Hemp Offers Nebraska Great Potential
It’ll take time, planning and cooperation to turn hemp into cash crop in Nebraska
In the 1940s, Nebraska soil supported hemp production impressively. During World War II, the state was a national leader, in fact, in producing industrial hemp to make uniforms, canvas and other items. In the present day, the state has the potential to ultimately resume that leading role, adding a welcome dimension to the state’s agricultural economy.
But it’s going to take time and careful, cooperative planning to make a cash crop out of the neutered cousin of marijuana.
The Nebraska Legislature this session approved a set of practical improvements. The legislation, sponsored by Sen. Steve Halloran of Hastings, the Agriculture Committee chairman, provided clarity on issues relating to state licenses. It specified the acceptable level of tetrahydrocannabinol, or THC (the psychoactive ingredient in marijuana that led to the outlawing of hemp in decades past). It set requirements for laboratory testing of hemp samples and clarified various other points.
Such action helps move along a process that initially was stymied by confusion over state and federal regulation and marked by producer frustration over the small number of production licenses issued last year by the state.
The number of licenses for Nebraska growers is increasing to 270, up from the 10 issued last year as the state took its initial steps following hemp legalization in the 2018 farm bill.
Industrial hemp offers major long-term opportunities for Nebraska, not only for growing the crop but also for converting it into a wide range of materials. Hemp can produce four times the profit of corn, one expert has told The World-Herald’s Paul Hammel.
That said, Nebraska producers must tackle a wide array of complications before the state can begin to produce industrial hemp on a significant scale with needed efficiency.
At this early stage, there’s too little reliable cultivation data on hemp. It will take time for Nebraska producers to gain that practical understanding in regard to seeds and herbicides. “Access to adequate quantities of viable seed was a challenge for many pilot programs” nationwide, according to a recent report from the U.S. Department of Agriculture.
In addition, producers also must build business relations and pursue specializations where possible. The University of Nebraska-Lincoln has a key role to play in providing technical expertise and research support.
The state government must be mindful not to set fees for licensing and testing so high that they stymie hemp production. “For major crops such as corn and soybeans,” the USDA report says, “a profit difference of as little as a few dollars an acre can cause significant yearly shifts between crops, so even a relatively small fee could discourage hemp production if competing crops have no fee.”
Nebraska will face robust competition. Canada has a 20-year head start in hemp production, and states that have legalized recreational marijuana have a leg up in hemp-processing infrastructure.
Hemp offers Nebraska great potential for cultivation and manufacturing. But progress will depend on patience, sound production practices and university support. Nebraska must be prepared for the long haul.