First up, Michigan. The Great Lakes State has become quite hemp-friendly since the passing of the Farm Bill and is working on streamlining the registration and growing processes both for statewide and interstate hemp commerce. (3) 

The History 

Michiganders are some of the newest to the industrial hemp industry, but they are a force to be reckoned with. In 2015, Governor Snyder of Michigan signed a bill that separated the legal definitions of hemp and marijuana, setting apart industrial hemp and allowing it to be cultivated for research. This is set into motion the trajectory that led to the state’s accessibility to the hemp market as a whole (4). While states such as Colorado and Oregon began their agricultural pilot programs to research Industrial hemp as early as 2009 and 2010, Michigan quickly caught up. 

On December 28, 2018, Governor Rick Snyder signed Michigan House Bills 6330, 6331 and 6380 (Public Acts 641, 642, and 648 of 2018) into law. This amended the Industrial Hemp Research Act that was previously in place in the state, now allowing anyone over the age of 18 to register to grow industrial hemp. All growing, processing, and handling of industrial hemp will be regulated by the Michigan Department of Agriculture and Rural Development (MDARD). (2) 

The Fine Print

In order to grow hemp in Michigan, farmers must register with the MDARD. This will allow the state to facilitate a healthy and ethical hemp industry. Furthermore, a program is in development now that will implement guidelines for the interstate trading of hemp in congruence with the requirements of both state and federal laws. (3)

The Industrial Hemp Research and Development Act (IHRDA) limits application fees for growers to $100, and $1350 for processor-handlers. The statute also states that the applicants must disclose the names of all corporate members and those with equitable holdings of 10% or more in each given business, allowing systemic regulation from both agricultural and economic standpoints. (5)

The IHRDA also states that growers may not plant industrial hemp in the midst of a crop that is not industrial hemp. Industrial hemp must be on its own plot of land (5). Another rule stated in the Act says that any hemp crop that contains higher than the allowed .3% TCH content will be classified as Marijuana and dealt with as such under Michigan law. (3) 

The Gist 

It is now legal in Michigan to grow industrial as long as you abide by all the laws stated in the legislation. The attitude toward this beneficial industrial crop is coming overwhelming positive in the state. In fact, under the new legislation, Michiganders may even have criminal charges involving small-scale possession of cannabis expunged from their records. (1)

Michigan, now is the time to plan for investing in hemp however you can, whether that’s growing hemp, investing in hemp futures, or anything in between. 

Sources: 

1. https://www.freep.com/story/news/marijuana/2019/07/16/michigan-marijuana-bill-misdemeanor-crime/1743810001/
2. https://www.michigan.gov/mdard/0,4610,7-125-1569_74018—,00.html
3. https://www.michigan.gov/documents/lara/2019-lara-marijuana-hemp-11x17_650698_7.pdf
4. https://www.votehemp.com/states/michigan-hemp-law/
5. https://michigan-marijuana-lawyer.com/industrial-hemp/

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“There is no better time to get into hemp than today”
-Mike Leago, CEO iHEMPx

The legalization of hemp through the 2018 Farm Bill has changed the farming landscape. Stories of farmers making $50,000+ an acre are becoming more and more common as the rush to capitalize on hemp and its by-products grow throughout the United States. To fully understand the profitability, timing, and effects of this crop, let’s start by examining how the 2018 Farm Bill changed the legal landscape for hemp.

2018 Farm Bill and State to State Adoption

On December 20, 2018 the Agriculture Improvement Act of 2018, or 2018 Farm Bill, was signed into law legalizing hemp and its by-products(1). This has opened the doors for hemp farming, investment, and the growth of the support network surrounding the industry. It will take time to see the full effects, but the basic necessities such as banking, insurance, and protections for interstate commerce now have the legal opportunity to grow with the industry.

While hemp and its byproducts are legal on a federal level, state to state legalities still remain. For the states which have been early adopters through pilot programs or similar, they are now experiencing soaring profitability and high demand for seed. States that are paving the way include Colorado, Oregon, Kentucky, Nevada, and North Carolina.

Profitability

Hemp profitability currently depends on two main factors:

1. Type of hemp being grown
2. Reliable paths to market

Since the signing of the 2018 Farm Bill, there are cases of farmers growing CBD for over $200,000 per acre through the sale of raw biomass without having to follow the product downstream. While those figures are on the high-end, current markets are still seeing per-acre profits of $50,000+ for CBD. Compare this to farmers accustomed to making less than $1000 an acre for normal crops and it is clear just how profitable hemp can be.  

On the fiber, food, and building materials side, hemp is still profitable but returns are more aligned with normal agricultural operations. In the current market, growing CBD hemp is king as long as farmers can find a path to market.

The Future Of Hemp Profitability

Will the current trends in profitability last for a decade? Five years? Mike Leago of iHEMPx believes prices will fall within a few years. As quoted, the best time to capitalize on hemp is right now. As the global market picks up in production output and overall quality, profitability will drop significantly. However, this does not mean it is too late to get started in hemp farming.

iHEMPx stands ready to serve as a supply chain partner for farmers looking to break into hemp. From seed to market, iHEMPX offers a full range of services and information to help farmers capitalize on this highly profitable crop.

Get Started With Hemp Today!

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