ISDA and industry outline Idaho hemp program, cite strict THC limits, high fees and need for processing capacity

The Idaho State Department of Agriculture and hemp industry representatives told the House Agriculture Affairs Committee that Idaho’s hemp program, established under House Bill 126 (2021) and aligned with the federal 2018 Farm Bill for on-farm production, is operating under standards that are stricter than the federal baseline, and that the emerging industry still faces regulatory and economic hurdles.

Chanel Tewalt, director of the Idaho State Department of Agriculture (ISDA), told the committee the 2018 Farm Bill authorized industrial hemp production and left many product- and processing-related issues to states and other federal agencies. She said Idaho’s program requires on-farm THC to remain at or below 0.3% (Idaho’s standard), compared with a 1% threshold in the federal Farm Bill for state programs: “Idaho is much more stringent than the federal standard.” Tewalt also said products leaving processors must test at 0% THC under Idaho practice, a standard she characterized as the strictest in the country, and that these rules create a “bright line” for law enforcement and market differentiation for licensed producers.

Why it matters: Producers and processors said state rules and program fees affect market viability. Industry speakers told lawmakers the state’s strict on-farm and post-processing THC policy, the high cost of licensing and testing, and limited in-state processing capacity create risks for growers and limit the state’s ability to scale a fiber-and-grain hemp economy.

Key regulatory and program points discussed - Legal framework: Tewalt said House Bill 126 implemented a state plan tied to the 2018 Farm Bill, requiring ISDA to write a USDA-acceptable state hemp plan, administrative rules, and protocols for sampling, testing, remediation and disposal. She noted the state plan and protocols require stakeholder and executive review before USDA approval. -THC thresholds: Under Idaho…