Update for Michigan Hemp Growers – Regulatory Transition

Since the inception of Michigan’s Agricultural Hemp Pilot Program in 2019, the Michigan Department of Agriculture and Rural Development (MDARD) has overseen the regulation of hemp production in Michigan. However, over the past few years, the number of licensed hemp growers has significantly declined, from 631 in 2020 to just 34 in 2024. As a result, the program is no longer financially sustainable. In addition, MDARD’s continued investigation and enforcement efforts against farms intentionally growing marijuana under the guise of hemp adds to the time and expense of managing the program.

Legislation has been introduced to rescind Public Act 220 and shift the regulation of hemp cultivation from MDARD to U.S. Department of Agriculture (USDA). This is only a proposed change, and adjustments may be made as the process moves forward.

If the legislation passes, MDARD will work closely with USDA to ensure hemp growers have a smooth transition to the federal program.

Currently, some key differences in the USDA program include:

  • No license fee.
  • Licenses are valid for three years.
  • Growers must contract with USDA-certified sampling agents and private labs for THC testing.

For more details on the USDA hemp program and available resources, visit USDA Hemp Program and see the “For USDA Licensed Producers Only” section.

Depending on the status of the legislation, MDARD may delay mailing out renewal applications later than mid-December, which is when renewal applications are typically mailed. MDARD will continue to provide updated information as the legislative process unfolds.

Vote 2024!

Happy Halloween 2024!

Michigan Court of Appeals: “The issue before us is whether it is permissible to proscribe the use of marijuana as a condition of probation for nonmarijuana-related crimes. We conclude that it is.”

COA (unpublished opinion) – Municipal clerk may not remove MRTMA ballot initiative after approving language

CRA Announces Savings for Licensees on Monthly Statewide Monitoring Fees

September 11, 2024 – Beginning in October, the Cannabis Regulatory Agency will use revenue generated from licensing fees to begin paying the monthly statewide monitoring fees that are currently paid by licensees.

“Recently, stakeholders in the marijuana industry made the argument that since the statewide monitoring system user fees were a required cost of regulation, they should be covered by the licensing fees they already pay,” said CRA Executive Director Brian Hanna. “We agreed and we’re pleased that this change has now been made official. Our mission statement is to establish Michigan as the national model for a regulatory program that stimulates business growth while preserving safe consumer access to cannabis. This is one more step in that direction.”

“Licensees are grateful that the CRA listened to us and worked with the legislature to make sure that the monthly Metrc fees will be paid for by the State of Michigan,” said Robin Schneider, executive director of the Michigan Cannabis Industry Association. “This arrangement is a more accurate reflection of the intention of the voters when they passed marijuana legalization here in Michigan.”

To maintain their access to the statewide monitoring system, licensees need to be sure their Metrc account is current and paid in full. The state payments to Metrc will begin at the start of the next fiscal year, October 1, 2024.