California Hemp Growers Likely Able to Apply for USDA Hemp Licenses Starting December 2, 2019
by Omar Figueroa and Andrew Kingsdale
November 18, 2019
Beginning on December 2, 2019, California hemp growers will likely be able to apply for three-year federal cultivation licenses directly from the U.S. Department of Agriculture. (California hemp farmers also will need a state license to produce hemp under state law.)
On October 31, 2019 the United States Department of Agriculture (USDA) Agricultural Marketing Service (AMS) published an Interim Final Rule for hemp production under the 2018 Farm Bill. By way of background, we previously discussed the Interim Final Rule here, and the 2018 Farm Bill here, as well as California’s hemp program here (discussing SB -153, recently signed into law by Governor Newsom), here (discussing emergency regulations pertaining to sampling, testing, and destruction), and here (industrial hemp registration goes live in California as of April 30, 2019).
According to the Interim Final Rule, on December 2, 2019 USDA will begin accepting hemp production applications from hemp farmers in states that have not yet submitted state hemp production plans to USDA by that date. (7 CFR §§ 990.21(a)(2), 990.71(a).)
California has a self-imposed deadline of May 1, 2020 to submit its plan to USDA. (Cal. Food & Ag. Code §81015.) It will not be easy for California to submit its plan by the December 2, 2019 deadline announced by USDA because of the need to reconcile several inconsistencies with the USDA Interim Final Rule (such as the window between sampling and harvesting, the “total available THC” testing standard, and requirement for DEA-licensed laboratories, 7 CFR § 990.3). Assuming California has not submitted a plan to USDA by then, on December 2, 2019, California hemp growers will be free to apply for three-year federal cultivation licenses directly from USDA.
As for hemp extractors, product manufacturers, brokers and dealers, “California law does not currently provide for a permit or license for the manufacturing, processing, or selling of non-food industrial hemp or hemp products.” California Industrial Hemp Program, FAQ.
CDFA’s general licensing requirements for “farm product” processors, brokers, dealers also have not been applied to hemp—yet. We expect that soon, CDFA’s general licensing requirements for “farm product” processors, brokers, and dealers will soon apply to hemp processors, brokers, and dealers.
This information is provided as an educational public service and is not intended as legal advice. For specific legal questions regarding hemp, please contact the Law Offices of Omar Figueroa at (707) 829-0215 or info@omarfigueroa.com to schedule a confidential consultation.