USDA Extends Hemp Testing Flexibility, Postpones DEA Lab Certification Rule

The U.S. Department of Agriculture (USDA) has once again postponed the enforcement of a requirement for hemp testing to be conducted by Drug Enforcement Administration (DEA)-registered laboratories, granting the industry another year of flexibility. Under this extension, hemp produced through the USDA’s Domestic Hemp Production Program can continue to be tested at non-DEA-certified labs until December 31, 2025.

The decision marks the third time the USDA has pushed back this requirement. Initially set to take effect by Jan. 1, 2023, the mandate was previously delayed, citing similar concerns over testing capacity.

Industry Feedback and Certification Hurdles

The USDA attributed the delay to ongoing feedback from state and tribal governments, as well as third-party cannabis testing facilities, highlighting significant delays in the DEA's laboratory registration process. “Because of these setbacks in the completion of the DEA process, USDA is concerned there will be inadequate approved hemp laboratory testing capacity for the 2025 growing season,” the agency stated.

The delay underscores the industry’s struggle to meet the stringent requirements set by the DEA, with many testing facilities facing barriers to obtaining certification. As a result, the USDA has opted for a temporary extension, allowing the industry more time to align with federal testing standards while continuing to rely on non-DEA-certified labs.

Immediate Enforcement Discretion

In a move that bypasses the usual public notice and comment period, the USDA exercised its discretion to implement the extension immediately. The agency noted that potential market entrants and related industries require clear guidance for their preparations ahead of the 2025 growing season, making it essential to provide an immediate solution without further procedural delays.

The USDA's notice emphasized that while the requirement for DEA certification is delayed, laboratories testing hemp must still comply with all other regulatory requirements. The decision aims to prevent disruption in the testing process, which is critical for ensuring compliance and safety in the hemp market.

Declining Hemp Production Compounds Challenges

The extension comes at a time of declining hemp production in the U.S. According to the USDA’s most recent National Hemp Report, indoor hemp cultivation has dropped sharply, from 15.5 million square feet in 2021 to just 3.2 million square feet in 2023. Outdoor hemp acreage has also seen a decline, with 27,680 acres reported in 2023 – a 2% decrease compared to the previous year.

This downturn in production, combined with regulatory hurdles, poses significant challenges for the industry. By delaying the DEA certification requirement, the USDA aims to provide hemp producers with the necessary breathing space to adapt while ensuring testing processes remain accessible.

Looking Ahead

The USDA’s decision to extend the deadline reflects the agency’s recognition of the practical difficulties faced by the hemp industry. However, the reliance on non-DEA-certified labs highlights the ongoing capacity issues that must be resolved to meet federal standards in the long term.

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