GREAT FALLS — Montana's hemp industry, which has become a significant contributor to the state's agricultural economy, is facing potential devastation from proposed federal legislation that could eliminate the crop entirely.
The Hemp Industry & Farmers of America reports that hemp supports $13 billion in U.S. wages, with Montana consistently ranking among the nation's leading producers.
However, language in federal appropriations legislation threatens to shut down the industry by lowering the allowable THC threshold from the current 0.3% to zero percent.
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"As it's written right now, it would shut our business down," said Pat Farrell, who runs Big Sky Scientific in Sun River.
Farmers adapt to challenging conditions
Sam Armstrong has been growing hemp on his farm near Choteau for eight years. This growing season presented particular challenges due to drought conditions.
"The snowpack in the mountains was very low. Our normal water that we're able to irrigate with was probably cut to half of normal," Armstrong said.
North of Simms, Derek Gustafson has grown hemp since 2019, transitioning from seed crops to flower crops while navigating market volatility.
"The market kind of fell out with Covid. So, we've had tough luck with it, but, you know, we're gaining knowledge every year we grow," Gustafson said.
Processing facilities support local economy
Big Sky Scientific, supplied by farmers like Armstrong and Gustafson, extracts CBD from hemp for manufacturers who create retail products. The facility employs more than 40 people in the Sun River area.
"Minor cannabinoids found in hemp are used for all sorts of different things. So, from inflammation to anxiety to sleep, you name it," Farrell said.
Farrell emphasized his company's commitment to the local community.
"We wanted to reinvest in this community, right? We wanted to see this impact Montana. We wanted to see this impact the surrounding area, Great Falls. We've got to put this anywhere in the world. And we decided to put it right here," Farrell said.
Federal legislation creates uncertainty
Federal hemp legalization resulted from provisions in the 2018 Farm Bill. The current controversy stems from language in the original U.S. Senate appropriations bill that would eliminate the THC threshold entirely.
Kentucky Republican Senator Rand Paul has placed a hold on the bill in hopes of reaching a compromise.
For farmers like Armstrong, hemp provides crucial income diversification when other commodity prices remain low.
"Having another viable option like hemp that is profitable right now is, I mean, for our farm, essential to continue to operate because there's little to no margin in regular cropping production," Armstrong said.
Gustafson, whose 400-acre farm now focuses entirely on hemp production, highlighted the crop's versatility.
"There's 100 uses for this crop. It's an amazing plant. And it needs to be an option for growers in Montana and all over the country for that matter," Gustafson said.
The potential elimination of hemp production would impact farmers, processors, and consumers who rely on hemp-derived products.
"It's not fair to our farmers. It's not fair to us, and it's not fair to the consumers of these products that have benefits," Farrell said.
