When "Hemp" Isn't "Hemp" - Savvy CBD Operators Plan Ahead

When beginning an engagement for our hemp-derived CBD clients, we’re often asked why we probe so deeply into hemp sourcing because “hemp is legal.”  The simple answer is that “hemp” carries a specific legal definition, not a scientific definition and savvy operators need to sweat the details of the hemp from which their CBD is sourced in order to get those legal benefits.  Too often, the “hemp” they purchased is not actually “hemp” in the eyes of the law.

These risks are now back in the news, with an Idaho court’s rejection of Big Sky Scientific’s efforts to get over 6,700 pounds of hemp back from authorities in Idaho.  In short, the Idaho court concluded that though the crop may have been low-THC, it was not “hemp” for the purposes of qualifying for legal protections for interstate transport.

While rule changes across the country have lessened the likelihood of a hemp company losing an entire truckload of product, new regulatory regimes have replaced wholesale prohibition and savvy operators  factor this into their operational plans. It is particularly important for purchasers of bulk hemp and hemp-derived products, such as CBD isolate, to conduct thorough diligence into their sources, and obtain documentation that validates their understanding and expectation of what they are purchasing.

In short, though the Idaho/Big Sky decision is likely to be the subject of a further appeal, with implementing regulations under the Farm Bill of 2018 going live, challenges that turn on whether a crop that is referred to as “hemp” is actually “hemp” under federal law will continue for the foreseeable future.