New bill aims to ease South Dakota hemp regulations

By Scout Nelson

South Dakota is on the brink of regulatory change for its burgeoning industrial hemp industry. Senator Joshua Klumb, R-Mitchell, recently introduced Senate Bill 117, aiming to revise the state's industrial hemp laws. This bill proposes a significant change in the testing of delta-9 tetrahydrocannabinol (THC) concentrations in hemp, a crop widely used for fibers, CBD oils, and other consumer-grade products.

South Dakota mandates that hemp samples must not exceed a .3% delta-9 THC concentration to be legally grown. Samples testing between .3% and .5% are eligible for retesting. If a second test breaches the .3% limit, the entire hemp lot must be destroyed.

Senate Bill 117 proposes increasing the retest threshold to 1% delta-9 THC, aligning state regulations with the U.S. Department of Agriculture standards set in 2021.

Representative Oren Lesmeister, D-Parade, a prominent supporter of the bill, emphasizes its role in reducing undue pressure on hemp producers. Given the crop's sensitivity to environmental factors, this legislation could prevent unnecessary crop destruction, offering a buffer for variations in THC levels due to natural causes.

John Peterson, owner of Dakota Hemp, points out that the relaxed THC threshold could diversify hemp varieties grown in South Dakota. Current stringent regulations limit farmers to a handful of seed types, restricting the potential for higher yields and better-suited crops for local climates.

Katie Sieverding, a lobbyist for the South Dakota Industrial Hemp Association, clarifies that the goal is not to produce high THC hemp but to align with the .3% USDA standard, avoiding stricter state limits.

In SB 117 include extending the validity of a processor license from 15 months to three years and easing background check requirements for hemp license applicants. The bill also aims to remove licensing requirements for possessing bales of industrial hemp, addressing legal loopholes in current laws.

With South Dakota's significant role in the U.S. hemp industry — ranking second in acres planted and harvested — the passing of SB 117 could mark a pivotal shift, offering more flexibility and opportunities for the state's hemp farmers. The bill will soon be discussed before the Senate Agricultural and Natural Resources Committee.

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