Industrial Hemp in Michigan - Program Overview and Update

Gina Alessandri, Hemp Director

Craig VanBuren, Laboratory Director

Nathan Kark, Legislative Liaison

Michigan Department of Agriculture and Rural Development

• Hemp – what it is and how it is different from marijuana

• Brief history of hemp

• Federal and state legislative history

• 2019 ag. pilot program & what we learned in 2019

• Testing results

• Plans for 2020

Overview

Cannabis sativa L. – specie of plant being raised for both industrial hemp and marijuana.

“The plant Cannabis sativa L. and any part of that plant, including viable seeds of that plant and all derivatives, extracts, cannabinoids, isomers, acids, salts and salts of isomers, whether growing or not, with a delta-9-tetrahydrocannabinol (THC) concentration of not more than 0.3% on a dry weight basis.”

THC

• One of at least 113 cannabinoids identified in cannabis.

• Principal psychoactive constituent.

Cannabis sativa L. – 4 Key DifferencesChemical Composition –

Industrial Hemp

• Less than 0.3% THC

• Non-intoxicating

Marijuana

• 5% - 35% THC

• Intoxicating

Cannabis sativa L. – 4 Key Differences Legality

Industrial Hemp

• Federally legal

• Removed from the Controlled Substance List

• Agricultural commodity that may be legally grown, processed, transported, possessed and sold.

Marijuana

• Federally illegal

• Remains on the Controlled Substance List

Cannabis sativa L. – 4 Key Differences Cultivation

Industrial Hemp

• Typically grown outdoors

• Can grow up to 20 ft. depending on variety and purpose of growth.

Marijuana

• Typically grown in very controlled environments

▪ Temperature, Lighting &

▪ Humidity

• Grows up to 5 ft.

Cannabis sativa L. – 4 Key Differences Uses

Industrial Hemp

• +20,000 products and uses:

• Seed – Medications, health foods, bio-fuels and plastics.

• Fiber – Paper, textiles, construction materials, clothing, auto parts, animal bedding.

• Oil – CBD oil, medicine, cosmetics, lotions.

Marijuana

• Commonly recognized for:

o Recreational uses

o Therapeutic uses

History of hemp

1600

First introduced in North America

1700s

Farmers in several colonies are required to grow hemp.

1776

Draft of the Declaration of Independence is written on hemp paper.

1840

Abraham Lincoln uses hemp seed oil to fuel his household lamps.

1900s

Attitudes begin to change as the government increases efforts to fight drug use. Hemp is grouped together with its Cannabis cousin, marijuana.

History of hemp

1937

The Marijuana Tax Act placed a tax on all cannabis sales, heavily discouraging hemp production.

1942

A brief resurgence…..

Government realized it needed hemp for the war effort. Taxation lifted.

1942-1945

400,000 acres planted.

1957

Last commercial hemp fields were planted in the U.S.

1970

Hemp farming officially banned with the passage of the Controlled Substance Act.

• Classified hemp as an illegal Schedule I drug, grouping this crop with drugs like heroin and LSD.

Hemp legislation 2014

2014

2014 U.S. Farm Bill -authorizes state departments of agriculture and colleges and universities to administer pilot programs to study the growth, cultivation and marketing of industrial hemp.

2014

MI Public Act 547 of 2014 -Michigan’s Industrial Hemp Research Act became law.

• Allowed MDARD to create an industrial hemp research pilot program.

Hemp legislation2018

2018

2018 U.S. Farm Bill

- Legalized industrial hemp

- USDA oversight

- Offers states the authority to regulate

- Requires USDA approved “state plan”

- Directs USDA to promulgate rules on state plan submission.

- Maintains FDA authority.

2018

Michigan Industrial Hemp Research and Development Act, PA 641 signed December 2018.

• Amends Public Act 547

Hemp legislation2019

February 2019

Pending USDA rules, states may continue to operate under the authority of the 2014 Farm Bill which authorized the growth, cultivation and marketing of industrial hemp for research through Ag Pilot Programs.

April

2019

Michigan Ag Pilot Program launched

Michigan Ag Pilot Program

• Allowed hemp growing, processing and handling in Michigan provided:

• Proper licensure

• Background check

• Research agreement

• 603 Registered Growers

• 850 outdoor locations, 15,477 acres identified

• 300 indoor locations, + 10 M square feet identified

• 483 Licensed Processor-Handlers

2019 Laboratory Hemp Testing

• PA 641 requires growers to schedule a test of their hemp prior to harvest to determine compliance with THC levels.• Allows for repeat testing up to 3 times

• MDARD provided hemp testing services in 2019

• 3 business day average turnaround on results

• Crop must be harvested within 15 days of receiving results

2019 MDARD Laboratory Hemp Testing

Synopsis

• 847 Samples tested• 84% Compliance rate

• Very few 2nd tests conducted

• Sample Issues• Growers not following SOP

• US Postal Service detaining shipments

• 242 Growers did not submit any compliance sample

• 116 Growers did not send samples for all their growing locations

• Check email regularly

2019 MDARD Laboratory Hemp Testing

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

% T

HC

Samples 8/21/19 - 12/13/19

2019 Hemp Testing Results (All)

2019 MDARD Laboratory Hemp Testing

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

% T

HC

Samples 8/21/19 - 12/13/19

2019 Hemp Testing Results (Trend)

2019 MDARD Laboratory Hemp Testing

2019 Hemp Compliance

< 0.30%

0.30% - 0.39%

> 0.39%

2019 MDARD Laboratory Hemp Testing

Incorporating Uncertainty into 2020 Testing

Compliant

Non-compliant

2019 MDARD Laboratory Hemp Testing

244

36

28

19

46

17%

6

35% 4

11%

2

5%

60

23

41

"Cherry" "Youngsim" "Boax" "Wife"

Most Popular Cultivars

2019 MDARD Laboratory Hemp Testing

• Zero THC DetectedCultivar CBD (%)

450 31 H8 0.15

450-31 E8 0.76

HLESIIA E2 0.00

HLESIIA H2 0.00

HLIANA E3 0.00

HLIANA H3 0.00

HLYKHOUSKII 51 E4 0.47

HLYKHOUSKII51 H4 0.00

HONOLA HONOLG HONOLY 0.29

USO-31 0.50

VARIETY=KATANI 0.26

X-59 0.65

X-59 H1 0.99

2019 MDARD Laboratory Hemp Testing

• Hot Samples• Ninety-one above 0.5%

• Hottest 10

Cultivar Total THC (%)AC/DC 8.75THERAPY 7.45CHERRY WINE 4.57JCOO2 4.30CHERRY WINE 0 0 CHOICE CBDSEEDS.COM 4.04CHERRY STRUCK 3.97CHERRY WINE 3.78JCOO1 3.33OREGON CHERRY 3.15CHERRY STRUCK CHOICE CBDSEEDS.COM 2.77

2019 MDARD Laboratory Hemp Testing

• Highest (Compliant) CBD Samples• All in the “gray” zone

Cultivar Total CBD (%) Total THC (%)CHERRY WINE (CW) 11.09 0.37CHERRY WINE 10.69 0.39SAMPLE 2 CBD HEMP 10.67 0.31BERRY BLOSSOM 5 10.64 0.37CHERRY WINE 10.37 0.33CHERRY WINE 10.37 0.38BERRY BLOSSOM PLOT 1 10.20 0.36CHARDONAY X CHERRY WINE 9.96 0.37C4 9.94 0.35STORMI DANIELZ 9.90 0.37

2019 MDARD Laboratory Hemp Testing

• Highest (Compliant) CBD Samples• All in the “green” zone

Cultivar Total CBD (%) Total THC (%)BOAX 9.09 0.29WIFE 9.04 0.29DREAMY CLOUDS 8.50 0.28CHERRY WINE 8.47 0.29ABACUS 8.44 0.30CHERRY BLOSSOM 8.41 0.28CAT LADY 8.25 0.30CHERRY WINE 8.21 0.30CHERRY WINE STRAIN 8.04 0.29FEMINIZED CHERRY BLOSSOM 7.98 0.26

What have we learned so far in 2019?

• Federal guidance and interpretation is needed.

• Regulatory pathway for cannabis use in food, drugs and cosmetics.

Policy and regulation – We don’t have all the answers.

• Primarily hand harvested in 2019

• Production processes & equipment need to evolve.Growing hemp is very

labor intensive.

• THC levels need to be monitored

• Lab analysis required for compliance must be scheduled with harvest in mind.

This crop requires farmers to be very attentive.

• For hemp growers AND marijuana growers.• Male plants must be removed.

Cross-pollination is a concern.

What have we learned so far in 2019?

• In state processing facilities are needed to adequately support the industry.

Processors are needed

• Banking industry

• Local units of government

• Law enforcement

Ongoing need for outreach and education

• Balancing the need for security of growing operations with how we connect growers and processors.

Connecting growers and processors

• Identification and review of roles and responsibilities.

Intersecting issues with marijuana laws

Preliminary Data –Final Report will be available this spring

• +60% grew hemp for CBD• ~15% seed• ~7% GRAS (generally recognized as safe) food items

• Hemp was grown in 64 of 83 counties

• ~24% planted feminized seed• Bulk seed, clones and seedlings were also planted

• ~31% had problems with their seed

• Weeds were the primary pest problem

• < 9% used pesticides

• ~58% harvested hemp (primarily by hand)

• <8% unable to harvest within 15-day window

• ~55% plan to process hemp in 2020 (~26% for hire)

USDA publishes Final Interim Rules

October 31, 2019

https://www.ams.usda.gov/rules-regulations/establishment-domestic-hemp-production-program

Establishes the U.S. Domestic Hemp Production Program.

o Creates a consistent regulatory framework for hemp production throughout the United States.

Interim rule is subject to change pending public

comment

Compliance date 10/31/2020

28

Program Oversight –Two options

State Operated Program

▪ Approved state plan

OR

Federally Operated Program

Absent an approved state plan, USDA would administer the hemp program in MI.

USDA Interim Final Rules

• Documentation of where hemp is being grown.

• NEW - Reporting requirements for growers

• Standards for testing to ensure compliance.

• NEW - Use of DEA Registered Laboratories

• NEW - Collection of samples by law enforcement or other federal or state designated person.

• Effective disposal of non-compliant plants and products.

• NEW - In accordance with the CSA and DEA

• NEW - Collection for destruction by a person authorized under the CSA to handle marijuana.

• Communication with law enforcement.• NEW - State reporting requirements

of all licensees within 30 days of receipt.

• Real time availability for law enforcement

• Annual inspection requirements• NEW - State and Federal

background check requirements

• Certification that resources are available to carry out the plan.

Next Steps

Amend Public Act 641

• Legislation is being developed

• Discussing scope of change needed.

• Late June – goal for completion.

Submit State Plan

• State plan will be submitted immediately after PA 641 is updated.

• USDA has 60 days to review and approve or reject.

• Oct. 31, 2020 - Compliance deadline

@MichDeptofAg

@MIDeptofAgriculture

@MichiganAgriculture

Michigan Departmentof Agriculture & Rural Development

Michigan Departmentof Agriculture & Rural Development

www.Michigan.gov/industrialhemp