MINOT, N.D. – The 2018 Farm Bill laid the soil for growing hemp, giving North Dakota farmers the chance to explore this emerging market.
Although hemp has been around for a while, it's getting new life with the lifting of the federal prohibition against growing the crop commercially.
Eric Eriksmoen, a research agronomist with the North Central Research Extension Center in Minot, says hemp has big market potential and many uses, but it's still not clear what the market will look like.
For North Dakota farmers who have been struggling, especially in the midst of the trade war with China, Eriksmoen says hemp could be used to stem some of their losses.
"They're looking at it as another crop to utilize and to diversify and limit some of their risk,” he explains. “So it has some opportunities."
Eriksmoen says there are regulations on growing hemp, but they aren't stringent. Growers need to obtain a license with the North Dakota Department of Agriculture and submit to a background check.
Because hemp is related to cannabis, the plants also have to be tested for the psychoactive ingredient THC.
Eriksmoen says if the THC content is too high, the plants have to be destroyed.
Hemp is a diverse crop with a variety of uses. Its stalk can be used for textiles and the seeds can be extracted for food such as energy bars. Hemp seed oil is used in cosmetics and other food products.
Eriksmoen says a compound in hemp known as CBD, which has potential pharmaceutical uses, will likely be the largest market. It was worth $40 million in 2018, but industry experts expect it to skyrocket, predicting a $22 billion market by 2024.
The barrier, Eriksmoen says, is that North Dakota has no processors for extracting CBD – yet.
"That's an issue,” he concedes. “But I think if we can show that the farmers in North Dakota can produce a viable hemp industry, that the processors are going to be more than willing to set up shop in this state."
While hemp is showing potential, Eriksmoen says it's a relatively untested crop in North Dakota and will need pioneering farmers to test it out.
"How do you get this started and who's going to take the risk and once those issues are worked out then it will either become a viable crop – a viable, marketable crop – or not," he states.
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On Tuesday, 20 Colorado officials sent a letter to the state's congressional delegation protesting six cuts to public lands management in the new tax and spending bill signed into law by President Donald Trump.
John Clark, mayor of Ridgway, said the elimination of river and climate data programs, which are essential to managing the Colorado River Basin and forecasting drought, will put additional burdens on food producers.
"If our farmers and ranchers don't have accurate data about exactly what the situation is with the snow pack and what's happening with the climate, how can they be prepared for each growing season?" Clark asked.
Five active wildfires have burned more than 22,000 acres on Colorado's Western Slope. The letter urged state representatives to reject any additional cuts to the U.S. Forest Service's Community Wildfire Defense Grant Program or other mitigation efforts. Republicans have argued cutting the size of government is necessary to eliminate waste, fraud and expenditures they claim are unsustainable.
Officials are also calling out a provision in the new law they believe undermines local decision-making by forcing oil and gas leasing on public lands. In addition, the law creates new barriers for clean energy leases on public lands, a move Clark worries will lead to the loss of good-paying jobs.
"If we discourage clean energy on public lands, that's going to severely impact our alternative energy workforce," Clark pointed out. "If we can't do wind and solar on public lands, it disincentivizes clean energy all across the state."
Officials are also asking members of Congress to fully fund the National Park Service to ensure proper staffing and maintenance. Clark argued standing up for lands owned by all Americans is essential to preserving Colorado's iconic natural landscapes and rural economies.
"Our economy is hugely dependent on people coming in to visit us and eat at our restaurants and experience these beautiful outdoor environments," Clark emphasized.
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A Wisconsin nonprofit is working with farmers in Southeast Wisconsin to educate communities about the importance of agroforestry, with plans to establish its first urban site in Milwaukee.
The Michael Fields Agricultural Institute has planted more than 400 trees across three sites this year, in partnership with the Savannah Institute. The sites include a community garden and two farms.
Iris Lee, owner of Lee Hemp Farms in Burlington, said agroforestry collaboration is breathing life back into her nearly 50-year-old organic family farm.
"You plant and design things that go together," Lee explained. "That will help not only humans but the animals and nature and bugs."
Agroforestry integrates trees, shrubs and perennial plants into crop and livestock systems. Lee noted one of the project's goals is to raise awareness of the practices and their larger connection to food systems, climate change and communities. The sites will also be used for educational demonstrations.
Community members and project participants helped Lee plant a trail of more than 100 trees in April, from hazelnut and elderberry, to Juneberry and pawpaw trees. They have already grown two to three feet, and she anticipates the berry trees will yield results first. Lee added she even loves talking to her trees and emphasized the physical and mental health benefits of agroforestry.
"Growing something is therapeutic," Lee observed. "To be one with nature -- meaning you know where things come from that you put in your body -- anybody that is concerned about the food and their health, to grow something is to build upon a better human being."
Nolan Burkard, research technician for the nonprofit Michael Fields Agricultural Institute, said diversifying food systems in this way is a growing area of interest for small farmers. Through agroforestry, they can also improve soil health and local climate resilience.
Burkard emphasized it requires long-term investment to get there.
"It takes quite a while for trees to grow up and start fruiting or provide their benefit," Burkard acknowledged. "That's why this project is so important because it is such an investment to plant trees."
Burkard added the institute is accepting applications until July 26 for an urban site in Milwaukee. The selected site will receive $15,000 and planning support to aid in designing it.
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Despite the elimination of a handful of alternative energy tax incentives in the new federal budget, Iowa corn farmers will benefit from one that was extended.
Tax breaks and rebates encouraging investment in solar and wind power in Iowa were eliminated in the federal spending plan. However, the Trump administration extended an incentive enabling farmers in Iowa to produce more corn. The Hawkeye State is the nation's top corn producer, much of which is used to produce ethanol.
Chris Bliley, senior vice president of regulatory affairs for the biofuel trade organization Growth Energy, said grain-based fuels burn cleaner and are more environmentally friendly.
"The credit actually goes for production of lower carbon fuels that are used for transportation," Bliley explained. "It includes on-road fuels as well as sustainable aviation fuel. And so, the lower in carbon, the higher the credit."
The Trump administration has made efforts to extract more fossil fuels, which it said will move the U.S. toward energy independence.
Lawmakers in Iowa and neighboring Midwest states have introduced their own tax incentives for biodegradable jet fuel, which Bliley noted will create economic benefits for ag producers.
"To remain competitive, plants in Iowa and Nebraska and throughout the Midwest are investing in some of these key projects to lower their carbon intensity," Bliley observed.
The commercial airline industry is aiming for net-zero carbon emissions by 2050, according to the International Air Transport Association, which could continue to benefit Iowa farmers who provide corn for ethanol production.
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