Sales of Kentucky hemp products tripled in 2018, and hemp processors spent twice as much on hemp materials harvested by Kentucky farmers as compared to the previous year, Kentucky Commissioner of Agriculture Ryan Quarles said.
“We are building the critical mass of growers, processors, and researchers that will ensure the hemp industry’s success in Kentucky for years to come,” Quarles said, in a release announcing the economic impact numbers.
Drew Purcell
Hemp processors reported $57.75 million in gross product sales last year, according to a Kentucky Department of Agriculture (KDA) review of 2018 hemp licensed processor reports. That compares with $16.7 million in gross product sales in 2017. Processors paid Kentucky farmers $17.75 million for harvested hemp materials in 2018, up from $7.5 million the year before. Hemp processors spent $23.4 million in capital improvements and employed a total of 459 people in 2018, according to the processor reports.
“It’s important to keep in mind that all of this economic activity took place before the 2018 Farm Bill legalized hemp production,” Quarles said. “I am encouraged by these numbers and hope this news solidifies Kentucky’s reputation as the hemp center of the United States. I’d like to thank Senate Majority Leader McConnell and Congressman James Comer for working to include hemp legalization in the 2018 Farm Bill.”
“It’s important to keep in mind that all of this economic activity took place before the 2018 Farm Bill legalized hemp production. I am encouraged by these numbers and hope this news solidifies Kentucky’s reputation as the hemp center of the United States." — Kentucky Commissioner of Agriculture Ryan Quarles
The 2018 Farm Bill removed industrial hemp from the federal Controlled Substances Act and gives hemp growers increased access to USDA programs. It also outlined the minimum requirements a state regulatory framework must contain to earn approval by the U.S. Department of Agriculture (USDA). Commissioner Quarles submitted Kentucky’s hemp plan to U.S. Agriculture Secretary Sonny Perdue minutes after President Trump signed the farm bill on Dec. 20, making Kentucky the first state to file its plan. The USDA announced in February that it plans to finalize regulations and approve state plans in time for the 2020 growing year.
The KDA will conduct an analysis to reduce administrative regulations deemed no longer necessary due to the 2018 farm bill. However, there will be few program changes in 2019.
Quarles also released updated numbers on hemp acreage and announced that more than 50,000 acres have been approved for the 2019 growing season, more than triple the number of acres approved in the previous year. The number of approved hemp grower applicants for 2019 is set to be 1,047, nearly five times the number of growers in 2018. Last year, 210 growers were licensed to plant up to 16,100 acres of industrial hemp and planted more than 6,700 acres. Program participants planted more than 3,200 acres in 2017, 2,350 acres in 2016, and 922 acres in 2015. Thirty-three acres were planted in 2014, the first growing year.
“With the increased energy and enthusiasm in the industry, it is important to realize that we are in the beginning stages of this transition to commercialization,” said Commissioner Quarles. “Like all crops and business ventures, there is risk in this industry. I encourage all approved growers and processors to do serious research on the crop and be clear-eyed about the opportunities and challenges this unique crop faces.”
In addition to the more than 50,000 acres approved for outdoor farming in 2019, the KDA approved more than 6 million square feet of greenhouse space for hemp cultivation. The department has approved 110 hemp processor/handler license applications for 2019 so far and is expecting more applications.