Legalization of Industrial Hemp in Pennsylvania
August 24, 2016
Last month, Pennsylvania Governor Tom Wolf signed into law a bill that amends the Pennsylvania Agriculture Code to permit limited cultivation of industrial hemp in the state. Pennsylvania is not alone. To date, at least 30 U.S. states have introduced legislation to permit research and facilitate the production of industrial hemp for use in a wide range of products, including fabric, yarn and spun fiber, paper, carpeting, construction and insulation materials, automotive parts, and other composites.[1] Hemp seed, fiber, and oil are used in raw materials by major corporations, including Ford Motors, Patagonia, and The Body Shop to make various products.[2]
Hemp has had a long and checkered history in Pennsylvania and throughout the U.S. Our own Declaration of Independence was drafted on hemp paper. Presidents George Washington, Thomas Jefferson, and John Adams all grew hemp and advocated for commercial hemp production. Gov. Wolf has noted that “William Penn himself was an advocate of hemp growth, and in 1683, one of the first laws passed by the General Assembly in Pennsylvania encouraged every farmer to grow hemp.”[3] Hemp cultivation was so prevalent it has worked its way into the names of many U.S. towns and cities – such as Hempfield and Hempstead.[4]
U.S. industrial hemp production began to slow following the passage of the Marihuana Tax Act in 1937 due to confusion between the differences between marijuana and hemp. By 1970, the Controlled Substances Act formally prohibited cultivation of hemp in the U.S. Despite early misunderstandings, it is now widely known that hemp has no value as a recreational drug because it produces no psychoactive effect.
Because there is no large-scale industrial hemp production in the U.S., hemp must be imported from other countries. As of 2015, the single largest supplier of raw and processed hemp fiber to the U.S. was China.[5] While it is difficult to estimate the total value of U.S. imports of industrial hemp, estimates from The Hemp Industries Association (HIA) show that the total retail value of hemp products in the U.S. in 2013 was $581 million.[6]
Under the new Pennsylvania law, industrial hemp maybe grown or cultivated by Pennsylvania Department of Agriculture or institutions of high education for the purpose of research conducted under an agricultural pilot program. This is consistent with Congress’ passage of the 2014 U.S. Farm Bill, which removed federal restrictions aimed at growing industrial hemp as part of state agricultural pilot programs. Following the passage of the 2014 farm bill, several states quickly enacted legislation to permit cultivation of industrial hemp.[7]
Across the U.S., several major universities have already established programs for cultivation and research of industrial hemp, including, Purdue University, University of Kentucky, University of Vermont, Colorado State University, and Oregon State University. Under the new Pennsylvania law, the department or research universities may contract with private third-parties to cultivate or grow industrial hemp. This provision will likely present additional opportunities for Pennsylvania farmers to grow and cultivate industrial hemp as an alternative to traditional crops. Pennsylvania has long been a strong agricultural state and there is no doubt that passage of the hemp bill will encourage many Pennsylvania farmers and entrepreneurs to explore this re-emerging market.
[1] Renee Johnson, Hemp as an Agricultural Commodity, Congressional Research Service, Feb. 2, 2015 at pg. 5 (available at https://www.fas.org/sgp/crs/misc/RL32725.pdf).
[2] https://www.forbes.com/sites/ashoka/2013/05/29/industrial-hemp-a-win-win-for-the-economy-and-the-environment/#600738dddb11
[3] https://www.governor.pa.gov/governor-wolf-signs-fifteen-bills-into-law-including-ica-ethics-reform-and-industrial-hemp-regulation/
[4] https://hemphistoryweek.com/about/hemps-history/
[5] Id. at pg. 7.
[6] https://www.agmrc.org/commodities-products/fiber/industrial-hemp/
[7] Johnson, supra note 1 at 21-22. These states include California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Indiana, Kentucky, Maine, Montana, Nebraska, New Hampshire, New York, North Dakota, Oregon, South Carolina, Tennessee, Utah, Vermont and West Virginia.
The Regulated Substances Blog is intended to keep readers current on developments regarding medical cannabis legalization and regulation and is not intended to be legal advice. If you have any questions, please contact the author Peter Murphy at pmurphy@eckertseamans.com. You may also contact Daniel Clearfield at dclearfield@eckertseamans.com, Robert Hoffman at rhoffman@eckertseamans.com, or any other member of our Regulated Substances Group.