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Uncertainty for hemp industry after government funding bill passage

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GREAT FALLS— The recent passage of legislation to reopen the federal government has left Montana's hemp industry in limbo, as the bill contains language that could effectively shut down most hemp-derived products.

The legislation would ban most hemp products containing THC levels exceeding 0.4 milligrams per container, which includes most non-intoxicating hemp products currently on the market. Federal hemp legalization originally resulted from a loophole in the 2018 Farm Bill.

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Uncertainty for hemp industry after government funding bill passage

However, industry leaders see hope in a one-year moratorium built into the measure, which gives the hemp sector time to mobilize and work with lawmakers to establish a federal framework for these products.

Pat Farrell, who runs Big Sky Scientific in Sun River, pointed to strong public support of the industry in the form of a poll taken by McLaughlin & Associates.

"Over 72% of Americans don't want a ban on consumable hemp products. It was bipartisan. It was multiracial. It was religious, non-religious. It was across different age groups, hero households with first responders, policemen and veterans," said Farrell.

Farrell's company, which employs more than 40 people, extracts CBD from hemp supplied by farmers. The CBD is then sold to manufacturers who create retail non-intoxicating products ranging from treatments for inflammation to anxiety to sleep aids.

The potential ban also threatens Montana's hemp producers, who rely on the crop for income diversification during times of unstable commodity prices.

"But to be able to put in 50 acres and have that option, you know, and have it boost your overall overall farm income. I mean, 50 acres to some of these places is nothing, but it's a it could be a big financial boost when we have $4 wheat or we have $5 wheat and a bad year that traditional crops don't do as well," said Derek Gustafson, a hemp farmer.

According to the U.S. Hemp Roundtable, Republican Representative Morgan Griffith of West Virginia is planning to soon introduce a bill that would replace a total ban with robust regulation of hemp products.