Value the Seed Campaign

PanXchange Blog

The “Value the Seed” policy reform initiative, when adopted, will enable U.S. hemp farmers who use and plant Certified seed that meets or exceeds the Association of Official Seed Certifying Agencies (AOSCA) standards, to be exempt from burdensome regulations, including THC testing.

This solution comes at a critical moment as hemp industry stakeholders and regulatory agencies wrestle with improving hemp production policy in the discussion over the upcoming Farm Bill.

Through this legislative effort, Value the Seed will promote sensible regulations that professionalize the industry while unburdening both hemp farmers and state regulators.

PanXchange supports lowering the overall regulatory costs for fiber and grain hemp growers because the additional per-acre costs for testing and compliance will magnify the burden as our industry matures and achieves scale. As such, we support the “Value the Seed” initiative, put forth by many in our industry, and hope the initiative can be included within the next US Farm BIll. 

To be clear, we support both the “Value the Seed” and “Grain and Fiber Exemption” campaigns because they lower barriers to entry for grain and fiber producers. These are the least likely producers to be “bad actors” and need the lowest administrative costs in order to be competitive.

In all, both initiatives or a combined hybrid could appropriately manage compliance among fiber and grain producers while reducing the costs and development for this climate-smart crop. In summary, the “Value the Seed” initiative applies certified hemp seed programs against how compliance is determined by the USDA. If enacted, a farmer growing hemp for fiber and grain and using certified seed would be exempt from federal background checks, crop inspections, extensive sampling and testing protocols, along with other administrative fees associated with THC compliance. 

Certified seed programs protect farmers and end-users, especially in a newly reintroduced crop that was recently tangential to the illicit marijuana market. Many US farmers from 2019 on swore never to grow hemp again after crops went “hot” in spite of seed-sellers’ assurances. In the case of hemp fiber and grain, certified seed will provide performance and compliance assurances while further separating hemp from marijuana from a consumer perspective. Longer term, certified seed will also streamline the process for industrial hemp genetic development, which is already 80 years behind traditional row crops. 

In addition to lower economic burdens, the initiative further legitimizes certified hemp seed programs throughout the United States and creates a framework for nationwide genetic development and quality standards. Certified seed programs are common in many crops already and in many cases are required for contract grows because they help ensure production and quality expectations. In a way, certified seed is, and will be, an unavoidable cost for many industrial hemp operations. Our industry should proactively model certified seed programs to optimize the benefits gained from the costs to implement such programs.  

One critique is that certified seed programs take significant time to become applicable for all potential growing areas. This is true to an extent, but it is also true regardless of a certified seed program being in place as genetics and practices take time to adapt to different regions. With certified seed, growers would at least have knowledge of verified performance as well as THC compliance. In addition, we believe that certified seed and the underlying data can be leveraged to actively certify varieties for specific regions, but may increase program costs without regulatory support. 

Another critique is that certified seed programs drive up the costs producers pay for seed. This is true as most certified varieties are more costly than others even in traditional crops. However, growers typically get what they pay for, and many food and fiber firms pay premiums or require certified seed for contract grows so they can better manage production risks and guarantee quality. In the case of hemp, certified seed is inevitable for these reasons, and our industry should maximize the utility of certified seed while we can. 

Overall, certified seed will be widespread for hemp fiber and grain growers regardless of regulatory changes, and we should use it in as many ways as possible to ensure farmers get the most bang for their buck. PanXchange is happy to support this initiative and hope that the next Farm Bill enacts something to help lower the costs our industrial producers face on an annual basis.