Marcus Grignon

Hempstead Project Heart/Rural Coalition 

Keshena, Wisconsin

Good afternoon, 

	My name is Marcus Grignon, Director of Hempstead Project Heart, a native-led non-profit organization dedicated to advancing thriving hemp economies in the tribal, urban, and rural communities throughout the United States. Our organization is part of a larger consortium called the Rural Coalition that represents small farmers, tribes, and historically underserved farmers throughout the country. Today, we share our recommendations on the implementation of the Agricultural Improvement Act of 2018. 

	Section 10113 of Title X (Horticulture), covers the process for states, tribes, and territories to develop hemp plans for hemp cultivation.  We understand that the United States Department of Agriculture (USDA) projects promulgation of a rule on Section 10113 of Title X some time in 2020 and Agriculture Marketing Service will not be accepting hemp plans from states and tribes until then.  

- USDA should uphold tribal sovereignty and recognize the government to government relationship by accepting submission of the hemp plans of tribal nations immediately so tribes can realize the economic advantages of hemp production in the 2019 growing season.  Allowing the 2014 Farm Bill to remain intact until 2020 is incongruous with the intent of Congress and practically puts tribes in the purview of the state resulting in the diminution of the government to government relationship tribes have had since the founding of this country. 

Section 12608 of the Miscellaneous Title should be interpreted and implemented on a stand-alone basis without regard to other sections dealing with hemp.   The major distinction is that Congress in Section 12608 removed Industrial Hemp from the Controlled Substances Act, thereby allowing producers to cultivate it without penalty, and banks to lend to farmers and businesses engaged in its production, processing and marketing. Since Congress did not state an effective date for this section, the Secretary should interpret this silence to mean Section 12608 was intended to take immediate effect.   This interpretation is not contrary to any other relevant provision and does not produce unintended or absurd results.   **

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****The Secretary should accelerate rulemaking with interim guidance to assure that sub-agencies do not wrongly deny benefits to hemp producers. Currently, Farm Service Agency is not allowing farmers to count income from hemp on balance sheets, impeding their ability to access credit and prepare to seriously enter the industry. Producers with valid licenses for cultivating industrial hemp in states with in-force regulations should be allowed to value Industrial Hemp as they do other crops. Interim guidance should specifically state that a producer may value hemp production on balance sheets for purposes of FSA direct and guaranteed applications loan applications and servicing. Interim guidance should further to assure producers with valid licenses are not restricted from participating in other USDA programs such as commodity, conservation, and rural development programs.   **

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- The Secretary should inform other Departments of USDA’s interim regulations and urge them to immediately lift lending restrictions on banking institutions with respect to hemp production.   

Section 7605 Title VII, Research, subtitle D, section 7605, requires the Secretary to conduct a study within 12 months on the economic viability of the domestic production and sale of industrial hemp, including every state hemp pilot program and any other research relating to hemp. 

- We request the Secretary clarify which USDA department is tasked with research and producing this report to Congress by December 2019. 
- We recommend that in this study the Secretary highlight research on potential benefits of raising the THC threshold from .03% to 1% (a level more suitable for fiber products) and consider a 5% THC threshold for hemp extractors.  

We appreciate the Agricultural Marketing Services’ consideration of our requests and recommendations.