State agriculture director and industry speakers review Idaho industrial hemp program and industry prospects

The Idaho State Department of Agriculture and industry representatives briefed the Idaho Senate Agricultural Committee on the state industrial hemp program, implementation of House Bill 126, and operational experiences from growers and processors.

Michelle Tewalt, director of the Idaho State Department of Agriculture, outlined Idaho’s statutory framework and the agency’s administrative program under House Bill 126. Tewalt said Idaho’s program points to the federal 2018 Farm Bill for on-farm production rules but that the Farm Bill does not govern seed quality, manufacturing, retail products or human and pet food; she noted the Food and Drug Administration has authority over foods and some derivatives. Tewalt described Idaho’s THC standard as more stringent than USDA’s: “Idaho standard is 0.3%,” she said, and added a bright-line rule in Idaho requires licensed farmers or handlers to possess hemp with allowable THC on farm but that products leaving a licensed handler must be 0% THC.

Tewalt summarized licensing and compliance features: annual licenses with background checks, lot-based testing and inspection, and remediation options for lots that test over the state threshold. She told the committee the hemp program must be fee-funded and that fees are higher than other ISDA programs because the program is expected to pay for itself and to support rigorous testing and oversight. She reported roughly 23 growers on average in prior years, 12 signed up so far in the current year, and about 1,800 total acres reported last year, with about 1,600 acres for fiber.

Industry witnesses described their on-the-ground experience and recommendations. Tristan Sponseller, owner of Idaho Hemp Processing, said his facility contracted an estimated 90% of the acreage grown in the year he discussed and asked the legislature to consider changing program deadlines and remediation rules — specifically moving the annual application deadline from Dec. 31 to March to align contracting and reducing per-lot inspection fees that result when lots are divided by irrigation ditches or pivots. Sponseller also asked the committee to consider adopting the USDA 1% threshold as the point at which sanctions begin, rather than Idaho’s 0.3% threshold that currently triggers administrative “strikes,” and to expand remediation approaches for fiber and grain (including aggregation/processing-based remediation rather than field-only shredding).

Matthew (Matt) Mead, founder and chief executive of Hempitecture in Jerome, described a processing and manufacturing business converting industrial hemp fiber into building materials. Mead said Hempitecture converted nearly 1 million pounds of hemp fiber in 2024, 42% of which came from Idaho; he said Hempitecture is the largest hemp-fiber buyer in the U.S. and reported plans to expand production and jobs. Mead gave product R-values and pricing comparisons: batt insulation R-value ~R3.69 per inch and continuous external insulation board ~R3.25 per inch; he said Hempitecture’s products are roughly 10–20% more expensive than mineral wool and about 30–40% more than conventional fiberglass on a per-square-foot basis, and that scale and efficiency would lower costs over time. Mead requested support for research funding and infrastructure and said Idaho needs more nuance between fiber/grain hemp and CBD/cannabis varieties.

Growers Travis McAfee (Howe area) and Tim Corney (Buhl, organic farmer/processor) described field experiences: McAfee discussed soil suitability, water savings versus other crops, community interest and education value; Corney urged separation of fiber/grain hemp from CBD/cannabis in regulation and described hemp grain’s nutritional profile.

Committee members asked about frequency of hot tests (lots testing above 0.3%), how high THC levels are when they exceed 0.3%, costs and program fees, and economic feasibility. Tewalt said some lots in recent years tested over the threshold but many were successfully remediated; she said laboratories report measurement uncertainty and the agency applies measurement margins. Several industry speakers recommended changes to remediation methods and to the strike system applied to growers who produce lots that test over the statutory threshold.

The presentation concluded with the Farm Bureau (Braden Jensen) noting the organization is not proposing additional legislation this session and that continued education and monitoring of federal Farm Bill activity will shape future state policy.