Hemp in Kentucky??? Commissioner James Comer Commissioner Ryan Quarles

Hemp vs Marijuana Cannabis family .3% THC or less Cannabis family

Where are we? Kentucky 2013 Farm Bill Passed Senate bill 50 Exempted Hemp from controlled substance act. Put in an infrastructure to grow and control Hemp as pilot projects. Licenses GPS Testing and inspection Total control Allows in states where Hemp is legal to administer pilot projects with the universities and through the Department of AG Only for research and education Sales of hemp New farm bill legalized hemp December 2018

3 products from Hemp Seed Fiber CBD oil (THC)

What can be made from hemp? Seed Fiber CBD Medications Health foods Cosmetics Lotions Bio-fuels- ethanol/diesel Paper Textiles- fabrics/ upholstery/ carpet Construction material Clothes Auto parts Bedding CBD Hemp oil Seizures Health products Medications Cancer research

Pilots – year 1 11 pilot projects (6 universities, 5 individual through KDA) 18 sites – 33 acres 4 processing pilots (medical, energy, bedding, textiles)

Pilots – University's UK – production – seed pop/fertilizer levels/seed varieties KSU – heritage (wild hemp) EKU – bio-energy U of L – Brownfield toxins ? Murray State – bedding/bio energy Morehead – bedding WKU – herbicide/pesticide

Pilots – Year 2 326 applications Approved about ½ Research/Education 1700 acres approved Planted 922 acres- seed Difficulty getting seed/too much rain

Pilots year 3 15 university sites – 7 universities 174 private sites through KDA @4500 acres applied for 2300 planted Application reviewed on farming experience, resources available, and education

Pilot year 4 Pilot year 5 234 licenses 12,000 acres approved 72 processors 1034 licenses 43,000 acres 120 processors

Processing – 120 firms KADF – funded projects Atalo – CBD Winchester (Gencana) Sunstrand – Fiber – Louisville & Carroll Co Victory Hemp – seed - Louisville moving to Henry Co

Economics at the farm Seed 800-1200 lbs to acre 60 cents a pound Corn 200 bushel to acre $350 = $700 Fiber Fiber 1.5 – 5 tons per acre $70-$135 per ton $400 - $700 acre Corn - $700 Soybeans - $600

Profitability at the farm CBD 1000-1500 lbs. to the acre $3-$7 a pound $3000- $7000 per acre Tobacco 2500 pounds to acre $2 a pound $5,000 Labor raised like tobacco Cloned female transplants, 1800-2000 per acre, cut and dried in the barn

Why would we not grow hemp? Constraints Profitability (yield, price, labor) ( What will it take place of on farm? Corn, soybeans, tobacco, pasture, hay, trees?(requires good land) Government restriction, red tape (FDA regulates CBD) Must – GPS site and Test for THC approved through KDA Risk? (crop insurance)(contracts) Market location - fiber Do we displace something at the market? How big is the market?

Kentucky is excited about Hemp Economic Development - 8 firms/$52,729,300/535 jobs Investors Canada China Australia Farmers Marijuana funds other states Versatile crop – 3 products Grows well in Kentucky Replacement for tobacco Need - Certified seed, equipment to harvest, upgrade genetics

Kentucky first? We want to be first! - create an infrastructure of Kentucky growers, processors, manufacturers, and marketers. - create profitable economic activity for farmers through agri-business and retail. - Hemp as agriculture economic development

Artemisia Only medication for malaria Grow it and manage like tobacco 200+ day growing season Use in other countries to treat cancer like we treat with chemotherapy without the side effects, hair loss, sickness. The exciting thing about Agriculture is all the things God put on this earth that we have not discover yet. “Hemp, Chia, Sumac, Artemisia, ?”

Questions Warren Beeler Governor’s Office of Agricultural Policy warren.beeler@ky.gov www.kyagpolicy.com Cell 270-991-3438 Office 502-564-4726

Congressman Comer bill HR 3530 Industrial Hemp Farming Act of 2017 Makes Hemp non narcotic (striking it from Controlled Substance Act) Move THC level from .3% to .6% for scientific, medical and industrial research Control of production at state level

Summary – What have we learned? Harvesting equipment? Processing and manufacturing need to be modernized to use everything Demand for hemp seems to be great but how great and can it grow. Two Limiting factors 1. Government regulation - GPS location - test THC levels 2. Profitability at farm level Hemp grows well in KY soils Varieties of seed sorted them self on germination, hardiness, THC levels It needs adequate moisture planting and for first 2-3 weeks Planting depth is an issue rows, broadcast. ¼ inch or less ideal depth. Populations undetermined Weed control and pest control can be an issued Attracts bees, dove, quail Hemp genetics needs upgrade . There is a lot we don’t know

Hemp environmentally Mop crop – Cleans impurities from the soil - using around Chernobyl to clean up contaminants Soil texture – tap root loosens soil for next crop (loosen soil, water holding, rotation crop)

Profit? Corn 200 Bushel acre $3.50 per bushel $700 per acre gross Hemp 1000 – 1600 lbs. to acre .50 to .70 per pound $500 $1120 per acre gross How big is the market?

Hemp Production Seed bed – well drained soils Soil type varies (firm, level, and fine) Compaction is a problem (deeper than normnal) Soil PH 6.0 up to 7.2 27 seed varieties in Canada – Seed and oil production or Fiber 41 varieties in European Union

Economic of hemp on the farm Grain Fiber Floral 500-1,500 lbs. per acre 2,500-10,000 lbs. per acre 1,000-1250 lbs. acre $.60 - $.70 a pound $.30 - $.40 a pound $3 -$7 a pound $500 - $900 per acre $750 - $1250 $3,000 - $7,000 Corn – 200 bushel x $3.50 = $700 Soybeans – 60 bushel x $10.00 = $600 Tobacco – 2500 lbs. x $2.00 = $5,000

Hemp Production Plant rows 6-7 inches Soil depth 1/8-1/4 Plant April to June 3-4 weeks 12-15 inches tall with 90% ground cover for weed control No pesticides or herbicides approved for Hemp Same fertility as wheat ($100-125 acre) Growing season 110-150 days

Hemp Harvesting Fiber plants get 10-15 feet tall Yields 1-5-5 tons per acre of fiber Seed yield – 1000-1600 lbs./ acre Combine for seed Cut with sickle mower - fiber Grain and fiber: combine then recut for fiber Retting: process of separating fiber from other plant material (14-28 days) windrow and turn