The US Department of Agriculture provided statements of principals on industrial hemp, in consultation with the DEA and the FDA, to inform the public how Federal law applies to activities associated with industrial hemp that is grown in accordance with the Agricultural Act of 2014. Generally, the statement of principles are consistent with my previous posts about the inability to generally commercialize industrial hemp grown in the US in compliance with Federal law. I have excerpted a few statements that industrial hemp businesses should pay close attention to, with a few comments from me in italics:
- For purposes of marketing research by institutions of higher education or State departments of agriculture (including distribution of marketing materials), but not for the purpose of general commercial activity, industrial hemp products may be sold in a State with an agricultural pilot program or among States with agricultural pilot programs but may not be sold in States where such sale is prohibited. Industrial hemp plants and seeds may not be transported across State lines.While this provides some latitude to make certain sales of “industrial hemp products” for purposes of marketing research, it is explicitly clear that general commercialization in all 50 states is NOT permitted and the commercialization of industrial hemp products not in connection with market research is prohibited. Further, it is also clear that the sale of plants or seeds across state lines if forbidden.
- Section 7606 specifically authorized certain entities to “grow or cultivate” industrial hemp but did not eliminate the requirement under the Controlled Substances Import and Export Act that the importation of viable cannabis seeds must be carried out by persons registered with the DEA to do so. In addition, any USDA phytosanitary requirements that normally would apply to the importation of plant material will apply to the importation of industrial hemp seed.This should not be a surprise. The CSA continues to control and germinated seeds are prohibited from being imported unless registered with the DEA to do so.
- The Federal Government does not construe section 7606 to alter the requirements of the Controlled Substances Act (CSA) that apply to the manufacture, distribution, and dispensing of drug products containing controlled substances. Manufacturers, distributors, dispensers of drug products derived from cannabis plants, as well as those conducting research with such drug products, must continue to adhere to the CSA requirements.This appears to be directed at the extraction market for CBD and other cannabidiols.