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Senate Ag hearing looks for answers on hemp uncertainty

Senate Ag leaders say they are hopeful for the future of hemp but there are complex questions to answer which they addressed during a committee hearing Thursday.

Senate Majority Leader Mitch McConnell says major issues including crop insurance, FDA and EPA regulations, and banking options need to be clarified. “Getting crop insurance specifically for hemp is going to take more time but whole-farm crop insurance will be available for hemp next year.”    

Senator Tina Smith of Minnesota pressed panelists on how federal agencies are collaborating to support farmers to which Dr. Amy Abernethy said it’s critical for the government to work together. “To start to solve the question of appropriate regulations around hemp and provide regulatory clarity so that we ultimately are able to provide farmers the predictability that they need.”  

Ohio Senator Sherrod Brown says the potential for hemp is huge and he questioned Under Secretary Greg Ibach about how it’s 22,000 uses could benefit U.S. farmers.  Ibach says USDA is strongly recommending farmers have contracts before growing it. “Forty-one states have passed legislation and hemp is being grown in 23 of those in the 2018 crop year; hemp was grown on about 78,000 acres last year.”         

Ranking Member Debbie Stabenow of Michigan says farmers need aggressive hemp research, adequate access to financing, and fair testing and enforcement at harvesting. “Nationally it is estimated that U.S. hemp retail sales are at more than $700 million annually, and this market is expected to grow at a 10 to 20 percent. According to the Michigan Department of Agriculture, more than 30,000 acres have been registered for hemp production. Over 700 growers and processors have received a license to produce hemp and derived products.”       

Ibach says an interim final rule to establish a domestic hemp production program is undergoing interagency review and should be finalized by the fall to accommodate the 2020 crop year.