ISDA lays out strict hemp rules; processors and growers urge changes to lot fees, harvest windows and remediation

The Idaho Senate Agricultural Affairs Committee heard a detailed presentation on the state’s industrial hemp program from the Idaho State Department of Agriculture and industry participants, who said the crop has economic promise but faces regulatory frictions.

Director Michelle Tewalt of the Idaho State Department of Agriculture told the committee that Idaho’s hemp program follows the federal 2018 Farm Bill for on-farm production but adopts stricter state standards for other matters. "Idaho is more stringent than the federal standard," Tewalt said, noting Idaho’s allowable tetrahydrocannabinol limit on farm is 0.3 percent by dry weight compared with the federal 1 percent guidance cited to USDA. She added that once hemp leaves a licensed handler’s facility, "it has to be a 0% THC product," saying the state draws a bright line between licensed production and retail products.

Why it matters: Growers, processors and an emerging manufacturing cluster told the committee that fiber and grain hemp can provide new crops and local industry — but licensing fees, per-lot inspection charges, a 30-day harvest-testing deadline and remediation rules raise costs or operational hurdles that can discourage participation.

Program basics and agency view Tewalt said House Bill 126 (2021) required ISDA to develop an administratively detailed state plan tied to USDA approval and stakeholder review. She described the program as "incredibly onerous and very heavy regulatory" and said fees are high because the program must largely fund itself and demands substantial personnel for licensing, testing and inspections. She outlined core elements: - Licensing: Producers and handlers must apply annually, pass background checks and meet eligibility requirements; a felony drug conviction within 10 years disqualifies applicants. - Testing and harvest: Farmers must notify ISDA and have hemp tested; no hemp moves from a farm until the agency issues test results. ISDA applies a laboratory margin of error to THC tests. - THC limits and retail: Idaho’s on-farm THC limit is 0.3% and the department enforces a 0% THC expectation for retail products and unlicensed persons, while noting USDA guidance differs.

Industry perspectives: processing, contracts and genetics Tristan Sponseller, owner of Idaho Hemp Processing and Idaho Premium Hay Farms, said his facility handled about 90% of the state’s hemp acreage contracted to him and credited ISDA for working with processors. Sponseller described operational concerns: the December 31 application deadline, per-lot fees that penalize contiguous fields split by irrigation ditches, and the 30-day harvest window. He said the lot-fee structure "continues to compound" and that "30 days is not a lot of time sometimes, especially if our intention within the state is to scale our ground and be able to grow more." Sponseller also recommended revising remediation and strike rules: under current policy a grower receives a strike if a lot tests over 0.3% even if it is under 1% and remediable; Sponseller proposed aligning strike thresholds with USDA guidance or otherwise easing penalties for cases where exceedances are not the grower’s fault.

Matthew Mead, founder and CEO of Hempitecture in Jerome, described downstream manufacturing of hemp fiber into insulation and building materials and quantified demand: Hempitecture converted almost 1 million pounds of hemp fiber in 2024, 42% of which was Idaho-grown, and reported 10 full-time manufacturing jobs in 2024 with plans to expand to 15 in 2025. He provided technical measures for products: "our R value is R 3.69 per inch on the batt insulation" and said his firm is the largest hemp-fiber buyer in the U.S. Mead said Idaho needs more processors and research support to keep the supply chain local.

Grower experience and economics Growers described the crop as suitable for rotation and lower water use in some settings. Travis McAfee, a grower in the Howell area, said hemp can provide an alternative for dryland and limited-water areas and described how local communities reacted to tall fiber hemp fields. McAfee said contracts he observed paid on the order of "19 cents a pound" for harvested material, which he estimated yields roughly $300 per ton and could make hemp competitive with malt barley per acre in his calculation. Tim Corney, an organic grower and food processor in Buhl, urged clearer separation in regulation and public understanding between fiber/grain varieties and CBD/cannabis production.

Remediation, testing and enforcement ISDA described remediation options for lots that test "hot" (over 0.3%). Tewalt said remediation may allow hemp to leave the farm after processing but can reduce economic value. Sponseller and others urged revisions to remediation rules that account for fiber- and grain-focused production — for example, allowing certain primary processing steps (such as decortification or controlled mechanical processing) to serve as remediation so material can move to processors rather than forcing in‑field destruction. Sponseller said his facility had not seen contracts exceed 1% in the last two years of processing under his contracts.

Numbers and program scale ISDA said participant counts fluctuate by year; "between 20–23 has actually been our average number," Tewalt said, and last year acreage reached about 1,800 acres statewide, with roughly 1,600 acres grown for fiber. Tewalt also said early-season signups in the current calendar year numbered 12 so far.

Requests to the committee Industry presenters asked for (1) reconsideration of per-lot fees and the method of lot delineation, (2) flexibility on the application deadline to reflect contract timing, (3) remediation alternatives tailored to fiber and grain uses, and (4) sustained research funding after state cuts to an entrepreneurship program that previously supported hemp R&D. Senators asked for scientific evidence around THC behavior and the 30-day harvest window; Sen. Lent and Sen. Taylor explicitly requested stronger scientific foundations when the sponsor returns with a draft.

What’s next Committee members did not take formal action on hemp regulation at this hearing. Sponsors and agency staff were asked to consider evidence and potential technical fixes for the items raised by growers and processors. Presenters said changes to federal law or a new Farm Bill could alter some regulatory constraints.