Hemp is back in Wisconsin, but with optimism comes the challenge of a new market

Max Bayer | Milwaukee Journal Sentinel

MADISON - Hemp farmers and their supporters are bullish about the future as they prepare to harvest their first crop under a state program that started five months ago.

“Hemp can change everything if we utilize it right,” said Andrew Johnson, a licensed hemp processor and founder of Wisconsin Hemp Strategies.

Gov. Scott Walker and legislators in November approved a law allowing farmers to grow hemp in Wisconsin for the first time in nearly 50 years. Hemp is a close relative of marijuana but includes only trace elements of the chemical that makes people high.

Now, most people are utilizing their crops for hemp seed oil or cannabidiol oil, known as CBD oil. Some industry officials said other markets could include things such as plastics.

“There’s very little conversation being had about what to do with the fiber and more and more people are picking up on it and they’re kind of watching where things are going and seeing how they can step in,” Johnson said.

Terry Whipple, executive director of the Juneau County Economic Development Corp., said that growing hemp has the potential to fill a void for farmers who have seen losses as a result of recent tariffs.

Whipple expects "great opportunities for the growers” once processors and manufacturers begin to use the plant.

A century ago, Wisconsin was the largest producer of hemp in the country, according to a 1918 University of Wisconsin report. At the time, Fond du Lac, Green Lake, Dodge and Racine counties harvested the most.



However, in 1970, that growth came to a halt. THC, the psychoactive chemical in hemp and marijuana, was defined as a narcotic and growing the crop became illegal except in extremely limited circumstances.

In 2015, federal law gave hemp new life by distinguishing it from marijuana and allowing states to establish pilot programs. Pilot programs allow universities and state agricultural departments to work with farmers to conduct research growing the crop, harvesting techniques and seed varieties.

That set the stage for industrial hemp's return to Wisconsin. In November, lawmakers approved Senate Bill 119, sponsored by Sen. Patrick Testin (R-Stevens Points) and Jesse Kremer (R-Kewaskum), and the program began in March. Almost 200 growers are participating in the program's inaugural year.

"I couldn't be happier with the launch of the program," said Testin. "It just goes to show that there is a huge demand for this crop and Wisconsinites are hungry to be leaders in this field once again."

Testin believes five to 10 years from now, the crop will be an opportunity for farmers to bolster their margins.

Whipple said the first businesses in a new market often fail and that in the world of innovation, "it's always chaotic."

“These things settle out in the end, but they’re not pretty in the beginning,” he said.

Phillip Scott, president of the Wisconsin Hemp Farmers and Manufacturers Association, said language in the hemp law is creating a challenge for the farmers who want to discuss the program with each other because they can't find out who the others are.

The law states that any information regarding farmers, processors or hemp fields will be kept confidential.

“A lot of the farmers just want to be able to talk to the other farmers that are doing it so they can make a healthy crop,” said Scott.

Aides to Testin said the language wasn’t intended to hinder collaboration or communication but rather to protect the integrity of the marketplace.

Scott voiced frustration that farmers are forced to destroy the seeds they harvest if they don’t use them for a product, a decision he says limits sustainable farming and serves only the seed distributor.

“They just did a big thing to our industry like other major corporations have done in the past,” he said.

Legacy Hemp, a licensed seed provider in the state, said that practice helps keep the plant's genetics pure and keeps the seed companies in business.

Mark Hubbard, a Washington state native who began farming in Wisconsin this year once the pilot program started, is pleased with how the Wisconsin Department of Agriculture, Trade and Consumer Protection is handling the program.

“Wisconsin ... has stood up for the farmers, has stood up for the state and has followed the letters of the legislation, which was to benefit the state and the farmers,” he said.

And potentially more legislation has given the crop new life. This year’s farm bill, which has passed the U.S. Senate and is awaiting a vote in the House, would fully legalize and commercialize hemp.

According to the Congressional Research Service, in 2017 United States hemp imports totaled nearly $70 million and profits from the crop totaled $700 million. The study also estimates that there are 25,000 uses for hemp, including rope, clothing and paper.