We need to de-risk it. We need to reduce the risk .”
The Center Square by Anthony Hennen
Pennsylvania farmers have been embracing hemp because of state and federal funding that encourages the growth of this industry.
Farmers can troubleshoot hemp’s role in textiles, paper and automotive bio-composites with the help of government.
Advocates argue that more funding for research and the creation of new markets within the Commonwealth are needed to support this crop.
Geoff Whaling of the National Hemp Association said, “We don’t really know which varieties will grow better in Pennsylvania.” We’re going to continue to research all of this, and we need public money.
Whaling is one of the dozens of people who gathered at Coexist Build in Blandon in Berks County to discuss hemp.
The U.S. Department of Agriculture (USDA) Rural Development Program co-hosted the event, which brought together the Pennsylvania Department of Agriculture and Health, Penn State University and Thomas Jefferson University as well as several state officials and businesses.
Hemp has been plagued by bureaucratic issues for a long time. Farmers are required to submit fingerprints, and their crops must be inspected. These hoops may make people hesitant to accept the crop which is often associated with marijuana. Hemp contains THC, but in low enough amounts to not cause a “high”. It also serves other purposes.
Investors have been prudent as well.
Whaling stated that the biggest challenge facing this industry was raising money, as capital markets remain very wary of the word “hemp”.
In the Commonwealth, hemp is already gaining some support.
In June, announced grants of $400,000 to promote and market hemp. A Luzerne County hemp firm received a federal grant of $1 million in May to explore new uses for its product.
This grant is in addition to the $150,000 that was paid out by 2021.
Erica Stark of the Pennsylvania Hemp Council said that Secretary Redding was a strong advocate [for hemp].
The 2018 federal Farm Bill removed industrial hemp from the list of controlled substances, making it easier for farmers to grow hemp. The Pennsylvania Department of Agriculture must issue a license to farmers. It has already issued over 200 growing permits, and 50 processing permits in the state.
However, the hemp industry still has some way to go in Pennsylvania. How hemp could be used in products is still an open question. Where to process raw materials and how a supply-chain in Pennsylvania would look are also questions.
Penn State University and Thomas Jefferson Universities are working on a variety of hemp research projects that could help farmers decide what hemp varieties to plant and manufacturers figure out how to use hemp material.
Stark stated that the lack of investment into this industry is one of the major problems. We have to reduce the risk.
Bob Morgan, of USDA’s Rural Development program, argued that educating the public about the viability and benefits of hemp will take some time. Hemp has to take some “major” steps in its development, before it can make a significant contribution to the construction industry and other industries.
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The USDA’s National Hemp Report estimated that industrial hemp would be worth $238 million by 2022. This is a substantial drop from the $824 million estimate for 2021. Pennsylvania’s hemp production dropped from 4,000 to 350 acres in 2021. This was due to a surge in interest after hemp production resumed in the state in 2017.
Interest in hemp and support from the state and federal governments are part of a larger push towards sustainability and bio-based goods. The USDA certifies Pennsylvania’s “biopreferred” products, which are eligible for federal mandatory purchases.
Andrew Jermolowicz, USDA Rural Development, said that there are many efforts to promote sustainability. “[We are] trying to create new industries and new economies.”
Jermolowicz anticipates that the federal government will “buy sustainably” in the future. This would be beneficial to biopreferred products as well as bio-based producers.
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Photo by Brendan Cleak.
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