Senator Rand Paul Re-Introduces the HEMP Act to Raise THC Threshold to One Percent

NIHC Weighs in on its Language

 

This week, Senator Rand Paul (R-KY) introduced the Hemp Economic Mobilization Plan (HEMP) Act that would raise the delta-9 THC threshold to one percent.

The HEMP Act also requires testing of hemp-derived products rather than the hemp flower or plant itself. Additionally, to help prevent legal hemp from being seized during transport, the bill requires that hemp shipments be accompanied by one of two easily accessible types of documentation.

“For years, I’ve led the fight in Washington to restore one of Kentucky’s most historically vital crops by legalizing industrial hemp,” said Senator Paul in a press release introducing the bill.  “We achieved a hard-won victory, but there is still work to do to prevent the federal government from weighing down our farmers with unnecessary bureaucratic micromanaging. My legislation will help this growing industry reach its full economic potential, and I am proud the bill has strong support all the way from local Kentucky farmers and activists to national groups.”

Last year, Senator Paul introduced similar legislation toward the end of the 116th Congress. One of the major differences in the legislation introduced last year and the bill Senator Paul introduced this week was language on transportation.

NIHC provided the language to Senator Paul’s office that would require a copy of the producer’s hemp license or lab certification that the hemp contains no more than one percent delta-9 THC so that law  enforcement officers can easily determine that the hemp in transport has already been lab tested; is compliant with current law; and is not marijuana.

Patrick Atagi, Board Chair of the NIHC was quoted in the press release from Senator Paul’s thanking the Senator for listening to NIHC’s concerns, particularly about hemp in transit and saying that the HEMP Act will help create economic benefits.

“Senator Rand Paul’s legislation is very timely with the state departments of agriculture’s passing policy that would re-define hemp at one percent,” said Atagi. “We also are thankful for the Senator’s recognition of the importance of defining hemp in transit. We appreciate his willingness to engage with us and listen to our industry. We believe the HEMP Act is important for consumers and the consumer’s right to know and are proud to support Senator Paul’s efforts. If passed, the HEMP Act will help with the overall economy and providing jobs to Americans.”

You can read the HEMP Act of 2021 in it’s entirely here and read a fact sheet with background information on the bill here.

iStockphoto.com/zoran orcik

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Putting the U.S. Industrial Hemp Industry on the World Map

An Interview with NIHC’s Kevin Latner

“We have developed a comprehensive plan based on NIHC vision and mission to promote U.S. worldwide,” explains Kevin Latner, NIHC’s Senior Vice President of Trade and Marketing. “Policy initiatives, trade facilitation, supply chain development and market development will provide the framework for U.S. export success.”

In November 2020, USDA’s Foreign Agricultural Service (FAS) notified the National Industrial Hemp Council (NIHC) that it had been approved as a recipient of Market Access Program (MAP) funds. The funding, should be available by April this year, provides NIHC the ability to grow the international market for the U.S. hemp industry. This will allow the hemp industry to develop program success such as other industries (e.g., peanuts, cotton, beer and wine, raisins, poultry and eggs, grains, dairy) have created in international trade opportunities for their industries through MAP programming.

Traditionally, MAP programming includes developing trade policy, trade facilitation, supply chain development, and market development. What will programming for NIHC look like? “As a new to market product and a first-year program NIHC, our first priority will be identifying market opportunities, including priority markets, and communicating about the quality and availability of U.S. product to those markets.”

IMAGES FROM ISTOCKPHOTO.COM

Overview

Latner is spearheading the initiative and for good reason. He is an experienced executive leader, a change strategist and former U.S. diplomat. He has been in international agriculture and marketing for over 30 years delivering organizational leadership and operational excellence as a senior government, association and private sector leader. ​Specifically, his experience working at FAS for 15 years and running MAP programs for large participants provides NIHC the expertise to launch and maintain this initiative.

MAP programs extend to virtually every corner of the globe, helping to build markets for a wide variety U.S. farm and food products. FAS provides cost-share assistance to eligible U.S. organizations for activities such as consumer advertising, public relations, point-of-sale demonstrations, participation in trade fairs and exhibits, market research and technical assistance. When MAP funds are used for generic marketing and promotion, participants must contribute a minimum 10-percent match. For promotion of branded products, a dollar-for-dollar match is required.

It is quite an accomplishment to receive MAP funding. There is only $175 million distributed amongst competitive applicants. The requirements are rigorous to get and maintain the funding. “It is the widely recognized as one of the best public-private partnerships,” says Latner. MAP programs benefits not just an individual company, but the entire industry by leveling the playing field. Individual companies benefit through greater access and market opportunities internationally. According to market research by Informa, it was concluded that the return on investment for Market Access Program funds is 30-35 to 1.

Rigorous application criteria and a comprehensive application process ensures that funds are allocated through a competitive process. Applications must understand their markets, be able to report on trade and have developed meaningful performance metrics to evaluate program results. “In addition, NIHC’s leadership is bringing the industry together behind a unified banner on trade development that has been a critical component to securing funding,” explains Latner. “We look forward to continuing to work cooperatively with stakeholders as we use this funding on behalf of the industry.”

Export Readiness – Are You Ready?

While the appeal to reap the benefits of a 35-1 return on investment is attractive, Latner says you must be qualified to navigate international business. If you need help determining your export readiness, individual companies work through the NIHC, state departments of agriculture or the state regional trade groups (i.e., FoodExport, the Southern U.S. Trade Associationand the Western U.S. Trade Association). These organizations will help direct companies to international trade shows where business relationships can be built. Some organizations will even provide translators, offer translation services for marketing materials, and other support.

With the pandemic, business-building programming is sporadic, but NIHC’s long-term plans include trade missions and sponsoring international trade shows. “In a new industry, like hemp, the best way to do this is get in front of people to establish trust in relationships. We want to help create the marketplace to offer business-to-business marketing.”

The demand for hemp worldwide is growing, notes Latner. “Last year, Bloomberg estimated that by 2023 the hemp industry would be a $25 billion global market. NIHC’s implementation of the MAP program will allow the U.S. industry to communicate to government about market access challenges, better understand market opportunities and create business to business marketing opportunities,” he says.

Ultimately, NIHC’s implementation of the MAP will build market development opportunities for U.S. hemp exports through education and communication to government, business and, long-term, even consumer.

To ensure industry-focused programming, NIHC has a marketing subcommittee that provides strategic guidance on long-term goals and reviews implementation. “The committee provides critical input and represents the diversity of the hemp industry,” Latner explains.

More information will be coming throughout the year on MAP efforts. If your company has an interest in doing international business, now is the time to start planning ahead!

House and Senate Introduce Safe Banking Act

From the NIHC Staff

 

Good Afternoon,

 

We wanted to alert you that Senators Jeff Merkley (D-OR) and Steve Daines (R-MT) joined together to introduce the SAFE Banking Act in the United States Senate.

 

The legislation specifically gives legal cannabis businesses fair and equitable access to the banking system. For the hemp industry, that means leveling the playing field so that our farmers businesses are regulated just like any other commodity.

Senator Merkley emphasized:

“No one working in a store or behind a register should have to worry about experiencing a traumatic robbery at any moment,” said Merkley in a press release issued by his office. “That means we can’t keep forcing legal cannabis businesses to operate entirely in cash—a nonsensical rule that is an open invitation to robbery and money laundering. Let’s make 2021 the year that we get this bill signed into law so we can ensure that all legal cannabis businesses have access to the financial services they need to help keep their employees safe.”

Senator Daines also weighed in with a statement upon introduction:

“Montana businesses shouldn’t have to operate in all cash—they should have a safe way to conduct business,” Daines said. “My bipartisan bill will provide needed certainty for legal Montana cannabis businesses and give them the ability to freely use banks, credit unions and other financial institutions without the fear of punishment. This in turn will help increase public safety, reduce crime, support Montana small businesses, create jobs and boost local economies. A win-win for all.”

According to the press release sent by the two Senators, the Safe Banking Act would prevent federal banking regulators from:

  • Prohibiting, penalizing or discouraging a bank from providing financial services to a legitimate state-sanctioned and regulated cannabis business, or an associated business (such as an lawyer or landlord providing services to a legal cannabis business);
  • Terminating or limiting a bank’s federal deposit insurance solely because the bank is providing services to a state-sanctioned cannabis business or associated business;
  • Recommending or incentivizing a bank to halt or downgrade providing any kind of banking services to these businesses; or
  • Taking any action on a loan to an owner or operator of a cannabis-related business.

Last Thursday, Congressman Ed Perlmutter introduced the same legislation in the House.

“The SAFE Banking Act is a good thing for the hemp industry, and we support and appreciate efforts in Congress to make this bill become law,” said Patrick Atagi, NIHC Board Chairman.

The legislation would need to pass both houses of Congress and be signed into law by President Biden to be enacted.

The NIHC will continue to keep you informed as the SAFE Banking Act moves through the legislative process.

Growing the Hemp Industry Begins with Quenching the Farmer’s Thirst for Knowledge

An Interview with NIHC Board of Director Robert White

As in most farm bureaus, at the Indiana Farm Bureau (INFB), they have a vision to keep agriculture in Indiana strong and vibrant, to provide quality food to Indiana residents and to protect the rural life they love. They are the largest grassroots farm organization in the state with more than 250,000 members, and offices in all 92 counties. Started in 1919, INFB is well-positioned as the Voice of Indiana Farmers, and well-equipped to assist the farmer to leverage industrial hemp.

NIHC caught up with board member Robert (Bob) White, INFB’s Director of National Government Relations, to discuss the state’s progress with the crop and the outlook for the future. In his current role, White is responsible for keeping the Indiana Congressional Delegation abreast of INFB policy. In 2017, he was chosen to be on the AFBF farm bill working group whose task it was to help shape the possible outcomes of the current farm bill. It was the sixth farm bill that White has worked on.

NIHC hopes that more Farm Bureaus get involved in the organization to bring unity and cohesion to the hemp farming community. “Indiana Farm Bureau has been a great partner and can show how a collaboration with other state-based Farm Bureaus can help promote the hemp industry overall,” says Patrick Atagi, NIHC Board Chair.

Here are Bob White’s thoughts.

Early Adaptor

White saw potential for hemp farming early on and has worked to keep his finger on the pulse of the movement. “I met Patrick Atagi, NIHC Board Chair, at a USDA’s Agricultural Outlook Forum about 5 years ago, and he told me of his idea to launch the organization. We have been connected ever since. I came on as a board member early on,” says White. White believes hemp has a big future ahead, once regulatory challenges can be ironed out. While all that’s being accomplished, White wants farmers and other farm bureaus to work together to get knowledgeable on the nuances of growing the hemp plant.

Being in the heart of the country’s farmland, White and the INFB want to help bring the state into industrial hemp farming with success.

“Indiana farmers have been discussing industrial hemp for quite a while. We are always looking for diversification away from corn and soybean, especially when prices were in the dumps about 8 years ago. We began talking about it then in Indiana through our participation in the Midwest Hemp Council. One of our INFB members, Jamie Campbell Petty, is its Executive Director, and has been working on state legislation as well as the ’18 farm bill, all to support the growth of industrialized hemp here.”

“Being involved with NIHC has also been a great resource,” says White. “One of the benefits of belonging to an organization like NIHC is that you are on the inside track on what is happening,” says White. “NIHC has basically stood the test of time as an organization. It is dedicated and deeply invested to keep industry moving forward. It provides good and factual information sources instead of disinformation, which flows from everywhere right now.”

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“There is a solitude about growing hemp that is attractive.”

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Hemp Rising

The thirst for knowledge on growing industrial hemp is growing, and many different avenues of education are available. “Even land grant colleges are getting involved,” says White. “They are spreading the word to educate farmers, along with local community colleges near rural areas. People want to know how to grow it and what to do with it. At the last Midwest Hemp Council meeting, we had close to 500 attendees, and half were farmers within 8 states. And, there were some who have never farmed.”

White noted how people who are not farmers by trade are leaving longstanding careers to grow hemp, mostly for CDB. “Many people want to see the fruits of their labor at the end of the day, instead of work that sometimes can take 5-6 years to see results. There is a solitude about growing hemp that is attractive.”

The lack of education and experience has unfortunately led to some of the failures of the industry that any budding niche might experience. It has also led to some of the misinformation that is pervasive in the industry today. To combat this, White wants to see more people getting educated on agronomics of hemp.

Hemp Agronomics 101

While the industry looks attractive and has that instant gratification appeal, White notes it takes more time to develop a business than most have given it so far. “It takes a while to learn to grow it. Early on, it took special treatment for soy and corn, too. We learned and they grew as commodities. There is still a lot of agronomics on the growing, planting, harvesting and processing of hemp to learn,” says White.

Farmers who are agriculturally-motivated to do something different with their land have so far tested the waters and planted crops. But the missing piece is demand. “Strong demand is missing. It takes a lot of capital investment to set up a fiber processing facility, which our state of Indiana needs. We have not reached a critical mass, not at that tipping point. More people will get involved, and as we learn, we will do what we farmers always do – we will turn it into a commodity,” notes White.

He even predicts the industry early adopters will reap the most significant profits of the industry expansion. “Hemp is a finicky crop. Those who are working out the growing process now will be able to jump back in successfully when things start to heat up. They will be ready to bring a harvest to a supplier with efficiency. It is important that farmers figure this out now while we wait for demand to rise.”

Resolving Issues

Industry obstacles are currently on their way to being resolved, slowly but surely, White says. “Organizations like the NIHC are at the forefront of these practical, legal and consumer awareness hurdles, and there is a future for industrial hemp on the horizon.”

“Legally, I don’t get much involved on that front – only when we lobby for leeway in THC levels. Right now in Indiana, we see a lot of crops being destroyed as the go-to law enforcement directive. There are other ways to handle the crop where the farmer doesn’t lose their whole investment, such as taking it to a fiber processing plant, where they take a ding on the price, but can still sell it as fiber as opposed to CBD.”

Law enforcement in Indiana, like elsewhere in the nation, is asking for testing options. They want to be able to test it on the spot to determine a course of action. “There needs to be a better certification process, for sure, and a path for law enforcement that doesn’t lead to all loads being destroyed or buried.”

On the consumer front, White sees promise in NIHC’s Hemp Checkoff program. “I think we need a checkoff just like other commodities. Farmers do see valuable benefits to a checkoff; we just want to get the timing right to launch it. Soybean, corn, beef and milk have successfully educated people about the products, and farmers saw a return on their investment.”

In the short-term, White believes farmers need to focus on the agronomics of industrial hemp – the growing, harvesting, processing, and sale. “Farmers cannot grow it and hope someone will buy it, maybe like they have done with other crops,” White says. “Let demand grow, and then plant it. Then the marketplace will also work out the issues like THC, certification, transportation and more to accommodate the end uses.”

“I think in 3 to 5 years, this industry will come into its own for the farming community,” White concludes. “They should keep paying attention, learning, discover their market, be conservative until all that is determined. Only then they can grow 1,000 acres of it.”

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“Hemp Industry is a Solid Product and a Rapidly Growing Market” – An interview with Doug Farquhar

NIHC caught up with board member Doug Farquhar, J.D.,to discuss his involvement in the council and the industry. He is an attorney with close to 30 years’ experience working with policy makers on environmental and health issues, primarily working with state legislatures.

In his prior work, for 21 years Mr. Farquhar directed the Environmental Health Program at the National Conference of State Legislatures, where he worked on the issue of cannabis edibles. The EHP performs legislative analysis and outreach on state and federal environmental, health and trade laws; focusing on the delegation and authorization of federal and state laws; and provides legal and technical assistance to state legislators and agency staff on state, federal and international environmental, environmental health, and trade policies. He also has provided expert testimony before state legislative committees and task forces; reviews and comments on legislation and regulations, drafts memos, articles and books on state environmental health policies; and represents state interests before federal and international bodies.
As director of Environmental Health he worked closely with federal counterparts at the Food and Drug Administration (FDA), U.S. Department of Agriculture (USDA), Centers for Disease Control and Prevention (CDC), U.S. Environmental Protection Agency (EPA), Department of Housing and Urban Development (HUD), and the Commission for Environmental Cooperation (CEC).

Now, he is currently Director of Government Affairs for the National Environmental Health Association.

What about the industrial hemp industry has compelled your involvement with NIHC?

This industry really appeals to me as an exciting emerging area; it is a rare thing to be on ground level of an industry such as hemp and cannabis provides.

It was very much untouched from a state level until the passage of 2018 Farm Bill allowing hemp to be sold and declassified as a schedule 1 drug. This opened a whole avenue for industrial hemp. It is a rare opportunity.

I have worked on the state level in health policies for a good portion of my career. It is at the state levels that the industry will have a chance to thrive. And, I think there is real opportunity for NIHC to 1) help states know how to track what they are doing and 2) prepare states on how to address the issues.

“NIHC has a clear role in creating opportunity in the marketplace though educating lawmakers and regulators on intended and unintended consequences of certain legislation. They can navigate the way through many of the agencies that have a card in the hemp deck to play.”

How can your experience help NIHC drive the hemp industry forward?

The federal government will do some of the work, but it primarily lies with the state and local governments to do most of the heavy lifting, which is where my expertise lies. State legislators want hemp to grow as an industry and want to promote it as a sustaining crop for their state. Yet, there are still so many unknowns with it that need to be worked through.

The state-to-state issue is also working itself out. It would normally take a federal law to bring about swift and sustainable state to state harmonization, but Congress typically hates to do that. They usually allow each state to work out issues within their boundaries when there is no overarching need for federal intervention. Hemp does not have a public health issue attached to it, for instance, that would necessitate such federal action.

But to give you an example of how the federal government couldcome into play in states’ harmonization, we can look at the labeling on biotechnology. It wasn’t until Vermont became the first state to make it mandatory by law that Congress that it passed their own law in a matter of weeks. There was direct incentive to harmonize biotechnology, where hemp doesn’t provide that immediate need right now. I really don’t see the federal government regulating hemp, at least for now.

States need to address industrial hemp from a marketing point of view. NIHC and the checkoff program can help.

If hemp is restricted on how it is grown and sold, people will not want to do it. Most importantly, those who would normally invest in industry-wide growth of new products will invest in tight regulatory environments. It is too risky. Plus, there is lack of available data to inspire what investors, farmers and producers they cando. These were some of the problems we saw with the edible cannabis issue that we had to overcome.

Early on, the state of north Dakota conducted a huge effort to get the ag community to grow hemp. They saw it as a viable market and encouraged the farmers to grow hemp. They did all kinds of stuff to encourage it, but the then-federal restrictions held it back. The barrier is now removed with the 2018 Farm Bill, but there is still work to do. The states have to get busy forming their programs.

What is the role of NIHC from your perspective?

NIHC has a clear role in creating opportunity in the marketplace though educating lawmakers and regulators on intended and unintended consequences of certain legislation. They can navigate the way through many of the agencies that have a card in the hemp deck to play.

From an environmental perspective, the growing of hemp is an extremely good product for agriculture. Whatever we can do to encourage this marketplace will be beneficial for farmers and for consumers. It is a very viable ag product, which is why the states are so interested in it. It will grow with the marketing and promotion of it, which NIHC can also play a critical role though the promotion of the checkoff program.

NIHC can be a guiding force as the industry evolves and matures. We don’t know what we don’t know yet, such as what pesticides are best and which fertilizers are suited for hemp. From an ag standpoint, there is much to learn, and data is coming sparingly. But there is no doubt we will learn what will make hemp industry prosper; people will figure it out.

What do you think is the most important aspect concerning the industrial hemp industry today?

Its growth and marketing. Getting it out there and people using it for products. Showing that it isa viable product. Breaking the stigma for investors to contribute. Anything to get it out there and get it known. The wonderful thing is that it does not have issues attached to it that could make it problematic from a public health and environmental standpoint, both which can be huge obstacles in other circumstances like we saw with genetically-modified foods.

There needs to be a proof of product that using hemp is better than what is currently being used.

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Member Spotlight: New West Genetics

It is all about being in the right state at the right time.

New West Genetics is in the business of providing farmers with high quality hemp seed produced for grain, cannabinoids, and fiber since the opportunity opened in 2014 in the state of Colorado, the first to open its marketplace. Each variety has its own unique genetic profile in order to create a quality product. Each is backed by 7 years of industry research and development (a lifetime in this industry), plus over 20+ years each of Ag experience from the founding partners, Wendy Mosher, president/CEO, Dr. John McKay, Chief Scientific Officer (as well as Professor of Plant Evolutionary Genomics at Colorado State University) and Dr. Rich Fletcher, chief technology officer and director of breeding.

Yet, you might say that New West Genetics is as much of a technology company as it is an agricultural one. NWG uses genomic technology and data-driven discovery to create large-scale, harvestable hemp, greatly enhancing the sustainability of the industry and paving the way for large-scale product development.

NIHC caught up with Wendy Mosher to discuss her company, the industry and her thoughts on the work of NIHC.

I want the U.S. to be the leader of all things hemp. We have pushed this industry farther than any other country. We need to maintain that edge. We have got to keep pushing.

Tell us about your early-adaptor status to the hemp industry.

In 2014, we saw the opportunity unfolding. Because of my partners’ experience in breeding and genetics,  we knew what needed to be done and how long it takes. Colorado’s Amendment 64 mandated the state create a regulatory system for hemp, then the 2014 Farm Bill allowed R&D on hemp, which created the opportunity to launch New West Genetics.

We were attracted to hemp for all the reasons everyone else is, but we knew the plant needed tons of improvements, and still is evolving, which is exciting to us.

Our company believes in in multipurpose varieties, we license to larger CPG or processing companies, as well as sell seed direct to the farmers. We work closely with farmers and processors to make a positive impact for both.

As an early adopter, we like to think we have a premiere advantage, we had a head start. Breeding quality genetics takes time, the more cycles you select within, the more stable and reliable your variety becomes. Our product is not a strain, we produce varieties.

 

What value do you see in being a member of NIHC (and what inspired you to join)?

I appreciate their history and experience on Capitol Hill and in agriculture. There’s no other hemp industry organization today that has more experience within the regulatory side with the USDA and other agencies. They have filled a critical hole in the industry.

We were an original member of the organization, speaking a lot with chair Patrick Atagi as he was developing the NIHC mission. We saw the value in the working experience the Council has within regulatory bodies. From our experience, we understand that just knowing how all these federal organizations work is, in itself, a huge hurdle, which NIHC brings to the industry.

From our perspective, we have witnessed the collapse of pricing, the arrival at commodity like dynamics, which laid the burden primarily on the farmer. They bore the brunt of the CBD crash and other dips in the development of the marketplace. In my opinion, I want to see the industry come together to equally share some of that burden of a nascent industry by talking with transparency around the supply chain, with all the players, including processors, contributing to building the industry we all know has so much potential. That comes with building relationships and finding levels of trust that have been lacking in our history.

 

What value and services does your company bring to the industrial hemp industry?

Quite simply, New West Genetics creates certified U.S. adapted hemp varieties tailored to various market traits.

On a more complex note, we also provide the agronomic knowledge we’ve gained over the last 7 years in hemp and over many more years from other crops – we support our customers on the agronomic level to ensure their best opportunity for success. We ask about their planting time, talk about what equipment they have, what plate for planting drill they use, row spacing expectations, and help them with inputs. We also visit our farm clients at least once a season in addition to video calls. We have learned a lot having seven years of planting and research (in the greenhouse in winter and on acreage in summer) working with the individual needs and harvest expectations of the farmers and pass that knowledge back to the farmers.

From your perspective, what is the most important aspect concerning the industrial hemp industry today?

Without a doubt, market and supply chain development for grain and fiber, and regulatory movement.

The full potential of industrial hemp is yet to be realized because it is still new. There is a lot of opportunity to utilize protein and lipids, but we are all still learning. It is clear that the consumer wants this. I believe we are at a tipping point. They want it on the shelf, whether they are educated about it or it is just trendy is another discussion. Either way a strong and growing demand is clearly evident.

I have more seed than there are growers for it for the marketplace. There are two main issues concerning the industry right now from our perspective.

  • Regulations stifling the industry is ultimately the largest constraining issue. Larger companies who are positioned in the market, and new players waiting to large investments to the table, want to see the regulatory pathway clear. Ultimately, the FDA needs to approve grain across animal species and at the very least sanction the use of CBD as a dietary supplement.
  • Relatedly, the supply chain needs work – once that regulatory piece opens up, we as an industry need to be ready to scale. We have taken care of the genetics piece, now we need to see logistics, elevators, seed conditioners, scaled fiber processing, grain ingredient advancements, etc. Such an exciting time, every single one of these is being worked on, we just need to be sure we’re all staying in touch and collaborate on needs and progress, so we can create strong relationships that will be ready to serve these larger CPG companies.

Let me be clear, I want the U.S. to be the leader of all things hemp. We have pushed this industry farther than any other country. We need to maintain that edge. We have got to keep pushing. Other international players are already making strides quickly, and if we don’t move expediently, we could lose our edge.

How is your organization helping to move the industrial hemp industry forward?

New West Genetics is working hard to lay a strong foundation for the industry – by providing the first link in the supply chain – stable genetics. In addition, our R&D team has been cultivating for multiple seasons a year for 7 years, thus have one of the strongest agronomic understandings, which we are happy to share with producers.

We also spend countless hours shoring up the supply chain side, including downstream market developments. Much of my time is devoted to this – famers need a place to take their crops – but the market is still nascent, as I stated earlier. So, it is essential we spend time educating medium and larger CPG and processing companies on the value of hemp, both for its nutrition and sustainability. There is no other crop that can compete on both of those fronts.

 

Your website states “We are transforming the hemp industry by creating the most reliable, premium, proprietary hemp seed that reduces risk, increases yield, and enables sustainable large-scale production.” How you are accomplishing this?

We accomplish this by applying our expertise in agriculture and our dedication to data-based claims – we boast the largest, most accomplished team in genetics and agribusiness – over 150 years of experience bringing new crops to market.

To see more about New West Genetics, visit https://newwestgenetics.com/meet-the-team/

Check out the video from NWG’s last harvest festival:

https://www.youtube.com/watch?v=pzu2-Mc-Uyo&feature=emb_logo

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Getting to Know NIHC Chief Economist Beau Whitney, Whitney Economics

“While the higher THC market is really sexy, the industrial side is transformational.”

 

Beau Whitney of Whitney Economics is the NIHC Chief Economist. He closely follows the entire cannabis marketplace; medical adult-use and industrial. His foray began by creating data

in the west coast medicinal cannabis sector, then adult-use and ultimately in industrial. It has evolved into a focus on hemp as a grain commodity, where he sees the most significant potential in the coming years.

Drawing upon his previous hi-tech and supply chain experience, as well as agricultural and economic development analysis expertise, he gained operational knowledge by designing and implementing notable efficiencies into the cultivation, extraction, edible manufacturing, wholesale and retail distribution operations of a vertically integrated cannabis operation for a large scale operator.

Now focusing on data and analysis, Whitney has established himself as a leading economist in the hemp and cannabis industries with clientele in North America, Europe, Asia, The Middle East, Africa and South America.

Whitney took some time to discuss his support of NIHC, and how data can help the association’s industry advocates clear up regulatory and legislative ambiguities.

 

How is your company helping to move the industrial hemp industry forward?

Our mission is to provide the industry the data and predictive insights they need to make informed decisions. With our data we can help the industry lay the foundation to build a thriving sustainable market, as a global player.

 

What value do you see in being a member of NIHC?

I enjoy the collaborative participation as NIHC Chief Economist and serving on NIHC committees. In my work in the last 7 years, we are approaching the industry with similar mindsets, so there are synergies.

With the prior levels of experience that is present in the organization’s leaders and volunteers, the NIHC has the ability to impact, influence and shape overall policy on a high level. This is very important.

NIHC has been able to get data highlighting vital issues directly in front of federal regulators. The industry needs this critical advocacy, which is focused on industry viability, education and sustainability, and articulating on issues confronting farmers, cultivators, producers and manufacturers. This is half of the battle.

I believe when we can interject real data with compelling education, then legislators can make informed decisions that help all the stakeholders to move the industry forward. NIHC’s experience advocating for agricultural, as well as the ability to look at the global market, not just U.S., is exactly what the industry needs right now. Vision to see the bigger picture.

 

Grain uses are a game changer.

Why is data important and how can it help the industrial hemp industry?

Data shows trends and identifies potential successes and shortfalls based on historical evidence. I try to leverage that data to forecast where the opportunities will be in the future. In the beginning, I saw that no one was fighting for the farmer, so I went deeper into the data, collecting information through comprehensive industry surveys so that I could create benchmarks that we could track over time. The goal was to help the farmers use data to help operate businesses and scale.

My goal is to map out the entire hemp value chain so operators can understand their role in the industry. It also has helped organizations like NIHC to present accurate views to legislators.

As an observation, I would like to see industrial hemp growers become more business-minded. The numbers show that this is a real weakness. This might be where NIHC can help their members network to understand the business, and to connect the dots throughout the chain.

Since 2019, growers have typically planted crops without arranged buyers – a basic business function – with 65% of them over the past two seasons not able to bring their products to market. This is several hundred thousand acres of hemp.

In my research I found that pre-2020 harvest, there was approximately 135,000 million pounds of excess biomass. That is raw material without a place to go. It seems that farmers did not do their business 101 homework before entering into this space.

Some didn’t even know how to harvest. They did not have the skills to scale. They were unsure how to grow from 1,000 sq. ft. to 25 acres, basically from a hobby grower to commercial operator. Some did not even know how to harvest crops at this scale. How were they going to harvest 25 acres by hand?

Now, in the “second season” for some of the veterans, we are seeing decline in markets and acreage, where some farmers did not renew their licenses, some scaled back their operations, or some renewed simply to sell their product from last season.

Farmers need access to buyers in order to sell their harvest to processors, who, in turn can sell the product manufacturers. This are the steps to building a credible thriving marketplace of products. In earlier days farmers were mostly taken advantage of by unscrupulous brokers. Hopefully, as the market matures farmers and processors will become more savvy. What is really required is for all participants in hemp to really to understand the value chain for hemp.

Grain uses are a game changer.

Most of the previous hemp supply chain was focused on CBD-related products, but I am not forecasting that to happen much longer. In 2020, CBD was 82% of the market to the 13% for grain and 5% for fiber. I see these numbers swapping in the near future.

Grain is forecasted to overtake CBD in terms of acres licensed by 2023. Hemp for animal feed is in the FDA for approval process right now. Once this is approved, hemp for animal feed will increase opportunities for farmers and processors.

Fiber is still in is infant stages. Degumming process is an issue, but once it able to be supported domestically, the fiber market will grow. Automotive and textile industry uses are emerging. This too, will surpass CBD in terms of market growth and opportunity.

 

From the data, what are the most important needs of the hemp industry today?

In terms of what is most needed, it would be:

1) Policy deployment should be flexible and adaptable for a dynamic market, on both federal and state levels. It is too rigid right now and is actually suppressing the industry. If it becomes too oppressive, the industry will lose investor confidence.

2) Regulators have created current policies coming forth that are ineffective. We need to clear up the murkiness. The law is crystal clear: Hemp is an agricultural product and should be regulated as such. The current ambiguity is keeping much-needed investors from bringing in the resources to grow the industry, there is too much risk involved to bring a product to market, only to have it potentially deemed illegal.

3) The industry really needs infrastructural development so it can scale up to mass production. Farmers, processors and manufacturers should not enter a space unless they know the entire value chain business model they want to follow.

 

Participation in the process and being a voice in big issues such as testing protocols, especially for the smaller farmers, is important. Large commercial operators will have it all in house, but smaller farmers need to express their issues as well.

How can industrial hemp growers be a part of the solution?

The key for success is looking at the data, being involved in organizations like the NIHC, having a relationship with the state’s Department of Agriculture and getting to know your neighbors.

Participation in the process and being a voice in big issues such as testing protocols, especially for the smaller farmers, is important. Large commercial operators will have it all in house, but smaller farmers need to express their issues as well.

Smaller farmers need to pool resources, for example, in a cooperative model, to collectively drive scale to compete with the large players. This is actually starting to take shape now. Local cooperatives or hemp campuses will offer the services needed for testing. Whitney Economics has met with many economic development agencies to help educate them about hemp and how to successfully support the industry.

Right now, many successful hemp projects involve public/private partnerships. A private company will do research on deploying and scaling hemp and the state provides the funding to do it. There is usually a sponsoring university and industry associations, all invested in critical in development of that state’s industry. Then it is given back to the state to run.

The biggest wildcard issue industry-wide is a lack of money. Investors are waiting for clarity on the regulations before they enter and drive end-user products, which will drive a demand for supply. Investment money is like oxygen for the industry and without it, the development of the industry will stall.

However, given that regulation is unavoidable, the industry has to understand how to operate within regulations and, rather than stifle the market, the regulatory need to support and protect the U.S. marketplace. otherwise it will be overrun by suppliers from other countries. It simply takes education, partnership and creative flexible regulations.

Even with all of these challenges in the short run, farmers and processors will survive (maybe not all of them), but from my perspective, the long-term outlook is extremely bright.

Visit Whitney Economics.

DOWNLOAD WHITNEY ECONOMICS RECENT HEMP REPORT

[pdf-embedder url=”https://hempindustrial.com/wp-content/uploads/2021/02/Whitney-Economics-Hemp-Cultivation-Report-2020-Executive-Summary.pdf” title=”Whitney Economics Hemp Cultivation Report 2020 – Executive Summary”]

Update on CBD Legislation

NIHC Position on Latest Developments

As you may have heard, Congressmen Kurt Schrader (D-OR) and Morgan Griffith (R-VA) re-introduced their bill to designate hemp and all hemp-derived ingredients, including cannabidiol (CBD), as a dietary supplement under the Food, Drug and Cosmetic Act.  The Congressmen originally introduced this legislation in the previous Congress, late last year.

This week, NIHC staff and our Government Affairs Committee co-chairs met with Congressman Schrader’s office and other stakeholders to discuss concerns with FDA’s failure to regulate CBD and other hemp products, and to share our thoughts on the bill.  We look forward to discussions with Congressman Griffith’s office as well in the coming days.

Congressman Schrader believes that Congress should intervene in lieu of the FDA’s failure to act. NIHC supports this effort and believes it’s a good starting point toward establishing regulatory certainty with CBD and other hemp-derived consumer products. However, our perspective on the legislation as currently written is that CBD would be labeled only as a dietary supplement, but not as food. NIHC is concerned that this may effectively limit market access for many farmers and other producers who supply hemp-derived foods and food ingredients, and also limit consumer choice and safety with respect to hemp-derived food products.  We feel further investigation is needed to determine the extent to which designation as dietary supplement may harm smaller and independent farms who depend on market access as food.

Though designation of hemp as a dietary supplement does not preclude it from being also designated as food in the future – and many States are nevertheless establishing their own regulatory guidelines for hemp-derived foods in the meantime – we are concerned that a patchwork of State regulations with respect to food and the lack of FDA guidance could unfairly disadvantage broad swaths of the industry aimed at supplying hemp-derived food products, particularly smaller and independent hemp farmers and farm-to-shelf consumers.

We believe that Congress and industry stakeholders need more information to determine the extent to which this could have unintended consequences on these key industry constituencies. Thus, the NIHC continues to engage industry stakeholders and hasn’t yet taken an official position on the bill.

However, we do welcome the Schrader-Griffith bill as a strong incremental step toward bringing certainty and a level playing field to the hemp industry. We encourage both Congress and FDA to redouble efforts to provide adequate regulatory direction for hemp-derived consumer products across the board, including both as dietary supplements and as foods.

If you have thoughts on this legislation, we want to hear from you. Please share your thoughts with us at info@hempindustrial.com.

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NIHC on RFD-TV The Magazine

 

The National Industrial Hemp Council made an appearance on RFD-TV The Magazine (www.RFDTV.com) this week reporting on the Hemp Checkoff program. Board member John Johnson, principal of Agricola, LLC, was interviewed on the overwhelming support and plans for the program. He discussed the merits of the Hemp Checkoff Program, including support from 8 out of 10 farmers according to the recent NIHC recent survey.

“We put the survey out, and 80% of folks felt that we need some time of program to promote consumer education about hemp, product education on hemp, and research into a whole variety of issues for hemp production and hemp for their processing,” Johnson says.

“75% or so were comfortable with assessment, minimal assessment, and see that as a valuable use of their dollars. This coincides with an Texas A&M found in a study several years ago that checkoffs return back to a farm $3 to $17 for every $1 invested.”

Click on video below to view the interview:
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Getting to Know NIHC Member Rick Fox

 

NIHC Member Rick Fox

Owner, Meristem Farms, LLC

Morrisville, VT

 

Herrick (“Rick”) Fox has been a member of the NIHC since its inception and serves as co-chair of the NIHC Government Relations committee (GAC), with good reason. As owner of Meristem Farms, located in Vermont, he has an interest in securing a sound policy and regulatory foundation for hemp farms of all shapes and sizes, including smaller and independent farms like his, and he also has 15 years of policy, regulatory and management experience in USDA.

Prior to starting Meristem Farms, Rick finished his 15-year career at USDA as an executive in USDA’s Foreign Agricultural Service, leading a division in agricultural capacity-building. Before that, being a forester by profession, he worked with USDA Forest Service, first in land management on National Forests and later in forest policy with senior USDA officials and the U.S. Senate Committee on Agriculture. He also served as policy expert for USAID capacity-building programs in Russia and the Republic of Georgia, and in the 1990s he worked in Russia for 6 years on conservation issues and forest science research in Siberia and the Russian Far East.

Here is more about Rick, his operation, and his thoughts on NIHC’s potential.

 

Tell us a bit about your business.

We grow and manufacture specialty hemp flower products in Northern Vermont. We focus on bringing out the character of the plant and the land through the distinctive aromatic profiles of our varieties and the growing conditions in our particular neck of the woods.

My wife, Jen Daniels and I founded the company with a strong land ethic.  She’s a landscape architect and I’m a forester, and we both decided to leave the Federal government wanting to do something that more directly connects people with the land… what better way to do that than farm hemp for people’s health?  So we really try to focus on what makes each variety special with the land and microclimate where we farm.  Harvest season in Vermont is amazing, and we’re lucky to have regulations in Vermont that allow us to make the most of it.

 

How has your USDA experience helped you and the NIHC?

I was with USDA for 15 years, in a variety of management, rulemaking and senior policy positions, and I was lucky to detail to the Senate Ag Committee to help with the 2014 Farm Bill as well. Alongside helping Jen run our company, I know there aren’t many other folks in hemp farming with a USDA policy background, and fewer still who also have a background in science and statistics. So, I volunteer as much time as I can helping farmers, regulators and policymakers understand one another’s perspectives and the technical details that are critical to these regulations, in hopes that we can get better policy outcomes than what’s been put out there so far.  I enjoy the challenges of building a hemp farming company from scratch—terrifying though it has been at times—but in a lot of ways I’m still a ‘recovering bureaucrat’ and I miss public service so the policy work I do with NIHC is a way for me to do that.

 

What is the focus of the NIHC GAC in 2021?

Some of the things we are focusing on are the USDA rule and on developments in a few states, such as California and New York.  There still seems to be a lot of confusion on the part of regulators and policy makers about how their choices can impact smaller and independent hemp farms in particular.  What may seem like arcane details of chemistry, statistics and semantics actually put many if not most farmers at huge risk, and regulators too, and for no public benefit at all.  And, of course, regulations concerning hemp-derived products in foods and dietary supplements coming out of FDA and at the State level are a major focus as well.  Hemp has such huge promise, not just for farming but for the broader economy, our environment and society in general and I don’t want to see it derailed by poorly crafted regulations.

Right now, it’s all a moving target, but I’m optimistic that the new Administration will get it right and I also think their emphasis on the rural economy, equity, and climate-smart agriculture present important opportunities for hemp as well.

 

What is the role of the NIHC in all this?

NIHC has a high degree of professionalism and its leadership has longstanding history with USDA and other sectors that are important to hemp production. That gives NIHC an ability to be uniquely effective in interfacing with USDA programs and procedures for the benefit of the industry, as we’re seeing in its efforts with MAP and check off programs, for example.  I know first-hand that USDA is a complicated bureaucracy so I definitely appreciate that savvy.

I see NIHC working hard to become a big tent in the industry, supporting hemp farming of all kinds and promoting equitable value chains throughout the industry. We all share a grand vision of hemp for our future, but we recognize the need to serve the industry where it is today and help it grow in a way that brings everyone along. There is a lot of diversity in the hemp industry, all kinds of people and businesses – and NIHC is a voice for unity, so I’m proud to be a member.

There also needs to be better coordination with scientific and standard-setting organizations, and to make decisions implementable, with reasonable of expectations of success.  NIHC can play a major role in addressing those kinds of problems and clarifying confusion in the market.

 

What is the potential of hemp in your view?

Hemp has enormous transformative potential, not just for agriculture but for manufacturing and energy as well, and if we can get the regulations right and put hemp on that kind of trajectory, then I can imagine hemp becoming a keystone crop for our economy in the not too distant future.  Hemp is a great crop for CBD and other wellness products – that’s what we grow it for in my company – but though this will always be a significant part of the industry, the truly grand future for hemp is about food and especially fiber.

I also see hemp having huge trade potential. The world already knows American hemp is the best there is in the wellness market, and if we can unleash the ingenuity of American farmers and manufacturers I think we can easily become the world’s leader in climate-smart manufacturing and energy uses of hemp fiber, as well.  But this will require public investments in R&D very quickly or we could lose that edge to our competitors around the world, so I’m hopeful Congress and the new Administration can see their way toward making that happen.

Check out Meristem Farms!

 
 

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