Coronavirus Relief for Hemp Farmers Comes Through
In mid-May, the U.S. Department of Agriculture (USDA) approved $19 billion in coronavirus relief funds for agricultural producers and excluded hemp farmers. In the middle of September, the second round of relief funding, some $14 billion was released through the USDA’s Coronavirus Food Assistance Program (CFAP), this time including hemp as eligible.
The USDA proclaimed hemp ineligible earlier in the year, disqualifying them because they surpass 5% of price decline from January to April. Hemp industry groups and companies like Mr Hemp Flower contested, saying that there is inadequate data to confirm that due to the fledgling nature of the industry. And they are suffering just as other viable sectors.
USDA Relief Funds for Hemp Farmers
According to a notice regarding the USDA’s relief funding for hemp farmers falls into the “flat-rate crops” category. That means relief payments for hemp farms are calculated based on eligible 2020 acres multiplied by $15 per acre.”
In an interview with cannabis media outlet Marijuana Moment, Jonathan, general counsel at the U.S. Hemp Roundtable, responded to the USDA’s inclusion of hemp in the relief package by saying – “This is a very significant development for the industry,” he said. “We just want to be sure that our farmers are treated fairly just like other farmers.”
Miller mentioned that his group is “thrilled” to see the USDA’s approval, however many stakeholders are signaling that the department “might not be as generous [to hemp] as for some other crops.”
The flat-rate crop category that hemp is under includes other crops such as –
- Alfalfa
- Cotton
- Oats
- Peanuts
- Rice
- Millet
- Mustard
- Rapeseed
- And others
Hemp Farming On the Rise
The USDA has been approving one state’s hemp policy after another, with Utah being one of the most recent examples in 2020. Since 2018 when hemp was federally legalized and placed under the USDA’s authority, the department has reached out to the hemp industry for continuous input on crafting healthy regulations for the new crop.
A recent 30-day public comment on proposed rules for hemp that expired was reopened to allow for further input until the end of October. When finalized, the rules made will take effect on October 31, 2021.
Several state senators, state agriculture departments, and a major hemp industry group have requested that both Congress and the USDA grant an extension to the initial two-year pilot program period set to expire October 31.
Chuck Schumer, Senate Minority Democrat Leader of New York, asked the USDA Secretary, Sonny Perdue, to extend final regulatory issuance on hemp until 2022 and allow states to continue farming under the current interim rules. Republican Senator Cory Gardner of Colorado, as well as two Oregon senators also responded to the USDA’s impending regulatory deadline with concerns about restrictive policies.
The inclusion of this new industry in federal relief funding eligibility is nothing short of one giant leap towards a future where hemp farmers are valued and supported.
