This is a tough crop market. Continued soft pricing has put pressure on most farms’ bottom lines. And for some in Colorado, that means looking for other crops to raise, including industrial hemp. R. Brent Young, regional Extension specialist, Colorado State University, offers some insight into this crop, and caution as well.

Young explains that the major difference between industrial hemp and marijuana is the tetrahydrocannabinol (THC) content. This is the psychoactive ingredient in marijuana that produces the high. And according to the 2014 Farm Bill, industrial hemp must contain less than 0.3% THC on a dry weight basis.

For a grower considering hemp as a crop, there are some key steps to take. First among these is to register with the Colorado Department of Agriculture. The costs include an application fee of $500 plus $5 per acre for outdoor production, or 33 cents per square foot for indoor production. Producers must also file a preplanting, planting and harvest report with CDA. “Industrial hemp fields and grow sites are subject to random inspection and THC content testing by the CDA at the grower’s expense,” Young says. “Fields or grow sites that have industrial hemp samples that test higher than 0.3% THC are subject to reporting to law enforcement agencies by the CDA.”

Farm program compliance
Young said the second issue is a producer’s compliance with USDA farm programs if you raise industrial hemp. The 2014 Farm Bill provided language making the production of the crop possible as part of research projects conducted by state universities and state departments of agriculture. However, industrial hemp remains a Schedule 1 controlled substance under the Controlled Substances Act.

“The CDA has reached out to the various agencies within the USDA for written guidance regarding their stance on the production of industrial hemp and USDA farm program compliance,” Young says. “To date, none of the USDA agencies have responded in writing.”

Young advises that the best course of action for prospective growers is to partner with a university or college in a research study to maintain farm program compliance.

And finally, Young explains that if a farmer is approached by someone offering a contract to grow industrial hemp, or buy hemp-related raw products, the prospective buyer must have a Farm Products and Commodity Handlers license from CDA. A full list of those licensed buyers is available on the CDA website.

“Low commodity prices have forced many producers to search for alternatives to traditional crop and livestock enterprises,” Young says. “Many of these alternatives provide their own set of challenges, and farmers and ranchers must do their homework as they consider industrial hemp.”

Young encourages Colorado producers with questions about industrial hemp to reach out to him at 970-522-7207, or by email at [email protected].

Source: Colorado State University