Can Florida hemp be a cash crop?

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TALLAHASSEE — Organic hemp seeds, considered a health food by some, sell for $17 per pound at the grocery store.

Most are imported from Canada, since growing hemp is illegal under U.S. law. But it could be legalized under a bill that the Florida Legislature is considering this year.

In time, supporters say, hemp could even become one of Florida’s biggest crops, worth millions to farmers. The biggest obstacle holding it back is its association with illegal marijuana.

Organic hemp seeds, considered a health food by some, sell for $17 per pound at the grocery store.

Organic hemp seeds, considered a health food by some, sell for $17 per pound at the grocery store.

That is an association the bill’s sponsor, Florida Sen. Jeff Clemens, D-Lake Worth, sought to dispel last week at the state Senate’s Agriculture committee. Although hemp and marijuana are the same species, they are cultivated to produce two different plants.

“This has nothing to do with marijuana or the production of marijuana in its psychoactive form,” Clemens said. “This is a crop that can help farmers make some money and produce products for consumers.”

The bill passed its first committee stop on a 7-0 vote, but must still go through three more committees. A related House bill has yet to be heard.

Hemp is grown around the world as an industrial crop, bred for its strong fibers and oily seeds. Industrial hemp contains only trace amounts of THC, the active ingredient in marijuana, and has been cultivated for about 12,000 years for clothing, rope, paper and food. Hempseed oil is marketed online as a medical supplement.

In the U.S., Presidents George Washington and Thomas Jefferson grew hemp. American flags were made out of it. Production peaked in the 1940s, and then generally stopped with hemp made illegal under federal law, classified along with marijuana as cannabis sativa.

But in recent years, many states have seen economic opportunities in hemp.

Twenty-two have passed laws legalizing it at some level, according to the National Conference of State Legislatures.

Of those, 13 allow commercial production and seven permit cultivation by state or academic researchers. Two states now permit pilot research programs.

A tractor cuts a small plot of hemp at a University of Kentucky a research plot near Lexington

A tractor cuts a small plot of hemp at a University of Kentucky a research plot near Lexington

That does not necessarily mean hemp is being produced in all of these states, said Scott Hendrick, a research director of environment and natural resources at the legislative organization. Some state laws require that growers also get waivers from the Drug Enforcement Administration or other federal agencies.

But more states are looking at the money to be made in hemp in the future and are less worried about its association with marijuana. This year, 56 bills dealing with hemp have been filed in 28 states.

“So, we’re really behind the curve,” Clemens said. “We’re importing the products from other states. Somebody’s making a profit out of these products, and it’s not Floridians.”

Clemens’ bill, SB 902, would limit the THC content of hemp at 0.3 percent, an amount researchers say is too small to produce any psychoactive effects. Marijuana typically contains between 3 percent and 20 percent THC.

Hemp advocate Bob Clayton, a 64-year-old retired engineer, told lawmakers of a house in Tarpon Springs that he built out of hempcrete. The building material, made from chunks of the hemp plant’s woody core and a lime-based binder, is common in other countries.

Clayton quoted industry figures suggesting that hemp production and processing in Florida, with multiple growing seasons each year, could be worth $460 million.

The bill faced little opposition in committee, but Sen. Eleanor Sobel, D-Hollywood, questioned some of the stronger claims Clayton made about hempseed oil’s weight-loss powers and health benefits.

“I like the bill, I think it will create a new industry. As long as we’re realistic about what it can and can’t do,” she said.

The potential for tax revenue, often a selling point in such measures, is unclear in this case. The state may have difficulty collecting taxes on what is still, under federal law, an illegal substance.

Federal law prohibits banks or other financial institutions from accepting money from the sale of Schedule I controlled substances, which would still include hemp.

That could change, as Congress is also considering hemp legislation. The Industrial Hemp Farming Act of 2015 would remove hemp entirely from the list of drugs regulated by the Controlled Substances Act, effectively legalizing it at the federal level.

But until that happens, according to the Florida Department of Revenue, taxpayers could not pay hemp taxes electronically. And it is unclear whether the state could accept taxes in cash without breaking federal law by putting the money into state coffers. Newly legalized marijuana businesses in Colorado and Washington have faced similar problems.

Clemens’ hemp bill is set next for the Criminal Justice committee today, and remains to be scheduled for the Regulated Industries and Appropriations committees.

Last modified: March 29, 2015
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