By Stephen C. Webster
In a last minute addition to the Agriculture Reform, Food and Jobs Act of 2012, Sen. Ron Wyden (D-OR) has submitted an amendment that would legalize the production of industrial hemp, a potential new bumper crop for U.S. farmers.
“Industrial hemp is used in many healthy and sustainable consumer products. However, the federal prohibition on growing industrial hemp has forced companies to needlessly import raw materials from other countries,” Wyden said in prepared text. “My amendment to the Farm Bill will change federal policy to allow U.S. farmers to produce hemp for these safe and legitimate products right here, helping both producers and suppliers to grow and improve Oregon’s economy in the process.”
Allowing American farmers to produce industrial hemp, which is different from its more notorious cousin marijuana, would yield significant and immediate profits the first year, according to an analysis conducted in 1998 (PDF) by the Center for Business and Economic Research at the University of Kentucky.
Researchers found that farmers in the state of Kentucky alone could see between $220 to $605 in net profits per acre of hemp. Adjusted for inflation using the consumer price index, those 1998 dollars would actually be worth $310 and $854 today, although the study’s authors note that variables in supply and demand for hemp could change that valuation.
The average price farmers are getting on an acre of corn, which has been falling thanks to relatively strong supply this year, clocked in at roughly $921 according to U.S. Department of Agriculture (USDA) figures out last week, but their overall take drops significantly due to the costs of production, leaving them in the $200 rangeon net profits. While a legalized hemp industry would likely never become as essential to Americans as corn, the potential for a high value crop and hundreds of millions, if not billions, in new economic activity is clear.
“This is the first time since the 1950s that language supporting hemp has come to the floor of the House or Senate for a vote. The last time such language was presented was the Miller’s Amendment to the Marihuana Tax Act,” Eric Steenstra, president of the advocacy group Vote Hemp, said in an advisory. “The time is past due for the Senate as well as President Obama and the Attorney General to prioritize the crop’s benefits to farmers and to take action… With the U.S. hemp industry valued at over $400 million in annual retail sales and growing, a change in federal policy to allow hemp farming would mean instant job creation, among many other economic and environmental benefits.”
It’s not clear if the bill has a shot, however. Conservative groups like the Club for Growth are urging Senators to vote against the farm bill, which is under consideration this week, because it has too many attachments unrelated to the agricultural sectors.
The bill’s sponsor, Sen. Debbie Stabenow (D-MI), has also called on other Senators to stop adding unrelated amendments, which the Senate spent much of Wednesday doing. If the Senate’s top partisans cannot find an agreeable solution to limiting the bill’s amendments, it is likely to languish and die.
The federal government does not differentiate between marijuana and industrial hemp, but it allows the importation of thousands of products made from industrial hemp. President Barack Obama’s drug czar, Gil Kerlikowske, warned as recently as April in comments made online that industrial hemp was a “controlled substance,” which sent hemp advocates on a rhetorical tirade.
Bills seeking to legalize industrial hemp have cleared at least one legislative chamber in 17 states overall, including Maine, Montana, North Dakota, Oregon, Vermont and West Virginia, where those bills became law. Scientists say the psychoactive component of marijuana is almost completely undetectable in hemp.