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Feasibility Study for Industrial Hemp Processing Industry

Extension Education

William Lantz
Extension Educator
University of Maryland Extension
Mt. Lake Park

Abstract

Much interest has been associated with the production of hemp (C. sativa) since the US Agriculture Act of 2014 established a pilot program for research administered by state departments of agriculture and state universities.  While a vast majority of the hemp production has focused on CBD, hemp grown for fiber production has great potential.   The issue that has arisen with farmers that have interest in fiber production is the lack of available processing.  The Mountain Maryland Hemp Alliance (MMHA) along with Extension in Maryland, West Virginia and Pennsylvania received an Appalachian Region Commission - POWER grant to fund a feasibility study for a hemp fiber processing facility.   Additional funding for the project was provided by West Virginia Department of Agriculture and Garrett County Economic Development.   MMHA members, Extension agents and other interested individuals provided in-kind matching funds.   An advisory committee of 12 individuals met with the consulting firm, ACDS, LLC, every other week during the study period.  The consultant held a Hemp Industry Round table for advisory committee members to discuss processing with equipment and textile manufacturers.   Extension agents created a power point presentation that was used to educate farmers on the growing and harvesting of fiber hemp.   After each presentation farmers were asked to complete a survey to indicate their interest in growing fiber hemp.  The extension group also planned two fiber hemp on-farm demonstration plots and held a field day at one of the sites.  The consultant concluded bottlenecks do exist with very limited processing capacity and that processing capacity needs to be located within 100 miles of hemp fiber production.   One other major factor is the lack of standardization of hemp inputs.  Success for a processing facility will depend on the ability to market multiple hemp products.  While a sizeable investment of over $4 million dollars would be needed to create a hemp processing facility, the facility could be profitable in 4 years with enough production and sales.   MMHA members are exploring funding to include grants and industrial partners.  

Poster has NOT been presented at any previous NACAA AM/PIC

This poster is being submitted for judging. It will be displayed at the AM/PIC if not selected as a State winner. The abstract will be published in the proceedings.

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Authors: William Lantz, Cheryl DeBerry, Leanna Dubstadt, Sherry Frick, Darryl Glofelty, Andrew Ristvey, William Shockey
  1. Lantz, W. Extension Educator, University of Maryland Extension, Maryland, 21550
  2. DeBerry, C. Natural Resources Business Specialist, Garrett County Economic Development, Maryland, 21550
  3. Dubstadt, L. Extension Educator, Field and Forage Crops, Penn State Extension, Pennsylvania, 15501
  4. Frick, S. Extension Eductor, University of Maryland Extension, Maryland, 21502
  5. Glofelty, D. Chair, Mountain Maryland Hemp Alliance, Maryland, 21520
  6. Ristvey, A. Extension Specialist, Commercial Horticulture, University of Maryland Extensin, Maryland, 21658
  7. Shockey, W. Extension Agent, Agriculture and Natural Resources, West Virginia University Extension , West Virginia, 26537