Texas legalized hemp production in 2019 and there are a lot of questions yet to be answered. Is hemp going to be a breakout crop for Texas farmers or the next Emu fiasco? Are hemp and marijuana the same? Is hemp farming profitable? How do you begin farming hemp in Texas? What is hemp used for?
It is important to make the distinction between hemp and marijuana. They are not the same. I believe the potential for hemp production in Texas is an exciting prospect for Texas agriculture. On the other hand, I am personally opposed to the legalization of recreational marijuana. Accordingly, I believe education is important at this juncture.
This post is a primer on the Texas hemp industry and is, in no way, a complete treatment of the subject. The primary purpose of this post is to provide informational background contained in various websites, blogs and articles. Many of these sources are product or proponent related but include articles and posts that I considered to be excellent.
I do not endorse any product or political position regarding the hemp industry which appear in the above sources.
1. WHAT IS THE DIFFERENCE BETWEEN HEMP AND MARIJUANA?
There are important legal differences, but both are a variety of Cannabis. Cannabis has many chemical compounds, one of which is THC. Legally, the difference between hemp and marijuana is THC content.
Hemp is any variety of cannabis which has no more than .3 percent THC content. Hemp production, transportation and processing is legal in Texas. The marijuana varieties have a high content (greater than .3 percent) of the THC chemical which produces an intoxicating effect.
Recreational marijuana is not legal in Texas, however, medical marijuana is legal. Each state has their own definition and regulatory framework regarding medical marijuana. For more information read “Texas Medical Marijuana“
2. IS HEMP PRODUCTION LEGAL IN TEXAS?
Yes, it is legal. The Federal Agriculture Act of 2018 Farm Bill legalized commercial production of hemp and authorized the various states to submit plans to administer hemp programs. In June, 2019 the 86th Texas Legislature passed House Bill 1325 authorizing the production, manufacture, retail sale, and inspection of industrial hemp crops and products.
Visit whatishemp.com for useful background on hemp in general.
3. WHO OVERSEES HEMP FARMING IN TEXAS?
The Texas Department of Agriculture (TDA) oversees the growing, harvesting, handling and transporting of hemp. The TDA issues a hemp producer license. In terms of regulation, Texas hemp farming and manufacture are separated. Visit the Texas Industrial Hemp Program website for more information.
4. WHO REGULATES CONSUMABLE HEMP PRODUCTS IN TEXAS?
The Texas Department of State Health Services (DSHS) regulates and licenses consumable hemp products (CHP). A license to manufacture, process and distribute CHP is required. A CHP is any product processed or manufactured which contains hemp. No CHP in Texas can contain more than .3 percent concentration of THC. More information can be found at DSHS Hemp Program.
5. WHAT IS THE SIZE OF THE HEMP INDUSTRY IN TEXAS?
As of mid 2020, 5,000 acres in Texas were licensed to grow hemp but only 2,078 were actually planted. Most hemp plots are less than 10 acres. In July 2020 a representative of TDA provided the following information about Texas hemp licenses issued in Texas in 2020; 861 producer licenses, 351 crop permits, 158 handler licenses, and 33 processor licenses.
Source: Texas Department of Agriculture
6. WHAT ARE THE TOP STATES IN HEMP PLANTED ACRES?
Colorado (40,391)
Arizona (34,000)
California (32,504)
Kentucky (32,000)
New York (29,7770)
Oregon (29,604)
Illinois (26,264)
North Carolina (16,433)
Florida (16,000)
Michigan (13,225)
Source: Top 10 Hemp Growing States in the USA
7. WHAT ABOUT DEMAND FOR HEMP?
Although demand for hemp retail products is increasing rapidly, over production of hemp has resulted in surplus inventory currently. For more information see the article “The Hemp Boom is over. Now What?”
8. WHAT ARE SOME USES FOR HEMP?
Hemp fiber, seed and oil has been used throughout the world for centuries. It was commonplace in America until federal legislation banned its use in 1937. You can read more at “82 Real Life Amazing Hemp products to try today”.
9. WHAT IS CBD?
CBD is a chemical compound found in hemp. Unlike THC, CBD is not psychoactive. In recent years, CBD has become a popular natural remedy for a variety of health issues and demand for it has been increasing rapidly. For more information read the article “Cannabidiol (CBD)-what we know and what we don’t”.
10. IS HEMP FARMING IN TEXAS PROFITABLE?
I hope it will be in the future, but not so much now. Issues with poor seed genetics, insects, mold, climate, soil, research and transportation/supply chain adversely impact production at present.
According to Calvin Trostle, Ph.D., AgriLife Extension agronomist and statewide hemp specialist in Lubbock, “Texas hemp will take time, research, and investment.” Read “Industrial Hemp Faces Challenges in Texas” for more information.
11. WHAT DOES GROWING HEMP IN TEXAS INVOLVE?
Major considerations in farming hemp include; soils, climate, seeds, insect and fungus control, equipment, and labor. Each variety requires a different approach to growing and processing.
Checkout “How to grow Industrial Hemp-The Ultimate Guide” for more information.
12. WHAT TO CONSIDER WHEN BUYING HEMP SEEDS.
Seed sourcing is a challenge for hemp farmers. Some considerations are as follows; which end product you want to provide, strains with great genetics, buying feminized seeds, history, reputation and service of the seed company you are buying from. One example is that the proper seed determines the percent of CBD in a plant.
A good article on seeds is “Where To Buy Hemp Seeds To Farm: 6 Tips From Hemp Farmers”.
13. WHO DO YOU SELL HEMP TO?
A hemp grower will usually sell to a hemp processor. An experienced hemp farmer will probably have their own contacts while the beginning grower should consider a hemp broker. Increasingly there are forums and advertising on social media. Some growers are expanding vertically. Read “How To Sell Hemp Biomass: Hemp Selling Tips for Farmers” for more information.
14. WHAT DOES THE HEMP SUPPLY CHAIN LOOK LIKE?
In Texas the supply chain consists of farming, processing, distribution and retail sales. A good article on the topic is “From Seed to Shelf: How the Hemp Supply Chain Works”.
As discussed above, each step in the chain is regulated and licenses are required. Farming is regulated by the Texas Department of Agriculture and involves seed planting, harvesting and transporting to a processor. Processing is regulated by the Texas Department of State Health Services and involves the processing/extraction, distribution and retail sales. Final hemp products may generally be classified as fiber, grain or CBD oil.
15. WHAT DOES HEMP PROCESSING INVOLVE?
Hemp processing begins after harvesting and ends with distribution. Drying and storage is the first step. Fiber, grain and oil production are all handled differently. Distinction between industrial hemp and high CBD hemp will also drive the process. For a good article on the process, read “Hemp Processing (Post Harvest Processing)”.
ADDITIONAL WEBSITES ABOUT HEMP
I have tried to include only websites, blogs and articles providing factual information as contrasted to those who emphasis a proponent viewpoint. The following are just a few of many resources I have researched
Disclaimer: I do not endorse any product or political position regarding the hemp industry in Texas.
SUMMARY.
I hope that the hemp industry in Texas will flourish. It will take time and hard work. One way for the Texas hemp industry to succeed is to make clear the difference between hemp and marijuana. I have tried to make the distinction clear in this post. My personal preference is that recreational marijuana will remain illegal. As always, I solicit your comments and questions, hemp related or otherwise.
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