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1 1 (December 12, 2022)

handle is hein.crs/govejsb0001 and id is 1 raw text is: informing &sonaI FResedrch SerVic th Ieg iltive debatesnc '1914 December 12, 2022 Farm Bill Primer: Selected Hemp Industry Issues Hemp is a variety or cultivar of Cannabis sativa-the same plant as marijuana-grown to produce nonpsychoactive food, beverage, consumer, and industrial products. Hemp is defined in statute as the Cannabis sativa plant and any part of that plant, including its seeds, cannabinoids, and isomers, with a delta-9 tetrahydrocannabinol (THC) concentration of not more than 0.3 percent on a dry weight basis (7 U.S.C. §1639o). The 2018 farm bill (P.L. 115-334; Agriculture Improvement Act of 2018) legalized hemp by removing hemp (as defined) from the definition of marijuana in the Controlled Substances Act (CSA, 21 U.S.C. §§802 et seq.). The 2018 farm bill further directed the U.S. Department of Agriculture (USDA) to create a framework to regulate hemp cultivation under federal law and facilitate commercial cultivation, processing, marketing, and sale of hemp and hemp-derived products. USDA published its final hemp regulations in 2021. Other 2018 farm bill provisions made hemp producers eligible for federal crop insurance and agricultural research programs. Despite these policy changes in the 2018 farm bill, Congress may consider further amendments as it starts to debate the next farm bill. Overview of U.S. H emp Cultivation I). a . - USDA reports that in 2021-the first year official USDA data has been collected-U.S. hemp growers planted 54,200 acres of hemp while harvesting about 33,500 acres, accounting for a small share of total U.S. harvested cropland acres (<0.1%). The difference between planted and harvested hemp acres may reflect the difference between legal hemp that falls within legal THC limits and noncompliant (or hot) hemp that may not enter allowable U.S. marketing channels. USDA estimates about 20% of hemp grown during the crop year will exceed legal THC limits, demonstrating the inherent risks to farmers of growing hemp within USDA's regulatory framework. Currently hemp is grown in all U.S. states under a USDA- approved state plan or a USDA general license. The leading hemp producing states with more than 1,000 harvested acres (2021) were Montana (4,500 acres), Colorado (3,100), Minnesota (2,300), California (2,250), Utah (2,150), North Carolina/Oregon (1,850 each), South Dakota (1,700), Kentucky (1,500), Missouri (1,150), Vermont (1,080), and Texas (1,070) (Figure 1). Production by state tends to be highly variable year-to-year. The 2021 farm-level value of hemp produced was $824 million across an estimated 13,000 grower licenses. This total spans the leading hemp markets based on the part of the plant used: fiber, grain, seed, and flower. Some suggest there may be a separate market category for the plant's extracted compounds that may be derived either from the plant's flowers and trim or from its total biomass (including sticks and stems). For more background on the leading markets for hemp, see CRS In Focus IF11860, Production, Marketing, and Regulation of Hemp Products. Figure I. HemD Acreage by County. 2020 Source: Graphic is a reprint with permission from the American Farm Bureau Federation, which excludes data for Hawaii and Alaska, although USDA reports production in both states. Table 1 shows USDA reported data for 2021 on the farm- level value, volume, and harvested acres by the leading hemp markets (i.e., fiber, grain, seed, flower) based on growing system (i.e., whether grown in the open field outdoors or under protection, such as in a greenhouse or indoor facility). As shown, production of floral hemp grown in the open was the dominant type of hemp grown in 2021, as measured by total value and acreage. By comparison, the value and acreage dedicated to hemp fiber, grain, and seed production was lower. Floral hemp tends to command higher market prices compared with other marketable uses for hemp. Table 1. Farm-Level Value of U.S. Hemp Production by Production Type and by Market Segment (2021) Market Prod. Production Value (million Avg. Type $million pounds) Acres Yield Floral (open) 623.0 19.7 16,000 1,235 Grain (open) 6.0 4.4 8,255 530 Fiber (open) 41.4 33.2 12,700 2,620 Seed (open) 41.5 1.9 3,515 530 All Types 112.0 NA NA NA (protection) Source: USDA, National Hemp Report, 2022. Reported acres are not additive given multi-crop production in some cases. Addressing H emp in the Next Farm Bill Industry interests related to hemp cover many national and regional groups with different policy goals and priorities. These priorities often are tied to the primary products they produce and/or represent or may be based on the part of the hemp plant used (e.g., whether hemp is grown for fiber for industrial uses or for use in seed-derived food ingredients

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