Uncle Sam Is Getting $174 a Gram for Hemp

8210 Hemp Plant NIST reference material mgmagazine
Photo: NIST

GAITHERSBURG, Md. – A federal standards-setting agency is reselling commercially purchased ground hemp at astronomical prices in what the agency characterizes as an effort to increase precision and consistency across the legal cannabis industry. The reference material is designed to provide testing laboratories with a benchmark to ensure their test results are accurate and consistent nationwide.

The National Institute of Standards and Technology (NIST) calls the high-priced hemp, officially known as 8210 Hemp Plant, “some of the most carefully quantified cannabis ever sold.” The material sells for $783 per set of three 1.5-gram samples sealed inside aluminized pouches containing a desiccant pack. That total price sorts to $174 per gram.

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On June 28, the Cannabis Benchmarks wholesale spot price index registered an average of $978 per pound — or $2.16 per gram — for cannabis. Meanwhile, Headset’s June data showed ground cannabis flower selling for an average of $23.21 per gram in California retail establishments and $60.82 per gram in New York.

Why is NIST’s ground reference material, produced from commercially purchased hemp, so much more expensive than ground cannabis flower?

According to the NIST, the 8210 Hemp Plant reference material is produced with a “very high degree of accuracy and precision” by sieving ground hemp to achieve a consistent particle size. The resulting material then is blended with low-THC flower to ensure the final product reaches a total THC concentration just below the legal threshold of 0.3 percent for hemp.

The samples are not intended for human consumption and may not be sold or distributed to consumers. Instead, the precise reference materials sold by the NIST are intended to be used by laboratories to ensure their testing methods are sound and their measurement tools are calibrated and working properly.

The federal agency provides more than 1,200 standardized reference materials covering a wide range of consumer products, most with prices consumers might expect to see at a convenience store attached to the International Space Station. For example, while the price for reconstituted cannabis may sound exorbitant, it’s less expensive than a small jar of peanut butter, baking chocolate, soy milk, or baby food composite, each available from the NIST for $1,143.

The NIST hopes the new precision-engineered samples will help labs help both cannabis and hemp brands avoid product seizures that could devastate their business.

“A farmer’s crop or a company’s product can be seized or potentially destroyed if it turns out to be a ‘hot’ [over the legal threshold] material, so it’s important to make the correct determination,” said Walter Brent Wilson, one of the research chemists responsible for developing the NIST’s reference material.

In addition, the certified reference materials will help labs produce more accurate certificates of analysis for cannabis products, the agency indicated.

Cannabis lab testing has been plagued by inconsistencies. A 2022 study conducted by Infinite Chemical Analysis Labs, a compliant laboratory in California, tested more than 150 randomly selected flower samples from retail shelves and found 87 percent failed to meet the total cannabinoid levels claimed on their labels. State lawmakers passed legislation forcing the Department of Cannabis Control to develop a new standardized cannabinoids testing method and operating procedures, which took effect this year. The NIST’s introduction of new reference material could help address similar issues in other states by offering a standardized substance laboratories could use to calibrate their equipment and validate their methods.

“Our goal is to provide the cannabis industry with tools to ensure that products are accurately labeled and safe for consumers,” said the NIST’s Wilson. “This reference material will help labs produce reliable, consistent results, which is crucial for consumer confidence and regulatory compliance.”

But will the industry’s testing labs pay $174 an ounce for calibration assistance that could make their results more accurate? One third-party independent analytical testing laboratory that’s licensed by the Drug Enforcement Administration and certified to test cannabis in Florida and hemp nationally indicated cost may limit adoption of the NIST’s samples, regardless of the material’s precision.

“ACS Laboratory welcomes the opportunity to utilize the new NIST-certified reference materials,” said the lab’s president, Roger Brown. “ACS purchases from several suppliers of [certified reference materials] based on the quality level of the products. Competition in the marketplace can only bring higher-quality products at competitive costs.”

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