Economic Benefits from Hemp in Kentucky
A flyer, "Drug War Facts: Facts About Hemp," can be downloaded from http://drugwarfacts.org/cms/files/DrugWarFactsHempOverview022014.pdf
Basic Data and Uses
(Description and Uses of Hemp Hurds, Bast Fibers, and Seed Oil) "Industrial hemp can be grown as a fiber, seed, or dual-purpose crop.14 The interior of the stalk has short woody fibers called hurds; the outer portion has long bast fibers. Hemp seed/grains are smooth and about one-eighth to one-fourth of an inch long.15
"Although hemp is not grown in the United States, both finished hemp products and raw material inputs are imported and sold for use in manufacturing for a wide range of product categories (Figure 2). Hemp fibers are used in a wide range of products, including fabrics and textiles, yarns and spun fibers, paper, carpeting, home furnishings, construction and insulation materials, auto parts, and composites. Hurds are used in various applications such as animal bedding, material inputs, papermaking, and composites. Hemp seed and oilcake are used in a range of foods and beverages, and can be an alternative food protein source. Oil from the crushed hemp seed is used as an ingredient in a range of body-care products and nutritional supplements.16 Hemp seed is also used for industrial oils, cosmetics and personal care products, and pharmaceuticals, among other composites."Source:Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, Jan. 26, 2016), pp. 4-5.
(Estimated Retail US Hemp Market Size and Value) "There is no official estimate of the value of U.S. sales of hemp-based products. The Hemp Industries Association (HIA) estimates that the total U.S. retail value of hemp products in 2014 was nearly $620 million, which includes food and body products, clothing, auto parts, building materials, and other products.20 Of this, HIA reports that the value of hemp-based food, supplements, and body care sales in the United States is about $184 million. Previous reports about the size of the U.S. market for hemp clothing and textiles is estimated at about $100 million annually.21
"The reported retail value of the U.S. hemp market is an estimate and is difficult to verify. Underlying data for this estimate are from SPINS survey data;22 however, because the data reportedly do not track retail sales for The Body Shop and Whole Foods Market -- two major markets for hemp-based products -- as well as for restaurants, hemp industry analysts have adjusted these upward to account for this gap in the reported survey data.23
"Available industry information indicates that sales of some hemp-based products, such as foods and body care products, are growing.24 Growth in hemp specialty food products is driven, in part, by sales of hemp milk and related dairy alternatives, among other hemp-based foods.25
"Information is not available on other potential U.S. hemp-based sectors, such as for use in construction materials or biofuels, paper, and other manufacturing uses. Data are not available on existing businesses or processing facilities that may presently be engaged in such activities within the United States."Source:Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, Jan. 26, 2016), p. 6.
(Restrictions Against Federal Interference With State-Authorized Hemp Production Pilot Programs) The federal budget bill for FY2015 contains this provision:
"SEC. 539. None of the funds made available by this Act may be used in contravention of section 7606 ('Legitimacy of Industrial Hemp Research') of the Agricultural Act of 2014 (Public Law 113–79) by the Department of Justice or the Drug Enforcement Administration."
(DEA Versus States Regarding Hemp Production) "Federal law prohibits cultivation without a permit, DEA determines whether any industrial hemp production authorized under a state statute is permitted, and it enforces standards governing the security conditions under which the crop must be grown. In other words, a grower needs to get permission from the DEA to grow hemp or faces the possibility of federal charges or property confiscation, regardless of whether the grower has a state-issued permit.46
"Although many states have established programs under which a farmer may be able to grow industrial hemp under certain conditions, a grower would still need to obtain a DEA permit and abide by the DEA's strict production controls. This relationship has resulted in some high-profile cases, wherein growers have applied for a permit but DEA has not approved (or denied) a permit to grow hemp, even in states that authorize cultivation under state laws.
"In the past there has been ongoing tension between federal and state authorities over state hemp policies. After passing its own state law authorizing industrial hemp production in 1999,47 researchers in North Dakota repeatedly applied for, but did not receive, a DEA permit to cultivate hemp for research purposes in the state.48 Also in 2007, two North Dakota farmers were granted state hemp farming licenses and, in June 2007, filed a lawsuit in U.S. District Court (North Dakota) seeking 'a declaratory judgment' that the CSA 'does not prohibit their cultivation of industrial hemp pursuant to their state licenses.'49> The case was dismissed in November 2007.50 The case was appealed to the U.S. Court of Appeals (8th Circuit) but was again dismissed in December 2009.51 They filed an appeal in May 2010."
"Most reports indicate that the DEA continues to be reluctant to grant licenses to grow hemp, even for research purposes.57 However, more recently, there are indications that some land grant university researchers may have been granted licenses to conduct hemp research under certain conditions.58"Source:Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, Jan. 26, 2016), pp. 13-14.
(US Hemp Imports) "The import value of hemp-based products imported and sold in the United States is difficult to estimate accurately. For some traded products, available statistics have only limited breakouts or have been expanded only recently to capture hemp subcategories within the broader trade categories for oilseeds and fibers. Reporting errors are evident in some of the trade data, since reported export data for hemp from Canada do not consistently match reported U.S. import data for the same products (especially for hemp seeds).
"Given these data limitations, available trade statistics indicate that the value of U.S. imports under categories actually labeled “hemp,” such as hemp seeds and fibers, which are more often used as inputs for use in further manufacturing, was nearly $36.9 million in 2013. Compared to available data for 2005, the value of imported hemp products for use as inputs and ingredients has increased more than sixfold. However, import volumes for other products, such as hemp oil and fabrics, are lower (Table 1). Trade data are not available for finished products, such as hemp-based clothing or other products including construction materials, carpets, or hemp-based paper products.
"The single largest supplier of U.S. imports of raw and processed hemp fiber is China. Other leading country suppliers include Romania, Hungary, India, and other European countries. The single largest source of U.S. imports of hemp seed and oilcake is Canada. The total value of Canada's exports of hemp seed to the United States has grown significantly in recent years following resolution of a long-standing legal dispute over U.S. imports of hemp foods in late 2004 (see "Dispute over Hemp Food Imports (1999-2004)"). European countries such as the United Kingdom and Switzerland also have supplied hemp seed and oilcake to the United States."Source:Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, Jan. 26, 2016), pp. 6-7.
(Hemp Compared With Marijuana) "There are many different varieties of cannabis plants. Marijuana and hemp come from the same species of plant, Cannabis sativa, but from different varieties or cultivars. However, hemp is genetically different and is distinguished by its use and chemical makeup, as well as by differing cultivation practices in its production.2
"Hemp, also called 'industrial hemp,'3 refers to cannabis varieties that are primarily grown as an agricultural crop (such as seeds and fiber, and byproducts such as oil, seed cake, hurds) and is characterized by plants that are low in THC (delta-9 tetrahydrocannabinol, marijuana’s primary psychoactive chemical). THC levels for hemp are generally less than 1%.
"Marijuana refers to the flowering tops and leaves of psychoactive cannabis varieties, which are grown for their high content of THC. Marijuana’s high THC content is primarily in the flowering tops and to a lesser extent in the leaves. THC levels for marijuana are much higher than for hemp, and are reported to average about 10%; some sample tests indicate THC levels reaching 20%-30%, or greater.4
"A level of about 1% THC is considered the threshold for cannabis to have a psychotropic effect or an intoxicating potential.5 Current laws regulating hemp cultivation in the European Union (EU) and Canada use 0.3% THC as the dividing line between industrial and potentially drug-producing cannabis. Cultivars having less than 0.3% THC can be cultivated under license, while cultivars having more than that amount are considered to have too high a drug potential.6
"Some also claim that industrial hemp has higher levels of cannabidiol (CBD), the non-psychoactive part of marijuana, which might mitigate some of the effects of THC.7 A high ratio of CBD to THC might also classify hemp as a fiber-type plant rather than a drug-type plant. Opinions remain mixed about how CBD levels might influence the psychoactive effects of THC."Source:Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, Jan. 26, 2016), pp. 1-2.
(Cross Pollenation of Drug-Crop Cannabis With Industrial Hemp During Cultivation "Hemp fields, in fact, could be a deterrent to marijuana growers. A strong case can be made that the best way to reduce the THC level of marijuana grown outdoors would be to grow industrial hemp near it. An experiment in Russia found that hemp pollen could travel 12 kilometers. This would mean that a hemp field would create a zone with a 12-kilometer radius within which no marijuana grower would want to establish a crop.
"The reciprocal also applies. Growers of hemp seed would not want Cannabis of an 'off type' (i.e., not the intended genetic type) mixing its pollen with their flowers. The isolation of genotypes is a common procedure used by the seed industry to preserve the genetic integrity of varieties. Valued strains are created by plant breeding, at substantial expense. Marijuana pollen would destroy this value."Source:West, David P., PhD, "Hemp and Marijuana: Myths & Realities," North American Industrial Hemp Council, 1998. Last accessed February 18, 2015.
(Hemp Bast Fibres) "Hemp bast fibres are among the strongest and most durable of natural fibres, with high tensile strength, wet strength, and other characteristics favourable for various industrial products. It has been estimated that hemp produces three to four times as much useable fibre per acre per year as forests, and the bast fibre contains a low amount of lignin (the natural polymer that binds plant cells together), which allows it to be bleached without the use of chlorine. Hemp bast fibre is used in the production of a wide range of products where its strength and durability are advantageous, including cordage (rope, twine, etc.), specialty papers, fabrics for clothing and other applications, and industrial textiles such as geotextiles and carpeting. The strength of hemp fibre also makes it ideal for use in a range of composites for applications such as moulded car parts and fibreboard for construction."Source:"National Industrial Hemp Strategy," The Agricola Group (Ottawa, Canada: Manitoba Agriculture, Food and Rural Initiative Agriculture and Agri-Food Canada, March 30, 2008), p. 3.
(Production Differences Between Hemp and Marijuana) "Production differences depend on whether the cannabis plant is grown for fiber/oilseed or for medicinal/recreational uses. These differences involve the varieties being grown, the methods used to grow them, and the timing of their harvest (see discussion in 'Hemp' and 'Marijuana,' below). Concerns about cross-pollination among the different varieties are critical. All cannabis plants are open, wind and/or insect pollinated, and thus cross-pollination is possible.
"Because of the compositional differences between the drug and fiber varieties of cannabis, farmers growing either crop would necessarily want to separate production of the different varieties or cultivars. This is particularly true for growers of medicinal or recreational marijuana in an effort to avoid cross-pollination with industrial hemp, which would significantly lower the THC content and thus degrade the value of the marijuana crop. Likewise, growers of industrial hemp would seek to avoid cross-pollination with marijuana plants, especially given the illegal status of marijuana. Plants grown of oilseed are also marketed according to the purity of the product, and the mixing of off-type genotypes would degrade the value of the crop.8
"The different cannabis varieties are also harvested at different times (depending on the growing area), increasing the chance of detection of illegal marijuana, if production is commingled. Because of these differences, many claim that drug varieties of cannabis cannot easily be grown with oilseed or fiber varieties without being easily detected.9 As discussed below, among the visual plant differences are plant height (hemp is encouraged to grow tall, whereas marijuana is selected to grow short and tightly clustered); cultivation (hemp is grown as a single main stalk with few leaves and branches, whereas marijuana is encouraged to become bushy with many leaves and branches to promote flowers and buds); and planting density (hemp is densely planted to discourage branching and flowering, whereas marijuana plants are well-spaced)."
(Countries Which Grow Hemp) "Approximately 30 countries in Europe, Asia, and North and South America currently permit farmers to grow hemp. Some of these countries never outlawed production, while some countries banned production for certain periods in the past. China is among the largest producing and exporting countries of hemp textiles and related products, as well as a major supplier of these products to the United States. The European Union (EU) has an active hemp market, with production in most member nations. Production is centered in France, the United Kingdom, Romania, and Hungary.30
"Acreage in hemp cultivation worldwide has been mostly flat to decreasing, reported at about 200,000 acres globally in 2011.31 Although variable year-to-year, global production has increased overall from about 250 million pounds in 1999 to more than 380 million pounds in 2011, mostly due to increasing production of hemp seed (Figure 3). Upward trends in global hemp seed production roughly track similar upward trends in U.S. imports of hemp seed and oil, mostly for use in hemp-based foods, supplements, and body care products (Table 1).
"Many EU countries lifted their bans on hemp production in the 1990s and, until recently, also subsidized the production of 'flax and hemp' under the EU’s Common Agricultural Policy.32 EU hemp acreage was reported at about 26,000 acres in 2010, which was below previous years, when more than 50,000 acres of hemp were under production.33 Most EU production is of hurds, seeds, and fibers. Other non-EU European countries with reported hemp production include Russia, Ukraine, and Switzerland. Other countries with active hemp grower and/or consumer markets are Australia, New Zealand, India, Japan, Korea, Turkey, Egypt, Chile, and Thailand."Source:Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, Jan. 26, 2016), pp. 9-10.
(Hemp Hurds) "Hemp hurd is composed of cellulose-rich, short fibres, and make up approximately 75% of the hemp stalk. They are spongy and absorbent, ideal characteristics in applications such as animal bedding and industrial absorbents. They may also be used to produce low-quality paper. More recently, hemp hurd has been used to produce a concrete-like substance for use in building applications, as well as for insulation and to produce fibreboard."Source:"National Industrial Hemp Strategy," The Agricola Group (Ottawa, Canada: Manitoba Agriculture, Food and Rural Initiative Agriculture and Agri-Food Canada, March 30, 2008), p. 3.
(Hemp Stalks) "The whole hemp stalk can also be used to produce various biofuels such as bio-oil (or pyrolytic liquid), cellulosic ethanol, syngas (synthetic gas) and methane. Alternatively, the bast fibre can first be removed for use in high-value fibre applications, and the remaining hurd can then be processed into biofuel. The processes by which hemp is converted to biofuels may also produce valuable chemicals and other materials as bi-products."Source:"National Industrial Hemp Strategy," The Agricola Group (Ottawa, Canada: Manitoba Agriculture, Food and Rural Initiative Agriculture and Agri-Food Canada, March 30, 2008), p. 4.
(Hemp Oil) "Hemp oil is extremely nutritious, and is used in foods and nutraceutical products for humans and animals, as well as in personal care products. Hemp oil is also suitable for use in industrial products such as paints, varnishes, inks and industrial lubricants, and can be used to produce biodiesel. The crushed seed meal left over from oil production is frequently used for animal feed."Source:"National Industrial Hemp Strategy," The Agricola Group (Ottawa, Canada: Manitoba Agriculture, Food and Rural Initiative Agriculture and Agri-Food Canada, March 30, 2008), p. 4.
(Hemp vs. Marijuana) "Hemp is grown quite differently from marijuana. Moreover, it is harvested at a different time than marijuana. Finally, cross-pollination between hemp plants and marijuana plants would significantly reduce the potency of the marijuana plant."
(Hemp Cultivation in EU) "The survey covers the harvest of 2013, related to a total cultivation area of 15,700 ha. The first figure shows the development of the cultivation area since 1993. Between 1993 and 1996 the cultivation of industrial hemp was legalised in most of the member states, others followed later. In 2011 the cultivation area decreased to its lowest value since 1994 (ca. 8,000 ha), but increased in 2012, 2013 and 2014, to finally reach 25,000 ha in 2015. In 2016 a further increase is expected. The main cultivation member states are France and The Netherlands. In recent years, many new European countries started or expanded their hemp cultivation, mainly for the production of hemp seeds.
"From the 15,700 ha in the year 2013, 85,000 tonnes of hemp straw were harvested and processed to:
" 25,000 metric tonnes fibre
" 43,000 metric tonnes shivs (woody core of the stem)
" The relation between shivs and fibres (shivs : fibres) is of 1.7 to 1
" 13,000 metric tonnes of dust (60% pelletized for incineration, 40% for compost and other uses)
"Hemp straw in Europe is only processed in a so called total fibre line, producing random nonaligned technical fibre. This is in contrast to flax, processed in long fibre processing lines, which produces a high value aligned, long textile fibre and a technical short fibre in a similar form to Hemp.
"Some companies also or exclusively processed hemp seeds or hemp flowers:
" 11,500 tonnes (compared to only 6,000 tonnes in 2010) seeds
" 240 tonnes (compared to only 7.5 tonnes in 2010) of flowers & leaves for medical applications (THC/CBD), food supplements (CBD) and the production of essential oil (for food and beverages)
"Whereas fibres and shivs did not show any significant difference between 2010 and 2013, the production of seeds increased by 92% and the production of flowers and leaves by 3,000%. The flowers for CBD production gave hemp farmers a considerable extra profit in 2013. It should also be mentioned that hemp is one of the very few crops in Europe that is cultivated on non-organic farms without the use of any agrochemicals. Strong, fast growing hemp crops are able to supress weeds without chemical support and the crop does not suffer from any pests or diseases that would warrant a spray. Hemp also grows well under an organic regime."Source:Michael Carus and Luis Sarmentano. "The European Hemp Industry: Cultivation, processing and applications for fibres, shivs, seeds and flowers." Huerth, Germany: European Industrial Hemp Association. May 2016, pp. 1-3.
(Hemp and THC) According to David West, PhD, "The THC levels in industrial hemp are so low that no one could ever get high from smoking it. Moreover, hemp contains a relatively high percentage of another cannabinoid, CBD, that actually blocks the marijuana high. Hemp, it turns out, is not only not marijuana; it could be called 'antimarijuana.'"
(Possibility of Positive THC Test Through Exposure to Hemp Products) "Results of the hemp products tested indicate the amount of THC present in commercially available products is significantly less in products available today than those reported in the past (15-22). As a result, the probability that these products will produce urine THC metabolite levelsgreater than the DoD and HHS confirmation cutoff of 15 ng/mL is significantly reduced and should not be considered as a realistic cause for a positive urine analysis result."Source:Holler, Justin M., Bosy, Thomas Z., et al., "Delta9-Tetrahydrocannabinol Content of Commercially Available Hemp Products," Journal of Analytical Toxicology, Vol. 32, July/August 2008, p. 431.
(Hemp and Detection of THC Through Urinalysis) "Hemp seeds represent the manufacturing starting point for the vast majority of hemp products marketed since the mid-1990s. Hemp seeds are a good source of essential fatty acids, primarily alpha-linolenic acid (omega-3) and ]inoleic acid (omega-6). They are also found in fish, flaxseed, rapeseed oil, pumpkin seeds, and sunflowerseeds. Essential fatty acids (EFA) are necessary fats that humans cannot synthesize, so they must be obtained through diet. EFAs support the cardiovascular, reproductive,immune, and nervous systems. The human body needs EFAs to manufacture and repair cell membranes, enabling the cells to obtain optimum nutrition and expel harmful waste products (9). THC found in manufactured products is present via contamination from resin produced in the leaves and buds that come into contact with the seed shell. Seed decontamination and manufacturing processes including wash steps and cold pressing for hemp products have improved since the mid-1990s, leading to the much lower THC concentrations currently found in today's commercial products.
"The presence of THC in these products has been a source of concern for the military and other workplace drug-testing programs. Ingestion of hemp products has been historically used as a defense in military and civilian trials for many years and continues today despite decreased concentrations of THC in hemp products (10-12). The Division of Forensic Toxicology, Armed Forces Institute of Pathology is often asked to analyze hemp products to determine their THC content in addition to rendering an opinion as to whether or not this THC concentration could be a reasonable cause for a positive THC metabolite urine analysis result."Source:Holler, Justin M., Bosy, Thomas Z., et al., "Delta9-Tetrahydrocannabinol Content of Commercially Available Hemp Products," Journal of Analytical Toxicology, Vol. 32, July/August 2008, pp. 428-429.
(Sources of Hemp Imported to the US) "The single largest supplier of U.S. imports of raw and processed hemp fiber is China. Other leading country suppliers include Romania, Hungary, India, and other European countries. The single largest source of U.S. imports of hemp seed and oilcake is Canada. The total value of Canada’s exports of hemp seed to the United States has grown significantly in recent years following resolution of a long-standing legal dispute over U.S. imports of hemp foods in late 2004 (see “Dispute over Hemp Food Imports (1999-2004)”). European countries such as the United Kingdom and Switzerland also have supplied hemp seed and oilcake to the United States."
(Hemp Oil and Dermatitis) "Skin dryness and itchiness, in particular, are very serious problems in atopic dermatitis, which often lead to additional complications, such as opportunistic infections. In any event, it seems that the reduction of atopic symptomology observed in this study is a direct result of ingested hempseed oil. These preliminary results confirm anecdotal observations of improved skin quality after ingesting modest amounts of hempseed oil on a daily basis over a relatively short period of time."Source:Callaway, James; Schwab, Ursula; Harvima, Ilkka; Halonen, Pirjo; Mykkanen, Otto; Hyvonen, Pekka; and Jarvinen, Tomi, "Efficacy of dietary hempseed oil in patients with atopic dermatitis," Journal of Dermatological Treatment (London, United Kingdom: April 2005) Vol. 16, No. 2, p. 93.
(Advantages of Hemp Versus Hydrocarbon-Based Products) "Comparisons of industrial hemp to hydrocarbon or other conventional industrial feedstocks show that, generally, hemp requires substantially less energy for manufacturing, often is suited to less-toxic means of processing, and provides competitive product performance (especially in terms of durability, light weight, and strength), greater recyclability and/or biodegradability, and a number of value-added applications for byproducts and waste materials at either end of the product life cycle."Source:Smith-Heisters, Skaidra, "Illegally Green: Environmental Costs of Hemp Prohibition," Reason Foundation (Los Angeles, CA: March 2008), p. 31.
(Estimate of Hemp Market in the US in 2000) "No data are available on imports of hemp seed and oil into the United States, but data do exist on hemp fiber, yarn, and fabrics. Imports of raw hemp fiber have increased dramatically in the last few years, rising from less than 500 pounds in 1994 to over 1.5 million pounds for the first 9 months of 1999. Yarn imports also have risen substantially, peaking at slightly less than 625,000 pounds in 1997. The switch from yarn to raw fiber in the last 2 years probably reflects the development of U.S. spinning capacity. At least two companies are now spinning hemp yarn from imported fibers. Imports of hemp fabric have more than doubled from over 222,000 pounds in 1995 to about 523,000 pounds in 1998.
"Current markets for bast fibers like industrial hemp include specialty textiles, paper, and composites. Hemp hurds are used in various applications such as animal bedding, composites, and low-quality papers. As joint products, finding viable markets for both hemp bast fiber and hurds may increase the chances of a successful business venture."Source:United States Department of Agriculture, "Industrial Hemp in the United States: Status and Market Potential" (Washington, DC: January 2000), p. iii.
(Hemp and Nutrition) "The quality of an oil or fat is most importantly determined by its fatty acid composition. Hemp is of high nutritional quality because it contains high amounts of unsaturated fatty acids, mostly oleic acid (C18:1, 10%–16%), linoleic acid (C18:2, 50%–60%), alpha-linolenic acid (C18:3, 20%–25%), and gammalinolenic acid (C18:3, 2%–5%) (Fig. 37). Linoleic acid and alpha-linolenic acid are the only two fatty acids that must be ingested and are considered essential to human health (Callaway 1998). In contrast to shorter-chain and more saturated fatty acids, these essential fatty acids do not serve as energy sources, but as raw materials for cell structure and as precursors for biosynthesis for many of the body’s regulatory biochemicals."Source:Small, Ernest and Marcus, David , "Hemp: A New Crop with New Uses for North America," Trends in New Crops and New Uses (West Lafayette, IN: Purdue University Center for New Crops and Plant Products, 2002), p. 306.
(Estimated Potential US Retail Hemp Market) "Retail sales of imported hemp products exceeded $70 million in the United States in 2006.62 Given hemp’s wide-ranging utility, supporters of domestic cultivation estimate that it would create a $300 million dollar industry.63"Source:Kolosov, Christine A., "Evaluating the Public Interest: Regulation of Industrial Hemp under the Controlled Substances Act," UCLA Law Review (Los Angeles, CA: UCLA School of Law, 2009), p. 244.
(Potential Economic Benefits, Kentucky 1998) In a July 1998 study issued by the Center for Business and Economic Research at the University of Kentucky, researchers estimated that if Kentucky again became the main source for industrial hemp seed (as it was in the past), the state could earn the following economic benefits:
Scenario Full time
Worker Earnings Main source for certified industrial seeds only 69 jobs $1,300,000.00 Certified seeds, plus one processing facility 303 jobs $6,700,000.00 Certified seeds, plus two processing facilities 537 jobs $12,100,000.00 Certified seeds, one processing facility, one industrial hemp paper-pulp plant 771 jobs $17,600,000.00Source:Tompson, Eric C., PhD, Berger, Mark C., PhD, and Allen, Steven N., Economic Impacts of Industrial Hemp in Kentucky (Lexington, KY: University of Kentucky, Center for Business and Economic Research, 1998), p. iv.
(Potential Economic Benefits, Kentucky 1998) In a July 1998 study issued by the Center for Business and Economic Research at the University of Kentucky, researchers concluded that Kentucky hemp farmers could earn a net profit of $600 per acre for raising certified seeds, $320 net profit per acre for straw only or straw and grain production, and $220 net profit per acre for grain only production. The only crop found to be more profitable was tobacco.Source:Tompson, Eric C., PhD, Berger, Mark C., PhD, and Allen, Steven N., Economic Impacts of Industrial Hemp in Kentucky (Lexington, KY: University of Kentucky, Center for Business and Economic Research, 1998), p. 21.
(Hemp Products and the DEA) In late 1999, during the development of the 2003 rules (described in the previous section), the DEA acted administratively to demand that the U.S. Customs Service enforce a zero-tolerance standard for the THC content of all forms of imported hemp, and hemp foods in particular.
"The DEA followed up, in October 2001, with publication of an interpretive rule in the Federal Register explaining the basis of its zero-tolerance standard.63 It held that when Congress wrote the statutory definition of marijuana in 1937, it 'exempted certain portions of the Cannabis plant from the definition of marijuana based on the assumption (now refuted) that such portions of the plant contain none of the psychoactive component now known as THC.' Both the proposed rule (which was published concurrently with the interpretive rule) and the final 2003 rule gave retailers of hemp foods a date after which the DEA could seize all such products remaining on shelves. On both rules, hemp trade associations requested and received court-ordered stays blocking enforcement of that provision. The DEA’s interpretation made hemp with any THC content subject to enforcement as a controlled substance.
"Hemp industry trade groups, retailers, and a major Canadian exporter filed suit against the DEA, arguing that congressional intent was to exempt plant parts containing naturally occurring THC at non-psychoactive levels, the same way it exempts poppy seeds containing trace amounts of naturally occurring opiates.64 Industry groups maintain that (1) naturally occurring THC in the leaves and flowers of cannabis varieties grown for fiber and food is already at below-psychoactive levels (compared with drug varieties); (2) the parts used for food purposes (seeds and oil) contain even less; and (3) after processing, the THC content is at or close to zero. U.S. and Canadian hemp seed and food manufacturers have in place a voluntary program for certifying low, industry-determined standards in hemp-containing foods. Background information on the TestPledge Program is available at http://www.TestPledge.com. The intent of the program is to assure that consumption of hemp foods will not interfere with workplace drug testing programs or produce undesirable mental or physical health effects.
"On February 6, 2004, the U.S. Court of Appeals for the Ninth Circuit permanently enjoined the enforcement of the final rule.65 The court stated that 'the DEA’s definition of ‘THC’ contravenes the unambiguously expressed intent of Congress in the CSA and cannot be upheld.'66 In late September 2004 the Bush Administration let the final deadline pass without filing an appeal."
(State Laws Regarding Hemp) "Beginning around 1995, an increasing number of state legislatures began to consider a variety of initiatives related to industrial hemp. Most of these have been resolutions calling for scientific, economic, or environmental studies, and some are laws authorizing planting experimental plots under state statutes. Nonetheless, the actual planting of hemp, even for state-authorized experimental purposes, remains regulated by the DEA under the Controlled Substances Act.
"A summary of current state legislative actions regarding industrial hemp, according to the advocacy organization Vote Hemp, is as follows (also see text box):79
" Nine states have defined industrial hemp as distinct and removed barriers to its production (Colorado, Kentucky, Maine, Montana, North Dakota, Oregon, Vermont, Washington, and West Virginia).
" Three states have passed bills creating commissions or authorizing research (Hawaii, Kentucky, and Maryland).
" Nine states have passed hemp resolutions (California, Colorado, Illinois, Montana, New Hampshire, New Mexico, North Dakota, Vermont, and Virginia).
" Eight states have passed hemp study bills (Arkansas, Illinois, Maine, Minnesota, New Mexico, North Carolina, North Dakota, and Vermont). (Some states have done studies without legislative directive.)
"Although several states have established programs under which a farmer may be able to grow industrial hemp under certain circumstances, a grower would still need to obtain a DEA permit and abide by the DEA’s strict production controls. This relationship has resulted in some high-profile cases, wherein growers have applied for a permit but DEA has not approved (or denied) a permit to grow hemp, even in states that authorize cultivation under state laws. Ongoing cases involve attempts to grow hemp under state law in North Dakota, Montana, Vermont, and other states. DEA permits to grow hemp have been issued to some university researchers and to the Hawaii Industrial Hemp Research Program.80
"Changes to Colorado’s state laws in November 2012 now allow for industrial hemp cultivation in small test plots, and industrial hemp is now reported as being grown in Colorado.81 Changes to Kentucky’s state laws in April 2013 might also soon allow for hemp to be grown in that state."
Laws and Policies
(Federal Law and DEA Control Over Hemp Production in the US) "In 1937, Congress passed the first federal law to discourage cannabis production for marijuana while still permitting industrial uses of the crop (the Marihuana Tax Act; 50 Stat. 551). Under this statute, the government actively encouraged farmers to grow hemp for fiber and oil during World War II. After the war, competition from synthetic fibers, the Marihuana Tax Act, and increasing public anti-drug sentiment resulted in fewer and fewer acres of hemp being planted, and none at all after 1958.
"Strictly speaking, the Controlled Substances Act of 1970 (CSA, 21 U.S.C. §801 et. seq.) does not make growing hemp illegal; rather, it places strict controls on the production of hemp, making it illegal to grow the crop without a DEA permit.
"The CSA adopted the same definition of Cannabis sativa that appeared in the 1937 Marihuana Tax Act. The definition of “marihuana” (21 U.S.C. §802(16) reads:
The term marihuana means all parts of the plant Cannabis sativa L., whether growing or not; the
seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture,
salt, derivative, mixture, or preparation of such plant, its seeds or resin. Such term does not
include the mature stalks of such plant, fiber produced from such stalks, oil or cake made from
the seeds of such plant, any other compound ... or preparation of such mature stalks (except the
resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of such plant which is
incapable of germination.
"The statute thus retains control over all varieties of the cannabis plant by virtue of including them under the term 'marijuana' and does not distinguish between low- and high-THC varieties. The language exempts from control the parts of mature plants—stalks, fiber, oil, cake, etc. — intended for industrial uses. Some have argued that the CSA definition exempts industrial hemp under its term exclusions for stalks, fiber, oil and cake, and seeds.44 DEA refutes this interpretation.45Source:Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, Jan. 26, 2016), pp. 12-13.
(Controlled Substances Act) "The CSA [Controlled Substances Act] classifies marijuana in the first category of schedules, placing it among the most harmful and dangerous drugs.137 Marijuana meets the criteria for a Schedule I controlled substance because of its THC content, which is a psychoactive hallucinogenic substance with a high potential for abuse.138 Another key classification made by the CSA regarding marijuana was its broad definition of the drug.139 The CSA defines marijuana as follows:
"The term ‘“marihuana” means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds or resin. Such term does not include the mature stalks of such plant, fiber produced from such stalks, oil or cake made from the seeds of such plant, any other compound, manufacture, salt, derivative, mixture, or preparation of such mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of such plant which is incapable of germination.140
"This effectively placed the entire use of the hemp plant, whether for drug use or as industrial hemp, squarely under the control of the CSA.141 Therefore, the DEA views industrial hemp containing .3% THC the same as marijuana grown for drug use which commonly contains a 24% THC level, or eighty times more THC.142"Source:Duppong, Thomas A., "Industrial Hemp: How the Classification of Industiral Hemp as Marijuana under the Controlled Substances Act Has Caused the Dream of Growing Industrial Hemp in North Dakota to Go up in Smoke," North Dakota Law Review (Grand Forks, ND: University of North Dakota School of Law, 2009) Vol. 85, No. 2, p. 417-418.
"Legislative history suggests that Congress accepted the name Cannabis sativa L. for the hemp plant, believing it to be the common description within the scientific community.41 This categorization combined all marijuana-producing Cannabis plants.42 Therefore, any hemp plant capable of producing any amount of THC was classified as Cannabis sativa L. under the CSA.43"Source:Duppong, Thomas A., "Industrial Hemp: How the Classification of Industiral Hemp as Marijuana under the Controlled Substances Act Has Caused the Dream of Growing Industrial Hemp in North Dakota to Go up in Smoke," North Dakota Law Review (Grand Forks, ND: University of North Dakota School of Law, 2009) Vol. 85, No. 2, p. 407.
(Hemp and CBD) "Another chemical shared by both industrial hemp and marijuana is Cannabidiol (CBD).48 CBD is unique because it is not intoxicating and it also moderates the euphoric effect of THC.49 Marijuana, which has disproportionately higher levels of THC than industrial hemp, also contains lower levels of CBD.50 The higher THC and lower CBD concentration gives marijuana its psychoactive effect.51 Conversely, industrial hemp’s low THC levels and comparatively high CBD levels produce none of the intoxicating effects of marijuana.52"Source:Duppong, Thomas A., "Industrial Hemp: How the Classification of Industiral Hemp as Marijuana under the Controlled Substances Act Has Caused the Dream of Growing Industrial Hemp in North Dakota to Go up in Smoke," North Dakota Law Review (Grand Forks, ND: University of North Dakota School of Law, 2009) Vol. 85, No. 2, p. 408.
(Hemp History) "From the colonial period through the middle of the nineteenth century, hemp was widely grown in the United States for use in fabric, twine, and paper.19 Production dropped by the 1890’s as technological advances made cotton a more competitive textile crop, and coarse fiber crops were increasingly imported.20 Nonetheless, American farmers continued to grow hemp into the middle of the twentieth century, finding it a useful rotation crop because it acted as a natural herbicide21—a dense, rapidly growing crop, it choked out weeds prior to the next planting of corn and other crops.22 At the urging of the government, production to supply fiber for military purposes was expanded enormously during World War I and again during World War II, particularly after the Japanese cut off exports from the Philippines."Source:Kolosov, Christine A., "Evaluating the Public Interest: Regulation of Industrial Hemp under the Controlled Substances Act," UCLA Law Review (Los Angeles, CA: UCLA School of Law, 2009), p. 241.
(Hemp History) "Probably indigenous to temperate Asia, C. sativa is the most widely cited example of a “camp follower.” It was pre-adapted to thrive in the manured soils around man’s early settlements, which quickly led to its domestication (Schultes 1970). Hemp was harvested by the Chinese 8500 years ago (Schultes and Hofmann 1980). For most of its history, C. sativa was most valued as a fiber source, considerably less so as an intoxicant, and only to a limited extent as an oilseed crop. Hemp is one of the oldest sources of textile fiber, with extant remains of hempen cloth trailing back 6 millennia. Hemp grown for fiber was introduced to western Asia and Egypt, and subsequently to Europe somewhere between 1000 and 2000 BCE. Cultivation in Europe became widespread after 500 CE. The crop was first brought to South America in 1545, in Chile, and to North America in Port Royal, Acadia in 1606. The hemp industry flourished in Kentucky, Missouri, and Illinois between 1840 and 1860 because of the strong demand for sailcloth and cordage (Ehrensing 1998). From the end of the Civil War until 1912, virtually all hemp in the US was produced in Kentucky."Source:Small, Ernest and Marcus, David , "Hemp: A New Crop with New Uses for North America," Trends in New Crops and New Uses (West Lafayette, IN: Purdue University Center for New Crops and Plant Products, 2002), p. 284.
(History in American History) "Hemp was widely grown in the United States from the colonial period into the mid-1800s; fine and coarse fabrics, twine, and paper from hemp were in common use. By the 1890s, labor-saving machinery for harvesting cotton made the latter more competitive as a source of fabric for clothing, and the demand for coarse natural fibers was met increasingly by imports. Industrial hemp was handled in the same way as any other farm commodity, in that USDA compiled statistics and published crop reports,45 and provided assistance to farmers promoting production and distribution.46 In the early 1900s, hemp continued to be grown and researchers at USDA continued to publish information related to hemp production and also reported on hemp’s potential for use in textiles and in paper manufacturing.47 Several hemp advocacy groups, including the Hemp Industries Association (HIA) and Vote Hemp Inc., have compiled other historical information and have copies of original source documents.48
"Between 1914 and 1933, in an effort to stem the use of Cannabis flowers and leaves for their psychotropic effects, 33 states passed laws restricting legal production to medicinal and industrial purposes only.49 The 1937 Marihuana Tax Act defined hemp as a narcotic drug, requiring that farmers growing hemp hold a federal registration and special tax stamp, effectively limiting further production expansion.
"Hemp was briefly brought back into large-scale production during World War II, at the urging of USDA, to provide for 'products spun from American-grown hemp' including 'twine of various kinds for tying and upholsters work; rope for marine rigging and towing; for hay forks, derricks, and heavy duty tackle; light duty fire hose; thread for shoes for millions of American soldiers; and parachute webbing for our paratroopers,' as well as 'hemp for mooring ships; hemp for tow lines; hemp for tackle and gear; hemp for countless naval uses both on ship and shore.'50
"In 1943, U.S. hemp production reached more than 150 million pounds (140.7 million pounds hemp fiber; 10.7 million pound hemp seed) on 146,200 harvested acres. This compared to pre-war production levels of about 1 million pounds. After reaching a peak in 1943, production started to decline. By 1948, production had dropped back to 3 million pounds on 2,800 harvested acres, with no recorded production after the late 1950s.51"
(Hemp in US History) "During World War I, some hemp cultivation occurred in several states, including Kentucky, Wisconsin, California, North Dakota, South Dakota, Minnesota, Indiana, Illinois, Ohio, Michigan, Kansas, and Iowa (Ehrensing 1998). The second world war led to a brief revival of hemp cultivation in the Midwest, as well as in Canada, because the war cut off supplies of fiber (substantial renewed cultivation also occurred in Germany for the same reason). Until the beginning of the 19th century, hemp was the leading cordage fiber. Until the middle of the 19th century, hemp rivaled flax as the chief textile fiber of vegetable origin, and indeed was described as 'the king of fiber-bearing plants,—the standard by which all other fibers are measured' (Boyce 1900). Nevertheless, the Marihuana Tax Act applied in 1938 essentially ended hemp production in the United States, although a small hemp fiber industry continued in Wisconsin until 1958. Similarly in 1938 the cultivation of Cannabis became illegal in Canada under the Opium and Narcotics Act."Source:Small, Ernest and Marcus, David , "Hemp: A New Crop with New Uses for North America," Trends in New Crops and New Uses (West Lafayette, IN: Purdue University Center for New Crops and Plant Products, 2002), p. 284.