Executive Summary: In June 2019, the Midwest Hemp Council joined small business owners in Indiana to challenge the criminalization of craft hemp flower in federal court. The U.S. District Court ruled in favor of the hemp industry and prohibited the enforcement of the statute criminalizing the production, sale and possession of craft hemp flower. This favorable ruling was appealed to the Seventh Circuit. Unfortunately, the Seventh Circuit inexplicably ignored the industry’s strongest argument and the one on which the U.S. District Court relied on to issue its injunction against the state—individual states do not have the authority to pick and choose what is legal coming off of the hemp plant, so long as the product is below .3% THC. This unfavorable order came out in July 2020 and resulted in the state being permitted to enforce the criminalization of craft hemp flower in Indiana. On Monday, May 24, 2021, after a nearly two-year battle in the federal court systems, plaintiffs voluntarily dismissed the case without prejudice. This means that if the regulatory or enforcement environment changes in Indiana, the door is still open if there is an interest in refiling the case.

It’s no secret the hemp industry continues to work through various choke points whether it’s the weather, bad genetics or limited access to proper banking channels. Despite these challenges, Hoosier farmers and small business owners continue to be optimistic about the future of the industry. The playbook for improving economic opportunity in the whole hemp plant economy is multi-faceted. To match the scale of what is needed and to make regional markets work better for more people, we must continue to educate our regulators, our lawmakers and other stakeholders with unified messages. And that’s exactly what has been happening in Indiana.

Join us for two days of networking and learning at CBD Expo Midwest, happening April 9 and 10 at the Indianapolis Marriott East. The event offers something for everyone - choose from thought provoking panels and exciting activities. Discover the cutting edge of research and medicine. Brush up on regulation and compliance. Fine-tune your marketing skills and improve sales under the guidance of industry experts. We'll be there, so come and see us:

• Visit MHC in the Expo Hall - we'll be at booth 11 and MHC members Adams Independent Testing will be in booth 32.
• Join MHC President Justin Swanson and members Joe Linne, Hoosier Hempster Dispensary, and Greg Kruger, DREEM Nutrition, for a panel on challenges and opportunities in retail and wholesale at 3:15 p.m. on Friday.
• Join MHC member Austin Rhodus, DREEM Nutrition, for a panel discussion on terpenes at 1:30 p.m. on Saturday.
• MHC member Dr. Dan Silva of Midwest Hemp Testing Services will take part in a panel discussion on creating novel CBD formulations on Friday. He will also take part in a panel discussion on cutting edge cannabinoid science and host a Center Stage presentation on identifying effective cannabinoids on Saturday.
• MHC member Dr. Richard Sams of KCA Laboratories will participate in a panel discussion on minor cannabinoids at 10:15 on Saturday and a panel on the cutting edge of cannabinoid science immediately following.
• Joe Linne will also participate in a panel discussion on CBD regulations in the Midwest at 1:30 on Saturday.

HB 1224 was heard in the Senate Committee on Commerce and Technology yesterday. The Committee did not take a vote yesterday, and we need your help to get it on the committee agenda for Thursday. MHC President Justin Swanson offered the following statement on yesterday’s hearing and the importance of HB1224 for the whole hemp plant economy in Indiana:

Indiana members! This is it! HB 1224 will be scheduled for a hearing at 9:30 a.m. on Monday, April 5, in the Senate Committee on Commerce and Technology. We need all of you to consistently contact the committee members and ask that they vote “Yes” on HB 1224. Their contact information can be found below. This bill will not pass unless you help educate Senators on why this bill is so important to you as a farmer, business or consumer. Currently, craft hemp flower is free to move in “continuous transit” in Indiana - so long as an Indiana farmer didn’t grow it, an Indiana business didn’t sell it and an Indiana consumer didn’t possess it.

• extending the harvesting window to 30 days
• improving sampling requirements
• allowing remediation
• raising the negligence threshold from .5% THC to 1% THC.

Midwest Hemp Council’s 2021 Hemp at the Crossroads conference, originally scheduled for February 4-5, 2021, has been postponed until December 1-3, 2021.

U.S. seed developer New West Genetics (NWG) has released ABOUND, a line of dioecious hemp seeds for row crop farming, suggesting that conventional outdoor growing offers a path to scalability, dual-cropping of CBD and grain, and a stable supply chain.

Stakeholders in the U.S. state of Kentucky say they will launch a re-branded, independent hemp organization after a falling out with the national Hemp Industries Association (HIA).

On August 6, 2020, the Seventh Circuit denied the Petition for Rehearing regarding the pending smokable hemp litigation in Indiana. The practical impact of this denial means that Indiana will be free to prosecute farmers, small businesses and other entrepreneurs that grow and/or sell smokable hemp beginning on August 13, 2020.

Belgian hemp block maker IsoHemp said it has raised nearly €7 million to build a new high-tech factory, as the company sees demand rising for its pre-formed building materials.

As interest in hemp fiber applications grows, U.S. farm technology innovator Formation Ag says it is getting a growing number of inquiries about its mid-size hemp decortication units.

National hemp groups are organizing a campaign to establish a checkoff program – a sometimes-acrimonious system designed to raise money for industry research and promotion by taxing those who profit from the plant.

 Midwest Hemp Council Member, Mark Boyer, tells us “I will be adding hemp seed oil to our lineup of cold pressed, farm grown oils in hopes of establishing a value based market for this form of hemp. This crop with its many different forms and markets, has the long term potential of being a solid performer as a rotational crop in production agriculture."

The long awaited ruling from the Seventh Circuit on criminalizing smokable hemp arrived late yesterday evening. The decision is a mixed bag for the industry in that the decision affirmed part of the district court’s rationale for the injunction but found that the injunction was too broad. We believe the 7th Circuit’s decision affirms the unconstitutionality of portions of SEA 516 and look forward to addressing those arguments on remand. As of now, the injunction being lifted will officially be in effect on July 29, 2020. You should plan to have all smokable hemp products off the shelf by this date.

Read the ruling here.

At Agribusiness Council of Indiana's 2020 conference & expo, Midwest Hemp Council President Justin Swanson, State Seed Administrator Don Robison and HempRise LLC's Charlie Bowman will discuss the rapidly evolving hemp industry in Indiana during an hour long breakout session on Wednesday, August 12. Swanson will focus on state and federal enabling legislation, Robison will focus on the relevant rules and production statistics, and Bowman will provide an overview of HempRise LLC's $52M processing facility in Jeffersonville, Indiana.

For information about the session, click here.