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When a House committee approved an amendment to a large-scale agriculture bill last week that would effectively ban most consumable hemp products, it was met with an atypically mixed response from the cannabis industry. Even within trade associations that supported the amendment to the 2024 Farm Bill, such as the U.S. Cannabis Council (USCC), there\u2019s been internal splintering.<\/p>\n
Multi-state cannabis operators like Cresco Labs and Curaleaf\u2014both members of USCC that typically find themselves aligned on federal reform issues\u2014are at odds over the hemp amendment, for example.<\/p>\n
Everyone generally seems to agree that marijuana and hemp should be regulated under a federal framework, but there\u2019s disagreement over the measure adopted by the House Agriculture Committee<\/a>, which calls for a ban on intoxicating hemp-derived cannabinoid products such as delta-8 THC and CBD products containing any quantifiable amount of THC.<\/p>\n Supporters of the amendment have described it as a fix to a \u201cloophole\u201d in the 2018 Farm Bill that federally legalized hemp and its constituents. Others have recognized the need to adopt regulations to reign in the cannabinoid market but say re-prohibiting cannabinoids is not the solution.<\/p>\n \u201cOur position is, it\u2019s the same plant and should be regulated the same way, period,\u201d Jason Erkes, chief communications officer at Cresco Labs, told Marijuana Moment last week. \u201cEspecially when it comes to the synthetic products that aren\u2019t tested and you don\u2019t know where they came from and, inherently in the past, they\u2019ve been dangerous.\u201d<\/p>\n Erkes acknowledged that \u201cthere is a monetary aspect as well,\u201d pointing to the high licensing, security, testing and tax burdens that state-legal marijuana businesses face, compared to certain hemp businesses that are selling intoxicating cannabinoid products without having to jump through those hoops.<\/p>\n \u201cHere are these businesses that pop up\u2014in many cases, they call themselves the same thing. It\u2019ll say \u2018cannabis dispensary\u2019 on their door on the same street as a regulated dispensary where there\u2019s no security, no safety, no lab-testing, and they don\u2019t pay any taxes.\u201d<\/p>\n There\u2019s agreement about the need to resolve the problem. But the hemp industry and certain marijuana companies feel the amendment adopted in committee last week goes too far. If the agreed-upon solution is regulation, why start that conversation with prohibition?<\/p>\n \u201cIt\u2019s too far. And it\u2019s not going to address the consumer safety issue,\u201d Shawn Hauser, a partner at the cannabis- and psychedelics-focus law firm Vicente LLP, told Marijuana Moment. We need to have a real discussion about legalizing and regulating the whole plant.\u201d<\/p>\n \u201cWhat we really need is stakeholders to come together\u2014which as divisive as things are right now, hopefully that\u2019s the result,\u201d she said. \u201cBut it\u2019s incumbent on Congress to give us a federal regulatory framework.\u201d<\/p>\n Hauser serves on the board of USCC, which supported the amendment and even offered draft language that\u2019s consistent with the measure that was adopted. But she\u2019s not the only board member who\u2019s come out against the amendment.<\/p>\n Boris Jordan of Curaleaf, another USCC member, said officials at his company \u201cdisagree\u201d with the proposal, calling it \u201can attempt to roll back the Farm Bill.\u201d<\/p>\n \u201cWe support hemp farmers, and we believe that hemp-derived products made within the guidelines of the Farm Bill should be available to adults with strict age gating and safety standards,\u201d he said<\/a>. \u201cWe believe there should be one regulatory framework for all cannabinoids, and that all legal players in the hemp-derived product market must adhere to the same safety and age restrictive standards in order to combat the dangers of the illicit market\u2013just as in cannabis.\u201d<\/p>\n The company\u2019s position against the specific amendment may be partly informed by its recent entrance into the consumable hemp market, with a line of infused drinks that would likely be impacted by the proposed ban.<\/p>\n Again, there\u2019s general consensus around the need for a regulatory framework. But in another example of the internal divide over the appropriateness of a stopgap hemp cannabinoid ban, the multi-state operator The Cannabist Company\u2014which is also on the board of USCC\u2014is backing the controversial amendment.<\/p>\n \u201cThe Cannabist Company strongly supports efforts to regulate intoxicating hemp products. Far too many unregulated, untested hemp-derived products are being sold in gas stations and bodegas across our nation, confusing consumers and providing access to teens,\u201d Adam Goers, senior vice president of corporate affairs, told Marijuana Moment.<\/p>\n \u201cWe support legislative remedies that close the loophole and ensure that intoxicating products undergo rigorous testing, accurate labeling and strict age restrictions,\u201d he said. \u201cThis is a matter of protecting public health and safety and it\u2019s far past time that hemp-derived products be held to the same safety and regulatory standards as those within state-licensed cannabis programs.\u201d<\/p>\n David Culver, USCC\u2019s senior vice president of public affairs, told Marijuana Moment on Friday that \u201cwe all have the same goal, which is regulatory parity between cannabis and intoxicating hemp.\u201d<\/p>\n \u201cNot surprisingly, there are some differences of opinion over the best path for getting there, but we continue to advance toward that shared goal,\u201d he said.<\/p>\n Aaron Smith, executive director of the National Cannabis Industry Association (NCIA), a separate industry trade group, told Marijuana Moment the amendment is \u201cshort-sighted because, for one, these products are here to stay, so it\u2019s either regulate them or we\u2019re going see them just go into a criminal market.\u201d<\/p>\n \u201cYet I understand this is an unacceptable situation that we have unregulated products that are being sold alongside the regulated industry. We\u2019re just saying that the solution isn\u2019t prohibition,\u201d he said. \u201cThe solution is regulations that apply equally to marijuana and hemp-derived cannabinoid products.\u201d<\/p>\n Another cannabis association that did support the passage of the Farm Bill amendment is the American Trade Association of Cannabis and Hemp (ATACH), though its president Michael Bronstein said it should serve as a \u201cwake up call\u201d for Congress to enact comprehensive regulations.<\/p>\n \u201cThe Farm Bill, which is authorized every five years, is an imperfect vehicle for meaningful legalization and going forward the call must be for sensible regulation,\u201d he said.<\/p>\n But in the interim, if the hemp-based cannabinoid ban is ultimately implemented, it would threaten an already vulnerable industry that has endured precarious economic conditions over the past six years. While people who support the amendment have focused on unregulated, intoxicating products that are sold at gas stations without age-gating, the way it\u2019s drafted would likely spell doom for the expansive CBD market as well, affecting legitimate hemp businesses.<\/p>\n Wine & Spirits Wholesalers of America (WSWA) Executive Vice President of Government Affairs Dawson Hobbs said the \u201cattempt to ban intoxicating hemp products is merely doubling down on the failed federal policy of prohibition.\u201d<\/p>\n States have successfully regulated the alcohol market for their citizens for nearly 90 years \u2014 they should retain the authority to regulate cannabis and hemp-intoxicating products. WSWA is committed to advancing regulation:https:\/\/t.co\/NKYy5CbRMz<\/a>#FarmBill<\/a> #CannabisNews<\/a> pic.twitter.com\/wwW32BlxAX<\/a><\/p>\n \u2014 Michael Bilello (@BilelloPR) May 24, 2024<\/a><\/p>\n<\/blockquote>\n\n \u201cThe right path is to empower states to regulate these intoxicating hemp products and create a process to protect public safety by identifying naturally occurring cannabinoids and eliminating synthetic derivatives,\u201d they said.<\/p>\n Meanwhile, the legislation that advanced through the House Agriculture Committee<\/a> last week also contains provisions that would reduce regulatory barriers for certain hemp farmers and scale-back a ban on industry participation by people with prior drug felony convictions.<\/p>\n Specifically, it would make it so the U.S. Department of Agriculture (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.<\/p>\n However, advocates had hoped to see more expansive language, such as what was described in\u00a0Senate Democrats\u2019 recent summary of their forthcoming Farm Bill draft<\/a>. 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.<\/p>\n 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<\/a>.<\/p>\n Lawmakers and stakeholders have also been eyeing a number of other proposals that could be incorporated into the Farm Bill\u2014and which could come up as proposed amendments as the proposal moves through the legislative process\u2014including measures to\u00a0free up hemp businesses to legally market products like CBD<\/a>\u00a0as dietary supplements or in the food supply.<\/p>\n \u2014 Meanwhile, the hemp market started to rebound in 2023 after suffering significant losses the prior year, the\u00a0latest annual industry report from the U.S. Department of Agriculture (USDA)<\/a>\u00a0that was released last month found.<\/p>\n The\u00a0data\u00a0is the\u00a0result\u00a0of a\u00a0survey that USDA mailed to thousands of hemp farmers\u00a0across the U.S.<\/a>\u00a0in January. The\u00a0first version of the department\u2019s hemp report<\/a>\u00a0was released in early 2022, setting a \u201cbenchmark\u201d to compare to as the industry matures.<\/p>\n 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.<\/p>\n To that end,\u00a0FDA Commissioner Robert Califf testified before the House Oversight and Accountability Committee<\/a>\u00a0last month, where he faced questions about the agency\u2019s position that it needed additional congressional authorization to regulate the non-intoxicating cannabinoid.<\/p>\n USDA is also reportedly\u00a0revoking hemp licenses for farmers who are simultaneously growing marijuana<\/a>\u00a0under state-approved programs, underscoring yet another policy conflict stemming from the ongoing federal prohibition of some forms of the cannabis plant.<\/p>\n For the time being, the hemp industry continues to face unique regulatory hurdles that stakeholders blame for the crop\u2019s value plummeting in the short years since its legalization. Despite the economic conditions, however, a recent report found that\u00a0the hemp market in 2022 was larger than all state marijuana markets<\/a>, and it roughly equaled sales for craft beer nationally.<\/p>\n Meanwhile, internally at USDA, food safety workers are being\u00a0encouraged to exercise caution and avoid cannabis products<\/a>, including federally legal CBD, as the agency observes an \u201cuptick\u201d in positive THC tests amid \u201cconfusion\u201d as more states enact legalization.<\/p>\n Biden Finally Acknowledges His Marijuana Pardons Did Not Expunge Records After Repeatedly Claiming They Did<\/a><\/p>\n<\/blockquote>\n\n Photo courtesy of Pixabay<\/a>.<\/em><\/p>\n The post Marijuana And Hemp Businesses At Odds Over Consumable Cannabinoid Ban In House Farm Bill<\/a> appeared first on Marijuana Moment<\/a>.<\/p>\n
When a House committee approved an amendment to a large-scale agriculture bill last week that would effectively ban most consumable hemp products, it was met with an atypically mixed response from the cannabis industry. Even within trade associations that supported the amendment to the 2024 Farm Bill, such as theContinue Reading<\/a><\/span><\/p>\n","protected":false},"author":458,"featured_media":75817,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18,81],"tags":[],"_links":{"self":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/75816"}],"collection":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/users\/458"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/comments?post=75816"}],"version-history":[{"count":1,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/75816\/revisions"}],"predecessor-version":[{"id":75818,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/75816\/revisions\/75818"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media\/75817"}],"wp:attachment":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media?parent=75816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/categories?post=75816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/tags?post=75816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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\nRead More: Marijuana And Hemp Businesses At Odds Over Consumable Cannabinoid Ban In House Farm Bill<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"