Program Growth Colorado’s Industrial Hemp Program The Regulatory Program and Industry Status Year Registered Land Area Harvest Nov 20 th , 2017 Colorado Counties Incorporated
What is Industrial Hemp? Federal Farm Bill Definit ion The term ‘industrial hemp’ means the plant Cannabis sativa L. and any part of such plant , whet her growing or not , wit h a delt a-9 t et rahydrocannabinol concent rat ion of not more t han 0.3 percent on a dry weight basis. If it is over 0.3% delt a-9 THC concent rat ion it is marijuana and it is not Indust rial Hemp. And if it is not grown in a regulat ed syst em, federally or in CO, it is not Indust rial Hemp no mat t er what t he THC is.
So what does hemp look like?
So what does hemp look like?
So what does hemp look like?
How can I tell marijuana from Industrial Hemp? Visually t hey look t he same because t hey are t he same genus and species of plant . The only difference is t he level of delt a-9 THC concent rat ion which can only be det ermined t hrough laborat ory analysis. You just can’t get high from hemp .
Who set 0.3% as the THC limit? • UN Office on Drugs and Crime and most international trade agreements generally recognized a limit of 0.3% THC. • Canada and Australia use 0.3% THC. • Much of the European Union uses 0.2% THC. • The 2014 Farm Bill uses 0.3% THC. • And in Colorado the voters defined Industrial Hemp as 0.3% THC concentration and below in the Constitution. It wasn’t the CDA and we have NO authority to change it. •
If you can’t get ‘high’ what is industrial hemp good for? The Congressional Research Committee estimates that there are more than 25,000 uses for industrial hemp. Those uses include paper, textiles, biofuels, graphene for high capacity batteries, car parts, insulation and building products, cosmetic and body care products, dietary supplements and food products, CBD….
How has the market developed? 80000000 70000000 $ Imported 60000000 Grain 50000000 40000000 30000000 Fiber 20000000 10000000 0 2010 2011 2012 2013 2014 2015 1 2 3 4 5 6 Congressional Research Committee- Hemp as an Agricultural Commodity 3/ 10/ 17
Domestic Production in US (& CO) Domestic production continues to increase as more states provide regulatory structures for and more processors begin to enter the market. 2014 – 220 acres(200) less than 300,000 sqft (270,000) 2015- 2500 acres (2200) .6 million sqft (570,000) 2016 – 8900 acres (5700) 1.6 million sqft (1.2) 2017 – 25000 acres (9800) 2.2 million sqft (2.1) Until 2017, CO has accounted for more than 50% of all US hemp production every year since it was authorized in 2014.
What changes have we seen in the industry? In 2014 we saw mostly small outdoor operations, limited agronomic expertise, most growers were under capitalized and a significant number registered purely for a historic certificate with no intent to plant. We are seeing a shift in the industry. Outdoor production space has increased significantly and indoor space registered exploded. The size of individual growing sites increased and has moved to traditional agricultural production areas. Agronomic practices have improved. Businesses are better funded and production plans are better developed. More investors and processors are entering the market.
An Industry Still Emerging In 2014 almost all plantings were one acre or less. Anything over 5 acres was considered a large planting. Today almost half the registered land areas are over 5 acres and almost 20% of the registrations are for 50 acres or more. Individually 10 registrants have more acres registered in 2017 than all registrants combined grew in 2014. The two largest producers registered more acres than all states combined harvested in 2015.
Where in CO is hemp cultivated? Industrial hemp is a matter is statewide concern so the CDA will issue registrations anywhere in the state. It is broadly distributed across the state. Currently 51 of Colorado’s 64 counties have at least one registered land area. Weld county currently has the most registrations followed by Delta, Larimer, Mesa, and Boulder.
10 20 30 40 50 60 70 0 Bent 1 Gilpin 1 Where it is being grown in CO Las Animas 1 Moffat 1 Ouray 1 Phillips 1 Summit 1 Teller 1 Cheyenne 2 Denver 2 Grand 2 Kit Carson 2 Pitkin 2 Archuleta 3 Conejos 3 Morgan 3 Prowers 3 San Miguel 3 Washington 3 Broomfield 4 Custer 4 Logan 4 Rio Grande 4 Arapahoe 5 numReg/county Montezuma 5 Park 5 Huerfano 6 Routt 6 Douglas 7 Baca 8 Chaffee 8 Elbert 8 Yuma 8 10 10 10 11 11 Adams Jefferson La Plata Costilla Saguache 13 14 14 Garfield Fremont Pueblo 16 El Paso 21 Alamosa 24 25 Otero Montrose 29 Boulder 33 34 Mesa Larimer 40 Delta 65 Weld numReg/county
Emerging Segments of the Industry Colorado, like most states since, have seen the CBD segment of the industry emerge the fastest. Initially CBD probably represented over 60% of the acres planted. Today that percent is significantly lower. While CBD planting remains an important segment of the industry, planted acres for grain now far outweigh the total acres of CBD planted and growth rate for new land areas dedicated to grain production are the fastest growing segment of Colorado’s hemp industry today.
The role of the CO Dept. of Agriculture The CDA grants commercial and research & development registrations on specific land areas for the cultivation of industrial hemp within CO. It is a voluntary program. Land areas not registered with the program are not protected by this program from local, state or federal agencies. We inspect and sample cannabis growing on registered land to verify compliance. While we work with the industry to understand the issues involved with this emerging industry we have no jurisdiction over processing or products containing industrial hemp. That does not mean no one regulates these processes. Other state or local regulations may apply.
Why is it important to understand the total Cannabis landscape? It is required to obtain a registration to cultivate industrial hemp under the Farm Bill. In Colorado Constitutionally you can grow six marijuana plants. The only place in Colorado where you can not grow marijuana is a land area voluntarily registered to grown industrial hemp. That makes registering a land area and not the individual critical to our program. That also means Colorado has a little different relationship with some of our federal partners, including the DEA, because of our Cannabis landscape.
Purposeful Rules Why are the Rules so important for a program? Ensure compliance with federal guidelines in the Cole Memorandum and comply with the 2014 Farm Bill. Ensure that all registrants in have a level playing field in the market. Ensure that those that violate the rules don’t benefit from doing so. Ensure that those that abuse the system are denied access to the protections the program offers so they don’t jeopardize the program for those that follow the Rules.
How does the program work? The program has 3 key components: 1) Registration -who is involved and where is it being grown 2) Reports-Pre-Planting, Planting and Harvest 3) Inspection and S ampling- Risk and Random based selection There are only 8 pages of Rules.
Inspection and Sampling: All registrations are subject to inspection and sampling either scheduled or without notice. All land and buildings within the registered land area are subject to inspection. All Cannabis plants within the registered land area are subject to sampling. Registrants wishing to close a registration early are subject to sampling. The provisions are designed to protect public safety.
What we sample and how. The Dept. samples within 30 days of harvest. We avoid sampling the outside edges of the field but allow our inspectors to use their judgement on where to select. We sample only female plants. We sample the female flower when it is present but for material being grown for biomass and harvested before flowering we select the top two inches of the plant. The sample size is reflective of the crop size; ½ oz. for individual plants, small plots with less than 100 plants the target is 3oz with a minimum of 1oz, larger plots but less than an acre the target is 8 oz. with a 3 oz. minimum and for multi acre plots the minimum amount is 8 oz.
What have testing results looked like? In 2014 31% of the samples taken exceeded the 0.3% THC threshold. The quantity of material however was very limited and nothing found was highly intoxicating. In 2015 and 2016 those compliance rates continued to improve slightly each year and growers began sorting out those varieties that were failing. In 2016, 1232 acres were destroyed for exceeding the THC limit. 78% or 957 acres that failed were in three varieties. 2017 compliance rates are above 91% . The number of acres exceeding 0.3% THC is also lower, less than 800 acres. Most of the acres exceeding the THC limit in 2017 are in two varieties; one a recurring problem variety from 2016 (Colorado Gold) and one new variety (Marquis M-1) not previously seen or sampled in CO. Less than 1% of the planted acres would have failed if it were not for these two varieties.
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