DEA Requests Another Increase to the Marijuana Production Quota

The United States Drug Enforcement Administration (DEA) proposed another increase to the amount of marijuana allowed to be produced this year for research purposes. Over the last year, the DEA has seen a significant increase in demand from researchers who want to study the medical benefits associated with marijuana.

Increased demand for cannabidiol (CBD)

In September 2014, the DEA released its established aggregate production quotas for Schedule I and II Controlled Substances in the Federal Register. The document lists out the amount of each Schedule I and II substance that can be produced in the United States during 2015.

The DEA’s initial 2015 aggregate production quota for marijuana was 125,000 grams. In April 2015, the DEA proposed an increase for marijuana’s production quota. The agency proposed increasing the quota to 400,000 grams.

The DEA said the increase was due to increased demand for cannabidiol (CBD), a non-euphoric chemical found in marijuana. The agency explained its increase in the following notice:

“Since the establishment of the initial 2015 aggregate production quotas, the DEA has received notification from DEA registered manufacturers that research and product development involving cannabidiol, is increasing beyond that previously anticipated for 2015. The associated product development activities are related to process validation and commercialization activities, including qualification activities related to potential FDA submission support.”

Government wants in on the action

The DEA has not only received increased demand from companies who want to research cannabis. The agency also received increased demand from the National Institute on Drug Abuse (NIDA).

NIDA requested “Additional supplies of marijuana to be manufactured in 2015 to provide for ongoing and anticipated research efforts involving marijuana.”

Yesterday, in a Federal Register posting, the DEA said it will further increase the production quota for marijuana to 658,000 grams. The new amount applies to the 2015 fiscal year.

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Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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