How to Start a Hemp Farm in Texas

The biggest news to come out of the Texas House Agriculture and Livestock Committee this year is the passage of “House Bill 1325”. That day a Wednesday, Texas State Senator Charles Perry declared, “Wednesday is not hump day but hemp day.”

TEXAS HOUSE BILL 1325 IS A GAME-CHANGER.
The bill, now signed into law by Governor Greg Abbott, “legalized the cultivation of hemp, processing of hemp, and manufacturing hemp-derived products, including cannabidiol (CBD).” This law brings Texas in line with 40 other states and the federal government laws that deemed hemp legal for cultivation and production. Many in Texas are excited to learn how they can now reap the financial benefits from this valuable product.

The Texas Agriculture website states that Sid Miller, the Texas Agriculture Commissioner “is a strong supporter of industrial hemp production as a new market opportunity for Texas farmers to expand their operations and grow alternative crops.”

WHAT EXACTLY IS HEMP?
While hemp is a plant in the cannabis plant family, hemp is not marijuana. Hemp does not contain THC that marijuana does, so it has no psychotropic effects. In fact, hemp has been cultivated for thousands of years by people around the world. Ancient civilizations used hemp to create fibers for cloth, fiber-pulp for paper making, and oil for fuel, and they ground it into powder to use for medicinal purposes.

CAN HEMP SAVE THE TEXAS FAMILY FARM?
Lisa Pittman, a Texas cannabis attorney stated to the Texas Tribune; “Previously dormant pilot programs are all now activating after the passage of the 2018 Farm Bill. I personally believe Texas will become a leader in [the hemp growing] arena because farmers have been looking to this bill as a lifeline to save their family farms.”

HOW VALUABLE CAN HEMP BE TO TEXAS FARMERS?
Texas farmers need to know that their next most valuable crop may be hemp. Farmers in states where it is now legal to grow hemp have realized substantial profits from their crop. Jeff Lake, President of Elemental Processing, and part of the Kentucky Industrial Hemp Research Pilot Program is quoted in the Dallas News, “Where corn may yield $350 to $400 per acre on a good year, and soybeans $150 to $200, Elemental Processing pays $3,000 to $5,000 an acre for hemp plus a bonus on the yield.”

WILL HEMP GROW WELL IN TEXAS?
Hemp is a very hardy, drought-tolerant annual plant that produces high yields. The climate in Texas is ideal for growing hemp. Industrial hemp thrives in warm weather and can grow in a large variety of soils. While hemp can be grown in the same plot for years, rotation with other crops is best. It is also known that depleted soils benefit from hemp rotation.

HOW CAN I START A HEMP FARM IN TEXAS?
Even though House Bill 1325 was signed into law, the State of Texas must work with the USDA to iron out the details. Applications for hemp growing permits will be available in 2020. Check the Texas Department of Agriculture website for updates.

Before starting any new venture, and especially before starting a hemp farm, it is critical to hire a Risk Advisor. Risk Advisors can analyze your entire operation, identify any potential risks before they happen, and create a complete hemp security program for your business. There still is a lot of confusion around all the “can and cannot do’s” regarding Industrial Hemp Production Call today to see how our “proactive security strategies can protect your time, money, and reputation as your business grows.”