The state of Michigan has shut down its hemp program, with cultivators to operate directly under the federal department of agriculture. This move comes a few years after the 2018 Farm Bill legalized the cultivation and production of hemp nationwide.
The measure’s approval allowed states to choose whether they’d use the U.S. Department of Agriculture’s standardized framework to operate their hemp program or establish their own frameworks. Michigan established its industrial hemp program in 2019, following the approval of its Industrial Hemp Research and Development Act.
The recent decision is associated with the approval of HB 5977, which does away with Michigan’s industrial hemp fund and assigns oversight responsibilities for hemp growing and regulation to the federal agriculture department. This will impact a lot for hemp growers and processors in the state, particularly since the agriculture department’s regulations are stricter.
For instance, growers will have to have their crop tested prior to harvesting at federally approved labs. Cultivators will also be required to adhere to different compliance requirements.
The support and resources farmers in the state relied upon may also be impacted, as the hemp program provided assistance in form of guidance and workshops customized to suit the agricultural environment in the state. The shift to a federal program may prevent access to such services, leaving some farmers with no support for navigating any regulatory difficulties.
Despite this, iHemp Michigan president Blain Becktold believes that the changes will be good for hemp cultivators in the state. Farmers in the state will pay lower fees for hemp permits, which Becktold argues was impeding the industry’s growth.
The number of cultivators in the state couldn’t support a department to oversee the nascent industry and collecting monies from cultivators and processors also failed to support the industry’s growth. The change is expected to open up new markets for the state’s hemp products, with operating under a uniform standard also making compliance easier for businesses that operate across state lines.
With more uses of hemp products in the animal feed and building sectors also emerging, Becktold posits that the changes will encourage cultivators and processors to investigate other applications of industrial hemp.
Producers in states that operate under the USDA reveal that the federal program allows cultivators to access resources like grants, disaster assistance and crop insurance directly, which may be good for farmers in Michigan.
December 31st will see the state’s Department of Agriculture and Rural Development tenure come to end, with the federal agriculture department’s protocols coming into effect on January 1st, 2025.
Companies like Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) also long for the day when there will be clear federal guidelines on the use of hemp extracts and derivatives so that if a state is unable to run its own oversight program, the relevant federal government agency can step in and play that role.
NOTE TO INVESTORS: The latest news and updates relating to Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) are available in the company’s newsroom at https://cnw.fm/SFWJ
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