CBDRx had been one of the first hemp farms to receive USDA Organic Certification when it received the certification for its hemp crop in January 2016. Following the passage of the 2014 Farm Bill, the USDA had authorized organic certification for hemp cultivation in the US. However, interest in obtaining USDA Organic certification for industrial hemp was limited due to restrictive USDA policies. In February 2016, the USDA stated that third-party auditors could no longer certify hemp operations. Seven hemp farms had received organic certification prior to the new guidelines. In August 2016, the USDA reversed course and issued a statement of principles allowing the certification of industrial hemp crops grown through state pilot programs in accordance with Section 7606 of the Farm Bill. Based on this clarification, the USDA required certifiers to confirm that a state has an industrial hemp agricultural pilot research program before certifying hemp in that state. Additionally, the statement of principles did not expressly include the flower (which has the highest concentration of CBD within the plant) of the hemp plant in the definition of industrial hemp. Instead, the statement stated that “The term 'industrial hemp' includes the plant Cannabis sativa L. and any part or derivative of such plant, including seeds of such plant, whether growing or not, that is used exclusively for industrial purposes (fiber and seed) with a tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.”
The passage of the 2018 Farm Bill in December 2018 that legalized industrial hemp cultivation and declassified hemp as a Schedule I controlled substance encouraged more companies in the industrial hemp and CBD industries to pursue USDA Organic certification. Hemp imported from other countries has always been certified under the USDA Organic regulations. Haleigh's Hope received the first USDA Organic certification for a vertically integrated CBD product in March 2019 when it became certified for handling, in addition to the previously awarded (September 2017) certification for crop. In April 2019, Palmetto Harmony became the first CBD company to have its hemp flower and viable seeds (along with hemp clones and hemp transplants) certified as USDA Organic along with its flower extracted CBD product line.
At this point, there are very few CBD companies selling USDA Certified Organic CBD products, with only one, Elixinol, which launched its Organic Balance USDA Certified Organic tinctures in December 2019, in the top 20 CBD brands ranking. However, their visibility is high compared to the small size of the companies. Three of the four companies that received a score of an “A” in the Center for Food Safety’s inaugural “Hemp CBD Scorecard” offer USDA Certified Organic CBD products—Green Gorilla, Palmetto Harmony and RE Botanicals. Of the 13 CBD brands offered by Anavii Market, a leading online retailer of CBD products, three offer USDA Certified Organic CBD products—Barlean’s, Palmetto Harmony and RE Botanicals.
To obtain USDA Organic certification, CBD companies need to use specific extraction processes and USDA Organic Certified ingredients including for carrier oils, in addition to using hemp that has been USDA Organic Certified. The permitted extraction processes for use in USDA certified organic CBD products are CO2 extraction, an alcohol extraction method using USDA certified-organic cane alcohol, and lipid extraction. CO2 extraction, utilized by Barlean’s, uses carbon dioxide under high pressure and fluctuating temperatures to act as a solvent. RE Botanicals uses an alcohol extraction method using USDA certified-organic cane alcohol instead of ethanol derived from GMO corn. Palmetto Harmony uses lipid extraction (also called lipid infusion) that involves steeping the buds (dried hemp flowers) in organic MCT (coconut) oil before filtration.
While not right for every brand, there are multiple benefits to obtaining USDA Organic certification for companies that are willing to invest the time, effort and money required to obtain it. The USDA Organic seal is one of the most recognized certifications among US consumers and provides another level of assurance to shoppers who may be concerned about the safety of CBD products. In addition to assuring that no synthetic fertilizers, pesticides or herbicides have been used in the cultivation of hemp, the USDA organic certification ensures that farmers are using tillage and cultivation practices that maintain or improve the condition of soil and minimize soil erosion through crop rotations, cover crops and the application of plant and animal materials. Obtaining USDA Organic certification can also help CBD brands enter retail channels by offering differentiation and a positive environmental and sustainability story as the number of CBD brands continues to explode.
About the Author
Virginia Lee is the CBD research manager at Brightfield Group where she helps CBD and consumer packaged goods companies with strategic planning by developing and executing syndicated research on the US CBD market. Brightfield Group is the leading consumer insights and market intelligence firm for the CBD and cannabis industries. Brightfield provides strategic consumer, brand, and market data and insights for these dynamic industries. Prior to joining Brightfield Group, Lee worked at Euromonitor International and Innova Market Insights, where she advised global companies on innovation and market entry opportunities in beauty & personal care, packaged foods, and non-alcoholic drinks. Lee has shared her passion for consumer trends and new products through speaking at trade shows including Cosmoprof Cosmetica Brasil, Cosmoprof North America, ECRM Natural & Organic EPPS, HBA Global Expo, Natural Products Expo East and the PLMA Show.
Get the latest news and insights on the CBD and cannabis industries at www.BrightfieldGroup.com and on Twitter (@brightfieldgrp).