Ask Our Experts: Intermediate Sales

 

Q: As New York’s new law allows for intermediate sales of biomass up to 3% THC between processors, what does it mean for farmers? Can they legally harvest CBD hemp up to 3% THC?

 

By Trevor Yahn-Grode, Data Analyst, New Frontier Data

A: No. New York’s proposed regulations have yet to be approved, but assuming they are, they will only legalize sales between processors. In that context, “intermediate sales” refers to the hemp extract needed to undergo remediation to remove THC content. During the CBD extraction process, cannabinoid levels can swing wildly, often with a temporary spike in THC levels that needs to be mitigated through remediation prior to reaching the marketplace.

The proposed regulations would allow processors to sell what is known as “work-in-progress hemp extract” to other processors who specialize in remediation. Farmers still need comply with the 0.3% dry weight THC content outlined by the 2018 Farm Bill, though New York’s regulations also proposed more leniency towards farmers who test hot (i.e., over the THC threshold).

Public comments for the proposed regulations remain open through Jan. 11, 2021.