Legislators in Kansas have doubled back on a measure that would have legalized hemp in animal feed. Under federal law, hemp was legalized through the passage of the 2018 Farm Bill. The plant was subsequently removed from the list of controlled substances.
Hemp is defined as the Cannabis sativa L. plant, and any part of it, including extracts, seeds, acids, isomers, cannabinoids and salts, among others, with not more than 0.3% of THC. Despite legalizing overall use of hemp, the Farm Bill did not allow the use of hemp or hemp products in food for animals or humans.
HB 2168, the introduced substitute bill, will reduce licensing fees on hemp in Kansas to no more than $500 annually, down from more than $1,000.
Midwest Hemp Technology CEO Sarah Stephens stated that the substitute measure was less controversial than a resolution introduced last year that would have legalized hemp in animal feed. She then noted that despite the measure’s substitution, the reduced licensing fees for hemp was a win.
HB 2168 was approved by the state’s House of Representatives two weeks ago in a 105 to 6 vote. It has been forwarded to the Senate for consideration. Under this measure, the state would adopt federal rules on feeding hemp to animals. Currently, states are allowed to manufacture feeds made with ingredients defined by the Association of American Feed Control Officials (“AAFCO”)
AAFCO is a nonprofit organization whose members are government agencies representing the US Food and Drug Administration (“FDA”), the Canadian Food Inspection Agency, the Center for Veterinary Medicine, and U.S. states. As of 2020, AAFCO still prohibited the use of hemp and its products in pet food or animal feed in the United States.
It is expected that the association will, later this year, decide on an application that would allow hemp seed meal in layer diets. Many expect the members to vote yes on the application. If the legislation does get approved, hemp-seed-meal sales to poultry producers could commence shortly afterward. Regarding registration feeds, producers of hemp may start paying the lower fees early next year.
Stephens also noted that despite not seeing any progress on this matter in 2023, this move forward felt like the Kansas Department of Agriculture was telling the industry it wanted things to work out.
Overall, interest in industrial hemp products has increased greatly in the last five years following the plant’s descheduling. It is expected that the size of the industrial hemp market will grow significantly over the next few years, reaching $18.1 billion by 2027. This growth is likely to bring more business opportunities for enterprises such as Astrotech Corp. (NASDAQ: ASTC) that specialize in making testing equipment for the hemp and marijuana industries.
NOTE TO INVESTORS: The latest news and updates relating to Astrotech Corp. (NASDAQ: ASTC) are available in the company’s newsroom at https://cnw.fm/ASTC
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