SBA wrote. “Advocacy is concerned that
if finalized without modification the rule will inhibit small business
growth. Advocacy urges AMS to give full and thorough consideration to
the above issues and proposed regulatory alternatives.”
SBA's nine-page letter suggests that USDA's restrictive rules will
benefit large businesses while forcing smaller operators out of the
market.
For direct and guaranteed loans, hemp businesses must have a contract with FSA laying out termination policies and their ability to repay the loans. Part of that calculus should involve looking at the “intended use of hemp being produced,” whether that’s fiber, seed or CBD oil.
The Farm Bill doesn’t allow for hemp licenses to be transferred, which also has some lending service implications, USDA wrote.
The memo says that “if the borrower defaults on the loan, dies, or abandons the operation, under no circumstance could another legal individual, lender, or FSA Agency official obtain the right to the commodity and attempt to liquidate it as a full or partial income recovery attempt.”
Federal agency says USDA's hemp rules “stifle” industry growth and hurt small businesses
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