The future of industrial hemp looks bright as experts outline its potential at the 2021 National Hemp Symposium.

Industry experts from various private and governmental sectors convened this week for the first-ever virtual 2021 National Hemp Symposium, brought to life by the National Academies of Sciences Board on Agriculture and Natural Resources (BANR) and Oregon State University’s Global Hemp Innovation Center (GHIC).

National Industrial Hemp Council (NIHC)’s board member Patricia Sheikh, Senior Vice President of Roots of Peace, moderated the two-day event, along with organizers Jay Noller, Director and Lead Researcher, and Jeffrey Steiner, Associate Director, both of the GHIC. Sectors represented included energy/biofuel, automotive, environmental, USDA, food and nutrition, apparel, manufacturing, banking, food and pharma and defense.

The event explored industrial hemp potential as an up-and-coming top U.S. commodity on the national and international stage. Presenters outlined uses and opportunities from their sectors that could be significant streams of income for U.S. producers with adequate supply to meet demand – a concern cited by most of the presenters. Things such as wood replacement in construction, desirable fiber in apparel, and automotive parts were highlighted. 3M is testing alternative uses of hemp in their manufacturing as part of their commitment to sustainability.

The outlook is exciting and hemp is seen as a top contender that could significantly stimulate the American economy, once obstacles are removed.

NIHC’s Patrick Atagi presented an informative session on hemp commerce that reflected this potential. “We can absolutely change the world with hemp, it is amazing. There are so many ways to succeed,” he noted.

“Yet, there are many obstacles to getting hemp product to market, such as transportation,” Atagi continued. “Working at the national level to influence the Drug Enforcement Agency on their view of hemp enforcement will open up commerce.

“The federal and most state governments are not opposed to hemp. As an example, NIHC recently received $200,000 to promote U.S. hemp internationally through the USDA Market Access Program. NIHC is also pursuing a domestic marketing program through a national hemp checkoff initiative. A hemp checkoff has the potential to positively impact the industry in a substantive way similar to the ‘Got Milk’ campaign and ‘Pork the other White Meat’ checkoffs.”

In addition to protecting the hemp brand and marketing, which includes combatting negative attacks with positive data and facts, NIHC sees its role as a partner with the government, especially through participation on working committees. “As a recognized partner with USDA, it puts NIHC at the table in international negotiations, with their seal of approval. To be competitive in these markets, like Asia and Europe, we need solid research on what those unique consumers want, what they like, to avoid the unintended consequences of not knowing.”

Ultimately, there are many hurdles including standardization, certification, and testing here in the U.S. that must be addressed, says Atagi. “The consumer has right to know what they are buying and to feel safe. They want to know ‘what do I buy’ and ‘how much do I take.’”

Bonny Jo Peterson of the Industrial Hemp Association of Washington, and co-presenter to Atagi’s session, agreed. “We want to grow, harvest and automate an industrial hemp crop for a sustainable market, which produces a quality product that people can trust. We really need standardized testing and labs. We need to all be on the same playing field.”

Dr. Dionne Toombs, USDA, outlined their efforts to do “worldwide testing and research in our labs.”They are investing $66 million in an Agricultural Research Service lab intended to enhance research, which will include hemp, she says. Toombs also referenced the Farm Bill of 2018’s provision for National Institute of Food and Agriculture hemp research investmentsand the Supplemental and Alternative Crops (SAC) Competitive Grants Program, both which have their challenges and limitations, but are moving the needle in the right direction.

Looking ahead, Toombs says, “We are facing a future of challenges that will hurt us, that are attacking our natural resources.” She believes boosting ag productivity and helping to develop innovative solutions to maintain our leadership across the globe are the keys to the future, in which hemp has a role. She cited funding and resources, realigning priorities with the New administration, food and nutrition standards, and having enough data to make decisions as current USDA obstacles.

Symposium participant Deanie Elsner, CEO of Charlotte’s Web – a market leader in hemp-derived CBD extract products – made an impactful plea for regulations and standardization, an issue the plagues her business. “Have you ever known a CEO for the largest company in a segment begging for research? Well I am here begging. We have to get data in order to give the FDA comfort to move forward,”she said in regards to the need for regulatory certainty and an affirmative statement for CBD in dietary supplements.

She believes the mega-trend she calls a “wellness awakening” – a move from sick care to well care – is driving increasing consumer interest in hemp products. “In the end, we have this amazing plant that has potential to help millions around the world. It is up to us to make sure they have the access to full spectrum hemp extract. Research studies are needed. Research is the only thing that will get us through this, and lack of FDA regulation has been quite a challenge.”

Hemp Building Materials Have Big Role to Play in Environmental Renewal

Robert Ziner, the CEO of the Canadian Industrial Hemp Corporation (CIHC) writes this week in Hemp Today:

“According to the United Nations Environment Programme (UNEP), the conventional building sector contributes up to 30% of total annual greenhouse gas emissions globally. Left unchecked, those emissions will more than double in the next 20 years. Hemp can help.”

You can read the full article here.

Commercial Industrial Hemp Clears Another Hurdle in Kansas

Alice Manatee of The Hutchinson News in Kansas writes about the implementation of the hemp program in the Sunflower State:

“The Kansas Department of Agriculture held an open meeting on Jan. 20 to consider the adoption of a proposed regulation to govern commercial industrial hemp production in Kansas. KDA proposed amendments to the Act, K.A.R. 4-34-1, to better align with the requirements of the 2018 Farm Bill and the Commercial Industrial Hemp Act, which allows commercial hemp production in Kansas.”

You can read the full story here.

Hemp Growers Still Face a Number of Questions in Their Communities

The Albany Herald (GA) covers a study out of the University of Georgia’s College of Agricultural and Environmental Sciences faculty Benjamin Campbell and Julie Campbell in collaboration with Adam Rabinowitz at Auburn University. The survey asked respondents about the growing of hemp and the creation of hemp products in the areas in which they live.

You can read the article in the Albany Herald here. The original study was published in the Journal of Agriculture and Applied Economics which you can read here.

Few Steps Remaining To Open Industrial Hemp Farming In South Dakota

South Dakota’s KCCR-AM interviews Katie Sieverding, Executive Director of the South Dakota Industrial Hemp Association about the new USDA rule and the next steps for South Dakota’s state-based hemp regulations.

You can listen to the interview on KCCR-AM’s webpage here.
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This week, NIHC proudly announced a partnership and welcomed its newest member Food Safety Net Services (FSNS) to its ranks.

FSNS has been a leader in safeguarding our nation’s food supply through its network of accredited laboratories. With a cornerstone focused on safety, FSNS continues to strategically expand national services for food safety, consumer products and nutraceuticals.

We connected with Barry Carpenter, Senior Advisor for Regulatory Affairs & Client Relations for FSNS to ask more about the company and its role in the industry, and, of course, the value they see in NIHC efforts.

Carpenter (left) has held some very prestigious prior roles in his career. He served for over ten years as the CEO of the North American Meat Institute (NAMI) where he worked closely with government regulators, including new food safety regulations and marketing. He also served for nearly 15 years as the Deputy Administrator for the USDA’s Agricultural Marketing Service, where he oversaw commodity checkoff programs. While at USDA, he represented the United States on the United Nation’s Committee on Agriculture from 1990 until 2006.

With all this experience, Carpenter brings sage insight into the potential and future of the hemp industry. Here are his thoughts.

Checkoff programs provide the resources necessary to develop markets, build consumer confidence, conduct research and provide industry education. These are critical areas of need for the hemp industry.”

What encouraged FSNS to become a patron sponsor of the NIHC?

FSNS recognized that NIHC was optimally positioned to provide leadership for the hemp industry, through their engagement with producers and processors. Further, their Board of Directors has considerable experience and success working with Congress as well as federal and state regulators.

What plans does FSNS have that is making it a leader in safety of this growing industry?

FSNS has 27 years of experience supporting the food and beverage industry. Knowing safety is paramount to gain the confidence of consumers, FSNS will rely on the consistency and credibility of their processes and methodologies to enhance the industry’s image in the marketplace.

What type of standards do you believe need to be had for the CBD industry?

Cannabidiol is very complex! The array of products currently being produced along with new products being developed number in the thousands. The sooner federal and state regulators will establish safety standards, the better. The industry will respond to marketplace demands to establish standards for product quality and consistency. As the market matures, users of CBD will demand certain product attributes, and industry standards will evolve.

How do you see what FSNS does in other areas of food safety translating to making sure consumers have safe CBD?

FSNS has a team of highly skilled scientists and technicians that are continually working to improve methods and processes. Further, they rely on internal controls and outside audits to verify their performance. Processors will build their reputation and brand identity by providing consumers with safe products that consistently meet their expectations. FSNS provides those support services to the food and beverage industry and will do the same for the CBD industry.

As you’re aware, NIHC is also pursuing a checkoff program for hemp. Considering your prior work with the USDA under the Agricultural Marketing Service with oversight of checkoff programs, what challenges do you see for the hemp industry in establishing a checkoff program?

The major challenge faced by all new checkoff programs is getting buy-in from the producers and processors.  Drivers of the checkoff program will need to educate the producers so they are willing to take a leap of faith, and ultimately realize a return on their investment.

How do you believe a hemp checkoff program would help the industry?

Checkoff programs provide the resources necessary to develop markets, build consumer confidence, conduct research and provide industry education. These are critical areas of need for the hemp industry.

Barry, you have been a leader for many years in other industries to build momentum and encourage strict standards, as well as achieved much within your government work. With all that context, what excites you the most about the potential of the hemp industry, both within the U.S. and globally? 

The growth potential for hemp products is enormous. The industry has only scratched the surface of potential products and uses for the many derivatives of hemp. As the industry becomes more organized and focused, the growth will be astronomical. I am especially excited to help NIHC be a significant part of this transition.

What short- or long-term obstacles do you see that the industry should work to overcome?

Short-term, the industry needs to invest in research to provide regulators with the information they need to establish safety standards. Concurrently, sampling and testing methodologies need to be validated and standardized.

Long-term, the industry needs to work towards providing more clarity and consistency on product performance.  Further, to be successful long term, the industry needs to focus on efficiencies and new technologies in the production and processing sectors to enhance sustainability.

 

NIHC continues our work to serve as a credible resource to government officials in developing sound, common-sense regulations of America’s hemp economy. As part of those efforts, we have continued to engage the U.S. Senate Committee on Agriculture on a range of issues that have the potential to be included in 2023 farm bill development and negotiations anticipated to begin as early as this fall.

Relating to this, and to language in FY22 Appropriations bill extending 2014 Farm Bill authorities for another year through 2022, NIHC has been asked by Senate Ag committee staff to solicit feedback and comments from state regulators. This will help them compile the comments on what is and isn’t working in their state hemp plans under the 2014 pilot authority and the 2018 authority, as implemented by the USDA Final Rule.

On September 18, NIHC staff and members of our Government Affairs committee will be attending the annual meeting of the National Association of State Departments of Agriculture (NASDA) in Louisville, Kentucky. At NASDA’s meeting, NIHC will have a breakout room available to us to meet with individual states to hear their concerns and discuss proposed solutions. After NASDA’s annual meeting, NIHC will compile comments from state regulators and deliver them to Senate Ag committee staff.

This is a value-add to the hemp industry as a whole and NIHC is proud to lead these efforts and be your voice to the Senate Ag Committee, NASDA and the states that we believe will deliver workable solutions that will create a hemp economy that works for everyone.

If you plan to be at the NASDA meeting and would like to meet with NIHC to discuss how hemp is being regulated in your state, please contact Grace Johnson at gjohnson@hempindustrial.com so we can deliver your feedback to Washington and make sure your voice is heard on Capitol Hill.