PRO15
Colorado’s Industrial Hemp
Program
December 14, 2015
Where It All Began……
Nov 2012 Voters approve Amendment 64 legalizing recreational
marijuana and Industrial Hemp.
Legislature approves Industrial Hemp Act giving CDA jurisdiction over
the registration and cultivation of Industrial Hemp.
Summer 2013 U.S. Department of Justice issues Cole Memorandum.
2014 Farm Bill authorizes Industrial Hemp R&D at Institutions of Higher
Education.
Spring 2014 first registrations for the production of Industrial Hemp
approved in Colorado.
2014 Production, harvest and sale of Industrial Hemp begins within CO.
What is Industrial Hemp?
Colorado Industrial Hemp Act
The term ‘industrial hemp’ means a plant of the genus
cannabis and any part of the plant, whether growing
or not, with a delta-9 tetrahydrocannabinol
concentration of no more than 0.3 percent on a dry
weight basis.
Constitutionally if it is over 0.3% delta-9 THC concentration it
is marijuana and it is not Industrial Hemp.
U.S. DOJ Cole Memorandum Summary
• Prevent drugged driving
• Preventing the distribution of Cannabis to minors
• Prevent violence and firearms use in the cultivation and distribution
of Cannabis
• Prevent growing or possession of Cannabis on public lands
• Preventing the revenue from Cannabis to go to criminal elements
• Preventing the diversion of Cannabis to other states
• Preventing state authorized Cannabis activities to be used as a cover
or pretext for illegal activities
Why is the Cole Memorandum Important?
Addressing the concerns the U.S. Dept. of Justice
expressed in the Cole Memorandum is important for
the Industrial Hemp program because it
demonstrates that Colorado is handling Industrial
Hemp responsibly though implementation of
adequate rules to insure compliance. It is through
the Cole Memorandum that the Department works
with the DEA to address concerns regarding
compliance with our Registrants.
Agriculture Act of 2014 (The Farm Bill)
Sec. 7607 of the 2014 federal Farm Bill opened the door for universities and
state departments of agriculture to begin cultivating industrial hemp for
limited purposes. Specifically, the law allows universities and state
departments of agriculture to grow or cultivate industrial hemp if:
“ (1) the industrial hemp is grown or cultivated for purposes of research
conducted under an agricultural pilot program or other agricultural or
academic research; and
(2) the growing or cultivating of industrial hemp is allowed under the laws of
the State in which such institution of higher education or State department of
agriculture is located and such research occurs.”The law also requires that
the grow sites be certified by—and registered with—their state.
The law also requires that the sites used by universities and agriculture
department be certified by—and registered with—their state.
Source:National Confederation of State Legislatures
Who set 0.3% as the THC Limit?
• UN Office on Drugs and Crime and most international trade
agreements use the upper generally recognized limit of
0.3% THC.
• Canada and Australia use 0.3% THC.
• Much of the European Union uses 0.2% THC.
• The 2014 Farm Bill uses 0.3% THC.
• And the voters of Colorado defined Industrial Hemp as
0.3% THC and below in the states Constitution.
Why is the 0.3% THC Threshold Important
for Colorado’s Industrial Hemp Industry?
From a purely economic perspective it is vital to Colorado’s
Industrial Hemp Industry to maintain the 0.3% THC limit to
comply with federal law that defines DOJ and DEA
intervention involvement, to allow our state Universities to
provide research and extension services, and to maximize the
market size once the product becomes federally legal.
Authorization above 0.3% THC could limit exports due to
international trade agreements or other states limits that
match the federal guideline so the market becomes limited
to in state.
It would also preclude Universities from participating in seed
testing, seed certification, extension and research because
they would be working in marijuana outside of the Farm Bill,
jeopardizing their federal funding.
How can I tell marijuana
from Industrial Hemp?
Visually they look the same.
The only difference is the level
of delta-9 THC concentration
which can only be determined
through laboratory analysis.
Industrial Hemp vs Marijuana
Industrial Hemp
• THC content less than 0.3%
• Anything with a THC
concentration of 0.3% - 0.9%
is considered to have “only a
small drug potential” but is
legally not industrial hemp
Marijuana
• THC content between 5 – 10%
• THC may be as high as 25%
• THC at a level of 1% is
considered the threshold for
marijuana to have some
intoxicating potential.
However, any material with a
THC above 0.3% is legally
marijuana
Sources:
Recommended methods for identification and analysis of cannabis and cannabis products. Manual for use
by National Drug Analysis Laboratories. UNODC (United Nations Office on Drug and Crime) 2009
Small, E. and D. Marcus. 2002. Hemp: A new crop with new uses for North America. P. 284-326. In J. Janick
and A. Whipkey (eds), Trends in new crops and new uses. ASHS Press, Alexandria, VA.
Why is it important to understand
who regulates and the penalties?
There has been an ongoing misunderstanding that the CDA has the
authority to grant waivers for the cultivation or use of plant
material that exceeds 0.3% THC. Our waver authority is limited
to penalties imposed under the Industrial Hemp Act.
Jurisdictional control of material that exceeds 0.3% THC,
remains with local, state and federal law enforcement. The
CDA has no legal authority to allow cultivation, transportation
or processing of any Cannabis above 0.3% THC.
The CDA can waive civil penalties, revocation or suspension of a
registration for violating the registration and rules but all
criminal penalties are the jurisdiction of the appropriate law
enforcement (local, state and federal).
Lessons from 2014 and 2015:
What have we seen and what did we
learn.
What changes have we seen in the industry?
In 2014 the first year hemp could be grown legally under a
state registration we saw mostly small outdoor operations,
limited agronomic expertise, many were under capitalized
and a significant number registered purely for a historic
certificate with no intent to plant.
2015 has already shown a shift in the industry. Outdoor
production has increased significantly and indoor space
registered has exploded in the market. The size of individual
growing sites has increased. Agronomic practices are
improving and independent consultants are entering the
market. Businesses seem to be better funded and production
plans are better developed. Venture capitalist, investors and
processors are approaching the market.
Who are our registrants?
In 2014 the program had 131 total registrants holding 259
registrations on 1811.7 total acres.
As of Nov 18th, 2015 the program had 166 total registrants holding
301 registrations on 3657 acres of outdoor production and
570,980 sqft of indoor production.
2015 also saw increased participation by institutions of higher
education. Three Universities registered and began working on
Industrial Hemp research; Colorado State University imported 17
varieties and began agronomic research, the University of
Colorado began working on gnome mapping and potential
applied sciences, and Adam’s State started a multifaceted
economic study of the crop.
Where are the fields?
More than half of Colorado’s 69 counties have a registered land
area committed to hemp production. We see a significant number
of fields located in Larimer and Boulder counties. We also see a
large number of registrants in Delta and Weld counties as well as
in the San Luis and Arkansas valleys but registered land areas are
spread across the entire state. Some of the increase in average
size of the production area is probably attributed to the
migration to more traditional rural farming areas.
Last year the largest field was
17 acres. In 2015 that would
not even qualify as one of the
10 largest fields.
What are our registrants doing with the
crop?
The Department only collects information on use
through disposition statements when harvest
notification is submitted and for purposes of
monitoring market developments. Registrants
disposition statements have included cosmetic and
body care products, dietary supplements and food
products, fiber, pulp products, insulation and
building materials, and CBD extraction.
Have we seen it all?
Certainly not!!!!!
There is interest in composite materials, biofuels…..
How has sampling and inspection gone?
Through a risk/random selection process the CDA has sampled
a significant portion of the crop both inside and outside this
year. We have also visited sites to confirm ‘Did Not Plant’
reports. As of mid Nov. only 8% of the tests had exceed
0.3%THC down from 31% in 2014. And in 2 years only two
tests have exceeded 1.0% for waiver consideration.
While there is a lot of misinformation being circulated on the
web (Free the Farmer 2016, Condemned for Public Safety by
CO Dept. of Ag,…), compliance rates have significantly
improved over last year.
* So if there is one take away message it is that the few people who misrepresent
the scale of the problem to push their personal agendas hurt the entire industry by
painting the problem as something it simply isn’t.
Does that mean it has gone smoothly?
2015 has brought some new challenges that did not surface in 2014.
The Department has faced registrants who issued threats, failed to
communicate when tests exceeded THC thresholds, and an increase
visibility in smuggling activities of seed (which jeopardize property
through seizure laws). These and other challenges have forced the
Department to summary suspend a registration, move toward
revocation of others and contact law enforcement for assistance and
potential criminal enforcement.
As a result the Department will be implementing additional Rules to
protect the program and registrants who are in compliance from
those that are abusing the system.
2015 has also brought visits from the DEA to verify the CDA’s
compliance and registrant’s compliance.
So, what does 2016 bring?
Look at rule and legislative changes necessary to more effectively
address the situations we’ve encountered this year.
Continue to work with the state institutions of higher education on
research to support the Industrial Hemp industry.
Finalize the voluntary program to allow registrants to take samples
to the private state certified MED labs.
Develop a CDA Approved Certified Seed program to include the
same standards involved in other agricultural crops are applied
to varieties that have proven to produce mature plant material
below 0.3% THC across Colorado’s broad climatic conditions.
Questions?