Hemp industry presenters tell committee Idaho hemp program works, urge adjustments to improve scale

The Idaho Senate Agricultural Committee received presentations Feb. 18 from industry participants and the Idaho State Department of Agriculture (ISDA) on the state’s industrial hemp program, including production, processing, testing and market opportunities.

Braden Jensen of the Idaho Farm Bureau introduced the panel. Director Michelle Tewalt of ISDA described the structure the agency has implemented since House Bill 126 (2021) authorized industrial hemp production, emphasizing that Idaho’s program follows USDA direction on production but is more stringent in key areas. Director Tewalt told the committee Idaho’s on-farm THC standard is 0.3 percent (Idaho’s threshold) compared with USDA’s 1 percent, and that once hemp leaves a licensed handler’s facility any retail product in Idaho must test at 0 percent THC, as described in the state rules the director summarized.

Tewalt explained program mechanics: annual licensing with background checks, per-lot fees and sampling/testing before hemp leaves the farm, a 30-day harvest-notice window, and remediation options when a lot tests “hot.” She said handlers (processors) are licensed under Idaho law (Title 22, chapter 17 was cited) and that ISDA inspects handlers and can pursue administrative violations; negligent violations are handled administratively and ISDA had not recorded a non-negligent violation in Idaho to date.

Multiple industry witnesses described on-the-ground experience. Tristan Sponseller of Idaho Hemp Processing (Rexburg) said his processing facility contracted roughly 90% of the state’s acreage in the most recent season and urged changes to deadlines, lot definitions and remediation rules. Sponseller recommended shifting the annual licensing deadline later (from Dec. 31 toward March) to better match contracting cycles and said per-lot fees and inspection costs can compound for farms split by irrigation ditches or pivots. He urged reconsideration of the three-strike rule (three strikes within five years for testing above 0.3%) and suggested applying the USDA 1% threshold for strike determination, arguing growers can be penalized for cross-pollination or genetics issues outside their control.

Matthew Mead, CEO of Hempitecture (Jerome), described manufacturing bio-based building products from hemp fiber and presented economic metrics: Hempitecture purchased nearly 1 million pounds of hemp fiber in 2024 (42% sourced from Idaho growers), produced 2,582 pallets of finished product in 2024 (up from about 1,940 pallets in 2023), and employs 10 full-time manufacturing workers with plans to expand to about 15 in 2025. Mead urged clearer distinctions between fiber/grain hemp and CBD-focused hemp regulation, support for research and state-level infrastructure and expressed concern about the loss of certain research funding (IGM program cuts reported in September 2024).

Grower presenters described operational realities. Travis McAfee (Howe area) said hemp performs well on lower-water acreage and has helped engage local communities; he recommended Idaho-based seed development for genetics adapted to local climates. Tim Corney (Buhl) described hemp grain as a nutritious commodity and stressed the need for farmer-focused research plots and practical market infrastructure.

Panelists said hot-test remediation techniques currently focus on CBD producers and may be impractical for fiber/grain operations (for example, shredding in the field vs. decortication/processing at the facility). ISDA and industry witnesses described the program as heavily regulated and relatively expensive to administer; Director Tewalt said fees were set so the program could be self-funded per statute, and handlers/retail enforcement for products remains a separate regulatory and enforcement issue.

Committee members asked for additional information on THC testing margins, the frequency of hot lots, remediation timelines and the economic viability of fiber and grain markets. Director Tewalt and the industry witnesses agreed to continue engagement with the committee and the agency to refine program mechanics.