In this article, we bring you an array of news spanning from the national stage to right here in Maryland. So, let's dive in and explore the exciting progress and challenges that the hemp industry is currently facing.
INDUSTRIAL HEMP
National News
On August 7th, at the Central PA Institute of Science and Technology, key players in the hemp industry came together for a pivotal meeting. The National Hemp Association (NHA) and Pennsylvania Secretary of Agriculture, Russell Redding, convened with Congressman Glenn ‘GT’ Thompson, Chair of the House Agricultural Committee. The primary agenda of this meeting was the Industrial Hemp Act of 2023 (H.R. 3755 & S.980) and its potential integration into the forthcoming 2023 Farm Bill.
The Industrial Hemp Act of 2023 proposes a significant distinction between industrial hemp fiber and grain from cannabinoid or floral hemp. While keeping the existing regulatory framework intact for cannabinoid hemp production, these bills introduce a separate framework tailored to industrial hemp. This division aims to reduce the burden on farmers, provide clarity for investors, and promote economic development in rural America.
This move parallels the efforts made by the Maryland Hemp Coalition during the 2022-2023 legislative session with certain provisions within HB1204.
Additionally, the meeting highlighted broader requests for hemp within the Farm Bill. One noteworthy request is the approval of hemp grain as animal feed for various animals, including pets, exotic pets, horses, ornamental fish, camelids, and others.
Another crucial point of discussion was the necessity for a 'Whole of Government Approach' and the development of legislation to grant the FDA the regulatory authority needed to pave a clear path forward for cannabinoid products. Hemp industry stakeholders are steadfastly advocating for these changes to empower American farmers, stimulate innovation, and champion sustainable practices.
For more information, you can read the full article [here]
Maryland News
Moving closer to home, on September 7th, Hart Hemp Company, located in Frederick, MD, hosted a Field Day event. This event offered attendees an exclusive, firsthand look at the development of a commercial-scale industrial hemp farm right here in Maryland.
The discussions during the event revolved around various goals, including the establishment of much-needed processing plants and the recruitment of new farmers to grow hemp for industrial purposes. Support by the Maryland Department of Agriculture (MDA) for certain key legislative changes laid out in HB1204 would be a start to removing certain hurdles holding back adoption of industrial hemp by MD farmers. The MD hemp industry is hopeful that the new Secretary of Agriculture - Kevin Atticks, will help assist with this needed support by the MDA for the upcoming legislative session.
According to data collected from the Maryland Department of Agriculture, the total acreage of hemp produced in the state was allocated to different commodities as follows: 69% for CBD extraction (hemp-derived products), 17% for fiber, 5% for grain, and 8% for seed. This breakdown illustrates the significance of CBD extraction in the hemp industry, which is now facing severe challenges due to the new Cannabis Reform Act. As the industry moves forward, it's crucial to remember that both the therapeutic and industrial potentials of hemp must be protected and promoted to realize its full benefits.
"In order to achieve the full social, environmental and economic potentials of hemp, we must protect and promote both its therapeutic potentials and industrial potentials" - Levi Sellers, MHC President
FLORAL HEMP
MD Case Against Cannabinoid Monopolies
Currently, the Maryland hemp industry is awaiting a ruling from a preliminary injunction hearing held on September 11th & 12th in Washington County. This case, filed on July 24th, seeks relief for the Maryland hemp industry from the new Cannabis Reform Act, which many believe violates the Declaration of Rights in the Maryland Constitution.
The new law, effective as of July 1st, contains provisions that effectively remove the sale of certain hemp-derived products from small family-owned and minority-owned hemp businesses. These products accounted for approximately 70-80% of the items previously sold by Maryland hemp businesses. To continue selling these products, existing hemp businesses are required to obtain one of the new licenses.
However, due to geographical restrictions and limited licensing set forth in the act, the responsibility for selling these products was transferred to large out-of-state corporations that currently dominate the cannabis industry. This further consolidates the market and strips small local businesses of valuable revenue streams.
One noteworthy aspect of the act is its licensing scheme, which subjects applicants to a lottery system that favors urban areas over rural ones. This preference is based on geographical locations determined by zip codes established by the Office of Social Equity as "disproportionately impacted areas." These areas are determined solely by possession charges without factoring in population size, which disproportionately benefits urban areas over rural areas where Maryland hemp farms are situated.
The ruling on this case is anticipated imminently, and we will keep you updated with the latest developments.
Precedent Set in Arkansas Case
In a significant development, a federal court in Arkansas recently issued a landmark ruling, enjoining the enforcement of a recently enacted hemp law. This ruling marks a substantial victory for the hemp industry and underscores the lawful status of hemp products.
The plaintiffs argued that the Act is preempted by the federal 2018 Farm Bill and that its provisions are unconstitutionally vague. The court concurred and entered an injunction that prohibits the enforcement of the Act.
The court's decision also affirms that the definition of "hemp" in the 2018 Farm Bill extends beyond the plant itself to encompass "all derivatives, extracts, [and] cannabinoids" as long as their delta-9 THC concentration does not exceed the statutory threshold. This echoes an earlier 9th Circuit Court ruling that reached a similar conclusion regarding the definition of hemp in the 2018 Farm Bill.
This is encouraging news, particularly in light of various states enacting laws that unconstitutionally restrict and prohibit hemp products that are clearly lawful under the 2018 Farm Bill.
For more information, you can read the full article [here].
In conclusion, the hemp industry is experiencing both significant progress and pressing challenges on both national and local fronts. As we await the outcomes of pivotal court cases and legislative efforts, we remain committed to advocating for the sustainable growth of this vital industry.
Stay informed, stay engaged, and together, we can shape the future of hemp in Maryland and across the nation.
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