LESS LEGISLATION = More innovation AND JOBS!
Legislative Argument (Fiber and Hurd are "Industrial Hemp"... CBD is "Cannabinoid Hemp" ):
(archived... modification 2022-04-21c)
Whereas: The Federal “Agriculture Improvement Act of 2018” also known as “Public Law No: 115-334 (12/20/2018) [115th Congress Public Law 334]”, governs hemp, including the definition, growth, processing, transportation, disposal and sales, and;
Whereas: Federal legislation, SEC. 297A. <> DEFINITIONS.(1) states: “Hemp.-The term `hemp' means the plant Cannabis sativa and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis”, and;
Whereas: Federal legislation, SEC. 297D. <> REGULATIONS AND GUIDELINES; EFFECT ON OTHER LAW, (a) Promulgation of Regulations and Guidelines; Report, states that “ (b) Authority.-Subject to subsection (c)(3)(B), the Secretary shall have sole authority to promulgate Federal regulations and guidelines that relate to the production of hemp, including Federal regulations and guidelines that relate to the implementation of sections 297B and 297C.”, and;
Whereas: New York Assembly Bill A8509, and Senate Bill: S6787, Relates to inspection and sale of industrial hemp seeds and modifies the Agriculture and Markets Law (AML) to ensure that industrial hemp will be considered an agricultural product and that it be treated the same way as other crops and seed., and;
Whereas: the definition of hemp in both Federal and State legislation is substantially focused on recreational consumption and consumable parts of the plant that are primarily derived from the seeds and flower with almost no consideration of the plant’s stalk is mentioned, and;
Whereas: SEC. 297C. <> DEPARTMENT OF AGRICULTURE, (a) Department of Agriculture Plan, (C) a procedure for the effective disposal of” is provided by the state of New York, and;
Whereas: SEC. 297B. <> STATE AND TRIBAL PLANS.,(a) Submission, `(2) Contents, “(B) may include any other practice or procedure established by a State or Indian tribe, as applicable, to the extent that the practice or procedure is consistent with this subtitle.”, and;
Whereas: According to the state of New York Laws, CHAPTER 7-A Cannabis, ARTICLE 1, Section 3, Definitions "3. "Cannabinoid hemp" means any hemp and any product processed or derived from hemp, that is used for human consumption provided that when such product is packaged or offered for retail sale to a consumer, it shall not have a concentration of more than three tenths of a percent delta-9 tetrahydrocannabinol.", and;
Whereas: According to the state of New York Laws, CHAPTER 7-A Cannabis, ARTICLE 1, Section 3, Definitions 5. "Cannabis" means all parts of the plant of the genus Cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. It does not include hemp, cannabinoid hemp or hemp extract as defined by this section or any drug products approved by the federal Food and Drug Administration., and;
Whereas: Delta-9 tetrahydrocannabinol concentration found in hemp stems and stalks is less than 10% of the THC found in the flower of a hemp plant, which means the THC of a hot plant measuring 1.5% THC would have a THC in it’s stalk in the range of less than 0.15% THC, which is 1/2 of the current allowable limit, and;
Whereas: Neither (the “Agriculture Improvement Act of 2018” or section “SEC. 7605. LEGITIMACY OF INDUSTRIAL HEMP RESEARCH” or the "New York EXPRESS TERMS, Title 1, Part 159. License to Grow and Research Hemp." or the "New York State Hemp Plan") define “Industrial Hemp”;
Therefore: Because the predictable THC level in the stalks of all hemp cultivars recognized by the State of New York is well below the legislated limit (and in compliance with the New York State Hemp Plan), and because Industrial Hemp is not designed, intended or sold for consumption, it is requested that the NYS Hemp Grain and Fiber Workgroup recommend to the New York Commissioner, the Secretary, Elected Representatives and the Federal Government, updates to the New York State Hemp Plan and applicable legislation to achieve the following modification of language for New York Industrial Hemp legislation:
(archived... modification 2022-04-21c)
Whereas: The Federal “Agriculture Improvement Act of 2018” also known as “Public Law No: 115-334 (12/20/2018) [115th Congress Public Law 334]”, governs hemp, including the definition, growth, processing, transportation, disposal and sales, and;
Whereas: Federal legislation, SEC. 297A. <> DEFINITIONS.(1) states: “Hemp.-The term `hemp' means the plant Cannabis sativa and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis”, and;
Whereas: Federal legislation, SEC. 297D. <> REGULATIONS AND GUIDELINES; EFFECT ON OTHER LAW, (a) Promulgation of Regulations and Guidelines; Report, states that “ (b) Authority.-Subject to subsection (c)(3)(B), the Secretary shall have sole authority to promulgate Federal regulations and guidelines that relate to the production of hemp, including Federal regulations and guidelines that relate to the implementation of sections 297B and 297C.”, and;
Whereas: New York Assembly Bill A8509, and Senate Bill: S6787, Relates to inspection and sale of industrial hemp seeds and modifies the Agriculture and Markets Law (AML) to ensure that industrial hemp will be considered an agricultural product and that it be treated the same way as other crops and seed., and;
Whereas: the definition of hemp in both Federal and State legislation is substantially focused on recreational consumption and consumable parts of the plant that are primarily derived from the seeds and flower with almost no consideration of the plant’s stalk is mentioned, and;
Whereas: SEC. 297C. <> DEPARTMENT OF AGRICULTURE, (a) Department of Agriculture Plan, (C) a procedure for the effective disposal of” is provided by the state of New York, and;
Whereas: SEC. 297B. <> STATE AND TRIBAL PLANS.,(a) Submission, `(2) Contents, “(B) may include any other practice or procedure established by a State or Indian tribe, as applicable, to the extent that the practice or procedure is consistent with this subtitle.”, and;
Whereas: According to the state of New York Laws, CHAPTER 7-A Cannabis, ARTICLE 1, Section 3, Definitions "3. "Cannabinoid hemp" means any hemp and any product processed or derived from hemp, that is used for human consumption provided that when such product is packaged or offered for retail sale to a consumer, it shall not have a concentration of more than three tenths of a percent delta-9 tetrahydrocannabinol.", and;
Whereas: According to the state of New York Laws, CHAPTER 7-A Cannabis, ARTICLE 1, Section 3, Definitions 5. "Cannabis" means all parts of the plant of the genus Cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. It does not include hemp, cannabinoid hemp or hemp extract as defined by this section or any drug products approved by the federal Food and Drug Administration., and;
Whereas: Delta-9 tetrahydrocannabinol concentration found in hemp stems and stalks is less than 10% of the THC found in the flower of a hemp plant, which means the THC of a hot plant measuring 1.5% THC would have a THC in it’s stalk in the range of less than 0.15% THC, which is 1/2 of the current allowable limit, and;
Whereas: Neither (the “Agriculture Improvement Act of 2018” or section “SEC. 7605. LEGITIMACY OF INDUSTRIAL HEMP RESEARCH” or the "New York EXPRESS TERMS, Title 1, Part 159. License to Grow and Research Hemp." or the "New York State Hemp Plan") define “Industrial Hemp”;
Therefore: Because the predictable THC level in the stalks of all hemp cultivars recognized by the State of New York is well below the legislated limit (and in compliance with the New York State Hemp Plan), and because Industrial Hemp is not designed, intended or sold for consumption, it is requested that the NYS Hemp Grain and Fiber Workgroup recommend to the New York Commissioner, the Secretary, Elected Representatives and the Federal Government, updates to the New York State Hemp Plan and applicable legislation to achieve the following modification of language for New York Industrial Hemp legislation:
- For legislation in the state of New York, use the term "Cannabinoid Hemp" as defined in the state of New York Laws, CHAPTER 7-A Cannabis, ARTICLE 1, Section 3, Definitions "3 and/or add an alternative accurately descriptive term like "Recreational Hemp".
- For the state of New York, modify "Section 3, Definitions" to include the term Industrial Hemp defined as hemp fiber and hurd typically used in fabrics, hemp-lime (hempcrete), animal bedding, bioplastic and similar materials derived from the stalk of the hemp plant.
- Remove and exclude licensing, permitting and THC testing of Industrial Hemp stalks in cases where the grower can prove the cultivar used is within the limits and the crop is intended for industrial hemp building materials (fiber, hurd, bioplastics etc.)
- Modify policy to enable growth of Industrial Hemp without an application or with liberal policies that reduce the burden of proof and additional Cannabinoid Hemp" related work that is currently impeding farmers from participating in the industrial hemp for building material.
- To clarify enforcement, draft and publish this important guidance found in the New York State Hemp Plan: "13. Remediation of non-compliant crop Non-compliant hemp may be remediated by either: • disposing of flower materials and salvaging the remainder of the plant; or • blending the entire plant by chopping or shredding all flowers, buds, trichomes, leaves, stalks, seed, and all plant parts from the non-compliant sampled lot in a manner that creates a homogenous biomass composed of all plant material of the non-compliant lot. All remediated biomass shall be resampled and retested by the Department or a Department approved sampling agent, at the grower’s expense, to ensure the material tests within the acceptable THC level for hemp. Remediated biomass that tests above the acceptable THC level for hemp must be destroyed."
Governing Legislation:
| New York State Hemp Plan |
| EXPRESS TERMS, Title 1, Part 159 Part 159. License to Grow and Research Hemp. |
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Key Terms:
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Legislative Impedance Argument:
(Note from the author: NYS legislators are proactive. They response to help NYS)
Introductions:
Legislative Impedance is a resistance (due to time, money, risk or uncertainty) experienced by those who are subject to NYS legislative governance, as they seek to make progress toward a market goal.
The Industrial Hemp market is an opportunity limited by various forms of impedance, including order visibility. This narrative describes some of the impedances caused by the 2022 NYS legislative framework for Industrial Hemp.
Overview:
The Federal “Agriculture Improvement Act of 2018” never defined Industrial Hemp. Consequently, the establishment of all Industrial Hemp legislation by New York is based on something that was never defined at the Federal level.
In the October 5, 2021 New York State Hemp Plan submitted to Mr. William Richmond Chief, U.S. Domestic Hemp Production Program, United States Department of Agriculture by Richard A. Ball Commissioner, there are a total of 7 references to “Industrial Hemp”; none of the references provide a definition of the term. Thus the risk persists in NYS because the definition is not adequately defined to meet the intent of NYS to treat it as an agricultural crop similar to corn or wheat.
This mischaracterization has created unintended consequences for community organizers, scientists, farmers, processors, distributors, market makers, sellers and consumers as they attempt to create a market and supply chain for a promising crop: “Industrial Hemp”
Legislative Impedance - THC Level:
In New York legislation, Industrial Hemp is defined to mean cannabis with a THC of less than 0.3%; whereas it is more accurate to associate this constraint with “cannabinoid hemp”, which is defined as a term in NYS EXPRESS TERMS, Title 1, Part 159 Part 159. License to Grow and Research Hemp.
THC concentrations above 0.3% are considered to have a hallucinatory effect on the consumers. The fact is, THC is associated with the concentration of “trichomes”. The flower is where a majority of “trichomes” exist and few are found on the stalk. However, NYS legislation places the same burden of proof on Industrial Hemp, as it does for “cannabinoid hemp”. The fear that market participants must concern themselves with THC levels is causing additional paperwork, cost, risks and hesitation, a form of Legislative Impedance.
Legislative Impedance - Farmers and Paperwork:
To grow Industrial Hemp a farmer must complete and submit an application, pay a $500.00 nonrefundable application fee, complete an FBI Identity History Summary Check for all key participants, and provide maps/aerial photos identifying growing and storage locations (term: 3 yrs.). In addition there is a $100 fee for a Nursery Grower License (term: 2 yrs.) and a $100 fee for a Hemp Seed Retail License (term: 3 yrs.).
Farmers have their hands full with regular farming issues and have no interest getting entangled in more government paperwork and expenses in scenarios where they are taking all of the risks. When a person depends on every dollar earned in a season to make ends meet, there is no extra money for this type of experimentation. It seems better for the market if all these fees and conditions are removed. This will inspire farmers to renew their interest in Industrial Hemp.
This is a form of legislative impedance because the opportunity for farmers to recover these costs is unclear. It seems best to define a market support period from 2022 -2024 and offer grants to small farmers where they pay no fees and receive free seeds. Consider one flat fee during this period that allows a farmer to figure out what works for them. They need time to test their soil, learn about the crop, collaborate with neighbors and create a reliable plan while providing for their families.
https://agriculture.ny.gov/plant-industry/hemp-grower-licensing
Legislative Impedance - Processors and Paperwork:
To process Industrial Hemp, one must navigate the NYS website and figure out what applies to them. A search for “"industrial hemp" processing application” yields over 300 results but most are not related to processing, none of them seem to provide an application and in too many cases the following type error appears…
https://search.its.ny.gov/search/search.html?q=%22industrial+hemp+processing%22+application&site=default_collection
Industrial Hemp processors are almost non-existent in NYS and are wise to avoid the current level of risk. In other states investors built processing facilities at a cost of $5MM to $10MM, however because they were too early to the market and received limited market support from their state government, several have declared bankruptcy (see below). This is a significant risk for investors, with no clear application pathway, few farmers growing and no reliable market demand visibility, the risk is unacceptable and a form of Legislative Impedance.
There is a need to create a simple application for “Industrial Hemp Processing” that clearly focuses on processing of the stalks. It seems best to define a market support period from 2022 -2024 and offer grants to processors where they pay no fees and receive access to NYS sponsored research on decortication technology. It is important to protect NYS communities by requiring that all grants are connected with people who live in NYS and have at least 25% ownership of the processing facility.
Building an Industrial Hemp processing facility requires time to build relationships with investors, navigate the state’s rules, navigate local ordinances, select a location, build the processing facility and hire/train staff.
Reference Links:
Hemp Processing Plant Struggle (notice these are CBD processing plant - cannabinoid hemp)
Kentucky hemp, CBD giant bankruptcy black eye for industry, Comer says
Hemp Company Files For Bankruptcy As 'Confounding Regulatory Guidelines' Hamper Growth
CBD Producer GenCanna Files for Bankruptcy - WSJ
Over-Hyped Hemp? Amid Price Drop and a Big Bankruptcy, Some Farmers Feel Burned
United States: As US Cannabis Industry Grows, Produces Distress, Bankruptcy Relief Remains Limited
Hemp was supposed to boost farmers. It's turned out to be a flop. - POLITICO
State-Legalized Marijuana Businesses and Access to the Bankruptcy Code
Canadian processor bankruptcy:
IN THE MATTER OF THE BANKRUPTCY OF PLAINS INDUSTRIAL HEMP PROCESSING LTD. ('the company”) OF THE TOWN OF GILBERT PLAINS IN T
Harvesting Highs but No Relief for the Lows: The Inconsistent Treatment of Marijuana Businesses by Bankruptcy and Tax Law
Industrial Hemp: Go for the Boom, Avoid a Bust! - Ward and Smith, PA
About the difference between banking with marijuana and hemp - still difficulties.
CANNABIS BANKING: WHAT MARIJUANA CAN LEARN FROM HEMP†
Domestic hemp production laws, the succession of the farm bill over the years:
A Recap of the Establishment of the United States Domestic Hemp Production Program
(Note from the author: NYS legislators are proactive. They response to help NYS)
Introductions:
Legislative Impedance is a resistance (due to time, money, risk or uncertainty) experienced by those who are subject to NYS legislative governance, as they seek to make progress toward a market goal.
The Industrial Hemp market is an opportunity limited by various forms of impedance, including order visibility. This narrative describes some of the impedances caused by the 2022 NYS legislative framework for Industrial Hemp.
Overview:
The Federal “Agriculture Improvement Act of 2018” never defined Industrial Hemp. Consequently, the establishment of all Industrial Hemp legislation by New York is based on something that was never defined at the Federal level.
In the October 5, 2021 New York State Hemp Plan submitted to Mr. William Richmond Chief, U.S. Domestic Hemp Production Program, United States Department of Agriculture by Richard A. Ball Commissioner, there are a total of 7 references to “Industrial Hemp”; none of the references provide a definition of the term. Thus the risk persists in NYS because the definition is not adequately defined to meet the intent of NYS to treat it as an agricultural crop similar to corn or wheat.
This mischaracterization has created unintended consequences for community organizers, scientists, farmers, processors, distributors, market makers, sellers and consumers as they attempt to create a market and supply chain for a promising crop: “Industrial Hemp”
Legislative Impedance - THC Level:
In New York legislation, Industrial Hemp is defined to mean cannabis with a THC of less than 0.3%; whereas it is more accurate to associate this constraint with “cannabinoid hemp”, which is defined as a term in NYS EXPRESS TERMS, Title 1, Part 159 Part 159. License to Grow and Research Hemp.
THC concentrations above 0.3% are considered to have a hallucinatory effect on the consumers. The fact is, THC is associated with the concentration of “trichomes”. The flower is where a majority of “trichomes” exist and few are found on the stalk. However, NYS legislation places the same burden of proof on Industrial Hemp, as it does for “cannabinoid hemp”. The fear that market participants must concern themselves with THC levels is causing additional paperwork, cost, risks and hesitation, a form of Legislative Impedance.
Legislative Impedance - Farmers and Paperwork:
To grow Industrial Hemp a farmer must complete and submit an application, pay a $500.00 nonrefundable application fee, complete an FBI Identity History Summary Check for all key participants, and provide maps/aerial photos identifying growing and storage locations (term: 3 yrs.). In addition there is a $100 fee for a Nursery Grower License (term: 2 yrs.) and a $100 fee for a Hemp Seed Retail License (term: 3 yrs.).
Farmers have their hands full with regular farming issues and have no interest getting entangled in more government paperwork and expenses in scenarios where they are taking all of the risks. When a person depends on every dollar earned in a season to make ends meet, there is no extra money for this type of experimentation. It seems better for the market if all these fees and conditions are removed. This will inspire farmers to renew their interest in Industrial Hemp.
This is a form of legislative impedance because the opportunity for farmers to recover these costs is unclear. It seems best to define a market support period from 2022 -2024 and offer grants to small farmers where they pay no fees and receive free seeds. Consider one flat fee during this period that allows a farmer to figure out what works for them. They need time to test their soil, learn about the crop, collaborate with neighbors and create a reliable plan while providing for their families.
https://agriculture.ny.gov/plant-industry/hemp-grower-licensing
Legislative Impedance - Processors and Paperwork:
To process Industrial Hemp, one must navigate the NYS website and figure out what applies to them. A search for “"industrial hemp" processing application” yields over 300 results but most are not related to processing, none of them seem to provide an application and in too many cases the following type error appears…
https://search.its.ny.gov/search/search.html?q=%22industrial+hemp+processing%22+application&site=default_collection
Industrial Hemp processors are almost non-existent in NYS and are wise to avoid the current level of risk. In other states investors built processing facilities at a cost of $5MM to $10MM, however because they were too early to the market and received limited market support from their state government, several have declared bankruptcy (see below). This is a significant risk for investors, with no clear application pathway, few farmers growing and no reliable market demand visibility, the risk is unacceptable and a form of Legislative Impedance.
There is a need to create a simple application for “Industrial Hemp Processing” that clearly focuses on processing of the stalks. It seems best to define a market support period from 2022 -2024 and offer grants to processors where they pay no fees and receive access to NYS sponsored research on decortication technology. It is important to protect NYS communities by requiring that all grants are connected with people who live in NYS and have at least 25% ownership of the processing facility.
Building an Industrial Hemp processing facility requires time to build relationships with investors, navigate the state’s rules, navigate local ordinances, select a location, build the processing facility and hire/train staff.
Reference Links:
Hemp Processing Plant Struggle (notice these are CBD processing plant - cannabinoid hemp)
Kentucky hemp, CBD giant bankruptcy black eye for industry, Comer says
Hemp Company Files For Bankruptcy As 'Confounding Regulatory Guidelines' Hamper Growth
CBD Producer GenCanna Files for Bankruptcy - WSJ
Over-Hyped Hemp? Amid Price Drop and a Big Bankruptcy, Some Farmers Feel Burned
United States: As US Cannabis Industry Grows, Produces Distress, Bankruptcy Relief Remains Limited
Hemp was supposed to boost farmers. It's turned out to be a flop. - POLITICO
State-Legalized Marijuana Businesses and Access to the Bankruptcy Code
Canadian processor bankruptcy:
IN THE MATTER OF THE BANKRUPTCY OF PLAINS INDUSTRIAL HEMP PROCESSING LTD. ('the company”) OF THE TOWN OF GILBERT PLAINS IN T
Harvesting Highs but No Relief for the Lows: The Inconsistent Treatment of Marijuana Businesses by Bankruptcy and Tax Law
Industrial Hemp: Go for the Boom, Avoid a Bust! - Ward and Smith, PA
About the difference between banking with marijuana and hemp - still difficulties.
CANNABIS BANKING: WHAT MARIJUANA CAN LEARN FROM HEMP†
Domestic hemp production laws, the succession of the farm bill over the years:
A Recap of the Establishment of the United States Domestic Hemp Production Program