ND: Hip To Hemp: Williams County's First Hemp Field Lies In The Grenora Area

Ron Strider

Well-Known Member
Storm clouds cast shadows on the land as Wade Fischer hunched beside a seed tank full of industrial hemp, digging down into the earth to see if the seeds he had just planted had been drilled at exactly the right depth.

"Hemp is tricky," he said. "If it's too deep, it won't grow, and if it's not deep enough, it won't grow. It has to be just right."

The digging was not just a casual check that his depth was in the right, tiny range, however. Knowing the exact planting depth is also part of all the record-keeping Fischer must do to grow a crop that is still federally regulated. A provision in the 2014 Farm Bill opened the door a tiny crack to industrial hemp, allowing states to set up pilot growing programs for research – but it is still considered a Schedule 1 drug and hence comes with many strings attached. And a lot more risk for those growers brave enough to give it a try.

Fischer is a fifth-generation durum farmer, but willing to try new things. He put in one of the county's first fields of Joppa, a new durum variety, and has given oilseeds like camelina a try, too. But he's been resisting lowering the durum acres too much, because they'd been so lucrative for his family for so long. After last year's vomitoxin issues, however, he made up his mind that it was time to start looking for something new.

His wife, Breann, meanwhile, had already been researching crop rotation alternatives such as flax and hemp, to help improve the soil health, so she had a ready alternative. She likes industrial hemp because it uses less water, requires fewer pesticides, and there is even the potential for multiple products.

The oil in hemp seeds is high in omega fatty acids and the remaining meal is high in protein, making both popular for the health food industry. The stalks that remain can also be used for a variety of purposes, from cattle bedding to organic clothing.

"Our lifestyle just kind of revolves around being conscious and aware of what we are doing and how we are managing the land," Breann Fischer said. "Hemp is just something that seemed like it would be a good fit. We are trying to diversify how we use our cropland, and get a nice rotation going to benefit the land. That's definitely another attractive part about the crop."

An eye in the sky

Wade Fischer cast a hopeful glance toward all the rain clouds hanging over his planting activities, but nary a drop of precious rain fell in response. The wind blew, and it was cold. Despite a short patch of rain just days before, which made him hopeful enough to start planting his hemp, things were still looking dry in his Grenora-area field. Almost dusty.

"We haven't been getting the rains that Williston got," his wife, Breann said. Worry was visible in her eyes.

There's no crop insurance for industrial hemp yet, even though Canada has already been growing industrial hemp as a highly successful cash crop for years. So, if the weather is unkind, they could harvest nothing at all for their trouble.

Weather is not the only challenge facing the Fischers with their new crop, though.

Costs for their hemp seed were double last year's costs, so they are already looking at less margin than when they made this decision. The monitoring fee is now five times higher than it was, too.

The market does appear lucrative enough to bear this. Although growers in 2016 were largely wiped out by conditions that were too wet, during the first year of the program in 2015, the state's five producers, with 70 collective acres between them, earned from $507 to $868 per acre. This year, there are 37 producers growing a little more than 3,000 acres. The Fischers are putting in 7 percent of those acres.

With so many more acres of hemp being grown this year, Fischer is concerned the state's relatively small niche will be flooded, making prices much lower.

The market for hemp is not yet well-defined in North Dakota, and has many restrictions. As a federally regulated crop, hemp cannot just be harvested and taken to a grain elevator to sell. Producers may only send their crop through an approved processor, and, in North Dakota, there's just one right now. And he is only interested in the oil. He's also on the other side of the state – a long haul for a Grenora-area hemp field.

"He hasn't told us a price yet," Fischer said, "and we won't have any idea what we are going to get for this until we harvest it and take it to him."

The processed oil will be tested to ensure it does not contain appreciable amounts of psychoactive substances. Low grade marijuana typically has 3 percent tetrahydrocannabinol, or THC, the active ingredient that makes marijuana a Schedule 1 drug. Industrial hemp, meanwhile, must measure less than .3 percent – orders of magnitude less – or it will be destroyed.

Despite the testing, the finished oil may still need special approvals to move across state lines. These are not necessarily guaranteed either, Wade said. In fact, North Dakota's processor was still trying to get approval to ship some oil he thought he'd sold at the same time Wade and Breann were trying to decide if they should try hemp.

There isn't yet an approved processor for the fibers in hemp stalks – which, if left in a field, are tough enough to puncture a tire. The couple are hoping they will be allowed to sell their fibers for cattle bedding, but must first seek permission to do so, and they are not certain it will be granted.

These were not the only restrictions that came with hemp for the Fischers. Wade had to pose for a photo with the hemp when he picked it up, to prove it was himself picking it up. The hemp field even has all four of its corners GPS'd so it can be watched from the sky.

Great expectations

Despite all the challenges, the Fischers are optimistic and hopeful for the future of hemp as a cash crop.

Hemp has a number of advantages to offer a wheat farmer looking to shift into a new product. For one, it doesn't require special equipment. The crop is planted in mid to late May and harvested in mid-September with a standard header on a combine, similar to wheat setups.

Hemp's habits are well-suited to the region's dry conditions, and the success in Canada suggests the opportunity for similar success here. While it may take an act of Congress to enable widescale production of the crop, there are hopeful signs in the market as well. The popularity of hemp is on the rise, and many believe U.S. demand for it would grow dramatically if there were a domestic source for the fibers, oil and meal.

In Canada, hemp is an $80 million crop, and the growers there are averaging about $250 an acre for the crop. Domestically, hemp products sold totaled around $1 million, but the raw ingredients are an expensive import.

There are a number of interesting applications for plastics, biofuels and 3-dimensional printing applications, the latter of which is being researched by NDSU. These could become more common if it were possible to source raw materials domestically.

"It's just a fantastic product," Breann Fischer said. "The seed is pressed into an oil and has a lot of omega three's so it's very healthy for a cooking oil, or you could use it like olive oil on a salad. The left-over seed after it's pressed can be a protein powder or supplement. The fiber can be used for textiles and clothing, so you name it, the whole plant can really be used."

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