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 contracted, by my guess, about 90% of the acreage grown this year was intended for my facility." Sponseller asked for later application deadlines (he suggested March instead of December), expressed concern about per‑lot fees that divide fields by irrigation canals or pivots, and urged more practical remediation pathways for lots that test over 0.3% THC.

Matthew Mead, founder and CEO of Hempitecture in Jerome, described an active manufacturing business that converts hemp fiber into building materials. Mead said Hempitecture converted nearly one million pounds of hemp fiber in 2024, with 42% of that supply coming from Idaho growers, and emphasized the local supply‑chain benefits of having a processor in the state. "We produce bio based building materials derived from industrial hemp," Mead said, adding that his firm created full‑time manufacturing jobs and sells batt and board insulation products with competitive R‑values.

Growers at the hearing described practical experience. Farmer Travis McAfee of Howe said hemp can fit into low‑water rotations in remote farming areas and recounted community interest as fields matured; he also described his learning curve with mapping lots and meeting licensing requirements. Producer Tim Corney, an organic farmer and food processor in Buhl, emphasized hemp grain’s nutritional profile and urged continued experimentation and research.

Several technical points from the ISDA presentation and industry testimony:

- THC standard: Idaho enforces a 0.3% THC limit for hemp on the farm and requires that products leaving a licensed handler contain 0% THC. The U.S. Department of Agriculture guideline noted in the hearing is 1% for certain enforcement contexts; ISDA emphasized Idaho’s stricter standard and associated enforcement architecture.

- Testing and remediation: ISDA requires pre‑movement THC testing; when tests are "hot" (above the state's limit) the agency described remediation options such as chopping and aggregation but cautioned such options are often financially unattractive for growers.

- Licensing and fees: ISDA said hemp program fees are higher than other ISDA programs because the program was set to be self‑funding, requires background checks, per‑lot fees and inspection costs. Director Tewalt said a licensed producer’s application and annual license and per‑lot testing/inpection costs contribute to the program’s expense.

- Scale and infrastructure: Presenters said fiber is the chief near‑term opportunity for Idaho. Tristan Sponseller and Matthew Mead urged policies and processing rules that support fiber and grain rather than conflating all hemp activity with higher‑risk CBD production. Mead emphasized the state needs processing capacity and research support; he said recent cuts to an Idaho research fund disrupted planned university partnerships.

Farm Bureau representative Braden Jensen closed the presentation by saying the Farm Bureau was not proposing legislation this session but that the hearing provided useful information and that potential federal Farm Bill changes should be watched.

Why it matters: Witnesses argued industrial hemp — especially fiber and grain — could provide new rotational cropping options, local processing jobs and new manufacturing supply chains, but they said state policy choices on THC limits, testing, remediation, per‑lot fees and research funding affect growers’ willingness to scale production.

Next steps: Sponsors and staff said they will continue to refine program details, and growers and processors urged further technical conversations, research support and possible regulatory adjustments to facilitate fiber and grain markets.