Hemp Cultivation: Yes I Cannabis Thomas O’Connell Brian Rubino Buzzy Shaul Beth Spergel Akbar Alikhan

Hemp vs. Marijuana United States National Institute of Health, University of Mississippi marijuana plantation site, showing variation in plant size. A tall fiber-type of hemp plant is shown at left, and a short narcotic variety (identified as “Panama Gold”) at right.

Hemp vs. Marijuana Difference as to how marijuana and hemp would appear in the field. Cannabis sativa species from which both hemp and marijuana are derived single plant genus that contains cannabinoids -delta-9 tetrahydrocannabinol (THC) o psychoactive ingredient -cannabidiol (CBD) o an antipsychoactive ingredient Industrial hemp has trace levels of THC and high levels of CBD Marijuana, one the other hand, has high levels of THC and low levels of CBD

Uses of Hemp Benefits of Hemp one of the Earth’s most lucrative biomass resources – can produce ten tons per acre in approximately four months Fuel Food Paper Biodegradable plastics Particle board Animal bedding textiles requires minimal, if any, biocides, pesticides and/or herbicides approximately 25,000 known uses

Dietary Advantages Food -nutritious food source -contains all essential amino acids and essential fatty acids -33% pure digestible protein -Advantages over soy bean A variety of studies have documented the importance of the ratio of Omega 3 to Omega 6 consumption. Hemp seed oil is the closest to this optimum ratio of any naturally occurring oil. Hemp seed oil has a ratio of at least one-to-three, Omega 3 to Omega 6. Oils with unbalanced ratios have been shown to have detrimental physiological effects.

Industrial Advantages Paper One acre of hemp can produce as much useable fiber as four acres of trees or two acres of cotton Hemp can be cultivated in as little as 100 days Acid-free Chlorine-free Compared to paper made from trees, hemp paper is: – Stronger – Longer lasting – Can be recycled more times Would help prevent deforestation and loss of biodiversity Advantages over cotton warmer stronger more water absorbent more durable UV resistant Frost resistant Requires little, if any, biocides, pesticides and/or herbicides, whereas cotton requires many

Government Opinion US Government’s View Towards Industrial Hemp Not positive The United States National Institute on Drug Abuse (NIDA) voices several basic fears about legalizing hemp: – (1) growing Cannabis plants makes law enforcement more difficult, because of the need to ensure that all plants cultivated are legitimate – (2) utilization of industrial hemp products may make marijuana use more acceptable – (3) many of the movements supporters are pro-marijuana advocates – 4) THC (and perhaps other constituents) in Cannabis are so harmful that their presence in any amount in any material (food, medicine or even fiber product) represents a health hazard that is best dealt with by a total prohibition Hemp regulation in Canada Strict licensing process Only government approved low-THC hemp grown and purchased from authorized seed vendors Applicant background checks GPS coordinates of hemp fields Random inspections and testing

U.S. Opposition to Domestic Hemp Cultivation Hemp’s Link to Marijuana – Cultural perceptions cause low desire to legalize cultivation – Hemp and hemp products have a negative social connotation – Political and social opposition is unfounded due to scientific evidence – Hemp should not be classified as a drug or associated with marijuana – U.S. DEA has objected to domestic hemp cultivation due to potential regulation expenses – Hemp cultivation could eliminate illegally grown marijuana

U.S. Opposition to Domestic Hemp Cultivation Capitalistic greed caused hemp’s current legal status – Hemp was regulated as an agricultural product during early 20 th century – DuPont’s profitable pesticide and herbicide business threatened by hemp – Hearst’s negative publicity of hemp due to timber investments – Today: Hemp is a threat to powerful established lobbying industries Raw materials: i.e. cotton, timber, oil Manufacturing: i.e. paper, plastics, ethanol – Initial change to hemp cultivation could be costly, but ultimately more profitable and sustainable

Case Study – Hemp Legalization in North Dakota North Dakota legalizes growth of hemp, provided farmers acquire licenses. January 2007, Monson and Hauge acquired licenses from the state. February 2007, Applied to Federal DEA for licenses to grow hemp. Ask for decisions by April 1 (with time to plant before the end of the growing season). June 2007 – Monson and Hauge file lawsuit against DEA for delay Continual battle between farmers and DEA

Benefits of farming Hemp in North Dakota Farming is a large part of the economy 1993, Scab, a fungus also known as Fusarium, Destroys wheat crop in N.D. Hemp grows very will in Canada, just north of N.D. Hemp suits the rocky soil in the area

Opponents of this legalization claim that there is really no economic benefit to legalizing Hemp. Claim that the farmers are being used by the marijuana advocates - the only people who would benefit from this legalization.

“This is not any subversive thing like trying to legalize marijuana or whatever. This is just practical agriculture. We’re desperate for something that can make us some money.” -David C. Monson, Farmer, high school principal and Republican state legislator in North Dakota

If Hemp production is profitable, then world production will be thriving and trade vigorous

Case Study #1: People’s Republic of China Never any debate over legality of crop World’s largest producer of Hemp fibers and Hemp seed – large force of cheap labor Although China contributes 40.6% of total world crop, it occupies only 0.3% of the country’s agricultural acreage Increasing foreign demand for Hemp products, driven by European and North American consumers Foreign price is high, but Domestic price remains low Poor Market Structure = Poor Response Chinese policies favor Grain production Hemp is not a priority of the state when determining markets But, Chinese National Hemp Industry has pushed for more Research and Development, as well as better technologies Hemp is currently at 10% of state’s Cotton output, 20% is projected goal

Case Study #2: European Union Licensing – THC in plant must be less than 0.2% (as compared to 15% in narcotic Cannabis) – There Is a set amount of only 14 varieties, experimentation in breeding is discouraged Formal application required with intention of area to be used for cultivation Subsidies – Sample of crop must be sent in for testing – Begun in 1988, but amount has decreased due to reported problems with illegal drug activity – Recently renewed = 90 € Hemp for Europe campaign – massive Research and Development effort

... and Canada To obtain a license from Ministry of Health, THC < 0.3% Hemp trade only possible with certain licensed countries with restrictions No Whole Plants! Chemical processing technology to remove pectin – creates a whiter, softer, fabric

Why isn’t the world market thriving? Anti- Narcotics laws necessitate regulation and lots of red tape in Europe and Canada, Trade severely limited In China, a case of institutional failure in building an international market No true cost effective means of processing the plant for fiber and various other components – technology lacking Industrial Hemp faces competition from established commodities like Cotton (textiles), Timber (paper), Soy (food), and Petroleum (oils and plastics) Not a “miracle” plant- different varieties are necessary to yield different products Nation of greatest consumption (U.S.) is largely out of the picture Hemp needs a chance to move beyond the Novelty product sold in Health Food stores and “Hand-Blown Glass” shops

But, potential certainly exists California firm Hemptech estimated International Market value – 75 million € in 1995 – 1.5 billion € in 2001… and growing! American entry into the market and greater availability of Hemp products to American consumers could turn Industrial Hemp into the cash crop Washington envisioned

Connection to NTRES 331 Survivalist Would support its efficiency (less likelihood of depletion) – Produces up to ten tons per acre in only 4 months – Quickly renewable resource Prometheans Due to efficient production, no real need to strictly conserve – Only a transition from one resource to another Hemp is the new alternative – As traditional resources dwindle, new (less-expensive) alternative then become commonly used

Proposed Hemp Governance Combination of Top-Down Regulation and Market –Based incentives Government’s Role: Set standards for maximum THC content Develop licensing system State/Local Role: Perform regular THC analyses Maintain crop records Market Based Incentives Government could provide subsidies for hemp cultivation – Similar to EU strategy Costs involved would have to outweigh costs incurred by Government (subsidies, licensing, etc) An integral part of M & K’s third epoch towards sustainability