Subject: Report: Industrial Hemp as a Cash Fiber Crop

From: [email-masked] (Colorado HIP)
Date: Tue, 20 Dec 1994 00:34:53 GMT

Industrial Hemp as a Cash Crop for Colorado Farmers
        
        This document was composed from over 70 hours of research.  It was
intended to explain and document the benefits and economics of growing 
low-THC varieties of hemp as a fiber and pulp crop.  With the new 
Hemp Commission in Kentucky, the race is on to see which states will get
in on the ground floor of the new hemp industry.
        There will be a bill in the Colorado legislature in January to allow
the cultivation of industrial hemp in Colorado.  This document was designed
as a lobbying and educational tool for Colorado legislators, farmers, 
business-people, and other interested parties.  This document can be changed
easily to be used as an educational tool for officials in your area.  Simply
replace the name "Colorado" with the name of your state. (I think Colorado 
only occurs twice in the document).
        I hope you find this report as exciting as we do!  Please send any  
comments to [email-masked].

Peace,
Laura Kriho
Colorado Hemp Initiative Project

                ******* BEGIN REPORT HERE ********          

         Industrial Hemp as a Cash Crop for Colorado Farmers

     Copyright  1994 by The Boulder Hemp Initiative Project. All
the facts contained herein have been compiled from the sources
listed below and are true to the best of our knowledge.
Reproduction of this report is encouraged.  We ask only that
credit be given to the:
            Boulder Hemp Initiative Project
                     P.O. Box 729
                  Nederland, CO 80466
                    (303) 784-5632
            Email: [email-masked]

I. Definition
     Industrial hemp means those parts of the Cannabis sativa
plant which contain less than 1.00% tetrahydrocannabinols (THC).
THC is the psychoactive chemical found in Cannabis sativa.
Industrial hemp is not to be confused with marijuana.  Marijuana
comes from the flowers of the Cannabis sativa plant and contains
more than 1.00% THC.1  Industrial hemp has no psychoactive
properties.

     Industrial hemp can be grown as a profitable, high-quality
fiber crop without producing marijuana. Registered seed varieties
that produce hemp containing less than 0.3% THC even in the
flowers are available throughout Europe.2 Farmers in the European
Community have been growing hemp for over 20 years without any
problems related to marijuana.3

II.  Hemp Production in Other Countries
     Industrial hemp is grown as a profitable fiber crop in many
countries.4 Industrial hemp crops have been subsidized in the
European Community since before 1988.5  In 1993, England began to
produce hemp for fiber.6  In 1994, Canada harvested its first
crop of industrial hemp after more than 50 years of prohibition.7 
The re-emerging world hemp industry is growing steadily, and
farmers are excited and enthusiastic about the potential of hemp
crops.

III. Hemp Production in the United States
     Hemp has been valued throughout this country's history as an
important raw material.  Until the late 1800s, almost all of our
cloth was made from hemp, and virtually all of our paper was made
>from  hemp rags.8  From 1631 to the early 1800s, hemp was such a
valued commodity that it was considered legal tender (money).9 
Regions of Kentucky and Wisconsin were among the largest hemp
producers.10

     Hemp production seemed destined to increase dramatically in
the 1930s, when an invention called the decorticator began
getting wide attention.11 The decorticator strips the hemp fiber
>from  the stalk. This had been the most labor-intensive and
expensive part of producing hemp.12  The decorticator was to hemp
what the cotton gin was to cotton.  The invention prompted a 1937
Popular Mechanics magazine to call hemp the "New Billion Dollar
Crop"13 and Mechanical Engineering magazine to call it "The Most
Desirable Crop That Can Be Grown."14

     However, the 1937 Marijuana Tax Act dealt a fatal blow to
the promising hemp fiber industry.  The Act established a
prohibitive tax on hemp manufacturers and distributors as well as
on hemp transactions.15  It was modeled after a similar tax that
was enacted to prohibit machine guns.  The transfer tax of
$1.00/ounce effectively ended all hemp production in the United
States by making commerce in hemp prohibitively expensive.
     
     Restrictions on hemp production were eased briefly in the
United States during World War II when Japan invaded the
Philippines, cutting off the supply of abaca (Manila hemp).16 
The U.S. Navy desperately needed a domestic supply of hemp to
provide the lines and rigging for its fleet.  The U.S. Department
of Agriculture encouraged farmers to produce hemp for the war
effort by distributing a film called "Hemp for Victory!".17

     After World War II, the hemp industry declined as the
federal government again began to restrict hemp production.18 
Farmers continued to produce hemp on a limited scale until the
1950s.19  However, legislation eventually came to treat
industrial hemp crops as marijuana (drug) crops, and hemp fiber
production was no longer promoted.

     Currently, hemp production is treated as a felony in the
United States because it is assumed that all hemp crops will
produce marijuana. With the advent of industrial hemp and low-THC
seed varieties, this is no longer true. Hemp can now be grown as
a profitable fiber crop in the United States with absolutely no
danger of increasing marijuana use.

IV.  Raw Materials and Products from Hemp
     Hemp consists of three principal raw materials:  fiber,
seeds, and hurds.  Hemp is principally grown for the bast fiber
it produces from its stalk.  However, the seeds and hurds are
also important economically.

1) Fiber:
     The hemp stalk is composed of 20% fiber.20  Hemp is the
strongest natural fiber in the world.21  It is valued for its
strength and durability when used for textiles, cordage, and
paper.

     Textiles:  The fiber can be made into any type of cloth,
>from  the finest linen to the coarsest canvas.22 The word canvas
comes from the Arabic word for hemp.23  Cloth made from hemp
fiber is stronger, warmer, more durable, more absorbent, and
softer than cotton.24
     Cordage:  Hemp rope has been valued throughout history for
its superior strength and  resistance to deterioration in salt or
fresh water.25
     Paper: Paper made from hemp is known as the "archivist's
perfect paper" because it lasts much longer than tree pulp paper
and does not harden, crack, yellow, or crumble with age.26  Hemp 
fiber can be used to make every grade of paper.27

2) Hurds:
     The hemp stalk is composed of 80% hurds.28  The hurds are
the woody inner portion of the hemp stalk that are separated from
the hemp fiber.29 The hurds are 50% - 77% cellulose,30  which
makes them ideal for use in paper and plastic products.

     Paper:  One acre of hemp hurds can make as much pulp for
paper as four acres of trees.31   Hemp paper can be whitened
without producing dioxins and lasts much longer than paper made
>from  trees.32
     Particle Board:  Hemp hurds can be pressed and injected with
phenolic resin to make a particle board that is resistant to fire
and water.33  The board also makes a good insulation and thermal
barrier.34
     Plastic:  Plastics were first made from plant cellulose
(i.e., cellophane, celluloid).35  The  hemp hurd is one of the
richest sources of plant cellulose,36 a building block of modern
industry.  Plastics made from hemp instead of petroleum would be
biodegradable.37
     Animal Bedding:  The hurds make an excellent animal bedding
because they absorb more liquid and compost faster than wood
shavings.38

3) Seed:
     The hemp seed is composed of two raw materials: the seed oil
and the seed cake.

Seed Oil:  The hemp seed is composed of 30% oil.39

     Food:  Hemp seed oil contains over 70% cholesterol-fighting
essential fatty acids, the highest of any seed oil.40
     Fuel:  Hemp seed oil can be chemically combined easily with
15% methanol to provide a  premium diesel fuel substitute.41 
This hemp bio-diesel fuel burns 70% cleaner than petroleum diesel
in soot and particulate pollution.42
     Paints and varnishes:  Hemp seed oil dries quickly and
leaves a thin elastic film.43
     Lubricant:  Hemp seed oil makes an ideal all-purpose
lubricant.44

Seed Cake:  The seed cake is the solid part of the seeds that
remains after the oil is expelled.

     Food:  Hemp seed cake makes a nutritional, high-protein
supplement to wheat flour.  It contains 25% protein.45

Whole Seed:  The whole hemp seed contains 20% high-quality
digestible complete protein.46

     Food: The hemp seed can be eaten as a nutritious snack, 
like sunflower seeds.
     Bird Feed:  Birds like hemp seed because of its nourishing,
oily content.47

V.  Economics of Hemp Production

     A hemp crop could be sold for at least $860 per acre.  Since
a hemp crop produces three different raw materials each year, the
total value of hemp far exceeds other crops grown for a single
material.
     The chart below compares yields of hemp and comparable
crops.  Since there are currently no domestic hemp crops being
sold in the United States, the prices for comparable crops were
used to estimate the prices for domestic hemp fiber, hurds, and
seed.
     Hemp fiber is compared to cotton for textile production.
Hemp hurds are compared to wood chip prices and Douglas fir yield
for paper production.  Hemp seed is compared to soybeans for oil
seed production.
     Production costs were not factored into this estimate,
although hemp would be considerably less expensive to produce
than cotton (see Section VI -- Hemp Cultivation).

               Estimated Value of a Hemp Crop

          Yield*48       X    Price     =              Value/Acre

Fiber:    1,100 lbs./acre     $.60/lb. (cotton)        $660.00
Hurds:    2.5 tons/acre       $50/ton (wood chips)     $125.00
Seed:     15 bu./acre         $5/bu. (soybean)         $75.00
                                                       ---------
                    Hemp Total Value/Acre              $860.00

               Value of Comparable Crops 49
                                                       Total
          Yield          X    Price     =              Value/Acre

Cotton    578 lbs./acre       $.60/lb.                 $347.00
Douglas   1 ton/acre          $50/ton                  $50.00
  fir
Soybeans  34 bu./acre         $5/bu.                   $170.00

     * The hemp yields are based on historical and limited
current figures.  These are conservative estimates; the actual
yields will probably be 2 to 3 times higher.  Hemp prohibition
has stifled contemporary research in the field of hemp
production.

VI.  Hemp Cultivation
     Hemp is easy to grow.50 Hemp is an annual herbaceous crop
that grows from 5 to 16 feet tall in a season of four months.51 
It will grow in all 50 states.52  It is a good rotation crop.53 
Hemp has long roots that penetrate and break the soil to leave it
in perfect condition for the next crop.54
     Production costs for hemp would be considerably lower than
cotton's. Herbicides are not needed because fiber hemp is sown
thickly and chokes out competing weeds.55 Pesticide use is
limited because hemp has few insect enemies.56

VII. Current Hemp Market in the United States
     Hundreds of entrepreneurs are now selling imported hemp
products. However, they are stifled by high prices and uncertain
availability since all of the hemp is imported from overseas.
Demand for hemp products in the U.S. is enormous. Hemp clothing
and accessories have become a fashion trend.57 Tree-free hemp
paper is also in demand.58  The market has a potential of as much
as $15 to $30 billion a year.59

VIII.  Potential for New Jobs
     Hemp production in Colorado would create new farming
opportunities and make Colorado farmers competitive in the global
market against countries that already grow hemp for fiber. It
would also create thousands of processing and manufacturing jobs
in such industries as textiles, plastics, pulp paper, energy,
timber, construction, and food.  The retail market for tree-free
paper and building materials, for biodegradable plastics, for
soft and durable natural clothing, and for other hemp products
has huge potential.

IX.  Benefits of Hemp Production
     Hemp will be a profitable crop for farmers because of the
volume of hemp each crop produces, the number of different
products that can be made from hemp, and the demand for hemp
products.
     Not only is  hemp profitable, but it is a desirable crop to
grow for other reasons.  Hemp is a renewable and sustainable
resource.  It will help shift our economy away from dwindling
non-renewable petroleum resources and help preserve our forest
resources.
     Hemp is the strongest natural fiber.60  It has an extremely
high cellulose content.61  It is biodegradable.62  It requires no
herbicides to grow.63  It can be used to make paper, cloth, rope,
particle board, plastic, paint, varnishes, linoleum, dynamite,
fuel, food, and cardboard. It will create new jobs and make
Colorado competitive with other countries.  It is the fiber of
the 1990s.

     Copyright  1994 by The Boulder Hemp Initiative Project. All
the facts contained herein have been compiled from the sources
listed below and are true to the best of our knowledge.
Reproduction of this report is encouraged.  We ask only that
credit be given to the:
            Boulder Hemp Initiative Project
                     P.O. Box 729
                  Nederland, CO 80466
                    (303) 784-5632
            Email: [email-masked]

                         References

1.  Since 1980, THC levels  of confiscated marijuana have
averaged between 3% and 4% THC.  (National Institute for Drug
Abuse,  University of Mississippi, Mississippi Potency Monitoring
Project, Report #50, June 30, 1994).

2. a) Federation Nationale des Producteurs de Chanvre (National
Federation of Hemp Producers),  LeMans, France, Jean-Paul
Mathieu, director.
b) Hungarian Agricultural Research Institute (GATE), Kompolt,
Hungary.
c)  International Hemp Association, Postbus 75007, 1070 AA
Amsterdam, The Netherlands.
d) Sensi Seed, P.O. Box 1771, Rotterdam BT-3000 Holland.
e) Ukrainian Institute of Bast Crops, Glukhov, Sumy Region, SSR
Ukraine.

3. "British Farmers to Grow Cannabis -- Legally", Reuter's press
release, Feb. 18, 1993.

4. These countries include Canada, China, England, France,
Holland, Hungary, Ukraine, Tasmania.  From Rosenthal, Ed.  Hemp
Today.  Oakland,  CA: Quick American Archives, 1994.

5. Commission Regulation  (EEC) No. 1164/89 of 28 April 1989
"Laying down the detailed rules concerning the aid for fibre flax
and hemp", No. L 121, Vol. 32, pp. 4-9, April 29, 1989.

6. "British Farmers to Grow Cannabis -- Legally", Reuter News
Service, Feb. 18, 1993.

7.  Turner, Craig, "Legalize hemp?  Other countries say yes", 
Boulder Daily Camera, May 22, 1994.

8. Herer, Jack.  The  Emperor Wears No Clothes:  The 
Authoritative Historical Record of the Cannabis Plant. Van Nuys,
CA: HEMP Publishing, 1992, pp. 5-7.

9. Herer, Jack.  The Emperor Wears No Clothes:  The 
Authoritative Historical Record of the Cannabis Plant. Van Nuys,
CA: HEMP Publishing, 1992, p. 1.

10. Hemp for Victory, U.S. Department of Agriculture, 1942.

11. "New Billion-Dollar Crop", Popular Mechanics, February 1938,
pp. 238-240.

12. "New Billion-Dollar Crop", Popular Mechanics, February 1938,
pp. 238-240.

13. "New Billion-Dollar Crop", Popular Mechanics, February 1938,
pp. 238-240.

14. Lower, George A. "Flax and Hemp: From the Seed to the Loom",
Mechanical Engineering, Feb. 26, 1937.

15. United States Congress.  House of Representatives.  Committee 
on Ways and Means.  Hearings  on H.R. 6385.  Taxation of
Marihuana.  April 27, 28, 29, 30 and May 4, 1937.  75th Congress,
2nd session.

16. "It's a Hemp Year."  Business Week.  April 24, 1943.

17. Hemp for Victory, U.S. Department of Agriculture, 1942.

18.  Brecher, Edward M.  Licit and  Illicit Drugs: A Consumers
Union Report, Boston: Little, Brown and Company, 1972, p. 419.

19. Miller, Richard Lawrence. Hemp as a Crop for Missouri
Farmers:  Markets, Economics, Cultivation, Law.  Report to
Agricultural Task Force,  Missouri House of Representatives,
Summer 1991.

20. Lower, George A., "Flax and Hemp: From the Seed to the Loom",
Mechanical Engineering, Feb. 26, 1937.

21. a) Castellini, Luigi. "The Hemp Plant", CIBA Review, 1961-62,
pp. 2-31.
b) Lower, George A., "Flax and Hemp:  From the Seed to the Loom",
Mechanical Engineering, Feb. 26, 1937.

22. "New Billion-Dollar Crop", Popular Mechanics, February 1938,
pp. 238-240.

23. Hemp for Victory, U.S. Department of Agriculture, 1942.

24. Herer, Jack.  The Emperor Wears No Clothes: The Authoritative
Historical Record of the Cannabis Plant. Van Nuys, CA: HEMP
Publishing, 1992, p. 6.

25. Lower, George A.  "Flax and Hemp: From the Seed to the Loom",
Mechanical Engineering, Feb. 26, 1937.

26.  Conrad, Chris.  Hemp:  Lifeline to the Future.  Los 
Angeles: Creative Xpressions Publications, 1993, p. 24.

27. "New Billion-Dollar Crop", Popular Mechanics, February 1938,
pp. 238-240.
28.  Lower, George A. "Flax and Hemp: From the Seed to the Loom",
Mechanical Engineering, Feb. 26, 1937.

29. Dewey, Lyster H. and Merrill, Jason L. "Hemp Hurds as
Paper-Making Material", Bulletin No. 404, U.S. Department of
Agriculture, Oct. 14, 1916.

30. a) "New Billion-Dollar Crop", Popular Mechanics, February
1938, pp. 238- 240.
b) "It's time to reconsider hemp"  Pulp and Paper,  June 1991.
c)  West, C.J.  "Hemp Wood as a  Paper-making Material",  Paper
Trade Journal, Oct. 13, 1921.

31.  Dewey, Lyster H. and Merrill, Jason L. "Hemp Hurds as
Paper-Making Material", Bulletin No. 404, U.S. Department of
Agriculture, Oct. 14, 1916.

32.  Correspondence from D. Paul Stanford, president, Tree-Free
EcoPaper, Portland, OR, January 1993.

33. a) "Isochanvre (Insuhemp):  Nature is an Architect".
Chenevotte Habitat, "LeVerger", F 72260 Rene, LeMans, France,
Phone: 43 97 45 18.
b) Rosenthal, Ed.  "Hemp in Hungary", Hemp Today, Oakland, CA:
Quick American Archives, 1994, p. 242.

34.  "Isochanvre (Insuhemp): Nature is an Architect". Chenevotte
Habitat, "LeVerger", F 72260 Rene, LeMans, France, Phone: 43 97
45 18.

35. "DuPont".  American Peoples Encyclopedia, 1953.

36. "New Billion-Dollar Crop", Popular Mechanics, February 1938,
pp. 238-240.

37.  Conrad, Chris.  Hemp:  Lifeline to the Future.  Los 
Angeles: Creative Xpressions Publications, 1993, p. 101.

38.  Rosenthal, Ed.  "Hemp in England" (Conversations with Ian
Low, Hemcore Corp, Essex, U.K.) Hemp Today, Oakland, CA: Quick
American Archives, 1994, p. 205. 

39. Wirshafter, Don.  "Why Hemp Seeds?"  Hemp Today,  Oakland, 
CA: Quick American Archives, 1994, p. 171.

40. Erasmus, Udo. Fats and Oils: The Complete Guide to Fats and
Oils in Health and Nutrition, Vancouver: Alive Books, 1991, p.
231.

41. a) Korus, R.  "Transesterfication Process and Manufacture of
Ethyl Ester from Rape Oil".  Proceedings of the First Biomass
Conference of the Americas, Burlington, VT, Aug. 30 - Sept. 2,
1993.
b) Reed, T.  "Overview of Biodiesel Fuels".  Proceedings of the
First Biomass Conference of the Americas, Burlington, VT, Aug. 30
- Sept. 2, 1993.
c) Interview with A. Das, Biomass Energy Foundation, P.O. Box
7137, Boulder, CO 80306, (303) 225-8356, October 1994. 

42. Reed, T.  "Overview of Biodiesel Fuels".  Proceedings of the
First Biomass Conference of the Americas, Burlington, VT, Aug. 30
- Sept. 2, 1993.

43.  "Hemp".  Merit  Student's Encyclopedia (1982),  New  York: 
MacMillan Educational Company, pp. 520 - 521.

44.  Conrad, Chris.  Hemp:  Lifeline to the Future.  Los 
Angeles: Creative Xpressions Publications, 1993, p. 140.

45.  Interview with A. Das, Biomass Energy Foundation, P.O. Box
7137, Boulder, CO 80306, (303) 225-8356, October 1994.

46. Wirshafter, Don.  "Why Hemp Seeds?"  Hemp Today,  Oakland, 
CA: Quick American Archives, 1994, p. 171.

47. McKenny, M.  Birds in the Garden and How to Attract Them. 
New York: Reynall and Hitchcock, 1939, pp. 64-65.

48. The hemp yield estimates are an average of figures taken from
the sources listed below.  Many of the more recent hemp
production figures have shown yields 2 to 3 times higher than the
averages used in the text.
a) Agricultural Statistics,  U.S. Department of Agriculture,
1949.
b)  Dewey, Lyster H. and Merrill, Jason L.  "Hemp Hurds as
Paper-Making Material", Bulletin No. 404, U.S. Department of
Agriculture,  Oct. 14, 1916.
c) Haney, Alan.  "An Ecological Study of Naturalized Hemp
(Cannabis sativa L.) in East-Central Illinois".  The American
Midland Naturalist, January 1975.
d) "Hemp Slows Up"  Business Week.  Jan. 22, 1944.
e)  FAO Production Yearbook 1986.  Food and Agriculture
Organization of the United Nations. Rome:  Food and Agriculture
Organization, 1987.
f)  Letters from Professor Goloborodko, Director, All Union Bast
Crops Institute,  Glokov, Ukraine.  In Birrenbach, John.  Report
B: Hemp for Paper, St. Paul, MN: Institute for Hemp, 1993.
g)  Lower, George A. "Flax and Hemp: From the Seed to the Loom",
Mechanical Engineering, Feb. 26, 1937.
h) Merit Student's Encyclopedia (1982), pp. 520 - 521.  New York:
MacMillan Educational Company.
i) Miller, Richard Lawrence. Hemp as a Crop for Missouri Farmers: 
Markets, Economics, Cultivation, Law.  Report to Agricultural 
Task Force, Missouri House of Representatives, Summer 1991.
j)  Robinson, B.B.,  "Hemp", Farmers'  Bulletin No. 1935,  U.S.
Department of Agriculture, 1943 edition and 1952 revised edition.

49.  Cotton, soybean, wheat and corn figures come from:  Costs of
Production (1987), U.S. Department of Agriculture, Economic
Research Service.
Wood chip figures come from: Rosenthal, Ed.  Hemp Today, 
Oakland, CA: Quick American Archives, 1994, pp. 73 and 79.
Douglas fir figures come from: Conde, William, et al. Wood Fiber
Demand Can Be Met with Hemp Fiber.  Published by:  C & S
Specialty Builders, 23005 N. Coburg Rd., Harrisburg, OR 97446,
(503) 995-6164.

50. "New Billion-Dollar Crop", Popular Mechanics, February 1938,
pp. 238-240.

51. Robinson,  B.B.  "Hemp".  Farmers' Bulletin No. 1935,  U.S.
Department of Agriculture, 1943 edition and 1952 revised edition.

52. "New Billion-Dollar Crop", Popular Mechanics, February 1938,
pp. 238-240.

53. Dewey, Lyster. "Hemp". Yearbook of the U.S. Department of
Agriculture, 1913.

54. "New Billion-Dollar Crop", Popular Mechanics, February 1938,
pp. 238-240.

55.  Lower, George A. "Flax and Hemp: From the Seed to the Loom",
Mechanical Engineering, Feb. 26, 1937.

56. Dewey, Lyster.  "Hemp".  Yearbook  of the U.S. Department of
Agriculture, 1913.

57. Zeman,  N. & Foote, D.  "Turning over a New Old Leaf: An
Unfashionable Icon Comes Back in Fashion."  Newsweek, Feb. 8,
1993, p. 60.

58.  Correspondence from D. Paul Stanford, president, Tree-Free
EcoPaper, Portland, OR, January 1993.

59.  a) Birrenbach, John.  Report B: Hemp for Paper, St. Paul,
MN: Institute for Hemp.
b) Rosenthal, Ed.  Hemp Today.  Oakland, CA: Quick American
Archives, 1994.

60. a) Castellini, Luigi. "The Hemp Plant", CIBA Review, 1961-62,
pp. 2-31.
b) Lower,  George A. "Flax and Hemp: From the Seed to the Loom",
Mechanical Engineering, Feb. 26, 1937.

61. "New Billion-Dollar Crop", Popular Mechanics, February 1938,
pp. 238-240.

62.  Conrad, Chris.  Hemp:  Lifeline to the Future.  Los 
Angeles: Creative Xpressions Publications, 1993, p. 101.

63.  Lower, George A. "Flax and Hemp: From the Seed to the Loom",
Mechanical Engineering, Feb. 26, 1937.
--
Colorado Hemp Initiative Project
P.O. Box 729
Nederland, CO 80466
(303) 784-5632