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Новости/Аналитика

American hemp market: prospects and limitations

29.11.2019

Estimated number of tested industrial batches of hemp seed

In the case of Ukraine, lobbying by individual companies for an increase in the level of TGKs to European (0.2%) and especially Anglo-Saxon indicators (0.3%) very quickly will lead to discrediting the industry before the law enforcement agencies of our country and another “reasonable” from the point of view of the Ministry of Internal Affairs to the resumption of crop protection. And then the story will repeat again in a spiral, and after a not very long time we will again face the fact that cultivating the most profitable agricultural crop in Ukraine in the world will not be economically profitable, as the industry will spend the lion's share of the financial resource on “officials’s wishes in uniforms for the protection of socially safe technical hemp. "

According to analysts from the US Department of Agriculture (USDA), in 2020 it will be necessary to destroy every fifth industrial sowing of industrial hemp in the country, since the varietal material on the market is not always possible to maintain an acceptable level of tetrahydrocannabinol (THC) in plants (now current legislation, the boundary limit should not exceed 0.3% of TGK).

 These data were published on the basis of a special report, USDA Cannabis Rules: Guidelines for Business. This document sets out the contents of the intermediate standards developed by the US Department of Agriculture regarding the establishment of a national program for the production of industrial hemp crops, which the government announced on October 31. An analysis of the document gives reason to conclude that almost a fifth of the technical cannabis crop grown in the USA may have to be destroyed, since not all seed material on the US market has stable levels of controlled psychoactive substance up to 0.3%, which showed preliminary testing. At the same time, the US Department of Agriculture recognizes that this is only a forecast based on the results of pilot studies of seed material, and that it is difficult to know in advance how many imported hemp varieties will exceed the threshold for the permitted level of tetrahydrocannabinol. It is worth noting that similar trends in excess of the maximum permissible level of THC were observed earlier in other countries where the industrial market of technical hemp is actively developing. 

A positive norm for the cultivation of hemp for producers is that during the transitional period, until all federal standards for the industrial cultivation and processing of modern hemp products are worked out, strict “punitive” measures will not be applied to business - if for reasons beyond the control of the agricultural producer the level THC in plants will not exceed a threshold of 0.5%. This means that American farmers will not be prosecuted for violating federal law regarding exceeding the level of THC above 0.3%. However, all “unnormalized” hemp must be destroyed and cannot be used in any other way - even in states where legal cultivation of marijuana and medical hemp is allowed.

Since the cultivation of cannabis grown for medical purposes is regulated by individual US law standards, industrial hemp, exceeding the permissible level of 0.3% THC, cannot be equated with medical cannabis and other legal norms are applied to the plant. There is only one solution - the destruction of industrial hemp crops in excess of the permissible level of THC. 

In addition, many industrial hemp farmers, as well as industry proponents, are concerned about the publication of new rules for determining the level of THC in a plant, especially the requirement that only laboratories registered with the Drug Enforcement Administration (DEA) of the United States will have the right to conduct this kind of research. Industry experts are concerned that the above situation creates bottlenecks in the industrial hemp industrial production chain, especially in remote or remote regions of the country. There are also concerns that the DEA will not only actively participate in monitoring the activities of the hemp industry, hindering the development of the industry, especially now that a law has been passed to promote the legal production of technical hemp.

Commentary of the Ukrainian Technical Hemp Association

Problems with the stability of technical hemp varieties are inherent not only for the actively developing US market. An excess of the amount of THC in industrial crops of industrial hemp is regularly observed in Canada, China, and the countries of Europe. That is why in Italy farmers are not persecuted, in the industrial crops of which the level of THC does not exceed 0.6%, despite the fact that, according to the current EU regulatory framework, this indicator should not be more than 0.2%. The green mass is already interested in the drug market, so lobbying by individual companies to increase the level of THC to European (0.2%) and especially Anglo-Saxon indicators (0.3%) very quickly in the case of Ukraine will lead to discrediting the industry before our law enforcement agencies country and the next "reasonable" from the point of view of the Ministry of Internal Affairs requirements for the resumption of crop protection. And then the story will repeat again in a spiral, and after a not very long time we will again face the fact that cultivating the most profitable agricultural crop in Ukraine in the world will not be economically profitable, as the industry will spend the lion's share of the financial resource on “officials’s wishes in uniforms for the protection of socially safe technical hemp. "

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