What Happens When Hemp Pilot Programs Expire?

Under the USDA’s Interim Final Rule, published October 2019, all state pilot programs will end October 30, 2020. This includes the pilot program that we are currently operating under in North Carolina. By all accounts, we will still continue to have a licensing program in North Carolina, but what is still uncertain is which program we will be operating under.

If the U.S. Congress takes no further action, it will most likely be the USDA’s plan. However, if Congress passes a bill that allows the USDA to extend the time that pilot programs are allowed to continue, then it is possible that we could continue under our current pilot program for at least another growing season. While there has been support for extending pilot programs, it is unclear how likely it is to happen (for example, the National Association of State Departments of Agriculture passed a policy resolution in February in support of continuing pilot programs).

Since it does seem increasingly likely that we will be operating under the provisions of the USDA’s plan at the end of October, it seems worthwhile to review some of the key provisions, as there will be important differences between the pilot program and the USDA’s program.

Key Provisions:

Licensing

Pilot program: Once the pilot program expires, most likely licenses issued under the program will also expire. The North Carolina Industrial Hemp Commission will expire when the pilot program expires.

USDA: Growers in North Carolina will apply directly to the USDA for a license. Licenses will be good for three years.

Testing & Destruction of Hot Crops

Pilot program: Growers are to notify the North Carolina Department of Agriculture and Consumer Services at flower initiation, with inspection to occur within approximately two weeks.

If crops test hot, a second test is completed by the state lab, and sometimes a third. Crops that still test hot will be destroyed.

USDA: Mandates that samples for testing be taken within 15 days of harvest. If crops test hot once they will be destroyed.

Negligence

Pilot program: If crops test hot, they will be destroyed. There is no penalty to the grower.

USDA: Threshold is .5% THC. If a crop tests above this level three times within five years, the grower will lose their license for five years.

It is worth noting that at this time the details of how the USDA would administer their plan is unknown. For example, it is not clear right now how the agency would conduct testing in the state of North Carolina, or how the agency would handle the destruction of crops that test over the legal limit.

We will continue to provide updates here as information becomes available. If you do have any questions, please email industrialhemp@ncsu.edu. Note: we are unable to answer questions or address comments submitted through this website.

Visit https://hemp.ces.ncsu.edu for additional resources.

— Marne Coit, agricultural law lecturer, Agricultural & Resource Economics, NC State Extension