Idaho officials and industry describe strict hemp rules, high program costs and growth prospects

Director Chanel Tewalt of the Idaho State Department of Agriculture told the House Agriculture Affairs Committee that Idaho's hemp program, established under House Bill 126 (2021) to align Idaho with the 2018 federal farm bill, is deliberately stricter than federal guidance and carries significant administrative costs.

"Idaho is much more stringent than the federal standard. . . 0.3 is the standard in Idaho," Tewalt said, explaining that the 2018 Farm Bill allows states to authorize hemp programs and sets a 1% THC threshold before a federal violation would generally be issued, but Idaho law applies a 0.3% THC limit for on-farm hemp and requires 0% THC for products after they leave a licensed processor.

Tewalt and representatives of growers and processors described multiple program features: licensing and background checks required by USDA playbook; annual inspections and on-farm testing; a requirement to harvest within 30 days of a THC test; USDA-required sampling, testing, remediation and disposal protocols that must be conducted on the producer's property; and comparatively high fees to operate the program because Idaho inspects each licensed site and maintains the program as self-funded with limited general-fund support.

Industry speakers said the program has created an emerging local supply chain but that growers and processors face constraints. Tristan Sponseller of Idaho Hemp Processing said his facility accounted for about 90% of the 1,800 acres of Idaho hemp he estimated were grown in 2024 and described the economics and logistics of producing hemp fiber: tall plants (12—— feet), separation of outer fiber and inner hurd, and challenges in harvesting and lot definitions that raise fees. "We really need to separate ourselves from CBD," Sponseller said, arguing fiber hemp is a different crop and should be treated differently in rules and remediation methods.

Matthew Mead, founder of Hempitecture, described a downstream market for processed fiber used in building materials. Mead said Hempitecture purchased nearly 1 million pounds of hemp fiber in 2024 (about 42% from Idaho) and that the company currently employs 10 full-time workers in Jerome with plans to expand. Mead urged support for processing infrastructure and research, noting that Idaho lost iGEM research funding in August/September 2024 that had supported University of Idaho Ph.D. work on hemp uses.

Growers in rural areas described hemp as a rotational and niche crop that can use less water than some alternatives and can fit in areas where other specialty crops are not economical. Farmer Travis McAfee described how small, remote operations used hemp to diversify and said the crop commanded higher per-pound values than typical third-cut hay in his area. Processor Tim Korney and others described grain and fiber markets and suggested complementary uses, such as using hemp with agricultural byproducts for hempcrete or other building materials.

Speakers urged adjustments including: follow evolving USDA guidance, consider a higher federal-aligned negligent-threshold (industry speakers referenced a 1% USDA threshold) for fiber/grain cultivars, clarify remediation protocols for fiber vs. CBD cultivars, extend the application deadline beyond Dec. 31 to reduce late fees, and invest in processing capacity. Tewalt and ISDA staff cautioned that some protocols and sampling methods are required by USDA and must be performed on farm; the department also emphasized the program's heavy enforcement and administrative burden.

No committee vote or statutory change was taken at the session; the presentation was informational. Committee members expressed interest in working with industry on potential changes and asked staff to follow up on research and regulatory issues raised during the hearing.