USDA Now Allows Organic Certification for Industrial Hemp

Hemp Inc., Las Vegas, Nev., USA, executives see more opportunity for its industrial hemp processing facility and milling operation, in Spring Hope, N.C., now that the U.S. Department of Agriculture (USDA) has announced it will reverse its position and will allow organic certification of industrial hemp crops grown in compliance with Sec. 7606 of the U.S. Farm Bill. 

The USDA instruction (effective Aug. 23, 2016) clarifies its policy regarding the organic certification of industrial hemp production by certifying agents accredited by the USDA National Organic Program (NOP). This instruction applies to all NOP-accredited certifying agents, and replaces the February 2016 version of NOP 2040.

This is big news for the industrial hemp industry because recently the FDA announced it would not allow organic certification to apply to medical marijuana, recreational marijuana, or its non-psychoactive cousin industrial hemp. "Let's get real. It's time to not reschedule but deschedule industrial hemp. You can't get high off of hemp. That would be like trying to get high off of corn, alfalfa, or cotton. And hemp is such an economical, viable crop. It uses less water than the crops mentioned above and it doesn't need pesticides, herbicides, or fungicides," said Bruce Perlowin, CEO of Hemp Inc.

According to the USDA's instruction, "Section 7606 of the Agricultural Act of 2014 (Farm Bill) authorized institutions of higher education and state departments of agriculture to establish industrial hemp research pilot programs in states where the production of industrial hemp is legal and subject to certain other conditions. On Aug. 12, 2016, the USDA, in consultation with the U.S. Drug Enforcement Administration and the U.S. Food and Drug Administration, published a Statement of Principles on Industrial Hemp regarding the applicability of Federal laws to activities associated with growing and cultivating industrial hemp."

Its primary goal is to inform the public how federal law applies to activities associated with industrial hemp that is grown and cultivated in accordance with Section 7606 of the Agricultural Act of 2014.

With the country's largest industrial hemp processing facility and milling operation, Hemp Inc. is strategically positioned as the leader of the re-emerging industrial hemp industry to process industrial hemp and manufacture products made from hemp, as well as Lost Circulation Material (LCM) and other absorbent materials. 

"An organic certification is likely to really boost sales, thereby bringing in more revenue. Not only are we excited about an 'organic' stamp of approval, but this shows our industry is steadily making progress toward full legalization one day soon," said Perlowin.

With so much progress to date in the industrial hemp industry, Hemp Inc.'s timing of completing its decortication plant could not be better. David Schmitt, COO of Hemp Inc.'s wholly owned subsidiary, Industrial Hemp Manufacturing LLC, said that everything is on schedule since the update in Hemp Inc.'s last press release. With more than 70,000 sq. ft. over nine acres, Hemp Inc.'s multipurpose industrial hemp processing facility is the only one in the U.S. of this scale and magnitude.

According to Hemp Inc., hemp is a durable, natural fiber that is grown as a renewable source for raw materials that can be incorporated into thousands of products. It's one of the oldest domesticated crops known to man. Hemp is used as a nutritional food product for humans and pets, building materials, paper, textiles, cordage, organic body care, and other nutraceuticals, just to name a few. It has thousands of other known uses. A hemp crop requires half the water alfalfa uses and can be grown without the heavy use of pesticides. Farmers worldwide grow hemp commercially for fiber, seed, and oil for use in a variety of industrial and consumer products. 

The U.S. is the only developed nation that fails to cultivate industrial hemp as an economic crop on a large scale, according to the Congressional Resource Service. However, with rapidly changing laws and more states gravitating towards industrial hemp and passing an industrial hemp bill, that could change. Currently, the majority of hemp sold in the U.S. is imported from China and Canada, the world's largest exporters of the industrial hemp crop.