Midwest Hemp Council is All for Collaboration

When discussing the future of industrial hemp with Jamie Campbell Petty, Executive Director of the Midwest Hemp Council (MHC), it is hard not to get excited. Petty has become one of the Midwest’s most dedicated advocates to remove the barriers for farmers to grow industrial hemp, sinking her time and personal resources to establish the work she champions.

In 2010, this ex-military spouse returned to her Indiana roots, and began to build out her dream of a 20-acre hobby farm, that she and her husband, Guy, now share with family and friends. In 2013, Guy’s son, Justin, and his team at Recreator, began educating Jamie about hemp as a renewable and sustainable crop option. The hemp industry piqued her interest, and the rest has been a wild ride.

In her early advocating days, Jamie and her fellow volunteers began working with Purdue University’s Dr. Ron Turco and the Office of the Indiana State Chemist. The OISC is the regulatory body for the Indiana Hemp Program. Jamie soon met NIHC board member Bob White, Indiana Farm Bureau’s Director of National Government Relations. White, and then-INFB Policy Director Kyle Cline, took the time to work with Jamie as they all gathered information regarding the 2014 Farm Bill language and adopting INFB/AFBF policy language.

These connections began the thoughtful formation of the MHC when Petty and fellow co-founders Justin Swanson and Alan Kimbell saw the need to correct so many misconceptions about hemp fiber and cannabinoids from agricultural and regulatory agencies in her region, while working to improve the regulatory environment. Clear and consistent communication, as well as collaboration, were key to Midwest Hemp Council’s mission.

While the MHC embraces the potential of the whole hemp plant, which includes cannabinoids, grain and fiber, Petty believes the future for farmers to profit from the versatile crop lies on the industrial side, which is where she focuses most of her personal efforts.

“In the early days, it was so hard,” says Petty. “There were so many misconceptions. The Farm Bureau was not understanding the crop, so they were not publicly working on the issue, yet were instrumental in changing not only INFB’s policy, but that of the AFBF. The Indiana Department of Agriculture does not regulate, so they were not giving it attention. But, we were able to partner with Purdue University’s College of Agriculture to begin the work. Because of them and the Office of Indiana State Chemist, who regulates our agricultural laws, we were able to get the industry moving forward.”

With the help of dedicated volunteers, in early 2014, INHIA launched, just on the heels of Kentucky and Tennessee launching their chapters. Realizing they needed a broader platform to address inconsistent regulations across state lines, and the need for collaboration in building out the supply chain, they built the MHC and transitioned efforts into that organization with a focus on Indiana, dissolving the HIA chapter. “We originally remained very autonomous. We are a conservative state and cannot keep up with Tennessee and Kentucky, who are quicker to act. While we really desired regional collaboration, in the early days every state was working at their own pace.”

Today, the Midwest Hemp Council is a thriving organization with a clear mission to stand as a credible information center, a trusted policy advocate, and a dedicated forum for the hemp industry in Indiana and beyond. Their members come from every sector of the industry, promoting and building the whole hemp plant economy from seed to shelf. Justin Swanson, MHC President, has worked tirelessly alongside Petty to build a quality board and esteemed organization.

Recently, one of Petty’s only early supporters at the Indiana State Department of Agriculture, David King, has come along Midwest Hemp Council as a Strategic Partner and active contributor to the Board of Directors. King is now the principal of Hemp Products Store Brand Builders, with the focus on normalizing and streamlining the hemp product supply chain.

While based in Indiana, Petty believes the industry will not move forward without more collaboration between states and at the national level. “I team with other organizations in 23 states. There are many organizations, maybe too many, yet each brings something to the table. Industry consolidation of some of these will occur naturally, most likely, as the niche expands. Our current frustrations are with regulatory bodies, some do too much and FDA won’t act at all, which is why I believe collaboration is the key. We must be working together to achieve common goals.”

“We are a nascent industry,” emphasizes Petty. “We need clear and united objectives. Too many cooks in kitchen isn’t effective.”

MHC has accomplished much but suffered setbacks with COVID-19 and the fact that in the middle of growing season in 2019, Indiana criminalized the hemp flower when farmers had plants already in ground. Now, Indiana farmers have surplus CBD processed and sitting on shelves. Also in 2019, Hoosier farmers grew fiber under contracts which were later breached; however, since that time Marty Mahan of Heartland Hemp Coop, Petty and others have moved 90% of that hemp into the market, such that farmers did receive payment. 2019 was a year of “Life Lessons” across the U.S. for those involved in hemp.

Working to regroup, Petty says, “Right now, we are focused on positioning for the future, creating infrastructure and building solid contracts, primarily within industrial hemp. I, and others, envision at least one major grain and fiber hub within the state, that can service farmers in nearby states, with smaller, regional footprints across Indiana and the Midwest. I believe in the cannabinoid industry, but research and investment needs to go towards grain and fiber NOW – the cannabinoid industry has the infrastructure and market space.”

Being a part of the National Industrial Hemp Council (NIHC) is important to MHC, especially through their relationship with NIHC board member Bob White, who has become a great resource. “NIHC supports important initiatives on the national level,” Petty says. “Their focus is important and we believe it is worthwhile to collaborate with them on a larger scale.”

When asked where she sees the industry in five years, she says, “Five years is a good number. In five years, we hope to have significant supply chain remedies and infrastructure in place. It is currently a “chicken and egg” situation. People who want to invest need contracts. People who want contracts need infrastructure. We need brand builders. We need programs to normalize cannabinoids with the consumer and build grain and fiber opportunities, working through collaboration with retailers. I am proud to say that Midwest Hemp Council is working daily to find solutions to the supply chain.”

Once the industry begins to fill the holes in the supply chain, things will begin to function smoothly.

“When people express doubt, I refer them back to the soybean industry. I have elderly farmer friends who tell me that as children they had bales of soybean rotting in their barns. The market wasn’t developed. Now their grandchildren are farming and significantly profiting from corn and soybean. We may not have as large of market as the soybean industry for our farmers, but we have a much more diverse opportunity in resources and applications for hemp than any other crop.”

Big Sky Country has Big Plans for Industrial Hemp  

Texas Hemp Growers Association Collaborates with Farmers on Hemp Production

The Texas Hemp Growers Association (THGA) has the mission to help leverage farmer influence on the emerging industrial hemp industry. They provide farmers with the resources they need to make decisions regarding the cultivation and marketing of hemp and hemp-derived products. THGA provides practical expertise for anyone wanting to grow industrial hemp, while also working diligently to ensure that the livelihood of farmers is at the forefront of all discussions regarding hemp in Texas.

“For years farmers have created commodity trade associations for marketing, policymaking, research, and education,” says Tillery Sims, THGA Executive Director. “If we are to see hemp become a true rotational crop option it will follow the path of those other commodities. That path will be created by farmers who have led the way for centuries in innovation and strategic agricultural development. Associations that create the space for farmers to develop the industry are invaluable.”

In addition to dedicating time and resources to things like policy, infrastructure, and communications, THGA is progressive in supporting ventures that promote inputs, production, processing, and manufacturing systems that will benefit growers for generations to come and build stability in the emerging hemp industry. They aim to develop markets for industrial hemp and create and operate cooperative marketing organizations. THGA is also committed to maintaining a positive public image of industrial hemp and sustain strong working relationships with law enforcement agencies.

Planting Success

Legislatively, THGA is actively working with Sen. Charles Perry ( R ) who currently chairs the Senate Committee on Water, Agriculture & Rural Affairs and Representative Tracy King (D-Batesville), who originally wrote 2019’s Bill 1325 which paved the way for Texas farmers to grow industrial hemp. Right now, the THGA is working with the legislators to clean up the original bill’s rules and reflect the new USDA guidelines.

“We are happy with our communications on how the hemp program works here in Texas and how the year went,” says THGA’s President Kyle Bingham of Bingham Organics and Bingham Family Vineyards. “The communication is open, and lawmakers are receptive to our ideas.”

“Traditionally, Texas farmers grow cotton,” says Bingham. “We like the potential of hemp as a rotational crop, planting and harvesting before cotton season.”

While Bingham’s business is Bingham Family Vineyards, where his multigenerational wine growing family produces 100% Texas grown and crafted estate wines, the fullest expression of the High Plains, they are first, farmers. Several years ago, they saw opportunity in growing hemp, in rotation with their seasonal cotton crops. From their Bingham Organics hemp brand, they currently sell organic tinctures, but have their eyes set on the industrial side of growing hemp.

“We entered the industry as a CBD supplement company,” says Bingham. “But we see in the future that CDB will become a by-product of the hemp fiber industry. I am really excited with the prospects of using the whole plant.” And focus on the plant itself is where Bingham and the THGA have had its core efforts.

THGA is close to 100 members, whom all currently farm anywhere between 2,000-15,000 acres of other commodity crops. They are focusing primarily on genetics in 2021 as an association. “We are not in a traditional hemp growing environment here in Texas,” notes Bingham. “Many regions need to be concerned with overwatering hemp, and we don’t have that problem here. Much of the established data doesn’t apply to us. So, we are continuing our 2020 plant trials with 14-15 different genetics.”

This year, THGA will be testing different stock from Czech Republic and Italy. They also want to do a second trial with Canadian fiber. It wasn’t successful the first time, so farmers will try earlier planting dates to see if it does better. “We take a micro and macro approach. We also have Texas Tech is partnering with us on producing small lots of detailed varieties and different planting techniques. We are all looking for data.”

Growing to Scale

Once the viable varieties are known, Bingham says the next hurdle is how to grow thousands of acres of it for industrial use in the future. “We have to figure out how to mechanize this crop as the demand for industrial hemp grows. We want to be ready to target large-scale customers.”

Texas farmers see much potential coming for industrial hemp. “I think we will see hemp replace single use plastics in the future. As we better understand the need for biodegradable hemp-based products, we can work with plastics companies to create more sustainable solutions. There are lab-produced prototypes that, when put in soil, break down in less than 6 months. The issue is, how do we mass produce the concept, and minimize the costs.”

While there are many obstacles to overcome, that is the future THGA and its members envision. “Once we prove all this can be done, it will be a matter of time before legislators mandate it, with California leading the way.” Costs right now are prohibitive, notes Bingham, for much of the innovation. But as they learn more and as legislation supports sustainable solutions that industrial hemp brings to the table, it will drive the hemp industry forward into mass production.

“I hope that people realize the CBD rush is over, and fiber is coming in a few years,” notes Bingham. “With that said, it is a hard couple years ahead. We have to learn every step of the process before we are ready to grow millions of acres. In Texas, we grow four million cotton acres a year. If we hemp into a third year rotation, it’s in our ballpark.”

“Industrial hemp can bring manufacturing back to small  town America, be a job maker. It is exciting to see.”

https://txhempgrowersassociation.com/ and
https://www.facebook.com/txhempgrowers/

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Hemp Keeps Up Quick Pace

The hemp industry is moving at the speed of change.

Our industry has faced its own unique set of challenges since the passage of the 2018 farm bill and these growing pains are to be expected. NIHC’s core mission is to be your collective voice in front of lawmakers and regulators. Yet, NIHC can’t be your voice without your input and participation to solve these hurdles, current and new.

Some issues have yet to be resolved.

For instance, businesses in the hemp economy need equal access to the banking sector. The CBD market needs regulatory certainty; specifically whether or not CBD can be sold as food, or a supplement, or perhaps both? Because hemp looks like marijuana; we need safe transit resolved because on the spot, law enforcement can’t tell the difference. This is why we’re in constant conversations in Washington, DC and with states about testing and proper documentation. This will ensure that those involved in hemp commerce, including law enforcement and the financial markets, can distinguish between hemp and marijuana. This includes the controversial Delta-8.

The USDA continues to promulgate approvals for state programs to license farmers while other federal agencies lag behind in regulations for downstream businesses. We need certainty, but we need patience and a thoughtful approach. Last years’ election brought significant change to Washington with a new President who is still filling important roles and a new Congress. Patience is a virtue.

We are excited to see and be a part of the National Association of State Departments of Agriculture (NASDA) initiative on one percent. But what our industry needs is a coordinated state and federal strategy. We still have state legislators introducing a patchwork of laws governing our industry at the local level all across the country.

 

What our industry needs is a coordinated state and federal strategy. We still have state legislators introducing a patchwork of laws governing our industry at the local level all across the country.

 

To illustrate, here are just two of many examples of what is happening at the state level.

In New York state, Governor Cuomo recently signed into law an adult use marijuana legislation which creates a new state regulatory agency for both hemp and cannabis. That might make it easier to have one regulatory agency with jurisdiction over hemp and cannabis, but we need to better understand the role of the state department of agriculture. We also need to answer the question, what will happen to the hemp industry? It now appears it’s more lucrative to grow high-THC products in the second largest state in the country. Is the compromise on smokable hemp (that smokable hemp can only be sold in dispensaries) a positive thing for the hemp industry? Only time will tell.

In Alabama, there is a new bill that has been introduced in the state Senate that would add delta-8 and delta-10 to the list of controlled substances in the state. We can applaud the Alabama state legislature for trying to tackle the problem of delta-8. But, we believe the Alabama state senate is going down the wrong road to solve an easy problem. Delta-8 THC, per the 2018 farm bill, is a legal part of the hemp plant that exists in the plant’s natural form in only a minuscule amount that has no psychoactive effect. The problem is that some in our industry are taking advantage of a loophole in the law to manufacture artificially high concentrations of delta-8 and add them to hemp products, resulting in levels of 10% delta-8 and higher to create a psychoactive effect that would not occur otherwise. Changing the statutory definition of hemp from .3 percent delta-9 THC to one percent total THC, as has been proposed by NASDA and other stakeholders, would eliminate this loophole and prevent psychoactive delta-8 THC products from entering the market as hemp or any other non-controlled substance.

NIHC is a growing by the day.

We have a ten-year plan and have consistently exceeded our advocacy and policy goals in our nation’s Capitol. In our plans, our policy and operating budget didn’t include state advocacy. That means we don’t have the full-time staff yet hired to monitor legislation at the state level. We have been working since the beginning of the year to build and execute a strategy for successful state advocacy, it just needs to be resourced.

We realize there is a lot going on in our industry and we’d love to have NIHC member feedback on what we should be engaging on in your specific state. If you think we need to engage on a particular issue, please email us at info@hempindustrial.com.

If you haven’t become a member yet, please consider joining NIHC so we can all work better together. 

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.

,

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

,

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”]

 
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PreviousNext
The North Carolina Department of Agriculture & Consumer Services division for the Plant Industry includes hemp. This page explains the regulations for hemp in North Carolina and how to add your hemp business to the state registry.
The Textile Exchange's purpose is to build a global fiber and materials production model that positively impacts our planet.
The US Hemp Building Association advocates for hemp building professionals, projects, and materials in the United States. They work to establish and stabilize a thriving American hemp building industry.

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