Michigan Transfers Hemp Regulation to USDA

LOS ANGELES- Michigan has concluded its state-managed industrial hemp program, transitioning regulatory oversight to the U.S. Department of Agriculture (USDA) effective January 1, 2025. This shift, prompted by the enactment of House Bill 5977, dissolves the state’s industrial hemp fund and transfers cultivation and regulatory responsibilities to the federal level.

Under USDA governance, hemp producers will encounter more stringent pre-harvest tetrahydrocannabinol (THC) testing protocols, necessitating analyses at Drug Enforcement Administration-approved laboratories. Additionally, compliance mandates will intensify, requiring detailed record-keeping and reporting.

Despite these heightened requirements, the transition may offer financial relief to cultivators. Blain Becktold, President of iHemp Michigan, noted that federal licensing fees are expected to be lower than the $1,350 previously charged by the state, potentially reducing barriers to industry participation.

The Michigan Department of Agriculture and Rural Development (MDARD) cited financial unsustainability and the complexities of enforcing regulations against unauthorized cannabis cultivation as reasons for discontinuing the state program. Since its inception in 2019, the number of licensed hemp growers in Michigan has significantly declined, from 631 in 2020 to 34 in 2024.

This regulatory realignment aligns Michigan with other states that have opted for federal oversight, aiming to standardize hemp production practices and facilitate interstate commerce within the industry.