The U.S. Department of Agriculture (USDA) is planning to distribute a national survey to gain insights from thousands of hemp businesses that could inform its approach to regulating the industry.
In partnership with the the National Association of State Departments of Agriculture and the University of Kentucky, the federal agency intends to “conduct a survey to collect information from U.S. hemp producers on current production costs, production practices, and marketing practices,” according to a notice set to be published in the Federal Register on Friday.
“The survey will also be administered to Tribes that have approved hemp production programs, in order to get input from tribal hemp production,” the department said.
But before it can send questionnaires out, the department has to formally request approval to circulate the surveys from the White House Office of Management and Budget, and so it’s opening a 60-day comment period where stakeholders can submit feedback on the necessity of its proposal and areas where the scope of the survey can be improved, among other topics.
If authorized, USDA said it expects about 18,000 hemp producers to participate in the survey, which will consist of four main components and which it expects to take respondents a half-hour to complete.
First, it wants data on production location, licensed acreage, planted acreage and harvested acreage by end-use. “Collecting this information is necessary to develop an understanding of the industry across the country,” USDA wrote.
Then there will be a section on “production costs and practices” that touches on issues related to seeds, labor, fertilizer, licensing fees and testing. “This section dives deeper into the production costs for hemp and asks specific questions about the types of hemp,” the department said.
Another section will cover “contracting and marketing practices” and will include questions about farmgate pricing by end use, contract usage, contract structure and storage.
A final demographic section will collect information on producers’ ages, education levels, experiences, household sizes and races.
“The data obtained from the survey will be used for forecasting hemp activity and to develop a representative understanding of hemp production practices and costs at national, regional, and state levels,” the agency said. “Once the survey has been administered and the results collected, the University of Kentucky will summarize the raw data from the survey into a comprehensive report for [USDA].”
This survey announcement comes one week after USDA closed an extended public comment period on its proposed hemp regulations. Its initial round saw more than 4,600 submissions, but it said last month that it was reopening the feedback period in response to intense pushback from stakeholders on its original proposal.
The federal Small Business Administration (SBA) said last month that the new 30-day comment window is too short and asked USDA to push it back, and it also issued a series of recommended changes to the interim final rule on hemp, which it says threaten to “stifle” the industry and benefit big firms over smaller companies.
All told, it appears that USDA is taking seriously the feedback it’s received and may be willing to make certain accommodations on these particular policies. The department’s rule for hemp is set to take effect on October 31, 2021.
In July, two senators representing Oregon sent a letter to Perdue, expressing concern that hemp testing requirements that were temporarily lifted will be reinstated in the agency’s final rule. They made a series of requests for policy changes.
Senate Minority Leader Chuck Schumer (D-NY) wrote to Perdue in August, asking that USDA delay issuing final regulations for the crop until 2022 and allow states to continue operating under the 2014 Farm Bill hemp pilot program in the meantime.
Sen. Cory Gardner (R-CO) also called on USDA to delay the implementation of proposed hemp rules, citing concerns about certain restrictive policies the federal agency has put forward in the interim proposal.
The earlier pilot program was initially set to expire on October 31, but it was extended to September 2021 through a congressional continuing resolution that the president signed late last month.
The senators weren’t alone in requesting an extension, as state agriculture departments and a major hemp industry group made a similar request to both Congress and USDA in August.
Perdue has said on several occasions that DEA influenced certain rules, adding that the narcotics agency wasn’t pleased with the overall legalization of hemp.
Amid the coronavirus pandemic, hemp industry associations pushed for farmers to be able to access to certain COVID-19 relief loans—a request that Congress granted in the most recent round of coronavirus legislation.
While USDA previously said that hemp farmers are specifically ineligible for its Coronavirus Food Assistance Program, that decision was reversed last month. While the department initially said it would not even reevaluate the crop’s eligibility based on new evidence, it removed that language shortly after Marijuana Moment reported on the exclusion.
Two members of Congress representing New York also wrote a letter to Perdue in June, asking that the agency extend access to that program to hemp farmers.
Hemp farmers approved to produce the crop do stand to benefit from other federal loan programs, however. The department released guidelines for processing loans for the industry in May.
Photo courtesy of Pixabay.
New Mexico Governor And Senate Leader Say Marijuana Legalization Can Pass This Year
The governor of New Mexico and a top Senate leader are bullish about getting marijuana legalization passed this session, with both making recent comments about what they hope the soon-to-be-introduced legislation will accomplish.
Gov. Michelle Lujan Grisham (D), who included the reform as part of her 2021 legislative agenda she released this month, said in a TV interview that she’s “optimistic” about cannabis reform adding that projections show the state gaining thousands of jobs and raising hundreds of millions of dollars in tax revenue.
“I’m still really optimistic about cannabis, which is 12,000 jobs,” she told KOB-TV, “and you know by the fifth year in operation, the projections are we would make $600 million a year.”
Also part of my plan for growing New Mexico's economy: legalizing recreational cannabis, which has the potential to create 11,000 jobs and create over hundreds of millions of dollars in revenue.
I look forward to working with the New Mexico Legislature this year to get it done.
— Michelle Lujan Grisham (@GovMLG) January 22, 2021
But while the “large economic boost” that the governor expects legalization to bring is an important component, especially amid the coronavirus pandemic, lawmakers are also taking seriously the need to address social equity.
Watch the governor talk about cannabis reform, starting around 4:40 into the video below:
Meanwhile, Senate Majority Leader Peter Wirth (D) said last week that he’s having ongoing conversations with multiple legislators who plan to sponsor legalization bills, and he’s conveyed to them that whatever piece of legislation advances must “address those fundamental underlying issues” of social justice.
In terms of process, the top lawmaker said it’s important for legislators to be talking about their respective bills early on to resolve as many differences as possible before the issue reaches committee or the floor. The failure to get those issues taken care of in a timely manner is partly why the legislature wasn’t able to pass legalization during last year’s short session.
A bill to legalize cannabis for adult use passed one Senate committee last year only to be rejected in another before the end of the 30-day session. Earlier, in 2019, the House approved a legalization bill that included provisions to put marijuana sales mostly in state-run stores, but it later died in the Senate.
“This year I know the legislators have been working very hard, shaping and crafting these bills, and that kind of from the ground up versus the top down approach that I think is needed for a legislation of this kind,” Wirth told the Growing Forward podcast that’s a joint project of NM Political Report and New Mexico PBS. “Again, we just can’t get it into a final committee in a place where it’s not really ready to go.”
Watch the senator majority leader discuss the legislature’s work to legalize marijuana below:
The new, post-election makeup of key committees has been helping to facilitate this dialogue and get ahead of disagreements, he said.
While Wirth said he expects some of the same voices coming out in opposition to the legislature’s push to enact legalization this session, he’s “feeling more confident” about passing the reform in the Senate this year.
Several anti-legalization Democrats, including the Senate president pro tem and the Finance Committee chair, were ousted by progressive primary challengers last year.
Additional pressure to end cannabis prohibition this year is coming from neighboring Arizona, where voters approved legalization in November and where sales officially launched last week. New Mexico shares another border with Colorado, one of the first states to legalize for adult use. Cannabis is also expected to be legalized across the southern border in Mexico, with lawmakers facing a Supreme Court mandate to end prohibition by April 2021.
Wirth said it’s important to make sure that adult-use legalization doesn’t come at the peril of the state’s existing medical cannabis program.
“I just think that it’s a program that’s really been a model for how it’s been rolled out, how it’s worked, and we want to make sure that it stays intact and is still a functioning program,” he said. “That’ll be another a big issue.”
With at least five legalization bills being prepared in the state, Wirth said, there will be plenty for lawmakers to sift through and negotiate this session. The majority leader noted that another question is whether to put marijuana tax dollars in the state’s general fund or to earmark it for specific programs.
Rep. Javier Martinez (D), who has consistently sponsored cannabis reform bills in past sessions, said recently that the “biggest change you’ll see in this bill, which is one of the main points of contention last year, was the creation of a number of different funds, earmarks, tax coming in from cannabis.”
In any case, there’s economic urgency to pass and implement a legal cannabis program. And while no bills have been introduced so far this session, lawmakers expect several to be released as early as this week.
“I’m hopeful that this is the year to get this done,” Wirth said. “I just think the longer we wait, the less of an economic impact it’s going to have, as all of our sister states around us in the country really reach in this direction at pretty high speed.”
Polling indicates that voters are ready for the policy change. A survey released in October found that a strong majority of New Mexico residents are in favor of legalization with social equity provisions in place, and about half support decriminalizing drug possession more broadly.
In May, the governor signaled that she was considering actively campaigning against lawmakers who blocked her legalization bill in 2020. She also said that she’s open to letting voters decide on the policy change via a ballot referendum if lawmakers can’t send a legalization bill to her desk.
Photo by Kyle Jaeger.
GOP Congressman Files Bill To Protect Veterans Who Use Medical Marijuana From Losing Benefits
A Republican congressman has filed the second piece of marijuana reform legislation to be introduced so far in the new 117th Congress—this one aimed at ensuring that military veterans aren’t penalized for using medical cannabis in compliance with state law.
The proposal from Rep. Greg Steube (R-FL), who filed a more expansive version of the measure last year, would also codify that U.S. Department of Veterans Affairs (VA) doctors are allowed to discuss the risks and benefits of marijuana with their patients.
VA doctors are currently permitted to discuss cannabis with patients and document their usage in medical records, and those veteran patients are already shielded by agency policy from losing their benefits for marijuana use—but the new bill would enshrine these policies into federal statute so they could not be administratively changed in the future.
That said, the version Steube introduced last year contained a notable provision that further allowed VA physicians to formally fill out written recommendations for marijuana.
But that language was omitted from this year’s bill, which could create barriers to access given that most state medical cannabis programs require a written recommendation, meaning many veterans would have to outsource their healthcare to a non-VA provider in order to qualify for legal access to marijuana.
Carson Steelman, communications director in Steube’s office, told Marijuana Moment that removing that component was politically necessary to advance the previous version through a House committee last year as an amendment to another bill.
“This bill was able to pass through markup with the removal of that portion,” he said. “Many members had concerns regarding it so in order to move this bill swiftly this Congress, we introduced it without that portion.”
Doug Distaso, executive director of the Veterans Cannabis Project, applauded Steube for the overall bill, saying that “we consistently see, on a daily basis, a denial of veteran benefits ranging from medical prescriptions to VA loans, solely because a veteran is participating in a state-approved marijuana program or working in the cannabis industry.”
“However, we are disappointed that specific language on Veterans Affairs provider-issued cannabis recommendations was removed from this bill, since these are the providers upon whom veterans rely for full, integrated treatment and care—including cannabis,” he told Marijuana Moment.
But while the absence of language around discussing and recommending medical marijuana isn’t ideal from advocates’ perspective, the bill would still be a modest step for veterans, making it so VA could not move to deny them benefits for using cannabis in accordance with state law.
The Veterans Cannabis Use for Safe Healing Act had 19 cosponsors last session, including eight Republicans and 11 Democrats.
This is the second piece of marijuana reform legislation that’s been introduced so far in the new Congress, both of which are sponsored by Steube. His first bill would simply require that cannabis be moved from Schedule I to Schedule III of the Controlled Substances Act—a move that the congressman said would free up research into the plant.
That proposal is identical to legislation he filed last year.
While rescheduling is backed by President Joe Biden, who remains opposed to adult-use legalization, it’s not the reform that advocates are getting behind. There are high hopes that a more comprehensive completely remove marijuana from the CSA—while promoting social equity—will move through the 117th Congress.
A bill to accomplish that cleared the U.S. House of Representatives last year, but it died in the GOP-controlled Senate. Now that Democrats have control of both chambers, activists are waiting for the legislation to be taken back up with a better chance of making it to Biden’s desk.
That bill—the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act—was sponsored by now-Vice President Kamala Harris, though she’s indicated that she would not necessarily push the president to adopt a pro-legalization position.
Read the text of the veterans-focused marijuana bill below:
Anti-Marijuana Lawmaker Files Legalization Bill In North Dakota To Avoid Activist Ballot Measure
North Dakota’s secretary of state on Friday approved the format of a proposed marijuana initiative, clearing the way for activists to collect signatures to place it on the 2022 ballot. Meanwhile, a Republican lawmaker is pushing a cannabis legalization bill he introduced even though he does not support the underling policy change.
Rather, Rep. Jason Dockter (R) said he recognizes the seeming inevitability of legal marijuana reaching the state as more neighboring jurisdictions enact reform and as activists gain momentum for their agenda. If the state is going to enact legalization, he wants the legislature to dictate what that program looks like instead of leaving it in the hands of advocacy groups.
Dockter’s House Bill 1420 would allow adults 21 and older to possess and purchase up to one ounce of cannabis for personal use, but home cultivation would not be allowed.
Licensed cultivation facilities that provide cannabis products to retailers “may grow an amount of marijuana sufficient to meet the demands of the public.”
Under the proposal, legal cannabis sales would begin on February 1, 2022.
The bill is being supported by the pro-reform campaign Legalize ND. The group placed a legalization measure on the 2018 ballot that was defeated by voters. They tried to qualify another initiative last year but signature gathering complications caused by the coronavirus pandemic got in the way.
It’s not clear if they will now still pursue previously announced plans for 2022 in light of the new bill, which they said they are “proud of” and is the result of engaging lawmakers in more than six months’ worth of conversations.
Meanwhile, a separate activist group has already filed its own 2022 legal marijuana measure that would make it so adults could possess marijuana and grow up to 12 plants (up to six of which could be mature). Secretary of State Al Jaeger said on Friday that the group can begin working to gather the 26,904 valid signatures from registered voters they will need to place the measure on the ballot.
“I am glad the North Dakota legislature is coming to the realization that legalization will move forward with or without them,” Jody Vetter, chairwoman for that effort, the ND for Freedom of Cannabis Act, told Marijuana Moment.
She added that while the Dockter’s bill is “a step in the right direction toward ending prohibition, there are concerns,” pointing to the lack of legal home cultivation and remaining criminal charges for certain cannabis-related activity.
“Criminal charges surrounding possession should only apply if someone is found to be selling cannabis without proper license or contributing to minors,” Vetter said. “We are moving forward with the ND For Freedom of Cannabis Act. Home growing is essential for any legal program and an overwhelming majority of North Dakotans are ready to stop criminally charging citizens for simply possessing cannabis.”
Jared Moffat, state campaigns manager for the national Marijuana Policy Project, told Marijuana Moment that “though this isn’t an ideal legalization bill, it’s a significant testament to the strength of our movement that legalization opponents are now preemptively filing their own legislation to legalize and regulate marijuana for adults.”
“These lawmakers are aware that a majority of their constituents support legalization, and you have to give them some credit for acknowledging that,” he said.
The bill contains a number of restrictions on labeling and advertising, as well as penalties for impaired driving. A health council would be tasked with developing further regulations on issues such as the allowable amount of THC in edibles and testing standards.
“I’m not for [legalization] at all, but I understand that it’s coming, and we have to address the issue,” Dockter told Inforum. “I’m trying something different in government—we’re trying to be proactive and not be reactive.”
House Majority Leader Chet Pollert said that he’s not “a marijuana person,” but he acknowledged that cannabis legalization is coming. While he would have previously been inclined to oppose Dockter’s bill, Pollert said voter approval of a legalization initiative in South Dakota has given him pause, adding that the legislature should “take a long, hard look” at the policy change.
Neighboring Montana also moved to legalize marijuana for adult use during the November election, adding to the regional pressure to get on board. Canada, which also borders the state, has a national legal cannabis market.
North Dakota voters approved a medical cannabis ballot measure in 2016.
Aside from the new broad legalization legislation, state lawmakers also recently introduced a separate bill to significantly expand the decriminalization of marijuana possession in the state. The proposal, which was filed last week, would build on an initial cannabis decriminalization law that was enacted in 2019.
Read the North Dakota cannabis legalization bill below:
Photo courtesy of Philip Steffan.