Industrial Hemp

Industrial hemp is a member of the cannabis family, with levels of the psychoactive compound, tetrahydrocannabinol (THC), that are below 0.3%. Industrial hemp is grown for fiber, seed and oil which can then be turned into many other products.  

The 2018 Farm Bill directed the United States Department of Agriculture (USDA) to establish a national regulatory framework for hemp production. USDA established the U.S. Domestic Hemp Production Program through an interim final rule. This rule outlines provisions for the USDA to approve plans submitted by states for the domestic production of hemp. USDA sought public comment on the rule and is in the process or reviewing comments and making changes to the rule. Michigan is currently drafting their state plan; however, there is more legislation that needs to be passed in Michigan to put the state plan in compliance with USDA’s rules. 

In the meantime, Michigan is utilizing authority in the 2014 Farm Bill for an Industrial Hemp Ag Pilot Program, which permits an institute of higher learning or the Michigan Department of Agriculture and Rural Development (MDARD) to grow industrial hemp for research purposes as part of an agricultural pilot program. The pilot program allows for the growth, cultivation and marketing of industrial hemp in 2020. 

To grow hemp under the pilot program, you must submit an application and a $100 registration fee to MDARD. If you wish to process, handle, broker, or market industrial hemp in Michigan you must submit an application and a $1,350 application fee. Prior to harvest, growers must submit a sample of the crop to a testing facility, which would have to measure the THC concentration. If it is above 0.3% the crop cannot be harvested and must be retested or destroyed.