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This action will initiate a new part 990 establishing rules and regulations for the domestic production of hemp. This action is required to implement provisions of the Agriculture Improvement Act of 2018 (Farm Bill).

Statement of Need:

The new program will: approve State, and Indian Tribe plans for commercial hemp production; collect information regarding the land on which hemp is produced and licensed producers; test levels of delta-9 tetrahydrocannabinol; provide for disposal of plants and products that do not meet necessary requirements; and ensure compliance with the requirements of the new part.

Summary of the Legal Basis:

The provisions of the Farm Bill require the Department of Agriculture (USDA) to approve plans submitted by States and Indian Tribes for the commercial production of hemp. It also requires USDA to issue regulations and guidance to implement a program for States or Tribal governments that do not have a USDA approved plan.

Alternatives:

The actions in this rule are mandated by the 2018 Farm Bill, which enables States, Tribes, and USDA to establish rules and regulations for the domestic production of hemp. The statute requires USDA to develop criteria for approval of plans submitted by State and Tribal governments for regulation of domestic hemp production. If no State or Tribal Plan has been approved, then hemp producers in these States or Tribes may utilize the plan developed by USDA.

Other policy alternatives are discussed in the rulemaking.

Anticipated Costs and Benefits:

The 2018 Farm Bill grants authorization for production of hemp to all States and Indian Tribes, unless prohibited by State or Tribal Law. This rule enables States, Tribes, and USDA to regulate this authorization. This rule is expected to generate benefits and costs to hemp producers and State departments of agriculture and Tribal governments. The benefits of this rule are expected to outweigh the costs, however, and the burden on the impacted entities is anticipated to be minimal.

Risks:

Without this rulemaking, USDA would not be in compliance with the Agriculture Improvement Act of 2018, section 10113.