Hemp

First year hemp growers struggle to reach profitability

For the first time in more than eight decades, farmers in most parts of the country have the freedom to make hemp part of their plow and pick repertoire.

It has been said for years that the legalization of industrial hemp production in the United States would breathe new life into agriculture, giving the American farmer the benefit of a genuine cash crop. Well, the 2018 Farm Bill, which was signed late last year by President Trump, came out of nowhere to do just that. 

Now, for the first time in more than eight decades, farmers in most parts of the country have the freedom to make hemp part of their plow and pick repertoire. It is a business sector that is predicted to reach well over $2 billion within the next two years. However, there is a learning curve involved that is making it difficult for hemp growers to find profitability right out of the gate. 

In the Midwest, where hemp farmers are harvesting this crop for the first time since World War II, delayed planting efforts and heavy spring rain has created a situation where the harvest is a bit lackluster, to say the least. Indiana farmer Mark Boyer, who planted 50 acres of hemp to be used for high-quality food oil, told the South Bend Tribune that late planting caused a variety of issues, including puny yields. 

“The plants didn’t get as tall,” he said, “they never canopied and that created weed problems.”

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Another major difficulty that many hemp farmers are facing is theft. Perhaps thinking that they are stealing its intoxicating cousin marijuana, thieves are sneaking into hemp fields and taking tens of thousands of dollars of product. And while theft might sound like the price of doing business, it is a problem that could cripple those farmers that have entered the hemp game to keep afloat. Because these heists are not just happening on occasion, it is something that goes down regularly. 

“You feel violated that people come here and steal from you when you’re trying to help a new industry get started that can help a lot of people,” New York hemp farmer Dale Weed told The Times of Wayne County. “It’s alarming, the fact with no theft in 17 years, and now I’m being robbed every night.”

Ramping up security and increasing foot patrols is just another expense that hemp farmers must endure. But for Weed and other farmers who cannot afford to drop beaucoup bucks on round the clock watchdogs it is up to family and friends to make up the shifts when there are no hired guns available. 

“We’ve been trying to hire employees and outside people,” Weed said. “My family has spent quite a few nights here watching the property. I’ve spent nights here where I’m sleep deprived. It’s a big problem for us.”

There is hope that these growing pains will subside in time. And if they do, it will surely be worth the initial hassle. A recent study shows that hemp farmers stand to earn in upwards of $50,000 per acre from hemp. In contrast, an acre of corn brings right around $1,000 per acre. But farmers are going to have to work for that money. In addition to poor growing conditions and theft, farmers still do not have the proper tools to handle industrial hemp throughout the entire growing process. For many, this means trying to grow without approved pesticides and harvesting by hand. 

First legal Georgia hemp fields show crop’s promise

WATKINSVILLE | This 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.

For Young Farmers, Hemp Is a ‘Gateway Crop’

Asaud Frazier enrolled in Tuskegee University with plans to study medicine, but by the time graduation rolled around in 2016, he’d already switched gears. Instead of becoming a physician, Frazier decided to farm hemp.

“I was always interested in cannabis because it had so many different uses,” he said. “It’s a cash crop, so there’s no sense in growing anything else. Cannabis is about to totally take over an array of industries.”

Some Indiana farmers uncertain hemp will become profitable

Some Indiana farmers have started harvesting their first legal crop of hemp without knowing for certain whether it will prove to be lucrative.

President Donald Trump signed the 2018 Farm Bill in December , legalizing hemp. Since then, Indiana farmers have taken out permits to grow thousands of acres of hemp for its fiber, seed and cannabidiol, or CBD, a non-intoxicating compound also found in marijuana.

The hemp flowers and seeds can be processed for fiber to make paper, cloth, rope, wood-like material or hemp concrete.

But farmers said torrential spring rains across the Midwest either washed out some of their crops, including hemp, or delayed planting efforts, the South Bend Tribune reported .

"The late planting date caused challenges because the plants didn't get as tall, they never canopied and that created weed problems," said farmer Mark Boyer.

Boyer cultivated 50 acres (20 hectares) of hemp for seed production in 2018 as part of a research project authorized by Purdue University. He planted the same amount this year on his farm in Converse, about 60 miles (96 kilometers) northeast of Indianapolis. He was planning to cold-press the seeds into top quality food oil and then use the leftovers for high-protein animal feed.

But he said there have yet to be any chemicals approved to regulate weeds, bugs or other issues that hemp plants might face as officials still devise hemp production regulations.

"We're still on our own," Boyer said.

Though Boyer was able to use contemporary farm machinery to plant and harvest his seed hemp, varieties bred for their CBD content are usually planted as seedlings, which is very labor-intensive and time-consuming.

Don Zolman said the rainy spring weather also posed an issue for growing hemp at his farm near Warsaw, and extra work was needed to get new seedlings in the ground since some of the others died.

Justin Swanson, an attorney and the Midwest Hemp Council's co-founder, said Indiana farmers planted about 3,000 acres (1,200 hectares) of hemp plants this year.

With just 24 acres (10 hectares) of hemp planted in Indiana last year, Swanson said he views this year's number as a huge achievement and believes that planting will double or triple in 2020.

Hemp will give farmers — many of whom have been struggling due to low commodity prices — the chance to diversify, and it could generate the next generation of farmers, Swanson said.

UConn Launches Hemp Testing Lab in Response to Industry Need

In response to a rapidly expanding commercial hemp industry driven by interest in products with CBD oil, the University of Connecticut recently opened a laboratory where the plant can be tested for a variety of compounds.

As part of the Center for Environmental Sciences and Engineering’s Hemp Initiative, the UConn facility will support the efforts of growers, manufacturers, and researchers, and educate students interested in entering the field.

CBD is positively changing people’s perspectives on marijuana

A new survey found that older adults have made the most impressive changes towards marijuana, gravitating towards CBD as a natural way of treating different ailments.

While CBD may not have the same effect as THC, it’s certainly having a huge impact on the way people think about cannabis.

The study, which surveyed 2,000 Americans, was conducted by OnePoll on behalf of CBD brand HempFusion. A whopping 82% of participants said that their opinions on marijuana had evolved in recent years, while 46% said that CBD products, such as CBD oil, were primarily responsible for changing their perspectives on the drug.

The takeaway? America’s changing attitudes prove that many people are outgrowing the anti-drug propaganda that they learned in their youth and embracing medical and recreational marijuana.

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As a refresher, both CBD and THC are both derived from cannabis plants. But while THC is psychoactive (mind-altering), CBD is not, which is why many companies prefer to use it as their active ingredient in everything from beauty products to beverages.

“Once people realize two things, they’re much more open to trying CBD,” says Ashley Grace, chief marketing officer at HempFusion. “One – your own body makes cannabinoids as part of what’s called your Endocannabinoid System (ECS). Two – the US Department of Health patented the plant-based cannabinoids found in hemp as ‘antioxidants and neuroprotectants.’ Given this, clearly there might be some value in plant-based cannabinoids as a dietary supplement. And since they don’t get you high – why not give them a try?”

The survey, by way of New York Post, represents the opinions of a broad spectrum of different age groups, reflecting how varied CBD’s target audience is. Younger Americans, who’ve grown up with looser perspectives regarding marijuana laws (and the marijuana plant, in general), are mostly supportive of legal cannabis and are willing to try out new products. Older adults are the ones who have made the most impressive changes, gravitating towards the benefits of CBD as a natural way of treating different ailments.

Indiana farmers tackle historic hemp harvest

New this fall, Indiana farmers are harvesting thousands of acres of hemp for the first time in several decades. With the passing of the 2018 Farm Bill and Indiana Senate Bill 516, a select group of licensed farmers were approved to grow and harvest a hemp crop in 2019 as part of a research trial.

Several Indiana Farm Bureau members were among the select group who used this season was an opportunity to learn about the crop and the different markets for hemp, such as fiber, grain and oil.

Mark Boyer, Miami County farmer and owner of Healthy Hoosier Oil, planted 50 acres of hemp this spring. Boyer owns an edible oil company, and is incorporating food-grade hemp oil, which his customers will use for cooking, into his existing lineup of products, such as sunflower and canola oil. Because of Boyer’s experience with oils, he felt uniquely prepared to try the new crop.

“We have a food-grade, cold-press oil extraction facility on our farm where we extract oil that goes directly into distribution,” said Boyer. “I’ve been doing that for six years, and I learned that the only way hemp seed oil can be extracted for food grade is through cold press, and that’s exactly what I am set up to do.”

While Boyer grows a grain variety of hemp which later becomes oil, Jay Berry, Grant County farmer and owner of IGNITE Racing Fuel, is growing a fiber variety this year, which can be used for clothing, home interior products and even automotive interior, such as the reinforcement of door panels and passenger rear decks. Berry is heavily involved in the automotive performance industry and is seeing a lot of interest in hemp from the industry.

“A lot of my connections are in the racing industry,” he explained. “Hemp fiber is cheaper and stronger than something like carbon fiber, so just in the performance world there is a massive market that is interested in it.”

Other Indiana farmers are growing hemp for CBD, a popular oil in the wellness industry. The end-use of the hemp dictates different growing, harvesting and processing requirements. Both Boyer and Berry use the majority of their farmland to grow more traditional Indiana row crops, like corn and soybeans. They say there are many differences in the way they grow and care for hemp.

“Growing hemp is a lot more labor intensive than expected,” said Berry. “I’ve been through the field twice as many times as corn and beans.”

“People have joked that it could grow on a rock, but that has not been my experience,” echoed Boyer. “It has been very challenging to grow and it requires a lot of conditioning at harvest because it has to be harvested very wet.”

Jamie Campbell Petty, founder and strategic advisor for Indiana Hemp Industries Association and co-founder and executive director for the Midwest Hemp Council – a communication hub for farmers, processors and retailers – said that many farmers were not adequately prepared for the intense labor involved with growing CBD.

“Growing for CBD is, generally speaking, horticulture,” Petty said. “Many would like to convince you that hemp is a weed, and it will grow anywhere. That’s not true. Hemp is photosensitive, so it grows best in well-drained soil. It does not like wet feet. And, until we are further down the road with genetics, seed instability is an issue.”

For many Indiana farmers, the possibility of diversifying their farms with the addition of hemp is intriguing during a down farm economy. INFB President Randy Kron said there are a lot of exciting possibilities for hemp in the near future, but it’s not going to be a miracle crop for every farmer.

“Our most innovative farmers are always evaluating opportunities to diversify their farms for additional stability,” said Kron. “For some farmers, hemp will become just that. It’s an individual decision for each farmer whether hemp will work for their business, but it’s great to have another option for a crop.”

As with any new crop, farmers are learning about the viability of new markets to determine if growing hemp is a wise business decision for the future of their operation.

“We need to be sure we establish the markets and see where this has the potential to go,” said Boyer. “Hemp is exciting as it has so many diverse uses, but how many of those uses are economically viable for us, we just don’t know because we haven’t had the time to test it out. The markets will develop and we will get there, but it takes time and plenty of work.”

Boyer has become somewhat of a resource to other Indiana farmers because he had the opportunity to grow hemp in 2018 as part of an early research trial with Purdue University. He says farmers are contacting him more and more to learn about his experiences.

“There is a tremendous amount of interest from farmers,” he said. “I get calls nearly every day.”

Despite early challenges, the select group of farmers growing hemp this year is generally excited about the economic possibilities.

“Hemp has a very bright future, we just have to go through some growing pains and learn,” said Berry. “The first people to grow will learn and be able to pass on notes to other farmers so we can all improve.”

“Indiana could be a leader in this industry, but we must all collaborate and work together, to take lessons learned from other states, other industries so that we don't overproduce and we don't invest in excessive infrastructure,” Petty added.

Commercial hemp production is expected to launch fully in 2020 pending the approval of national regulations by the USDA and approval of Indiana’s state program.

The office of the Indiana State Chemist recommends that farmers interested in producing hemp in 2020 begin preparing all necessary details now. They recommend creating a business plan, getting contacts in place, and identifying any process or processors needed or specific varieties needed to meet buyer specifications as soon as possible.

The business of hemp in the state of Tennessee

Hemp, which is closely related to marijuana but has no psychoactive effect, has been legal to grow in Tennessee for a little more than five years through a closely monitored pilot program.

Hemp has been an important crop throughout the history of the United States. By the mid-1600s, hemp had become a vital part of the colonial economy and was used to produce rope, cloth, canvas, sacks and paper. In fact, the first drafts of the Declaration of Independence were penned on hemp paper.

Although industrial hemp contains very little of the hallucinogenic properties of marijuana -- production and processing declined after World War II with the passage of state and federal laws aimed at regulating the narcotic varieties of cannabis.

In December of 2018 another passage of the Farm Bill opened the door for even more growers and sellers.

"It deregulated hemp as a schedule one controlled substance,” explains attorney Stephanie Savage of Miller & Martin. “It created an interstate commerce exception which means states cannot prohibit the lawful transportation of hemp across state lines. It also directed the USDA to promulgate a hemp production plan where states can submits plans for approval or they can gave USDA licensure."

State records show that most licensed growers are hobbyists, farming only a few acres, but commercial-scale hemp farming is increasing quickly, in part because the industry is recruiting struggling tobacco farmers.

Sequatchie County’s Haygood Farms has been growing industrial hemp since the spring of 2018.

There are so many things you can do with this plant, it's remarkable,” says Llew Boyd. “And I think that this plant will become a commodity and replace things like cotton. For many different reasons, it's more economical to grow and it produces higher yields of textiles at a lower cost."

While many farmers focus on the textile portion of hemp production, others focus on the flower aspect of farmed hemp so it can be harvested for human consumption in CBD products. It can be up to the farmers across the state to choose which strands to grow.

“We mainly focus on the cannabinoids,” says Boyd. “We like to think that we're cannabinoid farmers instead of industrial hemp farmers."

CBD is one of many compounds, known as cannabinoids, in the cannabis plant. Hemp and marijuana come from the same plant, Cannabis sativa, but the two are very different. Hemp contains most of the CBD that people use medicinally. THC creates a mind-altering "high" when a person smokes it or uses it in cooking. This is because THC breaks down when heat is applied and introduce it into the body. CBD is different. Unlike THC, it is not psychoactive. This means that CBD does not change a person's state of mind when they use it. However, CBD does appear to produce significant changes in the body, and some research suggests that it has medical benefits.

Landrace Bioscience in Chattanooga is in the hemp business. Their mission is to manufacture hemp extracts to produce high-grade products containing cannabinoid profiles.

"There are actually over 400 chemical entities inside the hemp plant,” explains CEO John Demoss. “Those 400 entities need to be extracted and then made into different ingredients that the manufacturer of consumer products would ultimately used in creating their product."

None of these business opportunities would be available without the passage of the 2018 Farm Bill -- that de-scheduled hemp as a controlled substance.

"So what that really did was it allowed many more scientists and companies exploring potential benefits,” explains Demoss. “And it's been fascinating how many different clinical studies and pre-clinical studies and research projects generally have been advancing the understanding of the different molecules in the plant."

All cannabinoids, including CBD, produce effects in the body by attaching to certain receptors. The human body produces certain cannabinoids on its own. It also has two receptors for cannabinoids, called the CB1 receptors and CB2 receptors. CB1 receptors are present throughout the body, but many are in the brain. The CB1 receptors in the brain deal with coordination and movement, pain, emotions, and mood, thinking, appetite, and memories, and other functions. THC attaches to these receptors. CB2 receptors are more common in the immune system. They affect inflammation and pain.

Store owners like Elisha Millan at Grass Roots in downtown Chattanooga are using locally grown and produced hemp. Knowing where the product being sold on her shelf came from-- and that is has been tested is of the utmost importance.

"What you can expect from good, quality products and good quality businesses is that they will have all of their lab work to be able to hand to you immediately,” she says. “And they are going to be able to talk to you about what all of those numbers and all of those percentages mean."

With the realities of the opioid crisis coming to light, many of her clients come in with more questions and concerns than ever before.

"The majority of my customer base are people ages 50-65 who are new to cannabis, who have never used it before,” explains Millan. “But they are facing a surgery...whether they are having their first knee surgery or some procedures on their back, they're more concerned about the risk of becoming addicted to the pain medicine than they are of their actual pain level or about the surgery itself. And it's so surprising when you hear someone come in and say those things. They are sure about certain parts of their healthcare. They're not sure that their healthcare won't get them addicted to something."

It's a changing landscape for many of those associated with help production, but there are resources available to ensure compliance and success.

“This is an emerging industry the laws are still developing,” says attorney Stephanie Savage. “And so navigating the laws as they change can be very difficult. The Tennessee Department of Agriculture is doing everything that they can to help people understand the laws as they change. They have frequently asked questions on their website, and they have a lot of information about growing hemp in Tennessee, the application process...whether you're growing hemp or processing hemp, what steps are required."