Oregon opens the door to cannabis interstate commerce

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With the stroke of a pen, Oregon governor Kate Brown signed into law a series of landmark bills that protect patients, aid expungement processes, and, for the first time in the United States, allow for cannabis to cross state lines to other states with legal cannabis. The legislation flies in the face of federal law and the current administration. We all will hold our breath to see what how the feds react.

Oregon faces an oversupply crisis of sorts, as a recent state audit uncovered that the state has a 6+ year surplus of cannabis – that’s quite the stash! Now cannabis operators in the state can sell that weed to neighboring states.

@memberdirectory how do you think this landmark legislation will impact the cannabis industry in the U.S? How do you think the feds will react…or will they at all? Will this bill open the door for domestic cannabis sales across state lines? Are we on the verge of being able to export product?

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Here is also some interesting news coming out of Oregon.
https://www.bendbulletin.com/business/7009591-151/deschutes-county-is-oregons-third-largest-hemp-growing-county Published March 17, 2019 at 05:19AM

Deschutes County is Oregon’s third-largest hemp growing county

Industrial hemp projected to be $1 billion commodity in Oregon

Growing number of farms
The growth in the number of industrial hemp farms comes at a time when Oregon marijuana growers are struggling with overproduction and declining prices, said Beau Whitney, New Frontier Data vice president and senior economist. Some marijuana farmers have even switched over to industrial hemp because of the saturated legal marijuana market, Whitney said.
“Industrial hemp demand is more stable and is in fact increasing substantially while the state is not oversaturated in supply,” Whitney said. “It’s an interesting dynamic in Oregon that a lot of these higher THC growers have switched over to industrial hemp.”

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As a grower I wouldn’t want Oregon’s cannabis coming to my state.

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I really don’t believe that 6+ year surplus. I did listen to the OLCC meeting where they described how they come to that number. I do know of one Oregon grower with many farms that for 2 years now have cut down whole field plants hung to dry and wrapped then put in freezer they have 70 thousand pounds now 2 years onl in freezers. Is that surplus product still good for anything? How many more pounds are in that same situation?

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@Growernick This is soo cool. I knew it was coming and is happening anyway. My prediction we’ll have legal interstate commerce in 5 years. This will be so helpful for the growing states and the demand states ya?

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@SaferGro We know many cannabis growers in OR that have made the switch. Stay tuned, we are starting to get calls from CA growers that are interested in making the switch. I think you’ll see the next wave in CA.

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Oregon has some of the best, and some of the worst cannabis in America. Main point is, they have a TON of BOTH. This news is a game changer and I think Trump will take cannabis off schedule I before the 2020 election. Hold on kids, it’s gonna be a bumpy ride!

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Washington doesn’t want Oregon’s discards. We have enough product to be facing low returns as growers as is. Oregon’s irresponsible behavior shouldn’t cost struggling Washington Farmers.
Keep that 2 year old product in your state, or send it somewhere that has production shortages.

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From my understanding, this is just to set up the framework if and when federal legalization happens, or they approve the interstate commerce between legal states. Hopefully this will push the conversation forward!

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https://www.cannabisbusinesstimes.com/article/interstate-cannabis-commerce-act-federal-oregon/

Here’s another article on the subject.

Following Oregon lawmakers’ decision to approve interstate cannabis commerce, federal legislators from the state have put forth a bill in Congress to allow such a thing to happen prior to any full-on U.S. legalization measure.

U.S. Sen. Ron Wyden and U.S. Rep. Earl Blumenauer introduced the State Cannabis Commerce Act June 27. In short, the bill protects states from federal interference: As long as the states in question have legalized and regulated a cannabis market, they would be free to oversee cannabis sales across their borders. In the case of Oregon, whose governor signed an interstate cannabis commerce bill earlier this month, discussions have cited cannabis sales with nearby California and Nevada.

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Sen. McConnell meets with acting FDA Commissioner re CBD

USDA expected to release Hemp Regulations in August

Risk Management Agency issues new crop insurance rule
U.S. Senate Majority Leader Mitch McConnell (R-KY) met with Acting Food and Drug Administration (FDA) Commissioner Dr. Ned Sharpless yesterday. During the meeting, Senator McConnell discussed the importance of hemp production and the need for clarity from FDA on the sale of hemp derived CBD products.

Senator McConnell informed Dr. Sharpless of the positive impact the legalization of hemp is having in Kentucky. He also reminded Dr. Sharpless of some of the ongoing challenges – such as the need for a regulatory framework for CBD – he hears about from hemp farmers, processors and manufacturers in the state.

“While the 2018 Farm Bill included my provision to remove hemp, and its derivatives like CBD, from the list of controlled substances, CBD food and dietary supplement products remain in a gray area without clarification from the FDA,” Senator McConnell said. “Congress’ intent was clear with the passage of the Farm Bill that these products should be legal, and our farmers, producers and manufacturers need clarity as well as a workable pathway forward regarding the Agency’s enforcement and potential regulatory plans for certain CBD products. I appreciate Acting Commissioner Sharpless meeting with me today to discuss this important issue. Like my constituents, I am anxious to know the FDA’s plans to ensure public access to safe CBD products.”

Good news! USDA expects to publish new hemp regulations in August

On Monday the USDA published a notice in the Federal Register indicating that it expects to publish an Interim Final Rule outlining new hemp regulations in August. Previously, the department simply said it would have the rules in place by fall, in time for the 2020 planting season.

“It is great to see that USDA is on track to complete federal hemp farming regulations ahead of schedule” Eric Steenstra, president of Vote Hemp stated.

Federal Crop Insurance Corporation (FCIC) issues new rule in Federal Register

Today the FCIC, also known as the Risk Management Agency, published a Final Rule with request for comment in the Federal Register.

The Federal Crop Insurance Corporation (FCIC) amends the Catastrophic Risk Protection Endorsement, the Area Risk Protection Insurance (ARPI) Basic Provisions, and the Common Crop Insurance Policy (CCIP) Basic Provisions to implement the changes mandated by the Agriculture Improvement Act of 2018 (commonly referred to as the 2018 Farm Bill). This rule revises the provisions regarding the catastrophic administrative fee, actual production history (APH) yield, crop production on native sod, and the definition of veteran farmer or rancher. In addition to the 2018 Farm Bill required changes, FCIC is changing provisions for premium offsets, electronic delivery of policy changes, and assigned yields. The changes to the policy made in this rule are applicable for the 2020 crop year for crops with a contract change date on or after June 30, 2019. For all crops the changes to the policy made in this rule are applicable for the 2021 and succeeding crop years.

They are seeking comments through the close of business on August 27th.

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