More of hemp, the stuff of miracles, is being grown in the United States than ever before due to new state-level programs.
Did you ever dream of starting afresh? Packing away all that you own and transporting yourself to some location where you could work the land rather than being stuck behind a desk? Because of the fast growth in state-level hemp programs in the United States, an ever-increasing number of people have made themselves an element of this lucrative sustainable future, helping to devise a more environmentally friendly way to live.
Given that so much is afoot with hemp in the United States, we decided this was the ideal time to consider some of the new state hemp programs to see what works (and doesn’t) in every state. Here, we’ll examine the hemp programs found in Nevada, Oregon, Vermont, and Wisconsin. We’ll also give the going rate for hemp in each of these states, which we obtained from a report in Hemp Industry Daily.
First of all, however, we’d like to supply a short history of the growing of hemp in recent times.
How growing hemp came back to the United States
It all began in 1996, with California the first of these United States that legalized marijuana for medical purposes. California was at the forefront and stayed there right up until 2012, whereupon a second state went similarly rogue. Colorado made cannabis legal for recreational purposes. It was this pair of states that made the same revolutionary move in the world of cannabis.
Here you can find CBD oil for sale Colorado.
A timeline of the legalization of hemp: first California, then Nevada, Oregon, Vermont, and Wisconsin.
If we had not had California and Colorado forming the vanguard, the Agricultural Act of 2014, popularly known as the 2014 Farm Bill, might never have passed. This is what relegalized the growing of hemp in the United States in the form of state “research” programs. If it was not for this legislation, the general public might never have learned about the benefits of cannabidiol (CBD), which are great enough to change lives. CBD has exercised such massive influence on the hemp market that it could reasonably be said to have set it afire.
The 2014 Farm Bill granted states considerable leeway in setting the parameters of their hemp-growing programs. Some permit only academic research; however, those that met the most success permit the most unrestricted growing and consequently sales. As is true of any market that has grown as much as has been the case with hemp, there are sure to have been some bumps on the way. This article will describe some of these growing pains and what is needed to make a start in the hemp industry.
Hemp sales reach $820 million with state hemp programs
It was recently reported that sales of hemp in the United States set a record in 2017 when they hit $820 million. Some people believe the figure will be an astonishing $1.8bn by 2020. Another report, this time in Rolling Stone, indicated that sales of CBD could be as much as $22bn by 2022, more than even those of psychoactive cannabis.
Sadly, hemp’s multiple uses have been known since colonial times, with George Washington growing it and the earliest editions of the Declaration of Independence appearing on paper made from hemp. Unfortunately, the stigma that was a byproduct of the War on Drugs, not to mention cover-ups by the government, caused people to be ignorant of the benefits of hemp for decades.
The hemp farm that belonged to George Washington grows once more at his estate at Mount Vernon thanks to horticulturists working with the University of Virginia.
Hemp has now made a comeback in a very big way. Because of hemp, great amounts of money are being injected into the U.S. economy, supplying jobs, which means opportunity, to people who wish to test their farming savvy. Thousands had also tried CBD oil use for migraines due to its effectiveness and versatility in treating other pains.
Presently, 19 states permit the cultivation of hemp, which covered 25,713 acres in 2017 per the crop report by Vote Hemp. That’s only the beginning because the hemp market might soon grow extravagantly. After the 2018 Farm Bill was amended, it would make hemp legal across the nation, and see it managed by the Department of Agriculture.
Wisconsin’s hemp program is new and expanding rapidly
Wisconsin made hemp legal in 2017 and is now saluted for being among the states where hemp cultivation is growing the most rapidly. For hemp to be cultivated legally there, it has to be grown as part of Wisconsin’s hemp pilot program. To follow the program, hemp must have no more than 0.3 percent tetrahydrocannabinol (THC — the stuff that makes you high), and those engaged in growing and refining it have to submit a selection of reports to Washington’s Department of Agriculture, Trade, and Consumer Protection in order to show that they comply. Records have to be retained for three years. Covered in a range of information, like the sources of products and chain of custody forms. State officials must be able to access the place where hemp is grown to monitor property transfers.
320 licenses have been issued since hemp was made legal. Of those, 180 were licenses to grow, while 75 were licenses to process hemp. The registration fee is $350, and the annual application fee varies from $150 to $1,000 according to how large the field is.
Growing hemp in Wisconsin is a challenge
Although the hemp program in Wisconsin is still thriving, it has one growing pain that is unique and now receiving attention: privacy. Wisconsin’s hemp law keeps the contact details of processors private, which makes it harder for farmers to bring their hemp crops to market. In a Cap Times article, the Wisconsin Farm Bureau’s Rob Richard explained why secrecy was needed. He commented, “We were concerned growers would be harassed by people who didn’t understand hemp.”
Hemp programs differ wildly between states. Some, like Vermont’s, is simple, but people growing hemp in Wisconsin are confronted by grave challenges.
Richard has been working alongside Larry Konopacki, once a legislative counsel attorney, to rectify this problem. They created the Wisconsin Hemp Alliance program. Its objective is to unite farmers, processors, retailers, and consumers. This organization has only recently come into existence, so there’s little to be said of it right now.
The going rate for hemp in Wisconsin
The going rate for hemp in Wisconsin is, sadly, not known because this state is at an early stage with cultivating hemp.
Since 2013, licenses for hemp in Vermont have grown by 3,000 percent
After 2013 saw the legalization of hemp in Vermont, the state has had a highly progressive hemp program (which we have reported on recently).
Of all the states that allow the growing of hemp, Vermont is certainly one of the most relaxed. Just like with all the hemp that’s grown in states that approve of it, the amount of THC can’t exceed 0.3 percent. Apart from this, the government leaves people who grow and process hemp pretty much unmolested.
This could go some way to explaining why Vermont is seeing a boom in hemp. In the year that followed legalization, only eight people made an application for a
Hemp Industry Daily told us that Vermont’s farmers need not be participating in a state agriculture authority or university’s research scheme or a pilot project if they wish to cultivate hemp. So although Vermont might be out of line with the hemp rules of the federal government, farmers can benefit from the state’s noninterventionist approach and have access to usable hemp seeds farmers in other states don’t. And since long-standing producers of hemp seeds in Canada and Europe are closer to Vermont in latitude, such seeds will germinate at a higher rate than if they were planted farther south.
Luce Farm contains a most congested hemp field. The hemp laws in Vermont are among the most progressive in the United States (photo: Ministry of Hemp/Paul James).
Growing hemp in Vermont is challenging, too
Since July 1, 2018, the buying and selling of hemp have been legal in Vermont for people who possess a license from the Agency of Agriculture. It’s expected that this program will calm concerns about interference with growers by federal agencies so long as growers follow the rules of the state’s program. Farmers in the state are also allowed to buy hemp seeds from suppliers located outside the state.
It is, however, important to take note that it’s not all rainbows and ponies when it comes to hemp in Vermont. Farmers and people at other stages of the production process have to accommodate a collection of growing pains. One is that the state will soon be confronted by greater competition from its larger neighbors, New York, and Canada. And should the legislature and governor of Vermont choose to make recreational marijuana legal, that might lead to the creation of a brand new load of guidelines that must be met. Finally, as is true of all states, people growing hemp in Vermont have to have a clear plan to grow and sell their product if they’d like to make a profit.
The going rate for hemp in Vermont
- $100 per pound of dried flowers/buds for CBD extraction
- $0.80-$1.20 per pound for edible seeds used in food products or pressed for seed oil
- $0.10 per pound for stalks used for their fiber
Hemp in Oregon constitutes a new gold rush
Oregon made the cultivation of hemp legal in 2009; however, it wasn’t until 2015 that the Department of Agriculture of the state issued licenses to growers. After that, Oregon’s hemp market exploded, courtesy of CBD. CBD oil fetches several thousand dollars a kilo in its distilled form. Farmers in this state can make over $100k per acre from growing hemp! In Oregon’s first year of issuing hemp licenses, there were only 12, but in 2017, there were dramatically more. Oregon issued the following licenses:
- 233 for hemp growers
- 170 for processors, who are known as “handlers”
- 119 for people producing viable hemp seeds
More than 3,500 acres of land was licensed for cultivation!
Jerrad, a farmer, gave the best summary of the feeling in Oregon in Insurance Journal: “Word on the street is everybody thinks hemp is the new gold rush!”
Nevada’s hemp program might be new, but it’s already seen success, with one supporter speaking of hemp in the state amounts to a “new gold rush”.
The startup fees for hemp entrepreneurs in Oregon are stiff. Firstly, they have to pay for a license to grow and process it, which costs $1,300. There’s also a fee of $120 to register seed production.
No background checks are required for growers or refiners of hemp in Oregon. But the state does test all hemp exhaustively. To follow the law, growers and refiners can use only those laboratories that have received state approval. Last October, some new testing requirements came into effect that will cost Oregon more than $50,000, a sum likely to be passed on to farmers.
Hey, growing hemp in Oregon is challenging, as well
An excess of marijuana in Oregon has caused its price to fall to the lowest level, forcing farmers to resort to hemp. As more hemp licenses are issued in Oregon, its price is likely to decrease, causing that market to fall, too.
Earlier in 2018, Kate Brown, Oregon’s Governor, signed SB1015 into law. This entails that hemp can enter the recreational cannabis supply line if the people growing it has the permission of the Oregon Liquor Control Commission. Those who process marijuana intended for recreational use can also apply for a special “endorsement” allowing them to accept hemp and hemp products like CBD oil vape juice.
People making recreational cannabis then convert the hemp, which can be no more than 0.3 percent THC, into a concentrate from which things can be extracted. But since some marijuana growers already seek extreme means to shed inventory surplus to the point of destroying what they make, introducing hemp can’t be a positive development. So doing will only motivate an increasing number of farmers to prefer to cultivate hemp, eventually leading to an excess of that, too. If CBD becomes legal federally, this might be an opportunity rather than a challenge.
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The going rate for hemp in Oregon
- $100 or more per pound of dried flowers or buds for CBD extraction
- Less than $0.50 for edible seeds
- $0 for stalks used for fiber since Oregon’s market is too restricted
In Nevada, hemp is “taking off like a weed”
As with Wisconsin, the situation with hemp in Nevada remains at a very early stage. Since becoming legal in 2017, growing hemp in Nevada has been expanding rapidly.
An article that appeared in The Nevada Independent had Tick Segerblom commenting, “It’s taking off like a weed.” Segerblom is a state senator who sponsored the bill that represented the basis for Nevada’s hemp program. He added, “There’s an incredible amount of interest in it.”
In 2016, 11 people had a license to grow hemp over 319 acres, while 32 planned to plant 718 acres in 2018. One official declared there to be “an incredible amount of interest” in Nevada’s hemp program.
In Nevada, hemp growers, refiners, and handlers need a particular license. The one for growers costs $500 as an application fee plus $5 per acre ($0.33 per square foot) for indoor grows, payable to the Nevada Department of Agriculture (NDA). Handlers must fork out $1,000 for an application fee in addition to fees the NDA requires. Refiners must pay $100 for an application, the same area fees paid by growers, and more fees for the NDA. The law dictates that the NDA approves every purchase of seeds. Seeds not certified by the NDA can be grown in spaces of no more than five acres.
Growing hemp in Nevada is, you guessed it, challenging
The largest challenge for Nevada’s hemp industry concerns federal regulations. Most of Nevada’s hemp is intended for human use, which includes CBD. Hemp’s other uses, among them the making of paper, rope, and textiles, are almost ignored because the processing of these requires big equipment, which takes big dollars. Few investors are prepared to make such a sizable investment before such time as hemp becomes legal federally.
The going rate for hemp in Nevada
- $200 or more per pound for flowers, depending on CBD content and quality
- $10 per pound for food-grade seeds
- $45 per gallon for seed oil
- $200 per ton of baled fiber
What does the future hold for state hemp programs?
Initially, it might appear that the one thing that would truly solve all these problems would be to legalize hemp completely. Whether it’s the lack of industry expansion faced in Nevada, the privacy rules that prevail in Wisconsin, or the possible implosion of the market in Oregon, legalizing hemp would surely exert a positive effect on many of the challenges detailed above.
The Senate introduced an amendment to the 2018 Farm Bill that might legalize hemp completely, but the prohibition of people convicted of drug felonies from participating in the industry may cause problems for some currently growing hemp under state hemp programs.
Legal hemp will probably offer an utterly new collection of challenges. One example is the question of how states handle intrastate commerce. Will hemp prices be restricted? At the time of writing, the price of hemp in Nevada has gone sky high, being $200 or even more for dried flowers, while the price in Vermont is $100.
Also, although the 2018 Farm Bill might legalize hemp, people convicted of drug felonies are forbidden from growing it. Similar restrictions haven’t been imposed upon any other crop, and farmers and people who advocate hemp usage have both objected to this measure.
For the time being, we can take pleasure in hemp having returned in such a big way. Legalized hemp has forged a new economy, shown medical potential that’s downright awe-inspiring, and put to good use land that would otherwise have been left fallow.
Cbd Oil Adviser can only hope that the federal government makes the right decision, legalizing hemp for all imaginable uses and to be grown by anybody!