Idaho became the last state to legalize some form of hemp within their state since the Farm Bill became law at the end of 2018. Last year, Alaska launched a pilot test program for hemp growers to see if the plant can even grow in colder temperatures. To their surprise, the hemp plant grew surprisingly well even amongst the harsh winds and freezing temperatures. 

There were two types of plants grown for this pilot test. The first grew outside, taking up around 70 acres. These plants are heartier stalked plants that were used for animal feed and biomass fuel. Inside plants took up around 9,000 square feet and were made into various wellness products.

Legislature

There are currently two bills circling through the Alaska Congress right now. First is SB 27. The second is HB 156. They’re both about the Industrial Hemp Program along with manufacturing hemp. The wording for each is pretty similar, so once one passes one chamber, it will most likely pass the other.

Currently, with the pilot program set up in Alaska, the production of hemp is legal. But the consumption of hemp is illegal. Both bills are looking to change this to make it more closely resemble the Farm Bill’s wording and rules. Most of the country has already adopted many of the Farm Bill’s rules. It’s interesting how hemp is illegal and highly controlled within Alaska despite the state being one of the first to legalize cannabis. Medical cannabis saw legalization in 1998. Then recreational cannabis legalized in 2014. 

Farmer Response

As the 2021 season approaches, there are currently 11 farmers interested in growing hemp, which would increase the outdoor acreage to almost 200. This is more than a 100 percent increase in interest and yield over the previous year. So farmers are excited about the potential hemp has in Alaska. Plus, with the addition of legal consumption of hemp products, many consumers can enjoy hemp benefits at a cheaper price than cannabis. Sales currently have a flat rate applied to then, rather than a percentage other states have.

For example, mature cannabis buds are taxed $50 per ounce while immature ones are $25 per ounce. For hemp, there won’t be any such taxes placed on sales. Just standard sales tax. 

In last year’s yield, all hemp plants tested with an average of 0.2 percent THC levels. This is under the federal limit, which states that industrial hemp contains less than 0.3 percent Delta 9 THC in it. With the average being lower than the national standard, this creates great yield for production. This low average is expected to continue as more farmers get into the hemp industry. 

Future

Lawmakers have until May 19 to pass either SB 27 or HB 156 to the governor before the legislative period ends. If they fail to do so, the state and several hemp farmers will have lost thousands of dollars worth of time, effort, and product. If lawmakers do pass either bill, they then have until the fall of 2021 to submit a compliant plan to the USDA for approval. 

Many suspect that Alaskan lawmakers will make this happen after the success of several other states’ industrial hemp programs. Simply the legal path must be followed. Hopefully there is enough time.

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