Vote Hemp celebrates 20 years of hemp advocacy

Twenty years ago this week a group of hemp industry advocates came together to launch Vote Hemp with the goal of bringing back hemp as a commercial crop for American farmers. For many years Vote Hemp was the only advocacy group working on behalf of farmers and the U.S. hemp industry. We met with or supported meetings with thousands of policy makers over the years and our education and advocacy work helped to change the conversation in states and in Congress about the potential of hemp to create economic opportunity for American farmers and businesses.

Vote Hemp board at Ryan Loflin's hemp harvest in 2013

Vote Hemp board and staff celebrating hemp harvest in 2013 at Ryan Loflin’s farm

We are proud of the progress we made over the years including leading the successful legal effort to overturn DEA regulations to ban hemp foods, helping to draft the first Industrial Hemp Farming Act in 2005, testifying for and helping to pass hemp legalization bills in many states, researching and publishing reports on the economics of hemp, fighting for inclusion of hemp pilot programs in the 2014 Farm Bill and of course the removal of hemp from the Controlled Substances Act in the 2018 Farm Bill.

Some people have asked us: “now that hemp is legal, what are you going to do?” Frankly we are just getting started and there is plenty of work left to do to ensure this industry is successful for the long term. We intend to continue representing small family farmers and hemp businesses and advocating for policies that will help the entire industry grow and be successful. That includes working with Congress as well as state and federal agencies.

Following passage of the 2018 Farm Bill, we have begun to focus more on implementation of the law and fighting to get FDA to regulate CBD extracts just as any other food or supplement. We have shared our knowledge and data with USDA and advocated for critical improvements to the Interim Final Rule. We also are prioritizing efforts to raise the federal THC threshold to 1% and pushing for more federal support and recognition of this important new crop going forward. We hope you will join us and continue offering your support.

We want to offer a special thanks to David Bronner and Dr. Bronner’s Magic Soaps. They provided critical financial and staff support throughout the years for Vote Hemp. Without their generous support, we would have never been able to accomplish our goal of legalizing hemp farming in the U.S. We also greatly appreciate you and the many other businesses and individuals who have supported our work over the years and advocated with us. We are excited about continuing to work on behalf of this plant and look forward to seeing you at a lobby day or event soon.

Fine In the Field – May 2020

Fine in the Field - a column by author and hemp farmer Doug FineMy fingers are dirty as I type here on the Funky Butte Ranch in New Mexico. The good kind of dirty: humus. Mycelium. Goat poop. It’s planting season again, and I’m prepping soil with my family. The main reason I’m out in the field, one of the one percent of Americans who are farmers these days? Hemp is a superfood, and I like the feeling of the humans and goats I care about most having superfood security.

Yes, I’m working to develop a hemp product. I also enjoy helping other projects – private, academic, governmental and non-profit. But really, the reason I live in a place so remote that I don’t see a heck of a lot of different between life now and life six months ago is that, like the Ingalls family in Little House On the Prairie, I like to work towards weaning from dependence on, well, anybody.

And yet we’re all in this together. And this is why I take genuine joy in celebrating the twentieth anniversary of the Vote Hemp advocacy organization. Since back well before it was a certainty that the legalization we’re all enjoying today was a reality, Eric Steenstra and team were pounding the hallways of congress, chipping away at the insanity of cannabis/hemp prohibition. I’ll never forget first meeting Ben Droz, who was one of the organization’s key lobbyists, on the beat with his hemp blazer and hemp briefcase, speaking the truth to senate staffers who stifled smiles at his enthusiasm for a cause they (and maybe I’m projecting here) believed was a lava lamp dream, rather than an essential building block in rural America’s renaissance. And I was aware of Eric’s entrepreneurial work in the industry before I knew about his advocacy work – many folks don’t know he co-founded the pioneering Ecolution company back in 1992 with another cannabis/hemp legend, Steve DeAngelo. Next time you run into Eric, ask him about touring Hungarian hemp factories just after the fall of the Iron Curtain.

Here in the home field, another reason I relish every moment amongst the bees and hummingbirds is that I’ve just finished an intense couple of years’ research for a new book that had me not just growing hemp in multiple states, but learning how to process it – my feeling being that if you’re going to be a pundit, you probably are wise to actually attempt to perform the topics about which you are writing. And let me tell you: hemp ain’t a get rich quick scheme. But it is the most fun you can have outside the bedroom. Each month in this column I’ll delve into the travails and triumphs of the new players in our burgeoning industry, my own and others’, because, guess what? We’re all (with a very few exceptions) new players. Sometimes we’ll talk about field nuances, sometimes policy, sometime marketing and other economic forces.

We’ve got our work cut out for us. For one thing, we’ve got to get the federal definition of hemp changed to one percent, pronto, before the recent USDA Interim Final Regulations kick in in October. Many of us know the reasons for this, but to keep it short and sweet: when up to 40% of an industry’s players – let alone a soil-building, humanity-saving industry’s players – have to destroy their product before it reaches market due to a relic of an absolutely arbitrary war that we’ve won, that is a policy that needs to change. The good news is that most everyone realizes this.

But I think that, as the sun sets here on the Ranch, with my human kids’ homeschool lessons done, and the hemp seed going on the salad as usual, this is also the time to reflect on the positive: hemp is back. It’s the fastest agricultural industry ever to cross the billion dollar in annual revenue mark. We’re going to win every policy battle until our crop is as easy to cultivate as tomatoes. You know why? Because this time, the Farmers are in Charge.

Along those lines, I’d like to conclude this first column with a snippet from the new book, American Hemp Farmer, by way of cheerleading:

The endgame is a return to how this plant has been treated for 8,000 years: as a valuable multipurpose crop whose cultivation must be maximally encouraged and minimally regulated. In other words, we’re doing this gold rush differently. If there’s an element of initial federal cannabis policy or a state hemp regulation that we don’t like, we’ll have it changed…anytime someone’s initial reaction to a regulatory protocol we farmers propose is, “But that’s never how the agriculture system has been regulated before,” a good reply is, “How’s that been working out for the planet’s farmers and soil?”

If (any) essential policies are in danger of being rejected in initial plans (on the state or federal level), it just means our public servants haven’t heard from nearly enough independent farmers yet. We’ll fight until we win. That’s the only way to rebuild soil and rural America.

About Doug Fine
Doug Fine is a comedic investigative journalist, bestselling author, and a solar-powered goat herder. He has cultivated hemp for food, farm-to-table products and seed-building in four U.S. states, and has taught several hemp classes. Willie Nelson calls Doug’s work “a blueprint for the America of the future.” The Washington Post says, “Fine is a storyteller in the mold of Douglas Adams.” A website of Doug’s print, radio and television work, United Nations testimony, and TED Talk is at dougfine.com and his social media handle is @organiccowboy. His latest book is American Hemp Farmer: Adventures and Misadventures in the Cannabis Trade (Chelsea Green Publishing, April 2020).

Vegan Chocolate Hemp Fudge Recipe

Vegan Chocolate Hemp Fudge recipeQuick and super easy vegan fudge recipe loaded with protein and nutrients thanks to hemp milk. It’s amazing how tasty and delicious this ‘healthy’ fudge is especially since it only contains 5 ingredients!

Ingredients:

  • 2/3 c. hemp hearts
  • 2 tbs. coconut crystals (or other sweetener of choice)
  • 1 3/4 c. 70% dark chocolate chips
  • 1/2 c. peanut butter (or other nut butter of choice)
  • salt

Preparation:

  1. Blend 1/3 cup hemp hearts with 2/3 cup water
  2. Add all other ingredients except salt and remaining 1/4 cup hemp hearts
  3. Heat over medium heat until melted
  4. Stir in remaining 1/4 cup hemp hearts
  5. Pour in to a pan lined with parchment or wax paper
  6. Sprinkle salt over top and refrigerate for 1 hour
  7. Cut into 20 squares, serve and enjoy!

Vegan Chocolate Hemp Fudge recipe nutritional facts

Recipe courtesy of Grow with Hemp

New Senate aid bill approves farmers for Economic Injury Disaster Loans

On Tuesday April 21st, the Senate passed a bipartisan bill worth some $480 billion that would replenish funds for emergency small business lending programs among other things. The good news is that thanks to our collective advocacy efforts, this time they included farmers as eligible for SBA Economic Injury Disaster Loans (EIDL).

USDA previously confirmed that farmers are eligible for Paycheck Protection Program (PPP) loans and those are also being replenished with $310 billion in new funding. The EIDL and PPP programs offer support for hemp farmers injured by the Coronavirus disaster.

We are excited that our advocacy efforts yielded real results for hemp farmers. Last week Vote Hemp lead a coalition letter to SBA requesting that they include hemp farmers in Coronavirus disaster programs. We shared our letter and SBA’s response with our allies in Congress and they listened.

We want to thank the coalition members, U.S. Hemp Growers Association, Hemp Industries Association, U.S. Hemp Roundtable, National Industrial Hemp Council, Midwest Hemp Council, Hemp Feed Coalition and Nebraska Hemp Industries Association, for joining with us in this effort on behalf of hemp farmers. We also want to thank you for sending letters to President Trump urging him to support including disaster aid for hemp farmers. We expect he will sign the bill later this week.

We urge you to visit the SBA web site to learn more about how to apply for EIDL loans as well as the Paycheck Protection Program. If you qualify, we urge you to act quickly to apply as demand for these programs has been strong.

Coalition of Hemp Organizations Submit Letter to Small Business Administration Urging Inclusion of Farmers in CARES Act Programs

WASHINGTON, D.C. — On Monday April 13th, eight leading hemp trade and advocacy organizations sent a joint letter to Small Business Administration (SBA) administrator Jovita Carranza urging her to ensure that in the face of the COVID-19 pandemic, farmers are eligible for key Small Business Administration (SBA) programs, especially the Economic Injury Disaster Loans (EIDL) program. The letter was sent on behalf of hemp farmers nationwide including more than 17,000 licensed family farmers who grew hemp in 2019.

The eight signatories to the letter are Vote Hemp, U.S. Hemp Roundtable, U.S. Hemp Grower Association, National Industrial Hemp Council, Hemp Industries Association, Midwest Hemp Council, Hemp Feed Coalition and the Nebraska Hemp Industries Association.

The CARES Act relief bill was passed by Congress on a bi-partisan basis to provide economic support including grants and low interest loans to businesses and individuals affected by the COVID-19 virus. However, much of the funding was distributed to the SBA and farmers historically are not eligible for SBA programs and funding. While some CARES Act funding was allocated to U.S. Department of Agriculture (USDA), there was not indication of when or how that funding might reach farmers and for what purpose it would be provided. Many hemp producers indicated they were struggling without access to loans or support that was going to other businesses. Given the unique nature of this disaster, the coalition felt that it was important that farmers including hemp producers should be able to access the Economic Injury Disaster Loans and other SBA relief programs.

“We are concerned about the economic impact of the COVID-19 virus on farmers and wanted to make sure that hemp producers were not left behind at this critical moment” said Eric Steenstra, President of Vote Hemp. “We urge the SBA and Congress to provide the same relief to hemp farmers that is being offered to other businesses.”

To read the coalition letter to the SBA, regarding hemp farmer inclusion in CARES Act aid, please visit: https://www.votehemp.com/wp-content/uploads/2020/04/VH-letter-to-SBA-Covid-farmers-EIDL-FINAL.pdf

The Hemp Business Journal estimates that sales of hemp products grew to more than $820 million in 2017 and estimates they will grow to $2.6 billion by 2022.

# # #

What’s in the CARES Act relief bill for hemp businesses?

Last Friday President Trump signed the CARES Act, a $2.2 trillion dollar stimulus and disaster relief package, that makes available funding to help deal with the unprecedented economic impact resulting from the COVID-19 virus.

The bill includes a number of provisions to help farmers and hemp businesses as long as they are in compliance with their state and federal laws.

  • Paycheck Protection Program – $349 billion
  • Expanded Economic Injury Disaster Loans and Emergency Grants – $10 billion
  • USDA Corona Virus Response – $9.5 billion
  • Commodity Credit Corp. (USDA) – $14 billion

For businesses, the best places to start is to contact your local Small Business Development Center as they can help you to understand and navigate the options available to you.

Below are some of the top opportunities for hemp businesses and farmers. This is likely the not the last bill to address the financial impact of the virus. We are currently advocating with USDA and Congressional allies for more inclusion of hemp farmers within the disaster assistance programs.

Farmer Assistance
Funding was provided to USDA for disaster assistance in the CARES Act but Secretary Perdue has not yet announced how the funding will be provided to farmers. We recommend you follow the USDA corona virus disaster relief page and we will continue to update you as we learn more: https://www.usda.gov/coronavirus

The U.S. State Department revised its restrictions on the processing of visa applications submitted by farm workers in Mexico after hearing concerns that the restrictions would lead to a farm worker shortage in the U.S. Consular officers can now waive the visa interview requirement for eligible first-time and returning H-2A and H-2B applicants, making more workers in the H-2 program available while prioritizing public health.

The CARES Act Expanded Economic Injury Disaster Loans (EIDL) do make farmer coops of up to 500 members eligible but farmers are not included at this time. We are working on a coalition letter to the SBA urging them to include farmers as eligible for EIDL loans. More details are here.

Small Business Assistance
The Paycheck Protection Program authorizes up to $349 billion in forgivable loans and is available to businesses – including nonprofits, veterans organizations, tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees. The loan amounts will be forgiven as long as the loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made AND you maintain compensation levels. You should be able to apply through any existing SBA lender (bank) starting this Friday April 3, 2020. More details are here.

Expanded Economic Injury Disaster Loans (EIDL): Small businesses may apply directly to the federal Small Business Administration to receive an economic injury disaster grant of up to $10,000 that does not need to be paid back. The money is supposed to be paid out to business owners within three days of their application’s submission but we expect huge demand and challenges for SBA to implement it so plan on it taking longer. It can be used to maintain payroll, cover paid sick leave and service other debt obligations. More details are here.

Employee Retention Credit For Employers Subject to Closure Due to COVID-19: To help employers (including tax-exempt organizations) affected by the COVID-19 pandemic, the CARES Act provides for an employer federal tax credit against the Social Security portion of payroll tax that the employer pays. The act applies to wages paid from March 13, 2020, through December 31, 2020, and is available to qualified employers, which are employers who carried on a trade or business during 2020 and whose (1) operations were fully or partially suspended due to a COVID-19-related shut-down order or (2) gross receipts declined by more than 50% compared to the same quarter in the prior year. The amount of the tax credit is equal to 50% of the first $10,000 in qualified wages (including health benefits) paid to each employee, up to a maximum tax credit of $5,000 per employee. For eligible employers with greater than 100 full-time employees, qualified wages are wages paid to employees when they are not providing services. For eligible employers with 100 or fewer full-time employees, all employee wages qualify for the credit. Qualified wages do not include sick leave wages or family leave wages paid pursuant to the Families First Coronavirus Response Act (H.R. 6201). We recommend you contact your CPA or financial advisor to learn if you qualify for the Employee Retention Credit.

Who is in charge of hemp policy in the Trump administration?

IN THIS ISSUE

  • Testimony of USDA Secretary begs the question, who is in charge of hemp policy?
  • Vote Hemp releases 2020 California Hemp Report
  • USDA approves crop insurance, deadline to apply is March 16
  • NASDA adopts new hemp policies at Winter Policy Conference
  • USDA Economic Research Service releases economic viability report

On Wednesday USDA Secretary Perdue testified before the House Agriculture Committee. He was asked about challenges with the THC testing provisions of the Interim Final Rule (IFR) by Rep. Lawson (D-FL). Perdue explained that USDA was attempting to make changes to improve the IFR but testing limitations had “a lot of impact from DEA and the Interagency” which were constraining USDA.

“There’s been some relaxation recently… this Interim Final Rule, we didn’t get it nailed right in the bullseye and we tried to make some corrections there and OMB has allowed us to do that, frankly the testing and the limitations had a lot of impact from DEA and the Interagency and they were not excited about the crop as a whole anyway and we had some pretty serious constraints so were trying to address the lab issue which was a real limitation.
USDA Secretary Perdue, House Ag. Committee testimony 3/4/2020

 

USDA did announce some positive changes last week, relaxing rules on disposal of hot hemp crops and delaying the enforcement of the requirement that testing labs be registered with the DEA. We welcome these changes and hope that USDA will use its authority to provide more flexibility to hemp producers and state regulators.

However, after listening to Purdue’s testimony, were wondering why officials in the Drug Czar’s office and DEA are having so much influence on hemp farming regulations and why USDA is unable to regulate as they see best and were authorized by Congress to do?

The 2018 Farm Bill removed hemp from the Controlled Substances Act (CSA) and transferred the regulatory authority for hemp production to USDA. The 2018 Farm Bill only required that USDA consult with the Attorney General, not that they defer to other agencies or policy advisors on final decisions about how hemp producers should be regulated. We sincerely hope that USDA will continue to work with the industry and state regulators to implement some of the reasonable recommendations submitted to improve the IFR rather than allowing those in the administration who are opposed to hemp to dictate portions of the regulations that will hamper the success of farmers.

 

Vote Hemp releases 2020 California Hemp Report

2020 California Hemp ReportVote Hemp has been working to bring back hemp farming in California since 2002. We have sponsored key legislation including recent bills to ensure that farmers could grow for biomass (SB 1409) and to improve regulations (SB 153).

California is the only state where counties have a role in regulation and licensure. It has created a complex web of regulations for California farmers. Vote Hemp has been monitoring hemp regulations and moratoria in all 58 counties which has been extensive. If you are considering getting into the hemp market in California, the data and insights in this 25 page report will be very valuable. The report includes:

  • Exclusive hemp updates on all 58 counties including moratoriums & zoning restrictions
  • California hemp market insights including seed vendors
  • Contact info for county Ag. Commissioners
  • An informative history of hemp legislation in California
  • Includes the national Vote Hemp 2019 Licensing Report

To order your copy, donate $50 or more and we will mail it out within 5 business days.

 

USDA announces details of hemp crop insurance, deadline is March 16

The USDA has announced the availability of two programs that protect hemp producers’ crops from natural disasters. A pilot hemp insurance program through Multi-Peril Crop Insurance (MPCI) provides coverage against loss of yield because of insurable causes of loss for hemp grown for fiber, grain or Cannabidiol (CBD) oil and the Noninsured Crop Disaster Assistance Program (NAP) coverage protects against losses associated with lower yields, destroyed crops or prevented planting where no permanent federal crop insurance program is available. Below are some of the requirements of the program.

  • Available in select counties in 21 states
  • Actual Production History (APH) Program 
  • Covers loss of production (pounds) due to naturally occurring causes – adverse weather, fire (lightning), insects, disease, wildlife, earthquake, etc. 
  • Does not cover loss of production due to THC in excess of 0.3% (adjusted for measurement of uncertainty, if provided).
  • Does not cover loss of quality (e.g. CBD content, test weight, etc.).
  • Coverage levels 50% – 75% in 5% increments.
  • Types: CBD, Grain, Fiber
  • Insurability:
    • Insured:
      • Must be licensed.
      • Have a share in the crop.
      • Be eligible for Federal crop insurance.
      • Provide evidence of 1 year of producing the crop in a previous year.
    • Crop:
      • Acreage minimums per type, per county: CBD – 5 acres, Fiber or Grain – 20 acres
      • Must be grown under a processor contract (provisions for vertically integrated operations).
      • Rotation restrictions for hemp following hemp and other crops.
      • Cannot be:
      • Interplanted with another crop.
      • Planted into established grass or legume.
      • Planted after another crop harvested in the same crop year.
      • Planted after Final Planting Date.

The deadline to sign up for both programs is March 16, 2020. More details on the MPCI program can be found on the AgriLogic web site.

 

NASDA adopts new hemp policies at Winter Policy Conference

At the 2020 Winter Policy Conference of the National Association of State Departments of Agriculture (NASDA), policy items addressing some of the implementation challenges that states have with the U.S. Department of Agriculture’s (USDA) Interim Final Rule (IFR) were passed.

Two separate policy items were passed by NASDA Members:

  • policy item requesting USDA to extend the mandatory date of October 31st for states to change from pilot programs to approved USDA plans
  • policy item calling for a hemp data reporting system

NASDA officials also debated and considered a policy proposal from the Vermont delegation to request Congress to increase THC limits for hemp from 0.3% to 1%. This proposal did not receive a 2nd and was not voted on.

NASDA’s organizational hemp policy was also amended to underscore the needs of states in regulating hemp and also called for clarification of federal law that allows hemp-infused products not exceeding federal concentration thresholds to enter interstate commerce. All three actions were complimentary to NASDA’s comments on USDA’s interim final rule on hemp which highlighted 10 major changes to the rule.

 

USDA Economic Research Service releases economic viability report

The USDA Economic Research Service has released a new report titled “Economic Viability of Industrial Hemp in the United States: A Review of State Pilot Programs”.

After a hiatus of almost 45 years, the Agricultural Act of 2014, Public Law 113-79 (the 2014 Farm Bill) reintroduced industrial hemp production in the United States through State pilot programs. Beginning in 2014, States with laws that allowed growth or cultivation of industrial hemp could establish a pilot program or conduct research on the crop. Production beyond the pilot programs was legalized in the Agricultural Improvement Act of 2018, Public Law 115-334 (the 2018 Farm Bill). This study documents outcomes and lessons learned from the State pilot programs and examines legal, agronomic, and economic challenges that may affect the transition from the pilot programs to economically viable commercial production.

To access the report, click here.

Key states announce plans to continue with 2014 Farm Bill hemp program

Washington, DC – So far ten states have decided that it is preferable to operate 2014 Farm Bill hemp pilot programs including market leaders Colorado and Kentucky. After reviewing the USDA Interim Final Rule (IFR), agriculture departments from Arkansas, Colorado, Kentucky, Maine, Maryland, Minnesota, Missouri, New Mexico, Vermont and Wisconsin have each notified USDA of their intent to regulate hemp production under provisions of the 2014 Farm Bill.

This news along with thousands of critical comments submitted make a strong case that the rules as written don’t work for farmers. Vote Hemp advocated for a number of critical changes in its response to the IFR including:

– Including sampling Measurement of Uncertainty
– Sampling and homogenizing the entire plant instead of just the top 1/3
– Increasing the sampling to harvest window to 45 days
– Allowing states to oversee disposal of non-compliant plants without CSA regs
– Not requiring DEA registered labs which add to cost & are not authorized in the Farm Bill
– Basing negligent violations on actions and not an arbitrary number such as 0.5% THC
– Applying the felony ban only to license owners
– Urged USDA to issue a revised or new IFR quickly to give states & producers time to adapt

We are hopeful that USDA will listen carefully to the industry and make needed changes to make the program work for producers and to ensure the U.S. hemp industry can successfully compete in the growing world market for hemp products.

First legal Georgia hemp fields show crop’s promise

Georgia hemp research cropThis is where Georgia’s future hemp crop begins: in a pungent field at the University of Georgia, where several dozen cannabis plants are nearly ready for harvest.

The plants are lined in rows on one-third of an acre, sprouting fuzzy flowers that could be processed into CBD oil, the popular product sold as a treatment for a variety of conditions including pain and insomnia.

Tim Coolong, a university horticulturist, is growing the plants in preparation for farmers to start growing hemp across the state next year. Lawmakers voted this spring to legalize in-state hemp production. Currently, all CBD oil products are imported to Georgia.

Coolong is researching how well hemp grows, its yield per acre and which varieties prosper in Georgia’s hot and humid climate — information he’ll pass along to farmers eagerly awaiting the rare opportunity to cultivate something new and potentially profitable. His plants aren’t for sale; they’re composted after being evaluated.

“Our farmers could absolutely grow this,” Coolong said. “The cool thing about these plants is that they offer an advantage to Georgia farmers because we have a long growing season.”

Georgia farmers will jump into the booming hemp industry as soon as federal and state regulations are approved, a process that could be completed in the next few months.

Thirty-five states are already growing commercial hemp, and Georgia is positioning itself to become a significant producer within a few years. CBD retail sales are expected to reach about $1.2 billion nationwide this year and increase to $6 billion in 2022, according to Hemp Industry Daily.

Like marijuana, hemp comes from cannabis but contains little or no THC, the compound that gives marijuana users a high. State inspectors will test hemp to ensure it contains less than 0.3% THC.

Coolong planted Georgia’s first hemp fields in June after acquiring plant material primarily from the Carolinas. He grew 24 varieties at campuses in Watkinsville south of Athens, near Blairsville in North Georgia and in Tifton in South Georgia. Those plants were harvested a few weeks ago, and a second crop that was planted in early August will soon be ready.

Some varieties grew as tall as 9 feet. Others barely got off the ground.

“My goal is to provide information so that growers don’t pick the wrong variety and end up making a mistake that costs them several million dollars potentially,” Coolong said.

Hemp will likely grow well across Georgia, but it seems to prosper in the slightly cooler climes of the northern Georgia mountains, he said. Farmers in South Georgia will have to be more careful to choose varieties of hemp that can survive.

The crop will come with challenges. It takes a lot of labor to harvest, dry and strip the plants, Coolong said. In addition, planting costs are high — $3 or $4 for each rooted cutting that will be planted.

Hemp manufacturing companies are prepared to extract CBD oil from plant material.

Down the street from the UGA hemp fields in Watkinsville, a hemp processing company called GA Xtracts is equipped to test and process hemp plants, turning leafy green material into brown or golden oil. The company plans to make tinctures, lotions, ointments, soaps and pills.

“We’re hoping CBD and hemp becomes a brand for Georgia, where the state is associated with it just like Vidalia onions, California raisins and Idaho potatoes,” said Don Barden, the CEO for GA Xtracts. “We’re going to be a global leader.”

Because Georgia has more sunlight and a longer growing season, it could eventually exceed Kentucky’s hemp market, one of the largest in the nation, said Rob Lee, a co-founder of GA Xtracts. The company hopes to begin processing hemp from other states by the end of the year and then add Georgia-grown hemp in 2020.

The South is already a major player in the U.S. hemp industry, led by Kentucky, Tennessee and North Carolina when measured by licensed acreage, according to Hemp Industry Daily. Colorado has the most licensed acres for hemp production in the nation, with 80,000.

“The demand is through the roof,” Lee said. “Although it can’t be grown here in Georgia right now, it’s being sold everywhere.”

Georgia’s hemp production will likely start slowly, said Albert Etheridge, a co-founder of Pretoria Fields Collective, an Albany beer brewer that’s building a hemp processing lab. He expects a lot of farmers will initially try to grow between 1 and 5 acres, then ramp up operations if they’re successful.

“Everybody’s going to take a wait-and-see approach, and then it will grow up quite substantially,” Etheridge said. “I think it’ll go gangbusters.”

Several steps remain before the hemp industry can begin in Georgia.

The U.S. Department of Agriculture has to release hemp program rules, and then the Georgia Department of Agriculture can review and finalize the state’s regulations.

Seventy-two people submitted public comments this summer about Georgia’s proposed regulations, with many saying that they’re overly restrictive. The regulations prohibit hemp farmers from selling to anyone but processors, and hemp couldn’t be shipped outside Georgia even though out-of-state producers could bring their product here.

Hemp growing licenses will cost $50 per acre, up to a maximum of $5,000. Hemp processors will have to pay $25,000 upfront and $10,000 every year after.

Farmers and processors say they hope government regulations are finalized in time for the spring 2020 planting season.

Content from: https://www.ajc.com/news/state–regional-govt–politics/first-legal-georgia-hemp-fields-show-crop-promise/DgOnP1vviaPRxsit64JaPI/?fbclid=IwAR31xKH944ZkY_gjrA4j1Umf_rUj7xb2QERxSpLReRPKMNAQNXygcTniDso.

Michigan farmers are taking advantage of the hemp industry

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(WXYZ) — Michigan farmers are calling it the next big thing in farming and for the state.

Hemp farming is taking off to new limits with endless possibilities and growth. It’s a new adventure for Michigan farmers looking to break into the CBD business. However, one Michigan farmer says there’s more to hemp than just CBD.

“It was one of those things that gained momentum quickly for us,” said David Connor, who goes hemp.

That’s what he first told his business partner Joe Leduc of Leduc Blueberries of his vision to grow hemp. Then there were many questions.

“He was a little dubious at first, I admit that,” said Conner, CFO of Paw Paw Hemp Company. “He was like wait a minute is this legal, that was the big question.”

Leduc Blueberries in Paw Paw Michigan is about 155 miles outside of Detroit. It has been in the farming industry for decades, growing mostly blueberries. But Connor saw something more – something that can really take off.

“If I plant a blueberry plant today, I’ve got probably three to five years to wait before I start getting something from that crop,” Connor said. “Where as with hemp, if you take care of it you plant it right, your feeding it right, that’s a six-month cycle.”

The 2018 Farm Bill legalized the farming of hemp in Michigan. Farmers were provided with a license and regulations to grow hemp. Connor and Lecud decided they’d plant 4 acres of hemp seeds and see what happens, and take advantage of both the blueberry and hemp harvest.

“We need to add more value to what we’re doing as farmers, and so hemp really plays itself well into that market,” Connor said.

They were able to grow 1700 plants per acre. Connor says growing hemp is a very labor intensive process from start to finish, with a lot of trial and error.

“Hemp is one of those things that you’ve got to take a little more care in the beginning and a lot more work goes into it at the end,” Connor said. ” You’re getting a much quicker turn around on that product than you are say blueberries.”

The duo just finished harvesting the plants and so far the return looks pretty good.

Connor says Michigan could be at the forefront in the hemp industry, but not just for CBD oil.

“Not everything needs to be processed into CBD oil, but as we can move into different market demands I think it’s going to make things much more lucrative for the farmer,” Connor said. “The long term okay has got to be something more commercialized ,something more mechanized that fits in with your more standard we grower operation like a long stalk fiber type hemp that they can then use for industrial operations.”

Connor adds that hemp can be used for so many things that can benefit a lot of people and industries.

He says that in time, the industry will expand into areas where hemp can be used for things in every day use. Connor says it’s a risk, but a risk worth taking. As for next year, Connor and Leduc plan to expand, while continuing to grow blueberries.

Connor and Leduc plan on planting hemp on 100 acres next year. Connor says it’s an exciting time to be a farmer in Michigan with endless possibilities for hemp, and says the future looks bright.

Content from: https://www.wxyz.com/news/michigan-farmers-are-taking-advantage-of-the-hemp-industry.