USDA Final Rule Takes Effect – Cannabis & Hemp

In our previous post, we highlighted that the United Stated
Department of Agriculture (“USDA“)
published its final rule (the “Final
Rule“) regulating the production of industrial hemp
under the Agriculture Improvement Act of 2018 (the
“2018 Farm Bill“). The Final Rule
supersedes regulations set forth in the interim final rule
published on October 31, 2019 (the “Interim
Rule“).

The Final Rule was initially scheduled to take effect on March
22, 2021. However, a White House Memorandum issued by the Biden
Administration on January 21, 2021 (the “Biden
Memorandum“) effectively “froze” all
regulations that had been published in the Federal
Register but had not yet taken effect, including the Final
Rule. The Biden Memorandum also granted agencies (such as the USDA)
the authority to “consider opening a 30-day comment
period.”

As part of the transition to the Biden Administrations, the USDA
and many other agencies took this opportunity to review new and
pending regulatory actions, including the Final Rule.

On March 8, 2021, the USDA completed its review of the Final
Rule and announced that it was cleared to move forward as published
in the Federal Register. The newly appointed head of the
USDA, Tom Vilsack, subsequently signed off on the Final Rule.

As a result, the Final Rule took effect on March 22, 2021, as
previously planned.

Husch Blackwell has experience working with USDA and regularly
advises industrial hemp cultivators and manufacturers under
state-regulated hemp programs. Our cannabis regulatory lawyers have
reviewed the Final Rule and are ready to discuss the Final
Rule’s implications on current and future business
strategies.

Originally published 23 March 2021

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guide to the subject matter. Specialist advice should be sought
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