Hemp

1. Description and Uses of Hemp Hurds, Bast Fibers, and Seed Oil

"Hemp can be grown as a fiber, seed, or dual-purpose crop.6 The stalk and seed are the harvested products. The interior of the stalk has short woody fibers called hurds; the outer portion has long bast fibers. Hemp seed/grains are smooth and about one-eighth to one-fourth of an inch long.7
"Hemp fibers are used in fabrics and textiles, yarns and spun fibers, paper, carpeting, home furnishings, construction and insulation materials, auto parts, and composites. Hurds are used in animal bedding, material inputs, papermaking, and oil absorbents. Hemp seed and oilcake are used in a range of foods and beverages (e.g., salad and cooking oil and hemp dairy alternatives) and can be an alternative food and feed protein source.8 Oil from the crushed hemp seed is used in soap, shampoo, lotions, bath gels, and cosmetics.9 Hemp is also being used in nutritional supplements and in medicinal and therapeutic products, including pharmaceuticals. It is also used in a range of composite products. Hempcrete (a mixture of hemp hurds and lime products) is being used as a building material. Hemp is also used as a lightweight insulating material and in hemp plastics and related composites for use as a fiberglass alternative by the automotive and aviation sectors.10 Hemp has also been promoted as a potential biodiesel feedstock11 and cover crop."

Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, March 10, 2017), p. 2.
https://fas.org/sgp/crs/misc/R...

2. Estimated Size and Value of the US Retail Market for Hemp Products

"No official estimates are available of the value of U.S. sales of hemp-based products. The Hemp Industries Association (HIA) reports that total U.S. retail sales of hemp products of nearly $600 million in 2015,12 which includes food and body products, clothing, auto parts, building materials, and other products (Figure 2). HIA further claims that growth in U.S. hemp retail sales averaged more than 15% annually over the 2010-2015 time frame. Much of this growth has been attributable to increased sales of hemp-based body products, supplements, and foods. Combined, these categories account for more than 60% of the value of U.S. retail sales.
"Little detailed information is available on some other hemp-based sectors, such as for use in construction, biofuels, paper, textiles, or other manufacturing uses. Data are also not available on existing businesses or processing facilities."

Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, March 10, 2017), pp. 3-4.
https://fas.org/sgp/crs/misc/R...

3. Federal Policy Regarding State-Legal Hemp Production

"The 113th Congress considered various changes to U.S. policies regarding industrial hemp during the omnibus farm bill debate.42 The 2014 farm bill43 provides that certain 'institutions of higher education'44 and state departments of agriculture may grow industrial hemp, as part of an agricultural pilot program, if allowed under state laws where the institution or state department of agriculture is located. The farm bill also established a statutory definition of industrial hemp as 'the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.' The provision was included as part of the research title of the law. The provision did not include an effective date that would suggest any kind of program rollout, and there appears to be nothing in the conference report or bill language to suggest that the states might not be able to immediately initiate action on this provision."

Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, March 10, 2017), p. 13.
https://fas.org/sgp/crs/misc/R...

4. DEA and Other Federal Agencies Versus Congress and the States Regarding Hemp Production

"In response to DEA actions to block seeds imported by some states in order to grow industrial hemp and to avoid future similar DEA actions to stall full implementation of the hemp provision of the farm bill, Congress acted swiftly. Both the House and Senate FY2015 Commerce-JusticeScience (CJS) appropriations bills contained provisions to block federal law enforcement authorities from interfering with state agencies and hemp growers and counter efforts to obstruct agricultural research. The enacted FY2015 appropriation blocked federal law enforcement authorities from interfering with state agencies, hemp growers, and agricultural research.46 The provision stated that 'none of the funds made available' to the U.S. Justice Department and DEA 'may be used in contravention' of the 2014 farm bill.
"Similar language was contained in the enacted FY2016 Consolidated Appropriations Act, wherein Congress blocked DEA and other federal law enforcement authorities from interfering with state agencies, hemp growers, and agricultural research.47 In addition, USDA was also blocked from prohibiting the transportation, processing, sale, or use of industrial hemp that is grown or cultivated in accordance with the 2014 farm bill provision.48 Legislation debating the FY2017 budget also contained similar restrictions.49
"During both the FY2015 and FY2016 appropriations debates, the House CJS bills also included provisions that no funds be used to prevent a state from implementing its own state laws that 'authorize the use, distribution, possession, or cultivation of industrial hemp' as defined in the 2014 farm bill.50 These provisions were not adopted.
"In addition, as part of the FY2017 appropriations debate, the Senate committee report urged USDA 'to clarify the Agency’s authority to award Federal funds to research projects deemed compliant with Section 7606 of the Agricultural Act of 2014.'51 The latter provision addresses questions by a number of state and private research institutions about the extent to which industrial hemp initiatives might be eligible for U.S. federal grant programs (both USDA and non-USDA program funds). Previously, in November 2015, several Members of Congress sent a letter to USDA requesting clarification of the agency’s research funds for industrial hemp.52"

Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, March 10, 2017), p. 14.
https://fas.org/sgp/crs/misc/R...

5. DEA Versus Farmers and the States Regarding Legal Hemp Production

"Federal law prohibits cultivation without a permit. DEA determines whether any industrial hemp production authorized under a state statute is permitted, and it enforces standards governing the security conditions under which the crop must be grown. In other words, a grower needs to get permission from DEA to grow hemp or faces the possibility of federal charges or property confiscation, regardless of whether the grower has a state-issued permit.61
"Although many states have established programs under which a farmer may be able to grow industrial hemp under certain circumstances, a grower would still need to obtain a DEA permit and abide by DEA’s strict production controls. This relationship has resulted in some high-profile cases, wherein growers have applied for a permit but DEA has not approved (or denied) a permit to grow hemp, even in states that authorize cultivation under state laws.
"In the past there has been ongoing tension between federal and state authorities over state hemp policies. After North Dakota passed its own state law authorizing industrial hemp production in 1999,62 researchers repeatedly applied for, but did not receive, a DEA permit to cultivate hemp for research purposes in the state.63 Also in 2007, two North Dakota farmers were granted state hemp farming licenses and, in June 2007, filed a lawsuit in U.S. District Court (North Dakota) seeking 'a declaratory judgment' that the CSA 'does not prohibit their cultivation of industrial hemp pursuant to their state licenses.'64 The case was dismissed in November 2007.65 The case was appealed to the U.S. Court of Appeals (Eighth Circuit) but was again dismissed in December 2009.66 The farmers filed an appeal in May 2010.67
"Even if DEA approves a permit, production might be discouraged because of the perceived difficulties of working through DEA licensing requirements and installing the types of structures necessary to obtain a permit. Obtaining a DEA permit to produce hemp requires that the applicant demonstrate that an effective security protocol will be in place at the production site, such as security fencing around the planting area, a 24-hour monitoring system, controlled access, and possibly armed guards to prevent public access.68 DEA application requirements also include a nonrefundable fee, FBI background checks, and extensive documentation. It could also be argued that the necessary time-consuming steps involved in obtaining and operating under a DEA permit, the additional management and production costs from installing structures, and other business and regulatory requirements could ultimately limit the operation’s profitability.
"There is little information about DEA’s permit process and on facilities that are licensed to grow hemp, even for research purposes. Previously reports indicated that DEA had issued a permit for an experimental quarter-acre plot at the Hawaii Industrial Hemp Research Program during the period from 1999 to 2003 (now expired).69 Most reports indicate that DEA continues to be reluctant to grant licenses to grow hemp, even for research purposes.70 Recent indications are that some land grant university researchers may have been granted licenses to conduct hemp research under certain conditions.71
"In recent years, U.S. producers have begun to grow hemp under state law (Table 2). Some are foregoing the requirement to obtain a federal permit. For example, in 2009, Montana’s Agriculture Department issued its first state license for an industrial hemp-growing operation in the state, and media reports indicated that the grower did not intend to request a federal permit.72 Such cases continue to pose a challenge to DEA of whether it is willing to override the state’s authority to allow for hemp production in the state. It is also a test of states’ rights."

Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, March 10, 2017), pp. 17-18.
https://fas.org/sgp/crs/misc/R...

6. Value of US Hemp Imports

"The import value of hemp-based products imported and sold in the United States is difficult to estimate accurately. For some traded products, available statistics have only limited breakouts or have been expanded only recently to capture hemp subcategories within the broader trade categories for oilseeds and fibers. Reporting errors are evident in some of the trade data, since reported export data for hemp from Canada do not consistently match reported U.S. import data for the same products (especially for hemp seeds).
"Given these data limitations, available trade statistics indicate that the value of U.S. imports under categories actually labeled 'hemp,' such as hemp seeds and fibers—which are more often used as inputs for use in further manufacturing—was nearly $78.2 million in 2015. Compared to 2005, when the value of imports totaled $5.6 million, imported hemp products for use as inputs and ingredients has increased sharply. However, import volumes for other products, such as hemp oil and fabrics, are lower (Table 1). Trade data are not available for finished products, such as hempbased clothing or other products including construction materials, carpets, or paper products.
"The single largest supplier of U.S. imports of raw and processed hemp fiber is China. Other leading country suppliers include Romania, Hungary, India, and other European countries. The single largest source of U.S. imports of hemp seed and oilcake is Canada. The total value of Canada’s exports of hemp seed to the United States has grown significantly in recent years following resolution of a long-standing legal dispute over U.S. imports of hemp foods in late 2004 (see 'Dispute over Hemp Food Imports (1999-2004)'). European countries have also supplied hemp seed and oilcake to the United States."

Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, March 10, 2017), p. 4.
https://fas.org/sgp/crs/misc/R...

7. Hemp Compared With Marijuana

"Botanically, industrial hemp and marijuana are from the same species of plant, Cannabis sativa, but from different varieties or cultivars that have been bred for different uses.2 However, industrial hemp and marijuana are genetically distinct forms of cannabis3 that are distinguished by their use, chemical makeup, and differing cultivation practices in production. While marijuana generally refers to the psychotropic drug (whether used for medicinal or recreational purposes), industrial hemp is cultivated for use in the production of a wide range of products, including foods and beverages, personal care products, nutritional supplements, fabrics and textiles, paper, construction materials, and other manufactured goods.
"Both hemp and marijuana also have separate definitions in statute. While marijuana is defined in U.S. drug laws, Congress established a statutory definition for industrial hemp as “the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis” as part of the 2014 farm bill.4 Hemp is generally characterized by plants that are low in delta-9 tetrahydrocannabinol (delta-9 THC), the dominant psychotrophic ingredient in Cannabis sativa.5
"For more background information, see CRS Report R44742, Defining 'Industrial Hemp': A Fact Sheet. However, joint guidance issued in August 2016 by DEA, USDA, and the Food and Drug Administration (FDA) suggests that there continues to be questions about what constitutes industrial hemp and its oversight under federal law."

Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, March 10, 2017), pp. 1-2.
https://fas.org/sgp/crs/misc/R...

8. Potential Cross Pollenation of Drug-Crop Cannabis With Industrial Hemp During Cultivation

"Hemp fields, in fact, could be a deterrent to marijuana growers. A strong case can be made that the best way to reduce the THC level of marijuana grown outdoors would be to grow industrial hemp near it. An experiment in Russia found that hemp pollen could travel 12 kilometers. This would mean that a hemp field would create a zone with a 12-kilometer radius within which no marijuana grower would want to establish a crop.
"The reciprocal also applies. Growers of hemp seed would not want Cannabis of an 'off type' (i.e., not the intended genetic type) mixing its pollen with their flowers. The isolation of genotypes is a common procedure used by the seed industry to preserve the genetic integrity of varieties. Valued strains are created by plant breeding, at substantial expense. Marijuana pollen would destroy this value."

West, David P., PhD, "Hemp and Marijuana: Myths & Realities," North American Industrial Hemp Council, 1998. Last accessed February 18, 2015.
http://www.naihc.org/hemp_info...

9. Production Differences Between Hemp and Marijuana

"Production differences depend on whether the cannabis plant is grown for fiber/oilseed or for medicinal/recreational uses. These differences involve the varieties being grown, the methods used to grow them, and the timing of their harvest (see discussion in 'Hemp' and 'Marijuana,' below). Concerns about cross-pollination among the different varieties are critical. All cannabis plants are open, wind and/or insect pollinated, and thus cross-pollination is possible.
"Because of the compositional differences between the drug and fiber varieties of cannabis, farmers growing either crop would necessarily want to separate production of the different varieties or cultivars. This is particularly true for growers of medicinal or recreational marijuana in an effort to avoid cross-pollination with industrial hemp, which would significantly lower the THC content and thus degrade the value of the marijuana crop. Likewise, growers of industrial hemp would seek to avoid cross-pollination with marijuana plants, especially given the illegal status of marijuana. Plants grown of oilseed are also marketed according to the purity of the product, and the mixing of off-type genotypes would degrade the value of the crop.8
"The different cannabis varieties are also harvested at different times (depending on the growing area), increasing the chance of detection of illegal marijuana, if production is commingled. Because of these differences, many claim that drug varieties of cannabis cannot easily be grown with oilseed or fiber varieties without being easily detected.9 As discussed below, among the visual plant differences are plant height (hemp is encouraged to grow tall, whereas marijuana is selected to grow short and tightly clustered); cultivation (hemp is grown as a single main stalk with few leaves and branches, whereas marijuana is encouraged to become bushy with many leaves and branches to promote flowers and buds); and planting density (hemp is densely planted to discourage branching and flowering, whereas marijuana plants are well-spaced)."

Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, July 24, 2013), pp. 2-3.
http://www.fas.org/sgp/crs/mis...

10. Hemp Bast Fibres

"Hemp bast fibres are among the strongest and most durable of natural fibres, with high tensile strength, wet strength, and other characteristics favourable for various industrial products. It has been estimated that hemp produces three to four times as much useable fibre per acre per year as forests, and the bast fibre contains a low amount of lignin (the natural polymer that binds plant cells together), which allows it to be bleached without the use of chlorine. Hemp bast fibre is used in the production of a wide range of products where its strength and durability are advantageous, including cordage (rope, twine, etc.), specialty papers, fabrics for clothing and other applications, and industrial textiles such as geotextiles and carpeting. The strength of hemp fibre also makes it ideal for use in a range of composites for applications such as moulded car parts and fibreboard for construction."

"National Industrial Hemp Strategy," The Agricola Group (Ottawa, Canada: Manitoba Agriculture, Food and Rural Initiative Agriculture and Agri-Food Canada, March 30, 2008), p. 3.
http://www.votehemp.com/PDF/Na...

11. Countries Which Grow Hemp

"Approximately 30 countries in Europe, Asia, and North and South America currently permit farmers to grow hemp. Some of these countries never outlawed production, while some countries banned production for certain periods in the past. China is among the largest producing and exporting countries of hemp textiles and related products, as well as a major supplier of these products to the United States. The European Union (EU) has an active hemp market, with production in most member nations. Production is centered in France, the United Kingdom, Romania, and Hungary.30
"Acreage in hemp cultivation worldwide has been mostly flat to decreasing, reported at about 200,000 acres globally in 2011.31 Although variable year-to-year, global production has increased overall from about 250 million pounds in 1999 to more than 380 million pounds in 2011, mostly due to increasing production of hemp seed (Figure 3). Upward trends in global hemp seed production roughly track similar upward trends in U.S. imports of hemp seed and oil, mostly for use in hemp-based foods, supplements, and body care products (Table 1).
"Many EU countries lifted their bans on hemp production in the 1990s and, until recently, also subsidized the production of 'flax and hemp' under the EU’s Common Agricultural Policy.32 EU hemp acreage was reported at about 26,000 acres in 2010, which was below previous years, when more than 50,000 acres of hemp were under production.33 Most EU production is of hurds, seeds, and fibers. Other non-EU European countries with reported hemp production include Russia, Ukraine, and Switzerland. Other countries with active hemp grower and/or consumer markets are Australia, New Zealand, India, Japan, Korea, Turkey, Egypt, Chile, and Thailand."

Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, Jan. 26, 2016), pp. 9-10.
http://nationalaglawcenter.org...

12. Hemp Hurds

"Hemp hurd is composed of cellulose-rich, short fibres, and make up approximately 75% of the hemp stalk. They are spongy and absorbent, ideal characteristics in applications such as animal bedding and industrial absorbents. They may also be used to produce low-quality paper. More recently, hemp hurd has been used to produce a concrete-like substance for use in building applications, as well as for insulation and to produce fibreboard."

"National Industrial Hemp Strategy," The Agricola Group (Ottawa, Canada: Manitoba Agriculture, Food and Rural Initiative Agriculture and Agri-Food Canada, March 30, 2008), p. 3.
http://www.votehemp.com/PDF/Na...

13. Hemp Stalks

"The whole hemp stalk can also be used to produce various biofuels such as bio-oil (or pyrolytic liquid), cellulosic ethanol, syngas (synthetic gas) and methane. Alternatively, the bast fibre can first be removed for use in high-value fibre applications, and the remaining hurd can then be processed into biofuel. The processes by which hemp is converted to biofuels may also produce valuable chemicals and other materials as bi-products."

"National Industrial Hemp Strategy," The Agricola Group (Ottawa, Canada: Manitoba Agriculture, Food and Rural Initiative Agriculture and Agri-Food Canada, March 30, 2008), p. 4.
http://www.votehemp.com/PDF/Na...

14. Hemp Oil

"Hemp oil is extremely nutritious, and is used in foods and nutraceutical products for humans and animals, as well as in personal care products. Hemp oil is also suitable for use in industrial products such as paints, varnishes, inks and industrial lubricants, and can be used to produce biodiesel. The crushed seed meal left over from oil production is frequently used for animal feed."

"National Industrial Hemp Strategy," The Agricola Group (Ottawa, Canada: Manitoba Agriculture, Food and Rural Initiative Agriculture and Agri-Food Canada, March 30, 2008), p. 4.
http://www.votehemp.com/PDF/Na...

15. Hemp Cultivation in EU

"The survey covers the harvest of 2013, related to a total cultivation area of 15,700 ha. The first figure shows the development of the cultivation area since 1993. Between 1993 and 1996 the cultivation of industrial hemp was legalised in most of the member states, others followed later. In 2011 the cultivation area decreased to its lowest value since 1994 (ca. 8,000 ha), but increased in 2012, 2013 and 2014, to finally reach 25,000 ha in 2015. In 2016 a further increase is expected. The main cultivation member states are France and The Netherlands. In recent years, many new European countries started or expanded their hemp cultivation, mainly for the production of hemp seeds.
"From the 15,700 ha in the year 2013, 85,000 tonnes of hemp straw were harvested and processed to:
"• 25,000 metric tonnes fibre
"• 43,000 metric tonnes shivs (woody core of the stem)
"• The relation between shivs and fibres (shivs : fibres) is of 1.7 to 1
"• 13,000 metric tonnes of dust (60% pelletized for incineration, 40% for compost and other uses)
"Hemp straw in Europe is only processed in a so called total fibre line, producing random nonaligned technical fibre. This is in contrast to flax, processed in long fibre processing lines, which produces a high value aligned, long textile fibre and a technical short fibre in a similar form to Hemp.
"Some companies also or exclusively processed hemp seeds or hemp flowers:
"• 11,500 tonnes (compared to only 6,000 tonnes in 2010) seeds
"• 240 tonnes (compared to only 7.5 tonnes in 2010) of flowers & leaves for medical applications (THC/CBD), food supplements (CBD) and the production of essential oil (for food and beverages)
"Whereas fibres and shivs did not show any significant difference between 2010 and 2013, the production of seeds increased by 92% and the production of flowers and leaves by 3,000%. The flowers for CBD production gave hemp farmers a considerable extra profit in 2013. It should also be mentioned that hemp is one of the very few crops in Europe that is cultivated on non-organic farms without the use of any agrochemicals. Strong, fast growing hemp crops are able to supress weeds without chemical support and the crop does not suffer from any pests or diseases that would warrant a spray. Hemp also grows well under an organic regime."

Michael Carus and Luis Sarmentano. "The European Hemp Industry: Cultivation, processing and applications for fibres, shivs, seeds and flowers." Huerth, Germany: European Industrial Hemp Association. May 2016, pp. 1-3.
http://eiha.org/media/2016/05/...

16. Hemp vs. Marijuana

"Hemp is grown quite differently from marijuana. Moreover, it is harvested at a different time than marijuana. Finally, cross-pollination between hemp plants and marijuana plants would significantly reduce the potency of the marijuana plant."

West, David P, Hemp and Marijuana: Myths and Realities (Madison, WI: North American Industrial Hemp Council, 1998), p. 4.
http://www.votehemp.com/PDF/my...

17. Hemp and THC

According to David West, PhD, "The THC levels in industrial hemp are so low that no one could ever get high from smoking it. Moreover, hemp contains a relatively high percentage of another cannabinoid, CBD, that actually blocks the marijuana high. Hemp, it turns out, is not only not marijuana; it could be called 'antimarijuana.'"

West, David P, Hemp and Marijuana: Myths and Realities (Madison, WI: North American Industrial Hemp Council, 1998), p. 3.
http://www.votehemp.com/PDF/my...

18. Possibility of Positive THC Test Through Exposure to Hemp Products

"Results of the hemp products tested indicate the amount of THC present in commercially available products is significantly less in products available today than those reported in the past (15-22). As a result, the probability that these products will produce urine THC metabolite levels greater than the DoD and HHS confirmation cutoff of 15 ng/mL is significantly reduced and should not be considered as a realistic cause for a positive urine analysis result."

Holler, Justin M., Bosy, Thomas Z., et al., "Delta9-Tetrahydrocannabinol Content of Commercially Available Hemp Products," Journal of Analytical Toxicology, Vol. 32, July/August 2008, p. 431.
http://jat.oxfordjournals.org/...

19. Hemp and Detection of THC Through Urinalysis

"Hemp seeds represent the manufacturing starting point for the vast majority of hemp products marketed since the mid-1990s. Hemp seeds are a good source of essential fatty acids, primarily alpha-linolenic acid (omega-3) and ]inoleic acid (omega-6). They are also found in fish, flaxseed, rapeseed oil, pumpkin seeds, and sunflowerseeds. Essential fatty acids (EFA) are necessary fats that humans cannot synthesize, so they must be obtained through diet. EFAs support the cardiovascular, reproductive,immune, and nervous systems. The human body needs EFAs to manufacture and repair cell membranes, enabling the cells to obtain optimum nutrition and expel harmful waste products (9). THC found in manufactured products is present via contamination from resin produced in the leaves and buds that come into contact with the seed shell. Seed decontamination and manufacturing processes including wash steps and cold pressing for hemp products have improved since the mid-1990s, leading to the much lower THC concentrations currently found in today's commercial products.
"The presence of THC in these products has been a source of concern for the military and other workplace drug-testing programs. Ingestion of hemp products has been historically used as a defense in military and civilian trials for many years and continues today despite decreased concentrations of THC in hemp products (10-12). The Division of Forensic Toxicology, Armed Forces Institute of Pathology is often asked to analyze hemp products to determine their THC content in addition to rendering an opinion as to whether or not this THC concentration could be a reasonable cause for a positive THC metabolite urine analysis result."

Holler, Justin M., Bosy, Thomas Z., et al., "Delta9-Tetrahydrocannabinol Content of Commercially Available Hemp Products," Journal of Analytical Toxicology, Vol. 32, July/August 2008, pp. 428-429.
http://jat.oxfordjournals.org/...

20. Sources of Hemp Imported to the US

"The single largest supplier of U.S. imports of raw and processed hemp fiber is China. Other leading country suppliers include Romania, Hungary, India, and other European countries. The single largest source of U.S. imports of hemp seed and oilcake is Canada. The total value of Canada’s exports of hemp seed to the United States has grown significantly in recent years following resolution of a long-standing legal dispute over U.S. imports of hemp foods in late 2004 (see 'Dispute over Hemp Food Imports (1999-2004)'). European countries have also supplied hemp seed and oilcake to the United States."

Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, March 10, 2017), p. 4.
https://fas.org/sgp/crs/misc/R...

21. Advantages of Hemp Versus Hydrocarbon-Based Products

"Comparisons of industrial hemp to hydrocarbon or other conventional industrial feedstocks show that, generally, hemp requires substantially less energy for manufacturing, often is suited to less-toxic means of processing, and provides competitive product performance (especially in terms of durability, light weight, and strength), greater recyclability and/or biodegradability, and a number of value-added applications for byproducts and waste materials at either end of the product life cycle."

Smith-Heisters, Skaidra, "Illegally Green: Environmental Costs of Hemp Prohibition," Reason Foundation (Los Angeles, CA: March 2008), p. 31.
http://reason.org/files/1030ae...

22. Hemp Oil and Dermatitis

"Skin dryness and itchiness, in particular, are very serious problems in atopic dermatitis, which often lead to additional complications, such as opportunistic infections. In any event, it seems that the reduction of atopic symptomology observed in this study is a direct result of ingested hempseed oil. These preliminary results confirm anecdotal observations of improved skin quality after ingesting modest amounts of hempseed oil on a daily basis over a relatively short period of time."

Callaway, James; Schwab, Ursula; Harvima, Ilkka; Halonen, Pirjo; Mykkanen, Otto; Hyvonen, Pekka; and Jarvinen, Tomi, "Efficacy of dietary hempseed oil in patients with atopic dermatitis," Journal of Dermatological Treatment (London, United Kingdom: April 2005) Vol. 16, No. 2, p. 93.
http://www.finola.com/FinolaOi...

23. Hemp and Nutrition

"The quality of an oil or fat is most importantly determined by its fatty acid composition. Hemp is of high nutritional quality because it contains high amounts of unsaturated fatty acids, mostly oleic acid (C18:1, 10%–16%), linoleic acid (C18:2, 50%–60%), alpha-linolenic acid (C18:3, 20%–25%), and gammalinolenic acid (C18:3, 2%–5%) (Fig. 37). Linoleic acid and alpha-linolenic acid are the only two fatty acids that must be ingested and are considered essential to human health (Callaway 1998). In contrast to shorter-chain and more saturated fatty acids, these essential fatty acids do not serve as energy sources, but as raw materials for cell structure and as precursors for biosynthesis for many of the body’s regulatory biochemicals."

Small, Ernest and Marcus, David , "Hemp: A New Crop with New Uses for North America," Trends in New Crops and New Uses (West Lafayette, IN: Purdue University Center for New Crops and Plant Products, 2002), p. 306.
http://www.hort.purdue.edu/new...

24. Estimate of Hemp Market in the US in 2000

"No data are available on imports of hemp seed and oil into the United States, but data do exist on hemp fiber, yarn, and fabrics. Imports of raw hemp fiber have increased dramatically in the last few years, rising from less than 500 pounds in 1994 to over 1.5 million pounds for the first 9 months of 1999. Yarn imports also have risen substantially, peaking at slightly less than 625,000 pounds in 1997. The switch from yarn to raw fiber in the last 2 years probably reflects the development of U.S. spinning capacity. At least two companies are now spinning hemp yarn from imported fibers. Imports of hemp fabric have more than doubled from over 222,000 pounds in 1995 to about 523,000 pounds in 1998.
"Current markets for bast fibers like industrial hemp include specialty textiles, paper, and composites. Hemp hurds are used in various applications such as animal bedding, composites, and low-quality papers. As joint products, finding viable markets for both hemp bast fiber and hurds may increase the chances of a successful business venture."

United States Department of Agriculture, "Industrial Hemp in the United States: Status and Market Potential" (Washington, DC: January 2000), p. iii.
http://www.ers.usda.gov/public...

25. Estimated Potential US Retail Hemp Market

"Retail sales of imported hemp products exceeded $70 million in the United States in 2006.62 Given hemp’s wide-ranging utility, supporters of domestic cultivation estimate that it would create a $300 million dollar industry.63"

Kolosov, Christine A., "Evaluating the Public Interest: Regulation of Industrial Hemp under the Controlled Substances Act," UCLA Law Review (Los Angeles, CA: UCLA School of Law, 2009), p. 244.
http://uclalawreview.org/pdf/5...

26. Potential Economic Benefits, Kentucky 1998

In a July 1998 study issued by the Center for Business and Economic Research at the University of Kentucky, researchers concluded that Kentucky hemp farmers could earn a net profit of $600 per acre for raising certified seeds, $320 net profit per acre for straw only or straw and grain production, and $220 net profit per acre for grain only production. The only crop found to be more profitable was tobacco.

Tompson, Eric C., PhD, Berger, Mark C., PhD, and Allen, Steven N., Economic Impacts of Industrial Hemp in Kentucky (Lexington, KY: University of Kentucky, Center for Business and Economic Research, 1998), p. 21.
http://www.votehemp.com/PDF/he...

27. Potential Economic Benefits of Kentucky Hemp Industry (1998 Dollars)

In a July 1998 study issued by the Center for Business and Economic Research at the University of Kentucky, researchers estimated that if Kentucky again became the main source for industrial hemp seed (as it was in the past), the state could create up to 771 new jobs and generate $17.6 million in new earnings.

Click here for the complete datatable of Potential Economic Benefits of Kentucky Hemp Industry (1998 Dollars)

Tompson, Eric C., PhD, Berger, Mark C., PhD, and Allen, Steven N., Economic Impacts of Industrial Hemp in Kentucky (Lexington, KY: University of Kentucky, Center for Business and Economic Research, 1998), p. iv.
http://www.votehemp.com/PDF/he...

28. Hemp Products and the DEA

In late 1999, during the development of the 2003 rules (described in the previous section), the DEA acted administratively to demand that the U.S. Customs Service enforce a zero-tolerance standard for the THC content of all forms of imported hemp, and hemp foods in particular.
"The DEA followed up, in October 2001, with publication of an interpretive rule in the Federal Register explaining the basis of its zero-tolerance standard.63 It held that when Congress wrote the statutory definition of marijuana in 1937, it 'exempted certain portions of the Cannabis plant from the definition of marijuana based on the assumption (now refuted) that such portions of the plant contain none of the psychoactive component now known as THC.' Both the proposed rule (which was published concurrently with the interpretive rule) and the final 2003 rule gave retailers of hemp foods a date after which the DEA could seize all such products remaining on shelves. On both rules, hemp trade associations requested and received court-ordered stays blocking enforcement of that provision. The DEA’s interpretation made hemp with any THC content subject to enforcement as a controlled substance.
"Hemp industry trade groups, retailers, and a major Canadian exporter filed suit against the DEA, arguing that congressional intent was to exempt plant parts containing naturally occurring THC at non-psychoactive levels, the same way it exempts poppy seeds containing trace amounts of naturally occurring opiates.64 Industry groups maintain that (1) naturally occurring THC in the leaves and flowers of cannabis varieties grown for fiber and food is already at below-psychoactive levels (compared with drug varieties); (2) the parts used for food purposes (seeds and oil) contain even less; and (3) after processing, the THC content is at or close to zero. U.S. and Canadian hemp seed and food manufacturers have in place a voluntary program for certifying low, industry-determined standards in hemp-containing foods. Background information on the TestPledge Program is available at http://www.TestPledge.com. The intent of the program is to assure that consumption of hemp foods will not interfere with workplace drug testing programs or produce undesirable mental or physical health effects.
"On February 6, 2004, the U.S. Court of Appeals for the Ninth Circuit permanently enjoined the enforcement of the final rule.65 The court stated that 'the DEA’s definition of ‘THC’ contravenes the unambiguously expressed intent of Congress in the CSA and cannot be upheld.'66 In late September 2004 the Bush Administration let the final deadline pass without filing an appeal."

Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, July 24, 2013), p. 15.
http://www.fas.org/sgp/crs/mis...

29. Federal Law and DEA Control Over Hemp Production in the US

Laws and Policies

"In 1937, Congress passed the first federal law to discourage cannabis production for marijuana while still permitting industrial uses of the crop (the Marihuana Tax Act; 50 Stat. 551). Under this statute, the government actively encouraged farmers to grow hemp for fiber and oil during World War II. After the war, competition from synthetic fibers, the Marihuana Tax Act, and increasing public anti-drug sentiment resulted in fewer and fewer acres of hemp being planted, and none at all after 1958.
"Strictly speaking, the Controlled Substances Act of 1970 (CSA, 21 U.S.C. §801 et. seq.) does not make growing hemp illegal; rather, it places strict controls on the production of hemp, making it illegal to grow the crop without a DEA permit.
"The CSA adopted the same definition of Cannabis sativa that appeared in the 1937 Marihuana Tax Act. The definition of “marihuana” (21 U.S.C. §802(16) reads:

The term marihuana means all parts of the plant Cannabis sativa L., whether growing or not; the
seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture,
salt, derivative, mixture, or preparation of such plant, its seeds or resin. Such term does not
include the mature stalks of such plant, fiber produced from such stalks, oil or cake made from
the seeds of such plant, any other compound ... or preparation of such mature stalks (except the
resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of such plant which is
incapable of germination.

"The statute thus retains control over all varieties of the cannabis plant by virtue of including them under the term 'marijuana' and does not distinguish between low- and high-THC varieties. The language exempts from control the parts of mature plants—stalks, fiber, oil, cake, etc. — intended for industrial uses. Some have argued that the CSA definition exempts industrial hemp under its term exclusions for stalks, fiber, oil and cake, and seeds.44 DEA refutes this interpretation.45

Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, Jan. 26, 2016), pp. 12-13.
http://nationalaglawcenter.org...

30. State Laws Regarding Hemp

"Since the mid-1990s, there has been a resurgence of interest in the United States in producing industrial hemp. Farmers in regions of the country that are highly dependent upon a single crop, such as tobacco or wheat, have shown interest in hemp’s potential as a high-value alternative crop, although the economic studies conducted so far paint a mixed profitability picture.
"Beginning around 1995, an increasing number of state legislatures began to consider a variety of initiatives related to industrial hemp. Most of these have been resolutions calling for scientific, economic, or environmental studies, and some are laws authorizing planting experimental plots under state statutes. Nonetheless, the actual planting of hemp, even for state-authorized experimental purposes, remains regulated by DEA under the CSA.
"Following enactment of the 2014 farm bill provision allowing for growing hemp under certain circumstances, several states have quickly been adopting new state laws to allow for cultivation. To date, more than 30 states or territories have enacted or introduced legislation favorable to hemp cultivation (Figure 6). Other states reportedly considering hemp legislation include Alaska, Arizona, Florida, Georgia, Iowa, Kansas, Massachusetts, Mississippi, New Mexico, South Dakota, Texas, and Wisconsin.53 (The status of state actions regarding hemp is changing rapidly, and information differs depending on source.54)
"Requirements differ among the states, and some states—Illinois, Indiana, Kentucky, Maine, Nebraska, New Hampshire, Virginia—have enacted laws that are considered more comprehensive than others.55
"Some common provisions across these state laws include:56
"• defining industrial hemp (based on the percentage of THC it contains) and excluding industrial hemp from the definition of “controlled substances” under state law;
"• authorizing the growing and possessing of industrial hemp by creating an advisory board or commission;
"• establishing or authorizing a state licensing or registration program for growers and/or seed breeders;
"• requiring recordkeeping;
"• requiring waivers or changes to federal law;
"• establishing or authorizing fee structures;
"• establishing inspection procedures;
"• allowing state departments to collect funds for research programs;
"• promoting research and development of markets for industrial hemp;
"• establishing certified seed requirements57 or, in some states, 'heritage hemp seeds' (e.g., in Colorado and Kentucky); and
"• establishing penalties.
"Some states have well-developed guidelines for growers, covering issues such as registration and reporting requirements, inspection, THC testing and threshold determination, seed availability and certification, pesticide use, production standards, and other information. Other general requirements may apply under some circumstances. For example, in 2016, USDA published guidance on organic certification of industrial hemp products.58 Some are calling for the need to develop more far-reaching consensus standards for a range of cannabis varieties given concerns about the general lack of standards and test methods.59 Production of industrial hemp has been reported in several states (Table 2).
"Among the states that have enacted taxation and/or fees for industrial hemp are California, Colorado, Indiana, Kentucky, Maine, Montana, Nevada, North Dakota, Oregon, Tennessee, Vermont, and West Virginia.60"

Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, March 10, 2017), pp. 14-16.
https://fas.org/sgp/crs/misc/R...

31. Legislative History of Cannabis Sativa L. and Hemp

"Legislative history suggests that Congress accepted the name Cannabis sativa L. for the hemp plant, believing it to be the common description within the scientific community.41 This categorization combined all marijuana-producing Cannabis plants.42 Therefore, any hemp plant capable of producing any amount of THC was classified as Cannabis sativa L. under the CSA.43"

Duppong, Thomas A., "Industrial Hemp: How the Classification of Industiral Hemp as Marijuana under the Controlled Substances Act Has Caused the Dream of Growing Industrial Hemp in North Dakota to Go up in Smoke," North Dakota Law Review (Grand Forks, ND: University of North Dakota School of Law, 2009) Vol. 85, No. 2, p. 407.
http://web.law.und.edu/LawRevi...

32. Controlled Substances Act

"The CSA [Controlled Substances Act] classifies marijuana in the first category of schedules, placing it among the most harmful and dangerous drugs.137 Marijuana meets the criteria for a Schedule I controlled substance because of its THC content, which is a psychoactive hallucinogenic substance with a high potential for abuse.138 Another key classification made by the CSA regarding marijuana was its broad definition of the drug.139 The CSA defines marijuana as follows:
"The term ‘“marihuana” means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds or resin. Such term does not include the mature stalks of such plant, fiber produced from such stalks, oil or cake made from the seeds of such plant, any other compound, manufacture, salt, derivative, mixture, or preparation of such mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of such plant which is incapable of germination.140
"This effectively placed the entire use of the hemp plant, whether for drug use or as industrial hemp, squarely under the control of the CSA.141 Therefore, the DEA views industrial hemp containing .3% THC the same as marijuana grown for drug use which commonly contains a 24% THC level, or eighty times more THC.142"

Duppong, Thomas A., "Industrial Hemp: How the Classification of Industiral Hemp as Marijuana under the Controlled Substances Act Has Caused the Dream of Growing Industrial Hemp in North Dakota to Go up in Smoke," North Dakota Law Review (Grand Forks, ND: University of North Dakota School of Law, 2009) Vol. 85, No. 2, p. 417-418.
http://web.law.und.edu/LawRevi...

33. Hemp and CBD

"Another chemical shared by both industrial hemp and marijuana is Cannabidiol (CBD).48 CBD is unique because it is not intoxicating and it also moderates the euphoric effect of THC.49 Marijuana, which has disproportionately higher levels of THC than industrial hemp, also contains lower levels of CBD.50 The higher THC and lower CBD concentration gives marijuana its psychoactive effect.51 Conversely, industrial hemp’s low THC levels and comparatively high CBD levels produce none of the intoxicating effects of marijuana.52"

Duppong, Thomas A., "Industrial Hemp: How the Classification of Industiral Hemp as Marijuana under the Controlled Substances Act Has Caused the Dream of Growing Industrial Hemp in North Dakota to Go up in Smoke," North Dakota Law Review (Grand Forks, ND: University of North Dakota School of Law, 2009) Vol. 85, No. 2, p. 408.
http://web.law.und.edu/LawRevi...

34. Hemp History

"Probably indigenous to temperate Asia, C. sativa is the most widely cited example of a “camp follower.” It was pre-adapted to thrive in the manured soils around man’s early settlements, which quickly led to its domestication (Schultes 1970). Hemp was harvested by the Chinese 8500 years ago (Schultes and Hofmann 1980). For most of its history, C. sativa was most valued as a fiber source, considerably less so as an intoxicant, and only to a limited extent as an oilseed crop. Hemp is one of the oldest sources of textile fiber, with extant remains of hempen cloth trailing back 6 millennia. Hemp grown for fiber was introduced to western Asia and Egypt, and subsequently to Europe somewhere between 1000 and 2000 BCE. Cultivation in Europe became widespread after 500 CE. The crop was first brought to South America in 1545, in Chile, and to North America in Port Royal, Acadia in 1606. The hemp industry flourished in Kentucky, Missouri, and Illinois between 1840 and 1860 because of the strong demand for sailcloth and cordage (Ehrensing 1998). From the end of the Civil War until 1912, virtually all hemp in the US was produced in Kentucky."

Small, Ernest and Marcus, David , "Hemp: A New Crop with New Uses for North America," Trends in New Crops and New Uses (West Lafayette, IN: Purdue University Center for New Crops and Plant Products, 2002), p. 284.
http://www.hort.purdue.edu/new...

35. Hemp History

"From the colonial period through the middle of the nineteenth century, hemp was widely grown in the United States for use in fabric, twine, and paper.19 Production dropped by the 1890’s as technological advances made cotton a more competitive textile crop, and coarse fiber crops were increasingly imported.20 Nonetheless, American farmers continued to grow hemp into the middle of the twentieth century, finding it a useful rotation crop because it acted as a natural herbicide21—a dense, rapidly growing crop, it choked out weeds prior to the next planting of corn and other crops.22 At the urging of the government, production to supply fiber for military purposes was expanded enormously during World War I and again during World War II, particularly after the Japanese cut off exports from the Philippines."

Kolosov, Christine A., "Evaluating the Public Interest: Regulation of Industrial Hemp under the Controlled Substances Act," UCLA Law Review (Los Angeles, CA: UCLA School of Law, 2009), p. 241.
http://uclalawreview.org/pdf/5...

36. Hemp in American History

"Hemp was widely grown in the United States from the colonial period into the mid-1800s. Fine and coarse fabrics, twine, and paper from hemp were in common use. By the 1890s, labor-saving machinery for harvesting cotton made the latter more competitive as a source of fabric for clothing, and the demand for coarse natural fibers was met increasingly by imports. Industrial hemp was handled in the same way as any other farm commodity in that USDA compiled statistics and published crop reports33 and provided assistance to farmers promoting production and distribution.34 In the early 1900s, hemp continued to be grown, and USDA researchers continued to publish information related to hemp production and also reported on hemp’s potential for use in textiles and in paper manufacturing.35 Several hemp advocacy groups, including HIA and Vote Hemp, Inc., have compiled other historical information and have copies of original source documents.36
"Between 1914 and 1933, in an effort to stem the use of Cannabis flowers and leaves for their psychotropic effects, 33 states passed laws restricting legal production to medicinal and industrial purposes only.37 The 1937 Marihuana Tax Act defined hemp as a narcotic drug, requiring that farmers growing hemp hold a federal registration and special tax stamp, effectively limiting further production expansion.
"In 1943, U.S. hemp production reached more than 150 million pounds (140.7 million pounds hemp fiber; 10.7 million pound hemp seed) on 146,200 harvested acres. This compared to prewar production levels of about 1 million pounds. After reaching a peak in 1943, production started to decline. By 1948, production had dropped back to 3 million pounds on 2,800 harvested acres, with no recorded production after the late 1950s.38"

Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, March 10, 2017), pp. 11-12.
https://fas.org/sgp/crs/misc/R...

37. Hemp in US History

"During World War I, some hemp cultivation occurred in several states, including Kentucky, Wisconsin, California, North Dakota, South Dakota, Minnesota, Indiana, Illinois, Ohio, Michigan, Kansas, and Iowa (Ehrensing 1998). The second world war led to a brief revival of hemp cultivation in the Midwest, as well as in Canada, because the war cut off supplies of fiber (substantial renewed cultivation also occurred in Germany for the same reason). Until the beginning of the 19th century, hemp was the leading cordage fiber. Until the middle of the 19th century, hemp rivaled flax as the chief textile fiber of vegetable origin, and indeed was described as 'the king of fiber-bearing plants,—the standard by which all other fibers are measured' (Boyce 1900). Nevertheless, the Marihuana Tax Act applied in 1938 essentially ended hemp production in the United States, although a small hemp fiber industry continued in Wisconsin until 1958. Similarly in 1938 the cultivation of Cannabis became illegal in Canada under the Opium and Narcotics Act."

Small, Ernest and Marcus, David , "Hemp: A New Crop with New Uses for North America," Trends in New Crops and New Uses (West Lafayette, IN: Purdue University Center for New Crops and Plant Products, 2002), p. 284.
http://www.hort.purdue.edu/new...