Industrial Hemp is defined as Cannabis Sativa with less than 0.3% THC. With the passing of the 2018 US Farm Bill, a variety of Cannabis is now a legal crop to grow federally. The USDA is writing the regulations governing the cultivation and processing of industrial hemp.
The rules are expected to be published in fall 2019, then States will submit their rules for approval to the USDA for approval to launch the 2020 growing season.
Because of legislation passed in 2014 to establish a pilot research program, Michigan was able to push through rules to allow growing in 2019. Growers applied directly to the Michigan Department of Agriculture and Rural Development (MDARD) to grow under the pilot research program.
In Michigan, there are 550 growers with up to 32,000 acres of industrial hemp under cultivation. The grower’s license fee is $100. To sell and or transport your crop requires a Processor-Handler license for $1,350.
The variety most are growing this season is for auto-flowering CBD. Trichomes on the buds or flowers of the plants look like little crystals and contain the majority of the cannabinoids. There are a great number of identified cannabinoids that each or in combination have unique medical benefits.
The flower can be smoked, processing into oil or distilled down to an isolate of the specific target cannabinoid. The grower selects the plant variety through a Certificate of Analysis (COA) of the plant or seed. That COA will show what percentage of cannabinoids and THC exist in a mature plant.
Growing for CBD is more labor-intensive and expensive than growing for grain or fiber. The market value for CBD fluctuates and there are not established exchanges to establish pricing. At harvest, the crop is tested for the percentage of CBD and THC and valued at a price per CBD point. For example, 10% CBD based at $4 per point would be $40 per pound. If the crop was 15% CBD the value would jump to $60 per pound.
Spacing for planting is typically four feet or better. These plant varieties typically grow to six foot in height and five feet wide. With that spacing, you can plant about 2,400 plants per acre. Seed costs anywhere from ten cents to one dollar per seed. The female plants produce a flower, the male plants pollinate the females which then produce seed. Plants producing seed will have much less CBD.
A major risk in growing for CBD is the potential for crop loss due to it going “hot.” If the percentage of THC goes over .3% it is now classified as marijuana and must be destroyed. As the CBD rises, so does the THC typically. Growers are working to create new strands that produce high amounts of CBD with no THC.
Cross-pollination is another major risk for growers. The pollen can travel up to twenty miles with the right conditions. Seed projects and grain or fiber grows can spoil CBD grows. CBD grows can spoil marijuana grows if the males are not pulled. Currently, there is no protection in the rules.
The demand for CBD products is rapidly growing. Sales are expected to exceed $22 billion by 2022. The FDA is working on rules to regulate CBD products with the goal of getting rid of the many bad actors in the space. Testing of products commonly found available for sale has demonstrated wide variances in the final product vs the labels. Pharmaceutical companies are entering the market as FDA approved drugs have been approved, such and Epodialex which treats epilepsy.
Growing for grain or fiber is much denser spacing. Fiber is planted with 40 – 80 lbs./acre to grow 30 – 35 plants/sq. ft. Harvest could be 1 – 6 Tons/acre with 2.5 – 3 Tons per acre normal. The plant grows 6 – 15 ft. tall. The moisture content at harvest is typically 40% must be dried down to 12 – 14 %. One acre will yield 5300 lbs. Plant Fiber which is decorated into 1300 lbs. Fiber and 4000 lbs. Hurd.
The seed is the grain of the hemp plant. The seed can be pressed to produce hemp oil or shelled for hemp hearts. High in protein at 30% and amino acids, hemp protein powder, hemp hearts, and hemp oil are considered a superfood.
The cost to plant for fiber and grain is considerably less and the harvest can be accomplished mechanically.
The hemp plant is versatile and innovation will discover new techniques, uses, and markets for the hemp plant. The mission of iHemp Michigan is to educate, inform and promote the research, development, and cultivation of industrial hemp in Michigan.
Our next event is Hemponomics 101 at the Black Forest in Frankenmuth on Sept 12th at 6:30 pm. We will be discussing the next steps in this years crop the testing, harvesting and drying process.
Visit www.iHempMichigan.com for more information.
