USDA Issues Interim Rules for Domestic Production of Hemp
Knowledge

USDA Issues Interim Rules for Domestic Production of Hemp

October 30, 2019

Key Takeaways:

  • USDA hemp rules provide outline to approve plans submitted by states and Native American tribes for domestic production of hemp

  • Rules also create a federal plan for producers in states or territories that do not have a plan approved by the USDA

  • Rules go into effect at the end of this week, period of public comment follows

The long wait is finally over. On October 28, 2019, the U.S. Department of Agriculture (USDA) released the highly anticipated interim rules governing the production of hemp and hemp-derived cannabidiol (CBD). The rules will go into effect at the end of the week and a period of public comment will follow.

Although these rules are not final and will undoubtedly evolve in the near future, they provide much needed clarity to an industry previously shrouded in legal uncertainty. They also lay the framework for further federal regulations.

In particular, the interim rules provide an outline for the USDA to approve plans submitted by states and Native American tribes for the domestic production of hemp. They also create a federal plan for producers in states or territories of Native American tribes that do not have a plan approved by the USDA.

Given the seemingly endless potential commercial uses for hemp, and the market demand for CBD, we expect to see a substantial increase in capital investments and new operators stepping into this industry.

For more information on the rules, look out for a special series on Goldberg Segalla’s podcast, Timely Notice, or contact: