Chris McDonald, Director of Federal Affairs Michael Ledlow, Director of Bureau of Plant Industry

MS Department of Agriculture and Commerce

Hemp Regulation & Cultivation

Hemp vs Marijuana • "Hemp" means the plant Cannabis sativa L. and any

part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol (THC) concentration of not more than three-tenths of one percent (0.3%) on a dry weight basis. 2018 Farm Bill

• Marijuana > 0.3% THC

Mississippi Statutes • § 41-29-113 Lists marijuana and tetrahydrocannabinols (THC)

contained in Cannabis as Schedule I controlled substances.

• § 41-29-139 Illegal to sell, barter, transfer, manufacture, distribute,

dispense or possess with intent to sell, barter, transfer, manufacture, distribute or dispense, a controlled substance.

Mississippi Statutes • Exempted from control (§ 41-29-113)

THC-containing industrial products made from cannabis stalks (e.g., paper, rope and clothing);

Processed cannabis plant materials used for industrial purposes, such as fiber retted from cannabis stalks for use in manufacturing textiles or rope;

Animal feed mixtures that contain sterilized cannabis seeds and other ingredients (not derived from the cannabis plant) in a formula designed, marketed and distributed for nonhuman consumption;

Personal care products that contain oil from sterilized cannabis seeds, such as shampoos, soaps, and body lotions (if the products do not cause THC to enter the human body); and

Processed cannabis plant extract, oil or resin with a minimum ratio of twenty-to-one cannabidiol to tetrahydrocannabinol (20:1 cannabidiol:tetrahydrocannabinol), and diluted so as to contain at least fifty (50) milligrams of cannabidiol per milliliter, with not more than two and one-half (2.5) milligrams of tetrahydrocannabinol per milliliter

Mississippi Statutes • § 41-29-136. Harper Grace’s Law Provides that U of M and MSU are the are the only entities

authorized to produce cannabis plants for cannabidiol research. Legalized CBD solution prepared by the National Center for

Natural Products Research (U of M) CBD solution may be dispensed by the Department of Pharmacy

Services at the University of Mississippi Medical Center For the purposes of clinical trials under this section, CBD solution

must meet the standard of exemption from control under Section 41-29-113.

2014 Farm Bill

2014 Farm Bill legalized the production of hemp if:

1. Grown or cultivated for purposes of research conducted under an agricultural pilot program or other agricultural or academic research; and

2. The growing or cultivating of industrial hemp is

allowed under the laws of the State in which such institution of higher education or State department of agriculture is located and such research occurs.

2018 Farm Bill • Legalized commercial production of hemp.

• A State desiring to have primary regulatory authority over the production of hemp:

shall submit to the U.S. Secretary of Agriculture, through the State Department of Agriculture (in consultation with the Governor and chief law enforcement officer of the State) or the Tribal government, as applicable,

a plan under which the State or Indian tribe monitors and regulates hemp production.

2018 Farm Bill • State plan must include: Database (growers, processors, locations, etc.) Procedure for testing for THC Procedure for disposal of plants and products >0.3%

THC Procedure for annual inspections A certification that the State has the resources and

personnel to carry out the practices and procedures described in the plan.

• USDA is currently drafting regulations to have in place

for the 2020 planting season.

2019 MS Legislative Session • 4 bills introduced to legalize hemp – all died HB 625, HB 1267, HB 1521, SB 2767

• HB 1574 Created the MS Hemp Cultivation Task Force Make a comprehensive study of the potential for

cultivation of hemp in this state. Examine and study approaches taken by other states

in the monitoring and regulation of hemp cultivation. Study the economic costs and benefits of hemp

cultivation, market potential, and potential job creation.

Crop Production

Three Main Harvestable Components of Hemp

Grain or Seeds. For human food (hemp hearts, oil, and protein powder), or seeds for planting hemp. Fiber from stalks. Bast (bark – long, outer fibers), and Hurd (core – inner woody material).

Floral Material. For extraction of plant resin (which includes CBD and other phytocannabinoids) for health and wellness products.

Industrial Hemp Crop Production

• Spring planted annual. • Similar fertility requirements to wheat

($100-125/acre, at least 100 units N, more for grain, less for fiber).

• Mature to fiber in 60-90 days. • Seed/Grain production 100+ days. • CBD production systems vary, many

resemble tobacco or vegetable production.

• Extremely sensitive to light cycle.

Grain Production • Similar to small

grain production • Desire short

plants for ease of harvest

• Planted with a grain drill

• Harvested using combine

Grain Crop

CAUTION Predicting ideal harvest window will prove difficult for first time growers. Must be harvested in very short window due to seed shatter issues.

Grain Yields

• Seed/Grain Yield = Average 800-1,000 lbs. per acre, KDA max.= 1,600+

• $0.65- $0.75 per pound • Returns per acre, max. $1,200 • Hemp Grain is high in oil and

protein, consumer demand for health food

Fiber Production

• Very dense plant population (twice as dense as grain).

• Desire tall plants with small stalk, and less leafy material.

• Harvested using typical hay equipment: mow, field retting 2-3 weeks, then roll baling.

• Some areas of the world harvest by chopping, not sure yet, which method will be most used here.

Fiber Crop Mowed

Fiber Crop Chopped

Fiber Yields

• Yields 1-5.5 tons per acre of dry matter (whole dry stems).

• Fiber price $70-$135 / ton for whole stems.

• Fiber crop vs dual purpose. • Return per acre up to $700. • Stems = 15-20% Bast, 70+%

Hurd, 5-10% Waste. • Fiber uses -polymer

composites to horse bedding.

Phytocannabinoid/CBD Production

Phytocannabinoid/CBD Production

Two different varieties and

Two different production methods

Phytocannabinoid/CBD Production

• Majority of growers - Only female plants. (Seeing movement to direct seeded field crop and male/female crops.)

• Desire bushy plants with large number of flowers.

• Current Production models tobacco or vegetable.

• CBD Levels are highest in the floral materials. • Both field & greenhouse production.

Phytocannabinoid/CBD Yields

• Maximum production for one plant = approx. one pound dried floral material for extraction.

• The very first year of the program KDA received reports of prices as high as $1,000 / lb for dried material, HOWEVER prices today continue to decline RAPIDLY.

• Emerging market; more product on market will see reductions in price to between $5-$10/lb.

• Extract generated per lb of dried material varies widely.

• Transition to mechanized harvest will change things.

Biggest Challenge

-Weeds

Risky Business • Limited production knowledge combined with an uncertain

federal regulatory environment and unstable pricing creates significant risk for the participant.

• Crop failures happen. There is no crop insurance.

QUESTIONS?