In addition to the psychoactive effects that come from smoking marijuana, the cannabis plant has proven itself to be useful for making paper, rope, and other fiber-based products. More recently, various industries have also discovered hemp is a reliable (and affordable) source of animal feed and a comparatively clean source of energy.
Unsurprisingly, in light of hemp’s clear industrial usefulness, there has been a significant push for the product itself to be made fully legal. The movement towards the total legalization of hemp has been somewhat gradual—and frequently delayed—but it remains clear that the industry is currently in a much better place than it was even just one decade ago.
Colorado has been at the forefront of legalizing cannabis’ primary derivatives—marijuana and hemp—though there still remains a significant amount of work that needs to be done. The hemp industry, as a whole, is still largely governed by an ambiguous body of laws.
In this article, we will discuss the legal status of Colorado hemp farms. We will also discuss possible legislative changes that will help (or hurt) the hemp industry as a whole.
Important Things to Know About the Hemp Industry
Hemp is a derivative of the cannabis plant that has 0.3% dry THC content or less. This makes hemp notably different than the similarly cannabis-derived marijuana which—due to the presence of high THC levels—is capable of producing strong psychoactive effects.
In many states—even states such as Colorado where the consumption of recreational marijuana is fully legal—the legalization of hemp has been significantly easier than the legalization of marijuana. In addition to its general usefulness for various wellness purposes, hemp has also proven itself to be useful as a source of industrial fibers, paper, rope, animal feed, and fuel. Consequently, even individuals who are not initially supportive of legalizing marijuana have seen the benefits of legalizing hemp.
One problem the hemp industry currently poses, however, is its legal status is ambiguous. While most of the hemp industry’s progress has occurred at the state level, certain legislation passed by the federal government technically prevents it from becoming fully legalized. In order to better understand this unique legal situation, it is helpful to understand the legal history of the hemp industry.
A Brief History of the Hemp Industry
In the United States, there is evidence that hemp was a common crop in colonial times. In fact, hemp was even grown by some of our most important founding fathers such as George Washington and others. However, though the cannabis plant had already clearly demonstrated its usefulness for the industry, issues surrounding its consumptive use would not emerge until much later.
Due to pressures from various industries, the Marihuana Tax Act of 1937 was the first national piece of legislation that began to demonize the hemp (and marijuana) industries. As legislative pressure continued to grow—and often fallaciously treat hemp and marijuana as if they were the exact same product—the Controlled Substances Act (CSA) of 1970 would fundamentally criminalize the industrial production and distribution of any product.
The CSA of 1970 labeled cannabis as a “Schedule I” drug and has yet to be appealed. However, various state efforts with regards to medical marijuana, recreational marijuana, medical hemp, and industrial hemp have all been passed in spite of these laws. Though the federal government could legally intervene and prevent the states from exercising their sovereignty, it has (perhaps surprisingly) remained somewhat uninvolved. As a result, though the current legal landscape seems to be pro-hemp in practice, there are still some complications preventing the industry from unlocking its full potential.
The Current Status of Hemp Farming in Colorado
With all things cannabis—hemp and marijuana alike—Colorado has been among the leading states with regards to legalization. Since the passing of Amendment 64 in 2012, both the hemp and the marijuana industries have been permitted to operate (with some degree of regulation).
As one of the leaders in the pro-cannabis movement, Colorado has been able to enjoy a distinct first to market advantage. Individuals who have been looking to invest in the hemp industry typically consider Colorado as one of their first options. Consequently, investments in the hemp-based research, infrastructure, and other developments have significantly increased with each passing year.
Currently, one of the most pressing issues facing the hemp industry—in Colorado and elsewhere in the United States—is whether or not hemp will be de-scheduled from the CSA of 1970. If the 2018 Farm Bill is able to fully pass, then the hemp industry will likely be treated the same as any other agricultural endeavor.
The bill has received a considerable amount of support from all sides of the political spectrum, meaning its passage is likely (though not guaranteed). If this is the case, and the hemp industry is able to position itself internationally like soy, corn, and other American crops, then the firms in Colorado with already existing infrastructure will likely be at the forefront of future developments.
Possibilities for the Future
There is no doubt that the legal situation surrounding the hemp industry is rather ambiguous (in Colorado and elsewhere). Moving forward, there are many different possible paths that will eventually materialize:
- Option One: there is no legislative change, the federal government remains relatively hands-off, and the hemp industry continues to be de facto regulated by the states.
- Option Two: there are no legislative changes, but the federal government decides to intervene in the hemp industry (citing the CSA of 1970) and prevents the industry from operating openly.
- Option Three: the proposed de-scheduling of hemp passes at the federal level, thus treating hemp the same as other crops.
- Option Four: some other series of legislative changes occur, allowing the hemp industry to operate without legal ambiguity.
Clearly, those who are in favor of advancing the hemp industry will likely support options 3 and 4. Those who stand against the industry will probably support option 2 (or settle for option 1). The situation that is most likely to materialize is difficult to forecast—however, support for the bill at hand will help option 3 quickly become a reality.
Most legislative changes take a considerable amount of time. Though there is a sense of urgency held by those involved in the hemp industry, it will still be a few years before the industry is able to fully flourish.
Conclusion
The hemp industry has a dynamic legal history with many ups and downs. However, contrary to the legislation that was passed around the middle of the 20th Century, most recent efforts—especially at the state level—have indicated the existence of a generally “pro-hemp” movement. It will still be several years before all legal ambiguities are resolved and the hemp industry can realize its full potential. But if full legalization of the hemp industry does occur, it will open up a tremendous array of opportunities. Look for Colorado to continue positioning itself as an industry leader.
