Successful Farming – August 2019

(Ann) #1
and the fact that we knew how to bring affordable products to
market, it was a natural decision to start doing business.

SF: What is the current national landscape for hemp production?
Summers: Currently, the ease in which a business can operate
completely depends on which state it is conducting business in.
The Agricultural Act of 2014 introduced the capacity for states
to cultivate hemp, but since then, not all states have implemented
pilot programs. If you are in Kentucky, Colorado, or Oregon,
you operate with favorable laws. In places like Idaho, you have
no guidance beyond no differentiation between marijuana and
hemp. Things are about to change, however, with the 2018 Farm
Bill, as hemp assumes its place as a legal agricultural commodity.

SF: What does the new farm bill actually do on this front?
Summers: The 2018 Farm Bill effectively defines hemp reso-
lutely separate of marijuana as an agricultural product. Hemp
will be removed from the Controlled Substances Act and away
from the purview of the Drug Enforcement Agency. This
means the legality of cultivation, processing, and interstate
commerce will be significantly opened at the federal level. It is
important to note that it will not preempt state law, however. It
will be up to the states to choose to regulate hemp production
and processing if they are not doing so already.

SF: What are the economics of the new business opportunities?
Summers: There will, no doubt, be an abundance of opportu-
nity for more and more businesses to enter the marketplace.
More open competition often means a more prosperous market
and higher quality products. At first, there will no doubt be a
spike, as many entrepreneurs and investors will look to have
some skin in the game. Most importantly, hemp will be a great
new crop for the American farmer.

SF: Where will we see the new opportunity for farmers?
Skandalis: I sit on the membership board of the U.S. Hemp
Farmers Association. This group is working toward pursuing
crop insurance for the industry, as well as lobbying state leg-
islatures to create policy frameworks for states that may have
little experience with hemp regulations. There is tremendous
interest in hemp from commodity crop farmers in the Midwest
and Southern regions. The facts are that hemp needs relatively
little nutrient input or water, and it can be harvested using
existing infrastructure. That means this crop will continue to
expand in production, especially because it has so many differ-
ent applications. 

SF: What should interested farmers do?  
Skandalis: Start to network with your local Extension office.
They are a great source of information when it comes to the
agronomic needs of the hemp plant. With the passage of the
2018 Farm Bill, I expect that additional grants, loans, and
credit will open up to the hemp-farming industry that were
previously not available because of federal scheduling.

IS HEMP FARMING


IN YOUR FUTURE? THE NEW FARM


BILL COULD OPEN THE DOOR TO A CROP THAT


WAS PREVIOUSLY ILLICIT.


N


ot so fast on the thinking that you’ll never grow hemp as
a commercial product on your farm. The new farm bill is
cracking the door open a little wider to that possibility.
We’re not talking about marijuana grown for its psy-
choactive purposes. A milder version of that plant, called
CBD, is hemp that is deregulated in the new farm bill. Products
made from it, numbering in the thousands, include nutritional
additives, cosmetics, construction materials, pet foods, pest
inhibitors, and many others. Use of hemp for such purposes may
exceed the more potent psychoactive cannabis in the next few
years, experts say. It could put hemp production on more farms
where state legislators let it happen.
We recently interviewed two executives, Evan Skandalis (farm
manager) and Dylan Summers (regional director), of Lazarus
Naturals, a company in the Pacific Northwest that produces and
markets CBD products now. CBD promotes restful sleep, sup-
ports normal cartilage and joint function, relieves occasional nau-
sea, enhances relaxation, and more, says the company’s website.

SF: What’s the background of your company in this business?
Summers: The advent of Lazarus Naturals was, in part, a reac-
tion to the steep prices of CBD products in the marketplace at
the time. We have always been optimistic about the potential of
hemp and CBD products. We had discussions with many people
interested in cannabis about the various ways CBD was useful
in their everyday lives. Because of the positive responses to CBD

Photography: studio023, iStockphoto.com August 2019 | Successful Farming at Agriculture.com bonus

c r o p s

By Gene Johnston
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