Thanks to new state hemp programs, more of this miraculous crop is growing in the USA than ever.
Have you ever dreamt of starting over? Packing your belongings and heading to a place where you can spend your days working the land, instead of working behind a desk? Thanks to the rapid expansion of state hemp programs in the U.S., more and more people can be a part of this profitable green future and help create a more sustainable way of life at the same time.
With so much happening in American hemp, we thought this was a perfect time to look at some new state hemp programs, and see what is and isn’t working in each state. In this article, we discuss hemp programs in Wisconsin, Vermont, Oregon, and Nevada. We also list the market price for hemp in each state, which we sourced from a Hemp Industry Daily report.
But first, we wanted to share a brief history of modern hemp growing.
HOW HEMP GROWING RETURNED TO THE USA
It all started in 1996, when California became the first state to legalize medicinal marijuana. They were the pioneers. California remained ahead of its time until 2012 when another rogue state stepped in. In this case, Colorado legalized cannabis for recreational use. These two states created a revolution in the cannabis world!
Without California and Colorado leading the way, the Agricultural Act of 2014 aka, the 2014 Farm Bill may have never been introduced. This bill re-legalized hemp growing in the U.S. under state “research” programs. Without this change, the public may have never learned about the life changing benefits of CBD. CBD has had a huge impact it’s had on the hemp market; basically, setting it on fire!
The 2014 Farm Bill left a great deal of leeway to each state to set the parameters for their hemp growing programs. Some state hemp programs only allow academic research while the most successful allow for widespread growing and hemp sales. As with any market that experiences the same growth hemp has, there is bound to be some bumps and bruises along the way. In this article, we’re going to take a look at some of those pains, along with what it takes to get into the hemp business.
HEMP SALES HIT $820M UNDER STATE HEMP PROGRAMS
A recent report revealed that US hemp sales reached a record breaking $820 million in 2017. Product sales are estimated to reach a staggering $1.8 billion by 2020. And another report, published by Rolling Stone, suggested CBD sales could hit $22 billion by 2022, surpassing even legal psychoactive cannabis sales in the process.
The sad thing is, hemp’s multi-purpose use has been around since before colonial times. George Washington grew hemp and the first drafts of the Declaration of Independence were penned on hemp paper. However, stigma from the war on drugs, and even government cover-ups, made us lose sight of hemp’s benefits for decades.
Now hemp’s back in such a big way. Hemp is pouring money into the US economy, providing jobs and opportunity for people who want to put their farming skills to the test. It’s also helping thousands of suffering people suffering experience the benefits of CBD.
There are currently 19 states that allow growing and cultivating hemp, producing a total of 25,713 acres in 2017 according to Vote Hemp’s crop report. That’s just the beginning, as hemp could soon expand in a big way. An amendment to the 2018 farm bill would legalize hemp nationwide by putting it under the control of the Department of Agriculture.
WISCONSIN HEMP PROGRAM IS NEW BUT GROWING FAST
Legalized in 2017, Wisconsin is being hailed as one of the fastest growing states for hemp cultivation.
In order to grow and cultivate hemp legally, it must be grown under Wisconsin’s industrial hemp pilot program. As part of this state hemp program, crops can only contain 0.3 percent or less THC (tetra hydro cannabidiol) and growers and producers must submit a variety of requested reports to the Washington Department of Agriculture, Trade and Consumer Protection to show compliance. In addition, required records must be kept for three years. These records document a variety of information such as product sources and chain of custody forms. Growers must also allow state officials access to the property to record property transfers.
Since becoming legal, there have been 320 hemp licenses issued. Of those 320, 180 were licenses to grow and 75 were licensed to process the industrial hemp. Registration fees are $350 and annual application fees range from $150-$1,000 depending on the size of the field.
Challenges of growing hemp in Wisconsin
While Wisconsin’s hemp program continues to thrive, there is a unique growing pain that’s getting attention: privacy.
Under Wisconsin’s hemp law, hemp processors contact information is kept private, making it tough for farmers to sell their hemp crops. In an article published by The Cap Times, Rob Richard of the Wisconsin Farm Bureau explained the need for secrecy.
He said, “we were concerned growers would be harassed by people who didn’t understand hemp.”
To remedy this problem, Richard is working with Larry Konopacki, a former legislative counsel attorney, to create the Wisconsin Hemp Alliance program. The Alliance’s mission is to bring processors, retailers, and consumers together with farmers. The organization is just getting underway, so there’s not much else to report at this time.
Hemp market price in Wisconsin
Due to Wisconsin’s infancy growing and cultivating hemp, market prices were not available.
VERMONT HEMP LICENSES INCREASED 3000 PERCENT SINCE 2013
Legalized in 2013, Vermont has a uniquely progressive state hemp program (as we recently reported).
Of all the states approved to grow hemp, Vermont is definitely among the most lenient. As with all industrial hemp grown in the U.S. approved states, the THC level cannot be more than 0.3 percent. Other than this, farmers and processors are pretty much left alone by the government.
This may partly explain why industrial hemp is booming in Vermont. In the first year, only 8 applicants applied for a hemp license. In 2018, that number increased to 316, an increase of over 3000 percent! Almost 2,000 acres of hemp are expected to grow in the Green Mountain State in 2018. Those wishing to grow or cultivate hemp are only required to pay an annual application fee of $25. This covers farmers wishing to grow hemp for any use. That’s really about it!
One reason for this freedom is that Vermont legalized hemp cultivation a year before Congress passed the 2014 Farm Bill which allowed limited state hemp programs.
According to Hemp Industry Daily, farmers in Vermont “do not need to participate in a pilot project, research scheme with a university or state agriculture authority” to grow hemp. So while Vermont is potentially out of compliance with federal hemp rules, famers get to enjoy the state’s hands-off approach and they get access to viable hemp seeds other states do not. And because long-established hemp seed producers in Canada and Europe are close in latitude to Vermont, those seeds will have higher germination rates than if those same seeds were planted further south.
Challenges of growing hemp in Vermont
As of July 1, 2018 Vermont made it legal to buy and sell hemp for those registered with the Agency of Agriculture. The program is expected to ease concerns about federal agencies interference with growers, as long as the growers comply with the states program. This program will set up a lab certification standard under a quality control program. It also allows Vermont farmers to purchase hemp seeds from out-of-state seed suppliers.
It’s important to note however that it’s not all hemp rainbows and ponies in Vermont. Hemp farmers and the like are dealing with a number of growing pains. For one, the state is about to face increased competition from their larger neighbors, New York and Canada. And if Vermont’s legislature and the governor decide to legalize recreational marijuana, that could create a whole new set of guidelines to deal with. Finally, as with any state, Vermont hemp growers need a clear hemp growing and sales plan if they wish to be profitable.
Hemp market price in Vermont
- $100 per pound of dried flowers/buds for CBD extraction
- $0.80-$1.20 per pound for edible seeds used in food products or pressed for seed oil.
- $.10 per pound for stalks used for their fiber
‘HEMP IS THE NEW GOLD RUSH’ IN OREGON
Oregon authorized hemp cultivation in 2009, but the state’s Department of Agriculture didn’t license the first hemp growers until 2015.
Since that time, the Oregon hemp market (thanks to CBD) has exploded. In its purified distilled form, CBD oil can fetch thousands of dollars per kilo. Farmers here can make more than 100k an acre growing hemp! In the first year (2015) that Oregon offered hemp licenses only 12 were issued. Last year (2017) hemp licenses across the board increase dramatically. Oregon issued:
- 233 hemp growers licenses
- 170 licensed hemp processors, called “handlers”
- 119 licensed producers of viable hemp seeds
Over 3,500 land acres were licensed for cultivation!
To sum the up the feeling in Oregon, farmer Jerrad said it best in Insurance Journal: “Word on the street is everybody thinks hemp is the new gold rush!”
Hemp entrepreneurs face some heavy startup fees in Oregon. First off, they must pay a separate license for growing and processing. Each license is $1,300. Plus there is a $120 fee for seed production registration.
Oregon doesn’t require background checks for growers or producers. However, the state exhaustively tests all hemp. The law requires growers and producers to use only laboratories approved by the state government. This past October, some new testing requirements were implemented that will end up costing Oregon upward of $50,000, which will most likely be passed down to the farmers.
Challenges of growing hemp in Oregon
An oversupply of marijuana has driven Oregon’s marijuana prices to rock bottom, which has resulted in pot farmers to turn to industrial hemp.
As Oregon issues more hemp licenses, hemp prices will most likely decrease, driving down the market. In addition, earlier this year, Oregon Governor Kate Brown signed into law SB1015. This law allows industrial hemp to enter the recreational cannabis supply line if the hemp farmers are certified by the OLCC to do so. Recreational marijuana processors are also able to apply for a special “endorsement” that will allow them to accept hemp and hemp products.
The recreational processors then make the hemp, which must be 0.5 percent THC or less, into their concentrate and extract products. But with some marijuana farmers already searching for drastic means to rid themselves of inventory surplus, even destroying their own product, bringing industrial hemp in cannot be a good thing. Doing so will only drive more and more farmers to turn to cultivating industrial hemp, which will eventually lead to a surplus there. Now, should CBD become federally legal, this might not be a challenge, it may be an opportunity.
Hemp parket price in Oregon
- $100 or more per pound of dried flowers or buds for CBD extraction
- Less than $.50 for edible seed
- $0 for stalks used for fiber because the Oregon market is too limited
HEMP IS ‘TAKING OFF LIKE A WEED’ IN NEVADA
Like Wisconsin, hemp in Nevada is still in its infancy stages. Legalized in 2017, hemp farming in Nevada is spreading fast.
“It’s taking off like a weed” said Tick Segerblom in an article by the The Nevada Independent.
Mr. Segerblom, who as a state senator sponsored the bills that were a framework for Nevada’s hemp program went on to say, “there’s an incredible amount of interest in it.”
There were originally 11 growers planting 319 acres in 2016 to 32 growers planning to plant 718 acres in 2018.
Nevada requires a separate license for growers, producers, and handlers. The grower license requires a $500 application fee plus $5.00 per acre/.33 per sq. for indoor grows plus and all fees incurred by the Nevada Department of Agriculture. Handlers pay a $1000 application fee plus fees incurred by the NDA. Producers pay a $100 application fee, NDA fees and the same acreage and square foot fees as growers. By law, the NDA must approve all seed purchases. They do allow for non-NDA certified seeds on five planted acres or less.
Challenges of growing hemp in Nevada
The biggest challenge for the Nevada hemp industry has to do with the federal regulations against hemp. Most of the hemp in Nevada is slated for human consumption, including CBD. Other uses for hemp, such as textiles, ropes, and paper are virtually ignored because to process these items takes big equipment and big dollars. Investors aren’t willing to invest until hemp is federally legal.
Hemp market price in Nevada
- $200 or more per pound for flower, depending on CBD content and quality.
- $10 per pound for food-grade seeds
- $45 per gallon for seed oil
- $200 per ton of baled fiber
WHAT IS THE FUTURE OF STATE HEMP PROGRAMS?
At first glance it might seem as if legalizing industrial hemp across the board would be the best and only real solution to everything.
Whether it’s lack of industry expansion Nevada faces, the privacy rules Wisconsin has in place, or the potential market implosion in Oregon, legalized hemp would definitely have a positive impact to many of the challenges outlined.
However, legalized hemp will most likely present a whole new set of challenges anyway. For example, how should states handle intrastate commerce? Will there be a mandate on hemp prices? As of this article, Nevada’s hemp prices are through the roof at $200 or more for dried flowers, where Vermont is selling at $100.00 for the same.
Additionally, while the 2018 Farm Bill could soon legalize hemp, the current amendment would also ban felony drug convicts from growing hemp. No other agricultural crop faces similar restrictions, and both farmers and hemp advocates have objected to the provision.
For now, we can delight in the fact that hemp is back and back in a huge way. Legal hemp created a new economy, revealed awe-inspiring medical potential, and makes use of otherwise unused land.
Let’s all hope the federal government does the right thing and legalizes industrial hemp for every possible use imaginable, and for everyone to grow!