Idaho, the last U.S. state to legalize industrial hemp in April 2021, has significant potential to become a national leader in hemp cultivation.
However, restrictive regulations are slowing the industry's growth, leaving farmers frustrated and cautious.
"Everyone’s nervous that it’s marijuana, or that it’s weed, or it’s a stepping stone to weed, but it’s a stepping stone to industrial building," said Triston Sponseller, one of Idaho's largest hemp farmers in an article by Hunter Frank on KTVB7.
His operations in Roberts focus on hemp fiber, showcasing the crop's industrial applications rather than THC or CBD production.
Navigating Stringent Regulations
Idaho's hemp laws mandate that crops test below 0.3% THC.
This year, Sponseller's crop tested at 0.8%, forcing him to remove seed heads and bear the cost.
Like others, he used certified seeds that passed in other states but failed Idaho's stricter requirements. Under the state's "three strikes" rule, farmers exceeding THC limits three times in five years are banned from growing hemp for another five years.
"It was certified when it came from overseas, and it didn’t go hot in Colorado," Sponseller explained, emphasizing the challenges of complying with Idaho's rules. Testing and remediation costs further deter expansion. "I can’t grow 2,000 acres of hemp and afford 20, 30 different tests for each field," he added.
Read Also: We Need Hemp-Based Fiber, Food And Building Materials, Not Just CBD, Says Industry Report
Promise Of Hemp In Idaho
Despite the hurdles, hemp farming in Idaho has quadrupled in acreage since 2022, according to the Idaho State Department of Agriculture (ISDA).
Farmers like Sponseller say they’re optimistic, pointing to hemp's versatility, water efficiency and benefits to soil health. At Sponseller's Rexburg facility, hemp stalks are processed into materials like insulation, paper, and landscaping products.
"For being a plant grown in a field, it’s impressive how strong it is; just its natural qualities," Sponseller said.
Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you’re serious about the business, you can’t afford to miss out.
Call For Change
Idaho’s hemp cultivators plan to lobby lawmakers this winter to ease regulations, which could unlock hemp's potential to create jobs and boost the state’s economy. "Idaho has the highest restrictions in terms of remediation in probably most of the states in the U.S.," Sponseller said, noting that reforms could help farmers scale operations and attract manufacturing.
While progress is slow, he remains hopeful. "It’s new and it’s evolving, but it is moving forward."
Proposed Farm Bill Changes
A recent new proposal from Senate Agriculture Chair Debbie Stabenow (D-Mich.) in the 2024 Farm Bill could significantly alter the regulatory landscape for hemp farmers, but in the opposite direction Sponseller is fighting for.
Released Monday, the bill redefines THC regulations, replacing Delta-9 THC with total THC, explicitly including THC-A in the calculation. While maintaining the 0.3% THC threshold, the method for measurement is revised, creating a stricter environment for industrial hemp but preserving low-THC product pathways, such as CBD.
This change contrasts with the House Agriculture Committee’s version, which sought a complete ban on THC in hemp products.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis is evolving – don’t get left behind!
Curious about what’s next for the industry and how to leverage California’s unique market?
Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!
Get your tickets now to secure your spot and avoid last-minute price hikes.