Producers, processors tell Senate committee Idaho hemp program works but is costly; sponsors seek regulatory tweaks

Speakers from the Idaho State Department of Agriculture, hemp processors and growers told the Idaho Senate Agricultural Affairs Committee that the state’s industrial hemp program is operating but carries high administrative costs and regulatory limits that constrain development of a fiber and grain market.

Michelle Tewalt, director of the Idaho State Department of Agriculture, told the committee the state program follows the 2018 Farm Bill for on‑farm production but that Idaho sets a stricter THC standard: "Idaho is more stringent than the federal standard ... Idaho standard is 0.3%." She added that under state practice "once it leaves a licensed handler's facility, it has to be a 0% THC product." Tewalt explained that the program requires annual licenses with background checks, per‑lot fees and testing before hemp may move from the farm to a handler.

Industry speakers described production and market progress and suggested regulatory adjustments. Tristan Sponseller, owner of Idaho Hemp Processing in Rexburg, said his facility handled about 90% of the acreage contracted to him this year and praised ISDA’s responsiveness: "Idaho hemp processing, my facility is a processing facility for fiber. And we…