Dear Chairwoman Stabenow and Ranking Member Boozman:
On behalf of our members nationwide, the National Industrial Hemp Council of America (NIHC) offers its recommendations, enclosed with this letter, for incorporation in the 2023 Farm Bill toward ensuring the viability and global competitiveness of U.S. domestic hemp production. The 2018 Farm Bill re-legalized the production of hemp, and before that the 2014 Farm Bill authorized its research, but these new authorities have fallen short in enabling hemp to develop as a commodity at significant scale. As Congress takes up our nation’s next Farm Bill, the time has come to apply the many lessons learned over the past decade and resolve these shortcomings.

Few if any crops have ever presented such a wide range of uses as hemp. Integral to human civilizations for millennia, and with countless innovative applications emerging at a dizzying pace, hemp produces high protein foods and feeds from its seeds; wide-ranging industrial applications from its stalks, including textiles, paper, bioplastics, building materials, renewable energy, and advanced composites; and wellness products in high demand by consumers worldwide. Grown at scale, hemp offers unparalleled opportunity for climate-smart agriculture, resilient rural economies, and increased domestic self-reliance in food security and manufacturing. But despite the best efforts by regulators and industry stakeholders, shortcomings in Federal law continue to squander these opportunities and portend hemp’s demise as a U.S. commodity if not resolved in the next Farm Bill. NIHC’s recommendations are aimed at avoiding such an outcome.

NIHC is the hemp industry’s DC-based trade association. We serve our members and the industry at large by integrating our industry’s expanding expertise with senior-level agricultural policy practice to deliver credible analysis and coordination on the full range of legislative, budgetary and regulatory matters impacting the hemp value chain. Headed by former USDA executives, senior Hill staffers and agricultural trade association leaders, we focus on building capacity for farmers, businesses, regulators and consumers across all segments of the hemp industry, to fulfill hemp’s promise as a keystone of American agriculture and as a driver of opportunity for all.

The 2018 Farm Bill re-legalized the production of hemp, and before that the 2014 Farm Bill authorized its research, but these new authorities have fallen short in enabling hemp to develop as a commodity at significant scale. As Congress takes up our nation’s next Farm Bill, the time has come to apply the many lessons learned over the past decade and resolve these shortcomings. Few if any crops have ever presented such a wide range of uses as hemp. Integral to human civilizations for millennia, and with countless innovative applications emerging at a dizzying pace, hemp produces highprotein foods and feeds from its seeds; wide-ranging industrial applications from its stalks, including textiles, paper, bioplastics, building materials, renewable energy, and advanced composites; and wellness products in high demand by consumers worldwide. Grown at scale, hemp offers unparalleled opportunity for climate-smart agriculture, resilient rural economies, and increased domestic self-reliance in food security and manufacturing.

But despite the best efforts by regulators and industry stakeholders, shortcomings in Federal law continue to squander these opportunities and portend hemp’s demise as a U.S. commodity if not resolved in the next Farm Bill. With that decade of lessons in mind, and with the goal of unfettering this new yet ancient crop to fulfill its promise for American agriculture, the National Industrial Hemp Council offers the following recommendations for inclusion in the next Farm Bill:

1. FIT-FOR-PURPOSE COMPLIANCE TESTING.

• Dual hemp licensing: Differentiate “Industrial” (fiber and grain) from “Horticultural” (flower).
• Test products at point of transfer/sale: Consistent USDA controls on lawful transfer of hemp.
• Performance-based sampling for “Industrial,” pre-harvest testing for “Horticultural:”. Visual inspection of “Industrial” and statistically valid pre-harvest testing of “Horticultural.”
• Adopt the NASDA-recommended threshold of 1% total concentration of all tetrahydrocannabinols, to relieve farmers of undue risk and avoid false findings of non-compliance.
• Permanently remove requirements for DEA certification of hemp testing labs.

2. EQUITY AND OPPORTUNITY FOR ALL IN DOMESTIC HEMP PRODUCTION.

• Eliminate background checks and remove felon ban for hemp farming.
• Prohibit the re-criminalization of hemp.
• Designate hemp seed and hempseed by-products as feed for non-consumption animals.
• Enact “Safe Banking” for hemp.

3. NORMALIZE HEMP IN USDA RESEARCH AND SUPPORT PROGRAMS.

• Permanently dual-designate hemp as both specialty and commodity crop depending on the purpose for which it is grown.
• Direct USDA to include hemp in all subsidy and grant opportunities for which other commodity and specialty crops qualify, including research programs.
• Permanently authorize hemp as eligible feedstock for renewable energy research and support.
• Ensure USDA has access to adequate funding to administer hemp production in all 50 states;
• Increase USDA FAS MAP and FMD funding to increase promotion of US hemp exports.
• Establish and fund US Hemp Fiber Standards and Quality Act to create an ARS hemp structure and research center similar to the Cotton Structure and Quality Research Unit in New Orleans.
• Authorize and fund a properly staffed, USDA-led inter-departmental hemp working group and FACA committee that includes multiple agencies and a cross-section of hemp industry stakeholders.

1. FIT-FOR-PURPOSE COMPLIANCE TESTING.

One of the greatest hindrances to hemp production in the United States is the protocol for THC compliance testing. Though hemp has been produced overwhelmingly throughout its multi-millennial history for products of its seeds (grain) and stalks (fiber), which are biologically incapable of producing THC or any other cannabinoid, U.S. law currently requires THC testing of all hemp crops, including those grown for fiber and grain, but does not require testing of hemp products. This is the case even though THC levels can fluctuate slightly in all hemp crops due to conditions beyond farmers’ control, whereas finished products can be specially formulated in a controlled setting to contain specified amounts of THC and synthetic analogs. Thus, the current approach to hemp compliance testing carries undue risk to farmers, which has a chilling effect on farmer adoption and investment (particularly in fiber and grain), while having little bearing on the amount of THC in products entering the hemp market. Ideally, hemp should be treated like any other agricultural commodity and not subjected to compliance testing of crops in the field, but rather tested and certified as needed when the resulting products enter commerce, just like dairy, meat and cotton.

Nevertheless, NIHC recognizes that hemp, as a type of cannabis, elicits a range of stakeholder concerns that are heightened by its cultivation–especially horticultural cultivation of hemp for CBD production, which is difficult to distinguish from cultivation of marijuana. For this reason we propose to differentiate testing of crops grown for fiber and grain (“Industrial Hemp”) from testing of crops grown for flower and their cannabinoids (“Horticultural Hemp”), while establishing meaningful protocols for testing of hemp products upon entering commerce:

A. Fit-for-purpose hemp licensing – Differentiate “Industrial Hemp” (fiber and grain production) and “Horticultural Hemp” (flower/cannabinoid-only production):

Direct USDA to develop regulations for issuing two license types nationwide; states can opt out of dual licensing and authorize only one or the other. Industrial Hemp: fiber and grain crops and products thereof, grown only outdoors (broadacre); USDA to define quantitative criteria, such as plant density, in rulemaking. Horticultural Hemp: flower crops, nursery stock and products thereof. Any hemp crop not meeting Industrial Hemp criteria is Horticultural Hemp. Include a research sub-license type for companies that are developing and producing seeds for replanting purposes.

B. Fit-for-purpose testing of hemp products at point of transfer/sale: Direct USDA to develop regulations for consistent nationwide controls on lawful transfer of hemp products: ‘Industrial Hemp License:’ (verifying that crop is from licensed producer) must accompany all transfers regardless of type—industrial or horticultural. ‘USDA-Compliant Hemp Certificate:’ (establishing THC compliance, similar to how USDA certifies dairy, meat, etc.) must accompany all transfers containing flower or flower derivatives, regardless of license type—industrial or horticultural. ‘USDA Hemp Processor License:’ must accompany in-process flower derivatives (concentrates) that exceed the Federal threshold for THC in hemp; not for retail sale, and lawful for possession and transfer only by holders of the USDA Hemp Processor License.

C. Fit-for-purpose performance-based sampling and testing of hemp crops. Direct USDA to apply statistically valid testing of horticultural hemp crops to ensure against illicit marijuana production, and to apply its existing performance-based sampling authority nationally for industrial hemp crops: Performance-Based Sampling for Industrial Hemp crops: Direct USDA to apply its existing authority for performance-based sampling nationwide, with visual inspection criteria for Industrial Hemp Pre-Harvest Sampling and Testing for Horticultural Hemp crops: Direct USDA to update its existing pre-harvest sampling and testing regulations to ensure that compliance determinations are made based on statistically valid confidence intervals (margins of error) for estimated THC levels, accounting for in-field sampling variance as well as laboratory measurement uncertainty. Performance-Based Sampling Option for Horticultural Hemp crops: Direct USDA to standardize it existing authority for performance-based sampling as an available alternative to pre-harvest sampling and testing for horticultural licensees based on 3 prior years of compliant tests, and for immature nursery stock. Fund research to determine potential applicability of variety/seed certifications for use in performance-based sampling.

D. Adopt the NASDA-recommended threshold of 1% total concentration of all tetrahydrocannabinols, to relieve farmers of undue risk and avoid false findings of non-compliance. Another major factor causing compliance testing to be a hindrance is the definition of hemp as provided in the 2018 Farm Bill, which is based on a 0.3% delta-9 THC threshold for compliance. The originators of this 0.3% figure explicitly acknowledged it as arbitrary in the peer-reviewed scientific literature where it first appeared (Small and Cronquist, 1976), and reiterated this acknowledgment in public statements in 2021 while further recommending 1% as a more appropriate threshold. The current definition also does nothing to limit the entry into the hemp market of products containing other intoxicating tetrahydrocannabinols besides delta-9. Finally, the natural range of variation of hemp plants in the field makes it problematic at best to determine non-compliance with statistical validity at such a minuscule quantity. If challenged in court, the overwhelming majority of non-compliance determinations made under the existing definition would likely not meet the minimal burden of proof for sanctioning private property as required by the Administrative Procedures Act. To rectify these problems, NIHC supports the resolution adopted by the National Association of State Departments of Agriculture, by a 45-3 vote, to revise the definition as follows: The term “hemp” means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a total tetrahydrocannabinol concentration of not more than one (1) percent on a dry weight basis.

E. Permanently remove requirements for DEA certification of hemp testing labs. Since promulgating its regulations implementing 2018 Farm Bill direction for domestic hemp production, which includes this provision, USDA has wisely exercised its administrative discretion to suspend this requirement every year, lest it hobble the industry for lack of sufficient DEA-certified laboratory capacity around the country. Labs with USDA-approved accreditations, which can be found in greater abundance around the country and also newly established at lower cost, can be relied upon to provide adequate verification of THC levels for determining compliance. Congress should thus eliminate the DEA certification requirement in favor of this approach.

2. EQUITY AND OPPORTUNITY FOR ALL IN DOMESTIC HEMP PRODUCTION.

A. Eliminate background checks and remove felon ban for hemp farming. No other agricultural commodity requires such a policy, which most impacts rural and underserved communities, reinstitutionalizes the racial injustices of the War on Drugs, and harkens to the long history of racial discrimination in American agriculture that USDA and the nation at large still struggles to overcome. Such restrictions should not be permitted in Federal or State law. Furthermore, farming is a productive pathway for people convicted of felonies to re-engage in their communities. No correlation has been shown to indicate that former felons are any likelier to commit crimes in connection with hemp farming than in connection with farming of any other crop.

B. Prohibit the re-criminalization of hemp. As with the discriminatory undertones of banning felons and requiring background checks for hemp licensing, numerous efforts are underway at the state level that portend to restrict interstate commerce in Federally lawful hemp and hemp products, and in some cases even to outlaw their possession. While States have the prerogative to regulate sales that take place within their borders, current law prohibits States and Tribes from impeding the transport of Federally lawful hemp in interstate commerce, and this should be amended to prohibit impeding the possession of Federally lawful hemp as well. Otherwise, injustices that remain prevalent in narcotics enforcement may extend into a substance whose legality is fully ensconced in Federal law.

C. Designate hemp seed and hempseed by-products as animal feed for pets, specialty and exotic pets, and horses. Just like other commodity crops that serve the protein and oil feed markets, hemp seed based ingredients should be excluded from the 1958 Food Additive Petition requirements. The exclusion should be limited to ingredients that are: sourced from only from hemp seed harvested from Federally compliant crops; are for non-consumption species (companion, exotic, equine, and any other non-consumption animals); possess no added cannabinoids; and comply with existing animal feed manufacturing processes, labeling requirements, and product registrations. Additionally, timelines for applications to the FDA’s Center for Veterinary Medicine (CVM) should be shortened: FDA responses should be required within 60 days of submitting initial and each subsequent response, and final decisions should be required within a maximum of two years. Budgetary support should be granted to the FDA-CVM to meet these obligations.

D. Enact “Safe Banking” for hemp. Amid fitful efforts to normalize banking for cannabis businesses despite the continuing prohibition of marijuana under Federal law, the hemp industry—especially small businesses and enterprises in rural and underserved communities—continues to suffer from the same lack of access to banking, advertising, and other essential business services. Despite the Federally legal status of the products they sell, hemp businesses are forced to pay onerous fees for these essential services; if indeed they can even access them at all. Payment processors, lenders, investors, media outlets and other service providers need to know that they are protected against the possibility of sanctions for serving businesses that engage in hemp commerce; no other agricultural commodity faces such difficulties and the Farm Bill is an appropriate vehicle to rectify this problem.

3. NORMALIZE HEMP IN USDA RESEARCH AND SUPPORT PROGRAMS.

• Make permanent Congress’s FY22 budget direction to USDA to dual-designate hemp as both specialty and commodity crop depending on the purpose for which it is grown.
• Direct USDA to include hemp in subsidy and grant opportunities for which other commodity and specialty crops qualify, including research programs.
• Permanently authorize hemp as an eligible feedstock for renewable energy research and support.
• Ensure USDA has access to adequate funding to administer hemp production in all 50 states in the event more States terminate their hemp programs (in favor of USDA’s improved hemp regulations).
• Increase USDA FAS MAP and FMD funding to increase promotion of US hemp exports in order for the Market Access Program and Foreign Market Development Program to more adequately promote the global competitiveness of U.S. hemp.
• Establish and fund US Hemp Fiber Standards and Quality Act to create a USDA ARS hemp structure and research center similar to the current USDA-ARS Cotton Structure and Quality Research Unit in New Orleans,
• Authorize and fund a properly staffed, USDA-led inter-departmental hemp working group and FACA committee that includes multiple agencies, departments and a representative cross-section of hemp industry stakeholders,
  hartered to advise on rulemaking, regulatory implementation, support programs and trade issues within USDA and other Departments.

WASHINGTON, D.C. – The National Industrial Hemp Council of America (NIHC) President and CEO Patrick Atagi sent a letter today to U.S. Food and Drug Administration Commissioner Robert Califf urging approval of hemp seed as an animal feed ingredient.

The letter comes after a widely attended webinar hosted by the NIHC and the American Association of Feed Control Officials (AAFCO). The meeting brought together officials from the United States Department of Agriculture(USDA), FDA, industry stakeholders, and policymakers from across the country. The August webinar highlighted the science around animal feed and was attended by over 1,000 state regulators, veterinary professionals, and hemp industry advocates.

Atagi points out the numerous clinical trials on hemp seed ingredients in animal feed by Land Grant Universities and others that have been submitted to the FDA that all show the same outcome, that there is no transference of cannabinoids into the nation’s food supply chain from animals raised on hemp seed meal. Those results have been consistent across the various species of animals, including laying hens, hogs, and dairy cattle.

Atagi also pointed out that the U.S. Drug Enforcement Agency (DEA) said earlier this year that hemp seeds are not considered a controlled substance.

“Hemp is an environmentally responsible and domestically grown alternative,” said Atagi. “Considering the higher costs associated with the worldwide grain shortage, a sustainable American hemp crop is a nutritious source of animal feed and can lower the cost of farming feed inputs. This would be good news for not just farmers but for consumers who now struggle with the higher costs of milk, meat, and eggs.”

WASHINGTON, D.C. – The National Industrial Hemp Council of America (NIHC) President and CEO Patrick Atagi released the following statement after President Joe Biden announced he would be pardoning all federal offenses for simple marijuana possession and directing federal regulators to review how higher-THC cannabis is scheduled: 

“We welcome the President’s executive action to reverse the effects of the nation’s antiquated drug laws that have served only to create an unsafe and illicit market for higher-THC cannabis products. We strongly believe that the nation’s prohibitionist approach to marijuana has severely hamstrung the industrial use and environmental benefits of the burgeoning hemp industry. 

“Hemp can be food. Hemp can be shelter. Hemp can be clothing. Hemp can be medicine. But what hemp is not is higher-THC cannabis. But with the right approach, federal regulators can begin reviewing the end use of cannabis products to make them safer, create access across the board to the banking system for all cannabis operators, and create standards and labeling requirements so that consumers have confidence in the quality of the products they’re buying.

“The NIHC does not support current efforts in the Senate to legalize cannabis because of unreasonable proposals that would regulate hemp-derived products. We’re thankful the White House is engaging in this important discussion, and we look forward to working with them to create a hemp economy that works for everyone.”

About NIHC 

The National Industrial Hemp Council of America provides high-quality networking and resources for its members, from farm to consumer. Its leadership is composed of leading international, federal, state, private industry, and government professionals throughout the sector. The organization is dedicated to furthering market development, assisting members in entering the industry, and educating consumers on industrial hemp and its applications. For more information, please go to www.nihcoa.com.

# # #

This week, the National Industrial Hemp Council of America sent a letter to U.S. Senate Majority Leader Chuck Schumer (D-NY) asking for a swift confirmation vote on the Senate floor of Alexis Taylor to be the Under Secretary of Trade and Agriculture Affairs at the United States Department of Agriculture. 

Last week, the U.S. Senate Committee on Agriculture advanced Taylor’s nomination with a bipartisan consensus. 

Nominated earlier in the year by President Biden, Taylor currently serves as Director at the Oregon Department of Agriculture.  

Day two of the NIHC’s 2022 Business, Research, and Farm Summit brought an intriguing conversation about the challenges of hemp banking and the risk management practices financial institutions must consider before engaging in this emerging industry.

We also heard from some of our industry colleagues from other hemp trade associations about how working together works and about how hemp growers can become certified as organic.

We thought we were done after an intriguing conversation with NIHC members Delta Agriculture and element6 Dynamics about how they’re both working to bring conventional farming practices to the hemp industry….

But we ended the Summit with a big announcement about NIHC and added a well known name to our ranks.

Read on for the complete day two wrap. Whether you joined us in person or virtually, thank you for participating in the 2022 Business, Farm, and Research Summit.

Hemp Banking is Here Today (Panel 5) 

We have come a long way in 2022 with farm credit and banks engaging and offering services to the hemp industry.

Attendees at the 2022 Business, Farm, and Research Summit heard directly from one of our industry’s leading banks and an American Bankers Association (ABA) official.

Ed Elfmann representing the ABA as the SVP of Agriculture and Rural Policy, addressed the irony that the American Bankers Association has had an agriculture committee since 1913 – and in the hemp life cycle, they were probably lending to hemp farmers back then, and then it’s come full circle. It seems we’re starting over again.

“From a lending standpoint and a USDA perspective, it’s important to understand the industry,” Elfmann said.

He addressed further challenges of financing the hemp industry. For instance, Elfmann used the example of what if you have been funded and your crop tests hot three times in a row. Or what happens if Dad has a license and the son helps farm, but the dad passes away?

These are all challenges the banking industry is trying to solve so that capital flows freely to help operators.

“We’re trying to be partners in this at the end of the day,” Elfmann said. “We’re not trying to be adversarial; we want to work with you.”

As a banker, Elfmann asked Ross Sloan, SVP of Hemp and Cannabis Banking at West Town Bank and Trust do you treat hemp differently than other commodities.

“Yes, there are unique challenges with hemp in each sector,” Sloan said.

From the grower’s perspective, there is testing. For processors, Sloan said that the in-process limits need to comply with the law, which is challenging.

As it relates to the SAFE Banking Act, Elfmann says from a banking perspective that it presents a challenge when companies are growing and processing higher-THC marijuana.

Some challenges include whether the equipment financed and used for marijuana and hemp cultivation or even selling higher-THC and hemp-derived products presents a challenge with funds segregation.

Elfmann used the example that if you own a strip mall with a dispensary and that dispensary pays rent, then that strip mall owner is now violating federal law.

“These are nuances,” said Elfmann. But those are the risk management issues that banks consider every day. “Have proper documentation.  Like any business, this industry needs to be the same [as other businesses] for your banker to feel comfortable.”

He advised attendees to have their business plan, cash flow statements, etc., and share them with their bankers.

For hemp growers and processors who are just starting an agribusiness, Elfmann encourages them to enroll in programs like the USDA’s Beginning Farmers program at USDA or SBA loans.  Elfmann notes that these loans guaranteed by the federal government help banks reduce the risk.

“USDA programs, if you’re able to use them, are tremendous,” said Elfmann.

Working Together Works! Who is Who in the National Hemp Trade Associations? (Panel 6)

Individuals, organizations, and companies often ask, “With so many trade associations in the hemp industry, which one should I join?” With a small group of organizations engaged in the national hemp industry, no rule says you can only belong to one!

Today, we heard about how our industry groups are working together on behalf of the hem industry. NIHC President and CEO Patrick Atagi moderated a panel of leading hemp associations that included Mandi Kerr, CEO, and Founder of the Global Hemp Association; Jacob Waddell, Executive Director of the U.S. Hemp Building Association; and Fred Cawthorn, Vice President of the U.S. Hemp Roundtable.

Wadell said at the beginning, “There is power in numbers. We need to start working together and soothing any issues that we have,” noting how hemp industry associations can work together.

Noting other industry trade associations have been working together, Wadell said we need to copy that blueprint to continue making the strong argument for the hemp industry to continue to deliver wins for hemp operators.

Atagi started the discussion with a question about what you would do without any budgetary constraints.

Kerr talked about entering into existing markets.

“We need to be the go-to for sequestering carbon,” Kerr said, noting that she wants to put together a hemp road show to highlight throughout different parts of the country what the hemp plant can do while also putting together a database for the industry to further inter-industry collaboration.

Cawthorn noted the synergies within the hemp industry.

“Three years ago, we weren’t here,” referring to sitting at a table together at an industry conference. Cawthorn highlighted projects he’s working on within Tennessee with Wadell and the U.S. Hemp Building Association.

But where are we headed Atagi asked.

Atagi talked about the need to be bipartisan, find ways to work together, and “put our best foot forward.” He spoke about how as an industry, NIHC is leading an effort through FAS’s Market Access Program with the folks at Let’s Talk Hemp to create an expo in Asia to open up the Asian market for U.S. hemp products.

Organics: A Market for Hemp Products

The organic industry tops over $50 billion in sales annually, making it the fastest-growing American food and agriculture segment. The USDA organic label is the gold standard for product differentiation in the marketplace. Hemp producers and processors can also benefit from this voluntary labeling program by obtaining premiums for their products and meeting their consumers’ demands.

Oregon Tilth works to make our food and agriculture biologically sound and socially equitable. They see the marketplace as the best opportunity to drive change in how we produce food and other products – including hemp.

Levi Frederickson, who helps lead the mission at Oregon Tilth as an Education Services Specialist, spoke today at the Summit and talked about hemp fits into the equation.

He noted that Oregon Tilth has been helping hemp farmers and processors become certified organic and maintain that certification since 2019. Currently, Frederickson said that Oregon Tilth certifies 150 businesses growing or handling organic hemp or organic hemp derivatives.

“We’re here for free,” Frederickson said, noting that they can help you assess before you plant or develop a label, a process, or a formula.

Frederickson addressed some of the common questions he gets about hemp.

With regards to feminized seeks, he said yes, they can be considered organic, to a certain extent. Addressing ethanol use in extraction, Frederickson says that corn-derived ethanol should be certified organic for hemp production.

THC levels of hemp do not affect its organic certification. Still, Frederickson notes that if the hemp test above .3 percent delta-9 THC then it’s not considered hemp but could still be considered organic.

Lastly, while he said Oregon Tilth could not recommend a specific compliant spray for hemp russet mites, he did say that he could provide a list of sprays that could be used and still meet an organic certification.

He says Oregon Tilth certifies is not specific to Oregon but can certify in all 50 states. You can call them at (541) 201-8042.

Bringing Conventional Farming Practices to the Hemp Industry (Panel 7)

Delta Ag and element6 Dynamics (formerly Sana Fe Farms) are the largest producers of hemp in the country, and Fortune 500 countries trust their carbon-negative materials.

Attendees heard from Issac Cohen, the VP of Cultivation at element 6; Graham Owens, President of Delta Agriculture and Jona Williams, the SVP of Operations at Delta Agriculture.

While hemp might be a new crop, both companies are implementing traditional agriculture practices in this emerging and exciting industry.

Williams started by referencing NIHC Chief Economist Beau Whitney’s presentation that roughly 60 percent of hemp growers fear they won’t be in business in two years. Williams noted that we need to grow and process the whole plant.

“If you were raising cattle only for the filet, then you wouldn’t be in business very long,” said Williams.

His colleague at Delta Ag, Owens, agreed, saying that companies like theirs and element6 are successful because they have lined up buyers and can show farmers there is a pathway to profitability in the hemp marketplace. Otherwise, “none of it matters,” Owens said, referencing the other conversations that have been occurring at the 2022 Summit around the end use of products, standards, and carbon offsets because we must grow hemp first.

“We’re not unique. We’re like every other row crop,” Owens said.

Cohen from element6 Dynamics says that in conversations with farmers across the country, they like the challenge of growing a new crop like hemp. Their approach is to work with other growers and plant hemp next to other row crops to show the value of hemp as a rotational crop.

“We believe we need to plant more than 20 acres to prove the value of it,” referencing educating farmers about planting a new crop like hemp.

Williams chimed in by saying, “margins matter” while referencing the price of gas and the cost of transportation. The closer the yield can be to the processing facilities, the better.

Williams also addressed the surprise of farmers not realizing that hemp can be grown and harvested just like any other row crop with farming equipment like combines. He noted how when he first got into the hemp business, he harvested acres by hand without using farm equipment, which he said was the most challenging work of his life.

Cohen said, “we’ve proved we could do it” on 50-acre plots, and they’re looking to move to 100-acre parcels.

Both companies agreed a challenge is the broken promises of the past when farmers were recruited to grow hemp and promised more significant amounts of profitability than other commodities per pound but ultimately were never paid.

Both companies agreed on the need to change the narrative and begin growing hemp the right way and the need to treat and talk about hemp as a traditional agriculture commodity.

Oregon State Global Hemp Innovation Center Director Retires and Announces He’s Leading the NIHC Foundation 

Jay Noller, the Director of the Global Hemp Innovation Center (GHIC) at Oregon State University, announced at the end of NIHC’s 2022 Business, Research, and Farm Summit meeting that he will retire from the Global Hemp Innovation Center.

Noller will begin the new challenge of building and leading the NIHC Foundation.

Noller recounted his time as the head of the GHIC and the challenge of studying hemp varieties and the hemp industry in general before the passage of the Farm Bill by noting that he had to begin his research in Eastern Europe because hemp wasn’t yet legal.

“That’s why the Global Hemp Innovation Center says global,” Noller said in the name of Oregon State’s hemp research center before pointing out that he started his research overseas.

Noller says handwritten notes suggest the USDA had a research center originally in Corvallis to study hemp. But in 1970, the Nixon administration expunged all federal records of cannabis plants every existing.

“So, we have to reinvent a wheel,” he concluded but noted, “I think we’re well positioned to do it.”

Global Hemp Innovation Center Tour

NIHC’s 2022 Business, Farm, and Research Summit had a lot of fascinating discussions centered around the economics of hemp, the business of hemp, and the science of hemp.

As exciting as the two days’ worth of discussions were before we left Corvallis, we wanted to make sure to put the research into the Summit. As part of the registration, attendees were able to take a four-hour tour of Oregon State University’s Global Hemp Innovation Center (GHIC).

The GHIC is home to more than 60 experts focused on all aspects of hemp. GHIC is a comprehensive center that works to coordinate research, instruction, outreach, and engagement efforts to advance the establishment of this new-old crop into American agricultural landscapes. The Center seeks to create a holistic, results-driven, and scholarly ecosystem wherein faculty and students can effectively engage industry partners and work with other like-minded institutions to enable their activities in helping meet the growing world demand for food, health, fiber, and other consumer products made from hemp. The following were what attendees had an opportunity to visit and meet some of the researchers and learn about these exciting projects to advance our industry.

Building Materials. Construction materials testing and development, hempcrete, and building structure integrity testing. Department of Wood Science and Engineering, Richardson Hall, College of Forestry and Tallwood Design Institute.

Hosts: Dr. John Simonsen and Evan Schmidt. 

Genetic Improvement. Hemp germplasm, breeding, and genomics. Greenhouses and Seed Certification/Testing Services. Departments of Crop and Soil Sciences and Horticulture, College of Agricultural Sciences. West Greenhouses.

Hosts: Drs. Stephen Baluch, Kelly Vining, and Bob Zemetra. 
 
Cannabinoid Chemistry, Analyses, and Testing. Van Breemen Laboratory-Linus Pauling Institute. College of Pharmacy.

Hosts: Dr. Ruth Muchiri and Alan Wong. 

Food and Beverage Development and Testing. Facilities for olfactory sensing, oil testing, and super-critical separations laboratory. Department of Food Science and Technology. Wiegand Hall. College of Agricultural Sciences.

Hosts: Drs. Paul Hughes and Michael Qian. 

Business and Engineering Services and Support. College of Business: Center for Supply Chain Management, Center for Consumer Insights; and College of Engineering: Energy Efficiency Center / Industrial Assessment Center. Austin Hall.

Hosts: Drs. Johnny Chen, Zhaohui Wu, and Jonathan Leong (COB) and Dr. Karl Haapala, Maritza Perez, and Mario Israel Riofrio (COE). 

Livestock Research Facilities. Utilization of hemp in diets of livestock that produce food products. Department of Animal and Rangeland Sciences, Hamb Building, West Campus. College of Agricultural Sciences.

Host: Dr. Serkan Ates. 

We believe the entire team at Oregon State deserves our recognition and thanks for hosting us and helping us put together this amazing event. Special thank you to Dr. Staci Simonich, the Dean of Oregon State University’s College of Agriculture Sciences, and her entire faculty and staff. We also want to recognize Jay Noller, the Director of the Global Hemp Innovation Center; Associate Director Jeff Steiner; GHIC’s Center Administrator Kristin Rifai, and all of the researchers who helped us plan this event, took the time to visit with us and share with attendees the important work they’re doing to move our industry forward. We appreciate your hospitality, your partnership, and your commitment to pursuing the science of this wonderful plant that has the potential to meet a diverse set of needs and make the world a better place.