Andrew Hill, a hemp farmer from California, shared his insights at Texas’s first agricultural hemp expo in Dallas in 2019. With excitement buzzing after the federal legalization of hemp, he cautioned farmers about the industry’s profitability, saying, “I haven’t seen over $1,000 an acre since 2015.” His warning came amid claims from vendors promising hefty profits of $2,500 to $3,000 per acre.
In 2019, Texas lawmakers legalized hemp products containing less than 0.3% THC, the psychoactive component in marijuana. Hill’s Texas Star Hemp Farms invested heavily in the industry, spending millions on seeds and facilities. However, six years later, the industry faces uncertainty due to Senate Bill 3, which could ban consumable hemp products with any trace of THC. Hill pointed out that products like hemp seed oils and salad dressings would also be illegal under this law.
Currently, about 450 licensed hemp producers in Texas are at risk as lawmakers focus on banning THC products. Farmers argue that it is impossible to grow hemp without some THC, which could spell disaster for the industry. The GOP-controlled Legislature initially authorized the sale of consumable hemp to boost agriculture, but now some lawmakers believe it has led to dangerous products, especially for children.
Senate Bill 3 proposes strict penalties for possessing THC products, including misdemeanors and potential prison time for manufacturing or selling them. This legislation aims to curb the sale of consumable hemp to minors and requires that legal products be sold in child-resistant packaging. Meanwhile, House Bill 28 seeks to ban synthetic THC while tightening regulations on hemp-infused beverages and limiting sales to those over 21.
Farmers like Kyle Bingham, who has dabbled in hemp on his large farm, have experienced the market’s harsh realities. He noted that the price of hemp biomass plummeted from $3.50 to just 80 cents per pound due to oversupply. Agriculture Commissioner Sid Miller acknowledged that the market had become oversaturated and suggested that many farmers have already given up on hemp.
Despite the challenges, advocates like Zach Gauger argue that the hemp industry has the potential to thrive, especially as water resources dwindle in the coming decades. He believes hemp could become a crucial crop for Texas farmers, offering alternatives to traditional crops.
However, the proposed THC ban could jeopardize not just the hemp market but also the jobs and tax revenue associated with it. Farmers are concerned about the unclear implications of the bill, which may subject them to legal risks for planting hemp. Many suggest that instead of a ban, Texas should implement stricter regulations on hemp products, similar to those already in place for vaping.
As the planting season approaches, uncertainty looms over Texas’s hemp industry. Farmers are hesitant to plant, fearing legal repercussions for crops that were once legal. The debate continues, with farmers urging lawmakers to consider the potential fallout of their decisions on the livelihoods of those invested in the hemp market.