A new law in Iowa, set to take effect on July 1st pending a legal challenge, will drastically change the state’s emerging hemp industry if/when it is implemented. Iowa House File 2605 caps the amount of THC in ‘consumable hemp products’ at 4 milligrams per serving and 10 milligrams per package or container.
“Roughly 1,100 Iowa retailers are licensed to sell consumable hemp products in the state supplied to them by more than 100 manufacturers.” The Gazette stated in its original coverage. Iowa’s new law bans the sale and consumption of any hemp products to people under 21, requires hemp products to have a warning label, and bans the sale of synthetic THC. Hemp flower products will also be banned under the new law.
A retailer that is caught in possession of hemp-derived products that do not meet the new requirements faces potential criminal and civil penalties. Criminal penalties range from a misdemeanor to a Class B felony, and civil penalties will amount to $10,000 per day if the retailer refrains from following the new guidelines.
The new law also applies civil penalties and “unpaid community service” for people under 21 who consume or possess banned hemp-derived products.
“According to the USDA, more than 11 million pounds of hemp flower was produced in 2022 by 1,800 American farms covering about 10,500 acres. California produced 56% of all U.S. hemp flower, which is used to extract CBD and other cannabinoids, including intoxicating hemp-derived THC.” MJBiz Daily stated in its initial coverage.
Kentucky produces the second most floral hemp flower in the United States (1,764,736 lbs.), followed by Oregon (663,370 lbs.), and Colorado (455,100). Alameda County in California produced 5,531,832 pounds in 2022 alone.
The United States Department of Agriculture (USDA) recently released its annual hemp industry report. According to the USDA, “In 2023, the value of hemp production in the open and under protection for the United States totaled $291 million, up 18 percent from 2022.”
“Planted area for the Nation in 2023 for all utilizations totaled 27,680 acres, down 2 percent from 2022. The value of hemp production in the open for the United States totaled $258 million, up 22 percent from last year. Area harvested for all purposes in the open totaled 21,079 acres, up 15 percent from 2022.” the report also stated.
The report also found the following regarding subsectors of the hemp industry:
- Floral hemp in the open: United States floral hemp production grown in the open for 2023 was estimated at 8.03 million pounds, up 18 percent from 2022. Area harvested for floral hemp in the open in the United States was estimated at 7,383 acres, up 4 percent from last season. The average yield for 2023 floral hemp in the open was estimated at 1,088 pounds per acre, up 134 pounds from last year. The value of floral hemp grown in the open totaled $241 million, up 35 percent from 2022.
- Grain hemp in the open: National production of hemp grown in the open for grain in 2023 totaled 3.11 million pounds, up 28 percent from 2022. Area harvested for hemp grown in the open for grain in the United States was estimated at 3,986 acres, down 26 percent from last season. The average yield for 2023 hemp grown in the open for grain was estimated at 779 pounds per acre, up 327 pounds from last year. The value of hemp grown in the open for grain totaled $2.31 million, down 36 percent from 2022.
- Fiber hemp in the open: In 2023, production of hemp grown in the open for fiber was estimated at 49.1 million pounds, up 133 percent from 2022. Area harvested for hemp grown in the open for fiber in the United States was estimated at 12,106 acres, up 77 percent from last season. The average yield for 2023 hemp grown in the open for fiber was estimated at 4,053 pounds per acre, up 983 pounds from last year. The value of hemp grown in the open for fiber totaled $11.6 million, down 59 percent from 2022.
- Seed hemp in the open: Production of hemp grown in the open for seed in 2023 was estimated at 751,000 pounds, up 414 percent from 2022. Area harvested for hemp grown in the open for seed in the United States was estimated at 1,344 acres, up 66 percent from last season. The average yield for 2023 hemp grown in the open for seed was estimated at 559 pounds per acre, up 379 pounds from last year. The value of hemp grown in the open for seed totaled $2.91 million, up 96 percent from 2022.
“The global industrial hemp market size is estimated to grow by USD 6.87 bn from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of over 17.1% during the forecast period.” Technavio previously stated in a press release regarding their global industry projection.