MJBizMag March 2023 - 10

FROM THE EDITOR Kate Lavin
Data-based Disappointment
Lack of federal legalization robs marijuana companies
of taxpayer-funded cannabis data
E
ach week, the
U.S. Department of
Agriculture releases a hemp
report breaking down the latest
prices for hempseeds, hemp
protein and hemp imports such as
hemp-based fabric, oil and yarn.
These free reports are emailed
directly to subscribers, so
cultivators, manufacturers and
retailers in that sector can stay
on top of pricing changes and be
aware of the biggest international
competitors.
If you are wondering why this
information is not available for
marijuana-the same plant as hemp
but with higher levels of THC-join
the club.
One of the many ways that
federal lawmakers' refusal to
legalize marijuana has hamstrung
the industry is the lack of centralized
data available to producers of other
agricultural products.
Overlooked by the USDA
In addition to its weekly dispatch,
the USDA produces an annual
report that details hemp acres
planted and harvested during the
past year, yields per acre, price per
pound and dozens of other metrics,
broken down by state. These
reports only started when Congress
legalized hemp in the 2018 U.S.
Farm Bill, and yet they already offer
invaluable information for farmers
currently growing hemp and those
considering a move into the sector.
In Colorado, for example, farmers
harvested just 31% of the industrial
hemp they planted in 2021. This
is exactly the kind of information
10 March 2023 | MJBizMagazine
In Colorado, for
example, farmers
harvested just 31%
of the industrial
hemp they planted
in 2021. This is
exactly the kind of
information needed
for data-based
decision-making.
cultivators need for data-based
decision-making.
The National Agricultural Statistics
Service (NASS), the arm of the
USDA that publishes these reports,
has a $217 million budget for 2023,
including $151 million for agricultural
estimates and $66 million for a
Census of Agriculture.
The NASS might already stretch
its budget as far as it can go.
After all, the agency issues regular
reports for coffee, cotton, fruits
and vegetables, grains, herbs, nuts
and almost any other agricultural
product you can imagine.
But when marijuana
companies-especially small
operators starting out-pay
thousands of dollars to get
wholesale information they could
be getting for free, as is the case
with other crops, it is yet another
reminder of how the federal
government has failed medical
marijuana patients, adult-use
consumers and cannabis businesses
time and again.
Exceptions to the Rule
Some states, such as Colorado and
Oregon, collect, crunch and publish
this kind of data themselves. But
given the disproportionate amount
that U.S. marijuana companies pay
in federal taxes, thanks to Section
280E of the tax code, they should
get something in return.
The U.S. Farm Bill is set to expire
on Sept. 30, meaning federal
lawmakers are currently drafting
a new version of the document
that decides how much money
will go to important issues such
as climate-change research and
food stamps.
But there is another topic
to consider: As lawmakers
undoubtedly weigh in on the
legality of intoxicating hempbased
cannabinoids when drafting
the Farm Bill, they should also
consider throwing some resources
at marijuana.
If the USDA is already tracking
one kind of cannabis, what is a little
THC between friends?
Kate Lavin is the editor
of MJBizMagazine. Reach
her at kate.lavin@
mjbizdaily.com.
MJBizMag March 2023

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