Support and Invest in the Growing Industrial Hemp Economy
Background
There is tremendous potential in the hemp industry, with new jobs in agriculture, processing, manufacturing, marketing, and more. Research shows that hemp industry jobs are higher-paying[1] than those in mainstream agriculture (and even higher when they’re unionized[2]). Globally, hemp is a booming industry producing for markets such as car manufacturing.[3] Hemp has significant environmental benefits, including as an alternative to fossil fuel-based plastics, building materials, fabric and textiles, and paper.[4] Hemp has also been shown to successfully suppress weed growth when used as a cover crop.[5]
The 2018 Farm Bill reclassified hemp and legalized industrial production at the federal level, but there is still a lack of clarity on the federal laws and how they interact with state laws. Confusion around federal hemp laws is one of the key barriers impacting the industrial hemp industry, hemp farmers, and state legislators attempting to support and grow the industrial hemp industry. Though the USDA offers some programs[6] to hemp producers and is currently conducting research,[7] rulemaking,[8] and surveying hemp farmers,[9] there is much more to be done to support the economic viability of this industry. One of the most significant challenges facing industrial hemp farmers is federal regulations requiring hemp crops to contain less than 0.3 percent THC. Federal law requires destruction of a crop that tests above the 0.3 percent limit. In 2020, an estimated 6,000 acres of “hot” hemp with concentrations above the limit were destroyed, at significant financial loss to farmers. Hemp licenses can also be very expensive for new and beginning farmers. Coupled with a fluctuating and unreliable processing market and challenging and confusing federal regulations, the hemp industry can be risky business for farmers. Socially disadvantaged farmers without significant financial backing may not have the resources to initially invest. Black and brown farmers who have been historically discriminated against in the war on drugs may experience additional social oppression in accessing grants, loans, land, and obtaining licenses. [1] Drotleff, Laura. “Chart: Hemp Salaries Outgunning Those for Careers in Mainstream Agriculture.” Hemp Industry Daily, 15 Apr. 2020, https://hempindustrydaily.com/chart-hemp-salaries-outgunning-those-for-careers-in-mainstream-agriculture/. [2] Cooper, David, and Sebastian Martinez Hickey. “Ensuring the High Road in Cannabis: Legalization Offers a Chance to Make the Cannabis Industry a Model of Good Jobs – If Workers Are given a Voice.” Economic Policy Institute, 20 Sept. 2021, https://www.epi.org/publication/ensuring-the-high-road-in-cannabis-jobs/. [3] New Frontier Data. “Where Hemp Meets the Road: Automotive Bioplastics.” Newfrontierdata.com, 6 July 2020, https://newfrontierdata.com/cannabis-insights/where-hemp-meets-the-road-automotive-bioplastics/. [4] Rodale Institute. “5 Ways Hemp Can Save the Planet.” Rodale Institute, 14 Nov. 2019, https://rodaleinstitute.org [5] Caton, Tara. “Industrial Hemp Trials: Preliminary Results.” Rodale Institute, 14 May 2019, https://rodaleinstitute [6] United States Department of Agriculture. “Hemp and Eligibility for USDA Programs.” Farmers.gov, 21 Jan. 2022, https://www.farmers.gov/your-business/row-crops/hemp. [7] Mark, Tyler, et al. United States Department of Agriculture, 2020, Economic Viability of Industrial Hemp in the United States: A Review of State Pilot Programs. https://www.ers.usda.gov/webdocs/publications/95930/eib-217.pdf. [8] United States Department of Agriculture. “Hemp Production.” Agricultural Marketing Service, https://www.ams.usda.gov/rules-regulations/hemp. [9] National Agricultural Statistics Service. “Hemp Acreage and Production Survey.” United States Department of Agriculture, https://www.nass.usda.gov/Surveys/Guide_to_NASS_Surveys/Hemp/index.php
/blog/5-ways-hemp-can-save-the-planet/.
.org/science/articles/industrial-hemp-trials-preliminary-results/.
State Policy Priorities
- Expand the window for federally regulated THC concentration testing.
- Address equity issues in hemp production and support funding for feasibility studies.
State Examples
- California is in the process of updating state regulations (in line with the USDA) governing the time frame for hemp THC testing, increasing the time farmers have to test their hemp before harvest from 15 to 30 days, allowing for more flexibility and reducing.[10] This rule change is also in line with the USDA interim final rule published in early 2021 allowing for 30 days between testing and harvest.
- There is an opportunity for state legislatures to direct funding for production feasibility studies for their hemp industry. States like Colorado that take the bold first steps to invest in growing and processing hemp could see great returns on investment and become national leaders in a rapidly growing sector.[11]
[10] California Regulatory Notice Register 2021, Volume Number 39-Z Accessed via: https://oal.ca.gov/wp-content/uploads/sites/166/2021/09/2021-Notice-Register-Number-39-Z-September-24-2021.pdf#page=6 on Jan 24, 2022.
[11] Colorado Department of Agriculture. 2021, Colorado Hemp Advancement & Management Plan C.H.A.M.P., https://drive.google.com/file/d/1m2J4bNRcn9SPg0-2hZtJrcE6-aBlBrKv/view.
Toolkits
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