Hemp farmer Sam Bellavance urges licensing and supply-chain fixes in S323 hearing

Sam Bellavance, a hemp farmer in South Hero, Vermont, told the Agriculture, Food Resiliency, & Forestry committee that Vermont can protect its hemp industry by making it easier to manufacture, produce and sell hemp products.

"If you want farmers like me to continue growing hemp, you have to make it easy to manufacture, produce, and sell hemp products," Bellavance said, describing a farm-based business that employs about 20 people in Grand Isle County and sells about 90 percent of its products out of state.

Bellavance focused much of his testimony on a provision he described as part of the broader S323 discussion: an amendment that would lower the allowable total THC per package to 0.4 milligrams. "None of these products here would meet that threshold," he said, calling the figure "an extremely low threshold for the amount of THC in a hemp product" and warning it could sharply curtail interstate sales for Vermont producers.

He urged three primary statutory changes. First, Bellavance recommended replacing a product-by-product registration requirement with an annual business license and annual inspection process administered by the Cannabis Control Board (CCB). He argued the registration model is unstable and disproportionately burdens small producers, while an annual license could include targeted inspections, product testing and label reviews to ensure consumer safety without imposing excessive paperwork on farmers.

Second, Bellavance asked the legislature to clarify supply-chain rules so that hemp manufacturers may purchase, possess and sell processing intermediates (raw CBD oil) within the commercial supply chain but not sell those intermediates directly to consumers. He compared intermediates to high-proof ethanol in the alcohol industry and suggested leaving precise handling rules to CCB rulemaking once the statute establishes the supply-chain principle.

Third, Bellavance pressed for stronger tools to block out-of-state, highly intoxicating or synthetic products from reaching Vermont consumers. He cited online products such as a 30 mg THC lollipop available from an out-of-state seller and urged the state to ban Delta-8 or similar synthetics outright, require testing at licensed Vermont labs, and consider a modest retailer license (he suggested $250 annually) so the CCB can map where products are sold and enforce compliance.

Bellavance also emphasized practical concerns: extraction equipment for hemp and cannabis is costly (he cited a CO2 extractor at about $300,000), and many operators cannot justify separate lines for hemp and cannabis. He recommended statutory language allowing extraction in licensed cannabis facilities with clear rules to prevent cross-contamination.

Answering committee questions, Bellavance said consumers primarily use CBD products for sleep, relaxation and general relief based on a 1,400-respondent customer survey; he stressed he does not market the products as medicine and that his products include FDA dietary supplement disclaimers. He estimated his operation needs about 8—-10 acres per year and suggested Vermont's domestic market might be served by roughly "3 to 400" acres of production if demand is cultivated.

Committee members thanked Bellavance for detailed suggestions and noted the Cannabis Control Board has already testified and may be invited back; staff said Government Operations might also review parts of the proposal. The committee indicated an intent to move the discussion forward within days.

The committee did not take a formal vote during Bellavances testimony. Members signaled additional testimony and CCB input will be sought before final legislative decisions.