USA:
WHAT FARMERS NEED TO KNOW ABOUT GROWING HEMP
SF: WHAT IS THE HISTORY OF HEMP?
MB: Hemp was poised to be a billion-dollar crop in the 1930s with Henry Ford a big supporter, but the Marijuana Tax Act of 1937 killed the growth of the industry. We had a brief respite during WWII with the Hemp for Victory campaign, in which we grew hundreds of thousands of acres in six Midwestern states, but the tax was reenacted after the war. Then in 1970, President Nixon included hemp in Schedule I of the Controlled Substances Act as his middle finger to the anti-war people.
SF: WHAT IS THE STATUS TODAY?
MB: In 2013, on the heels of Colorado being the first state to legalize industrial hemp, I wrote the language for Section 7606 of the 2014 Farm Bill, a provision that grants U.S. farmers the right to cultivate hemp in states where production is legal. Since that time, we’ve grown the industry from basically zero to 75,000 acres of hemp permitted in 2018.
SF: WHAT CAN WE EXPECT IN 2019?
MB: Production in 2019 will be limited by seed supply, but we could see 100,000 to 200,000 acres. The 2018 Farm Bill is the dawn of a new era, but we need infrastructure, education, and genetics. We have a lot of work ahead of us, but there is a very exciting future for those who want to be a part of that community.
- Read more: USDA Will Proceed Slowly on Industrial Hemp
SF: WHICH STATES HAVE THE MOST POTENTIAL FOR HEMP GROWTH?
MB: Colorado has been the #1 state in production out of the gate, but long-term it will probably be more of a research state. Kentucky grows a lot of CBD [cannabidiol] plants for oil extraction. Montana came out of the gate last year with 22,000 acres permitted. Minnesota is gearing up for some pretty significant expansion in 2019. North Carolina is on the radar screen. Iowa will catch up in two or three years, once it solves permitting and legislative challenges. New York could end up being a big state. On January 14, Canopy Growth, a publicly-traded company out of Canada, announced a $150 million investment in a processing facility in New York. They must see opportunity for a lot of acreage in that state.
SF: WHERE DO FARMERS GET SEED?
MB: Canada and Europe. The challenge is the .3 THC limit. There is a lot of seed available outside of the U.S., but we don’t know how acclimated it is to latitudes and longitudes here and how that correlates to THC limits at harvest. If farmers bring in seed and the crop busts the .3 limit at harvest, it becomes marijuana under the law and must be destroyed. That will keep a brake on some robust expansion until we get a good feel for how those genetics are going to express themselves in different environments. It will take another year.
SF: WHAT IS THE DIFFERENCE BETWEEN CBD AND TRADITIONAL HEMP?
MB: CBD is an extract from the female plant that is a popular dietary supplement. The oil has an omega profile almost identical to fish oil. You grow those female plants much like you would a marijuana plant, with the difference being the amount of THC [active ingredient of cannabis]. It’s like O’Doul’s and Guinness. The CBD plant is nearly void in THC.
There is a lot of energy being put into the CBD space right now, both money and human capital. It reminds me of the internet craze in the late 1990s when money was flowing to ventures that may or may not be successful. The profit margins in the CBD world have been significant and may remain robust for several years. Like any other thing we raise in the U.S., it will be a commodity at some point. I think we’ve only touched the tip of the iceberg on demand. Those of us who have used CBD oil or have family members who have used it have seen some pretty amazing health responses. We are going to have a significant market demand that can’t be met yet by domestic production.
The second lane in the industrial hemp world, the traditional side, will be the mainstream agricultural side. Industrial hemp is going to be grown for food, feed, fuel, building materials, and more.
- Read more: Is Hemp Farming in Your Future?
SF: HOW ARE THESE PLANTS GROWN?
MB: Much differently. On the CBD side, you have 1,000 to 1,600 plants per acre, planted and tended to as separate plants. Traditional hemp, grown for mass market products such as textiles and bioplastics, has a planting rate of 400,000 per acre (roughly 100 plants/square meter), and is drilled in like wheat. It grows tall and you harvest the tops for seed production and then use the stalk for a number of industrial purposes.
SF: HOW CAN A FARMER GET INTO THE HEMP BUSINESS?
MB: First, you have to be in a state where it is legal. There are nine states that have not legalized it yet, including Iowa. Once the USDA comes up with federal standards through the 2018 Farm Bill, each state will submit a plan for approval. States like Colorado and Kentucky, which already have systems in place, will just keep going. Section 7606 as written and implemented in the last farm bill remains the law of the land while we are enacting provisions of the 2018 bill.
Because of the federal government furlough, there hasn’t been any activity on this since the signing of the bill. This could drag on for months.
Farmers in states that have legalized it and have a permit system in place are in a pretty good position in 2019. The old rules will allow the industry to grow rapidly.
SF: WHERE CAN FARMERS GET PRODUCTION INFORMATION?
MB: Education is our big challenge. We have national organizations targeting advocacy and policy, but we have work to do on the educational side. We are reaching out to the national corn and soybean associations, because if we are going to have significant acreage it’s going to come from those camps.
SF: ARE YOU WORKING WITH THE COOPERATIVE EXTENSION SERVICE?
MB: Colorado State University has been an incredible partner. They embraced hemp early and had the first certified seed program. That hasn’t been replicated much nationwide, because universities have concerns over possible violation of the federal Drug-Free Workplace Act. We had this gray area where we were allowed to operate legally under the Farm Bill even though we were a Schedule I drug. Kentucky State University and the University of Minnesota are starting to engage.
SF: WHERE DO YOU SEE THIS INDUSTRY IN FIVE YEARS?
MB: I hope we will see acreage reach that million range. If we are going to do textiles and bioplastics, we need that scale. I think hemp protein will become an aggressive competitor to soybean protein. It’s being used in animal agriculture around the world. Colorado State University is doing studies on beef and chickens.
Farmers are looking for ways to diversify and create new markets. Hemp produces high-quality oil and protein products, plus we get the bonus of textiles. We produce fiber, oil, and protein. There is a growing consumer market, even a preferential market, for hemp-derived products. If we make the necessary investments in infrastructure to grow these acres, I am convinced the market demand is there for a hemp-based suite of products.
Read more
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The UK countryside is ablaze with hemp farms. But how do they help the climate?
Green fields of hemp dotted across the English countryside may sound like a (trippy) dream to some. And a nightmare to others. But did you know they used to be a common sight in the nineteenth century? And they’re coming back thanks to their carbon sucking powers.
Tarred with the same brush as marijuana
To give a potted history, cannabis plants were outlawed in the UK as part of the ‘Dangerous Drugs Act’ in 1928. Hemp was lumped together with marijuana, though they contain significantly different levels of the psychoactive compound (THC) found in the drug ‘weed’.
The ban was replaced with strict government regulations in 1993. Reared plants still can’t contain more than 2 per cent THC, and growers must have an expensive £580 (€678) government-issued license.
Hemp absorbs more CO2 than it takes to cultivate.
Despite the lack of state support, more and more farmers in the UK are turning to hemp production for its economic and environmental benefits. It’s legal for them to sell a variety of hemp-made products, like milk and seed powers, to supermarkets and other businesses.
In the right conditions, hemp absorbs more CO2 than it takes to cultivate – sequestering nine to 15 tonnes of CO2 per hectare. That’s almost twice as much as a forest of the same size, according to a Cambridge University researcher. Could it be the next big carbon sucker?
What do hemp farmers and traders say about the plant’s potential?
A time traveller from the 1800s would be amazed at how many hemp products are now available. Everything from beard oil to snack bars contain hemp and CBD – the wonder-chemical that also sets it apart from marijuana.
CBD is extracted from the flowers of hemp. But despite the wellness boom around it, the compound can not currently be cultivated in the UK. It has to be imported. That means farmers are only allowed to harvest the stems and seeds of the plants, and must leave the leaves and flowers to drop and degrade – or burn them.
Dave Shaw is the managing director of Good Hemp in North Devon, one of the UK’s biggest suppliers. Only 10 per cent of the 1,500 metric tonnes of hemp seeds the business uses every year come from the UK. The rest is shipped in from France and Canada, he told BusinessLive this week.
“It’s treated as if it’s a dangerous crop when in fact it has so many environmental benefits,” he said.
As well as absorbing carbon, “hemp regenerates the soil it grows in, cleaning it of heavy metals and toxins left behind from other crops,” explains Tommy Corbyn, co-founder of the National Hemp Service.
“With that in mind, hemp is perfectly suited to restore farmland between crop rotations and the government should be incentivising farmers to do so.”
Hemp can be used in a wide variety of sustainable ways: as a source of protein in a plant-based diet, in clothing, biomass, and even in building materials like ‘hempcrete’ where it continues to sequester CO2.
“Now more than ever as a nation we need to take immediate action to address climate change, stimulate our job market and the economy. An increase in hemp farming is one way we can tackle all of those things at once,” says Corbyn.
How does the UK law compare with other European countries?
Land dedicated to hemp production grew by 75 per cent in the EU from 2015 to 2019, and the plant is embraced by some of the UK’s closest neighbours – including France and the Netherlands.
Some countries have gone further by decriminalising all cannabis plants. Last month, in a “fundamental reorientation of Luxembourg’s drug policy”, the government announced that adults will be able to grow up to four cannabis plants per household for personal use. Italy is on the verge of a similar move, with a referendum set for next year.
As more farmers, from Aberdeen to Devon, turn to the hemp crops, they are hoping for just such a sea-change in the UK’s policy.
“From our perspective, sending hemp from the south to be processed in the north of England adds anything from £500 to £800 in logistics costs,” explained the Good Hemp MD. “For farmers, it’s not that they don’t want to grow it but they have to factor in that added ‘take’ in their profit margins.
“In places like France, they have established co-operatives that have shared the cost of investment in that infrastructure. What we want to see is Government policy, backed by grant funding that can establish the same thing here.”
Read more
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Hemp production in the EU
Hemp is a crop grown across Europe. In recent years the area dedicated to hemp cultivation has increased significantly in the EU from 19,970 hectares (ha) in 2015 to 34,960 ha in 2019 (a 75% increase). In the same period, the production of hemp increased from 94,120 tonnes to 152,820 tonnes (a 62.4% increase). France is the largest producer, accounting for more than 70% of EU production, followed by the Netherlands (10%) and Austria (4%).
Hemp cultivation contributes to the European Green Deal objectives
Hemp has a number of environmental benefits.
- Carbon storage: one hectare of hemp sequesters 9 to 15 tonnes of CO2, similar to the amount sequestered by a young forest, but it only takes five months to grow.
- Breaking the cycle of diseases: hemp helps to break the cycle of diseases when used in crop rotation. In addition, weeds are not able to grow due to the fast growth and shading capacity of hemp plants.
- Soil erosion prevention: dense leaves of hemp become a natural soil cover, reducing water loss and protecting against soil erosion. Hemp covers the ground just three weeks after germination.
- Biodiversity: flowering cycle usually occurs between July and September, coinciding with a lack of pollen production from other crops. Hemp produces large amounts of pollen. It also provides shelter for birds and hemp seeds are a food for animals.
- Low or no use of pesticides: hemp is susceptible to few pests because of the lack of natural predators, which means that the use of insecticides, herbicides, and fungicides can be avoided in most cases.
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Uses of hemp
1. Textile industry (hemp fibre)
Hemp fibre is very similar to linen and the interest of the textile industry in using hemp fibre is growing. The European Commission, in its circular economy action plan, considers the textile sector as one of the cornerstones in the transition towards a greener and more sustainable economy and it has encouraged stakeholders to seek new materials and new economic models. To this end, the Commission will propose a comprehensive EU strategy for sustainable textiles aiming to create a more sustainable, innovative, circular economic model.
2. Food and feed (hemps seeds)
Hemp seeds contain high levels of protein and considerable amounts of fibres, vitamins, Omega-3, and minerals. As a result, de-hulled hemp seeds serve as a food for human consumption, while whole hemp seeds are used as feed for animals.
3. Construction (hemp fibre)
There are three main hemp-based products used in construction: lime hemp concrete (LHC), hemp wool, and fibre-board insulation. The construction sector is responsible for 40% of energy consumption and 36% of GHG emissions, and 75% of that energy goes to waste. This has led to a search for construction practices and materials that are carbon dioxide neutral or carbon sequesters. Hemp concrete is a carbon sequester as the amount of carbon stored in the material is higher than the emissions generated during its production, and it continues to store carbon during the building’s life. Improving energy efficiency in the building sector will play a key role in achieving carbon-neutrality by 2050, a goal set out in the European Green Deal. Hemp can play a significant role in reaching this objective.
4. Paper production (hemp fibre)
There are multiple advantages to using hemp fibre to make paper: hemp stalks only take up to five months to mature, hemp paper does not necessarily require toxic bleaching chemicals and hemp paper can be recycled seven to eight times.
5. Other uses
Hemp-derived products are used in different industries and for different purposes. Negative environmental effects of plastic have pushed manufacturers to seek alternatives. Hemp is a good option given its light weight and durability. As a substitute for plastic, hemp-derived products are used in different sectors such as car manufacturing, railway, aviation and aerospace.
Other uses of hemp include cosmetics (oils, lotions, shampoos, etc.) and energy production (biofuels). There is also interest in the production and marketing of hemp extracts, notably cannabidiol (CBD), due to its possible uses in cosmetics, health products and food. These possible uses are, however, subject to the relevant EU requirements. In November 2020, the Court of Justice of the European Union determined that the marketing of legally produced CBD is permitted under EU law.
Definition and provisions
Hemp (Cannabis sativa Linn) is a species in the Cannabaceae family in which the level of tetrahydrocannabinol (THC) is very low, according to the provisions under the common agricultural policy (CAP). Hemp is grown primarily for its industrial uses and there are 75 different hemp varieties registered in the EU catalogue. Due to the very low level of THC, hemp complying with the provisions of the CAP is not used to produce narcotic drugs.
In accordance with Article 189 of Regulation (EU) 1308/2013, all imports of hemp are currently subject to an import licence requirement. In addition:
- raw true hemp falling within CN code 5302 10 must have a THC content not exceeding 0.2%;
- hemp seeds for sowing must be accompanied by proof that the THC content of the variety concerned does not exceed 0.2%;
- hemp seeds not used for sowing may be imported only under the authorisation of the EU countries, and authorised importers must submit proof that the seeds have been placed in a condition that excludes use for sowing;
- EU countries may also apply more restrictive rules in line with EU treaties and international obligations.
Support available under the CAP
Farmers who grow hemp are eligible for area-based direct payments under the CAP. Farmers must meet the standard eligibility conditions for direct payments, as well as additional requirements specific to hemp ensuring that no illicit crops receive any CAP support.
- The variety of hemp being cultivated must have a THC content below 0.2%.
- Farmers must use certified seed of varieties listed in the EU common catalogue of varieties of agricultural plant species. There are 75 different hemp varieties registered in this catalogue.
EU countries can decide to grant, under certain conditions, voluntary coupled support (VCS) to farmers growing hemp. VCS for hemp is currently implemented in France, Poland and Romania.
Hemp farmers may also benefit from support implemented through rural development measures available under the second pillar of the CAP. Relevant types of support are designed to facilitate investments, knowledge-building, business start-ups, innovation, supply chain organisation, organic farming, environmental protection and climate action.
