Two years after the U.S. Congress passed the 2018 Farm Bill (which legalized hemp production in the United States), the U.S. Department of Agriculture (USDA) released its final hemp rules. The new rules set out production and processing regulations for farmers and producers of hemp-derived products, including CBD and other cannabinoids extracted from the plant.
The final hemp rule (officially called the "Establishment of Domestic Hemp Production Program") was developed by the Agricultural Marketing Service of the U.S. Department of Agriculture. The agency's interim final rule and multiple public comment periods have been in place for over a year.
The rule was published in the Federal Register on January 19, the day before President Biden's inauguration, and was scheduled to take effect on March 22. However, the Biden administration will review the rule before it takes effect.
Supporters of cannabis and cannabinoids still have a chance to persuade the new administration to modify the regulations. Tom Vilsack, the nominee for Biden's agriculture secretary, advocated for cannabis production in the same position under President Obama, and conversations between members of the Biden team and representatives of the cannabis industry have already begun.
The final rules provide detailed explanations on record-keeping and compliance procedures, licensing requirements, as well as testing and disposal regulations, etc. The majority of the rules are technical in nature, but some of their components impose restrictions on the cannabis and CBD industries, which may affect CBD consumers by raising prices and reducing availability.
