Last Week’s Hemp Commentary

2022 Ushers in New Lab Requirements

Analytical testing is essential to all cannabis supply chains, regardless of the cannabinoid profile.  It is also complex, and within the context of hemp markets, is an ongoing problem from a policy standpoint and a markets standpoint. 

From a policy standpoint, unclear THC testing standards and varying lab equipment sensitivity create considerable risk.  The implementation of USDA Hemp Rules will level the playing field insofar as testing.  Some states have historically accommodated operators with generous rounding.  In some cases, as much as .39% THC was rounded down to .3%. 

From the market’s perspective, a lack of standardization in analytical testing creates splintered markets that more resemble state MJ markets.  Hemp is in fact the first to require standardization at the federal level, revealing all the shortcomings of the most…