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June 22, 2021
Production, Marketing, and Regulation of Hemp Products

Changes enacted in the Agriculture Improvenent Act of
2018 (P.L. 115-334; 2018 farmbill) removed long-standing
federal restrictions on the cultivation ofhemp. Hemp is a
form of Cannabis sativa, the same plant as marijuana,
grown for non-psychoactive purposes. It is an agricultural
crop regulated by the U.S. Departmentof Agriculture
(USDA). Although USDA regulates hemp production, the
2018 farm bill explicitly preserved the authority of the Food
and Drug Administration (FDA) under the Federal Food,
Drug, and Cos metic Act (FFDCA, 21 U.S.C. § §301 et s eq.)
over certain hemp -derived products.
Leading Hemp Markets
Hemp is grown for use in the production of a wide range of
products, including foods and beverages, cosmetics and
personal care products, nutritional supplements, fabrics and
textiles, yarns and fibers, paper, construction and insulation
materials, and other industrial and manufactured goods.
There are three leading markets forhemp, each based on
the part of the plant used: fiber, seed/grain, and flower
(Figure 1). Some suggest a separate, marketable category
exists forthe plant's extracted compounds (not shown
here). Extracts and concentrates may be derived from
different parts of the plant, including the flowers/buds and

from trim (parts of the plant removed when thehemp
flower is trimmed during the manicuring process) or from
totalbiomass, which may include sticks and stems.
Hemp Fibers
Hemp fibers are used in fabrics and textiles, yarns and spun
fibers, paper, carpeting, home furnishings, construction and
insulation materials, and biocomposites (Figure 1). The
interior of the stalkhas short, woody fibers called hurds (or
hemp shiv/shives); the exteriorportion (bark) has long bast
fibers (Figure 2). Hurds are used in insulation, animal
bedding, material inputs, oilabsorbents, and papermaking.
Bast fibers are usedto make rope and fabric. Hemp fibers
also are used in a range of composite products, including
use as building material and concrete blocks (made froma
mix of fibers, hydrated lime, and other additives), an
insulating material, a fiberglass alternative (by the
automotive and aviation sectors), and a biodiesel feedstock.
Fiber processing involves separating the core fiber fromthe
b ark through mechanical s eparation (using a decorticator)
or s ep aration through a process called retting or s ome
combination of the two processes. Once separated, dried,
and baled, hemp fibers may be further processed through
additional mechanical separation (such as being pelletized
or shredded into s maller pieces).

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