The Female Hemp and Cannabis Grower

A crop proposal involving hemp or cannabis belongs on a compliance desk before it belongs on an equipment list. The first question is what you intend to produce, where you intend to operate and which license or approval, if any, permits that activity. The next is whether an identified buyer can lawfully take the product. A convincing spreadsheet can still be disqualified by the first form it forgot to include.

“Hemp growing: legal, complicated, and surprisingly good at teaching patience.”

Verify the program and intended product

The USDA Agricultural Marketing Service provides information for hemp growers and a list of approved state and Tribal hemp plans. Use those resources to locate the licensing authority relevant to your proposed location. Ask which requirements apply to your role and product and where current changes are announced. Federal, state, Tribal and local rules may differ or change. Consult qualified legal counsel about the proposed activity before investing, planting or accepting an order.

Describe the intended commercial product precisely and ask the appropriate regulators about restrictions that apply after production. Review the FDA overview of regulation of cannabis and cannabis-derived products if you are considering an end use over which the FDA has authority. Confirm the answer with the relevant agency for your contemplated activity. A product sold in another market may be governed by requirements that do not match the circumstances of your business.

Obtain answers in a form the business can check

Create a record of each question, who answered it, the written source and date, and the next deadline. Ask which employee is responsible for licensing, records, required checks and communications, and who can stop work if approval is missing. A manager should have a clear way to alert responsible officers or counsel about a change. Keep official notices or instructions alongside the decision they affect.

Ask an insurance professional and a financial institution about coverage and services before signing a lease or borrowing. Confirm what an insurer or lender understands the business will do. If the land is leased, ask counsel to review any restrictions and disclosure obligations. Tell partners which costs remain conditional. The phrase “we will sort it out later” deserves its own line in the risk register.

Evaluate the buyer and the exit plan

Obtain written information about which party may receive the product, its specifications and how responsibility for required documents and costs is assigned. Ask counsel to review the terms, including what happens if the product cannot be lawfully accepted or payment is delayed. Compare the actual sequence of commitments and expenses with the dates and decisions the regulator controls.

Use a clear go-ahead decision

Before the operation proceeds, have the relevant documents and approvals reviewed by qualified people. Identify issues that would stop or delay the business. Write down who is responsible for checking those conditions and when the decision will be reviewed again. An operator who can explain why a proposed venture should wait is exercising management skill. A workable plan rests on verified authority, responsible buyers and resources to cover obligations if the plan changes.