By Dan Lemke

Few emerging or potential crops have generated as much controversy as industrial hemp. Proponents laud it for its seemingly endless array of uses — as many as 25,000 — and its potential as an alternative crop. Opponents, however, cast hemp as an impediment to the war on drugs and a foot in the door for legalization of marijuana.

Though grown around the world for its fiber, oil and seed, hemp’s been outlawed in the United States since 1937 for its relationship to marijuana. The active ingredient in marijuana, THC (tetrahydrocannabinol), comprises less than one percent of industrial hemp; marijuana contains from 5 to 20 percent. Still, many in law enforcement oppose relaxing the law, fearing it will send the wrong message and lead to widespread marijuana cultivation. Law enforcement agencies also worry about their ability to enforce laws governing marijuana if farmers could plant look-alike hemp.

Bud Sholtz, an agricultural economist and chair of the North American Industrial Hemp Council in Madison, Wisc., says the NAIHC was formed to reestablish and expand the use of industrial hemp only. “We have absolutely no interest in medicinal marijuana or in the legalization of marijuana,” Sholtz says. “We are strictly interested in industrial hemp for agricultural production.”

Grown round the planet

Thirty countries, including Canada, Russia, China, India and Australia, already allow industrial hemp cultivation. Canadian producers were first able to plant hemp last year and responded by planting about 5,000 acres. Production this year is soaring even higher.

Legislation has been brought forward in states from Vermont to Minnesota to Hawaii to make industrial hemp legal; in some cases, hemp cultivation would be allowed only on a limited research basis.

In April, North Dakota became the first state to pass a law allowing the crop to be grown for industrial use.

But Sholtz says federal drug enforcement officials need to give their blessing before any seeds go in the ground. “Don’t plant. Don’t do it yet,” he cautions. “Wait until it opens at the federal level.” He adds that progress is being made on changes to the national policy.

Currently, the White House Office of National Drug Control Policy (ONDCP) and the Drug Enforcement Agency (DEA) both oppose hemp cultivation. The agencies fear legalizing hemp would send the wrong message in a time of rising drug use among adolescents, and lead to “de facto legalization of marijuana cultivation.”

To address those concerns, Canada requires hemp producers to have licenses and police background checks. They must use certified seed that produces low THC plants, report their crop’s precise location and open the site for random inspections.

A heritage of hemp

Hemp has a long history in America. It was among the first crops planted by colonists in the 1600s. The first two drafts of the Declaration of Independence were written on hemp paper; the first American flag was sewn from hemp fiber. Presidents Washington and Jefferson grew hemp on their plantations. In Minnesota, numerous communities were once home to hemp processing plants.

But in 1937, Congress outlawed all members of the cannabis family, including industrial hemp. Other than a brief reprieve during World War II, growing hemp has remained illegal in this country. Processing hemp, however, is lawful. So retail products already available in this country are made from imported hemp.

Textiles, cosmetics, paper, furniture, biodegradable plastic and even auto parts can be made from hemp. In stores from Duluth to Bloomington to Mankato, consumer items are popping up with increased frequency. Products such as clothing, shoes, even shampoo and bath gels, are all readily available.

Easy to grow

Hemp is a woody fiber plant similar to flax, kenaf and jute. It can flourish under many growing conditions and in varying soil types, but tends to grow best on land that produces high yielding corn. Since it is planted densely and grows rapidly (6 to 15 feet in four months), hemp requires virtually no herbicides and attracts few pests, while its deep tap root helps to aerate soil.

Hemp advocates say equipment farmers already have could be used for hemp production. Haying equipment can be used to raise hemp fiber; certified seed production requires a combine.

Fiber processing begins when the hemp plant has reached its full size, but before seeds are ready. Plants are mowed and left in the field for four to six weeks. They begin to rot, which breaks down the materials that hold fibers together. This process, called retting, makes it easier for fibers to be removed from the stalk. Once retting is complete, plants are baled and shipped to processing plants where fibers are stripped and collected for various final applications.

Marketing in the real world

As with any new crop, a market is essential. A 1998 report by six North Dakota State University professors shows that since 1995, when industrial hemp could first be brought into the United States, imports have increased 215 percent.

Since there hasn’t been a U.S. hemp crop for over 50 years, accurate income projections are difficult. But Sholtz says Canadian producers are reporting net income of $200 to $350 per acre at the current tonnage price.

Not all share the rosy outlook. University of Kentucky agricultural economist Valerie Vantreese published a report in July 1998 showing the global industrial hemp market trended downward over the last 30 years and remains negligible in magnitude. According to the report, total world trade in industrial hemp fiber and seed totaled only $10.4 million in 1996.

“It is the combination of projected hemp demand uncertainty, coupled with a low volume market, that makes hemp prices volatile and profit estimations adventurous,” Vantreese writes. “Despite the current fad for products made from hemp, legalized hemp production in the U.S. would very likely depress U.S. hemp prices. At current world prices it does not appear that hemp can compete on a large scale and may be confined to a niche or specialty market until processing technology improves.”

Technology improvements are being investigated in Europe and proposals have been made to test new processes here in Minnesota, which could improve hemp’s value as a fiber crop.

A DEA report points to hemp’s similarity to flax, saying the two plants are interchangeable for most practical purposes. Since there is not a large market for legal fiber crops such as kenaf and flax, which have been supported by years of research, both the DEA and ONDCP are skeptical that hemp will fare any differently. Reports by both agencies claim hemp is a labor-intensive crop successful in countries such as China and the Philippines because of cheap labor costs. With production costs much higher here and a lack of infrastructure to process hemp, the DEA says hemp is a “novelty product with limited sustainable development value even in a novelty market.”

Advocates like Sholtz disagree, saying there could be a market for 12 to 15 million acres of hemp by the fifth or sixth year of production. That is, if the industry is allowed to grow at a reasonable pace. If hemp is legalized, groups such as the North American Industrial Hemp Council are concerned with uncontrolled growth. Some Canadian provinces report producers will be planting as much as 10 times more hemp this season than last year. Much of that growth is a response to the planned construction of a new processing facility in Manitoba. Still, supporters worry about producers raising too much, too soon.

“If American agriculture is smart, they won’t do what they did with Jerusalem artichokes, overproduce by ten times and ruin the markets,” Sholtz says. “This should be a slow, steady growth industry.”

But until the federal government makes a policy change regarding hemp, it’s a moot point.