With the growing uncertainty surrounding major hemp byproducts like CBD, many growers are pivoting to supply their crop yields to other industries.
One of the primary reasons for hemp’s long and successful history is its wide-ranging versatility. Although the plant and its sister crop, cannabis, are most associated with uses related to health, wellness, and psychoactive recreation, historically, the hemp plant has been used for much more practical purposes, such as providing canvas sails for ships, paper, clothing, and food.
When Congress relegalized hemp by passing the 2018 Farm Bill, the actual intended purpose of that seismic shift in federal policy was to enable farmers to grow the plant for industrial purposes. Because of the measure’s broad language concerning hemp legalization, farmers, manufacturers, and retailers took the opportunity to produce and sell products containing intoxicating hemp derivatives (IHDs), like delta-8 and delta-9 THC, as well as other non-intoxicating cannabinoids like the wildly successful and lucrative CBD.
However, several states have cracked down heavily on IHD products in recent years, and the Food and Drug Administration has not provided regulatory guidance regarding the legality and safety of CBD as a food and dietary supplement. As a result, many growers have struggled to stay afloat as demand for their hemp output has plummeted.
Now, according to several media outlets, there may be a glimmer of hope for those farmers as new potential buyers are beginning to emerge in the field of bioplastics. Of hemp’s many unique uses, serving as a raw material in developing eco-friendly bioplastics could become a massive new market for industrial hemp fiber.
One producer taking advantage of this pivot is the Ohio Hemp Company, based in Dayton, Ohio. Following the passage of the Farm Bill, Ohio Governor Mike Dewine signed legislation legalizing hemp in the state in 2019. TJ Richardson and Justin Helt, the owners of Ohio Hemp Company, were among the first to begin cultivating the crop in the Buckeye State. They planted an initial 11,000 hemp plants in 2020, hoping to take advantage of the then-booming CBD market.
After the catastrophic collapse of the CBD market, the two switched to growing hemp for grain and fiber rather than for CBD and other cannabinoids. That strategic shift was highly fortuitous for the duo, as they recently signed a deal with a Michigan processor to provide raw materials for hemp-based bioplastics.
As part of that new contract with Detroit-based Heartland Industries, Richardson and Helt’s Ohio Hemp Company will provide industrial hemp fiber to produce bioplastic that Belgian bioplastics manufacturer Ravago will eventually use to make auto parts.
Helt knew early on that he and Richardson couldn’t go wrong by going all in on hemp. “My grandpa always says that hemp is the most exciting new thing in agriculture since soybeans in the 50s. That gives you a little perspective on how often something like this comes along. We see a huge trajectory path for this crop to grow in the state,” Helt told agriculture news source Farm and Dairy.
"My grandpa always says that hemp is the most exciting new thing in agriculture since soybeans in the 50s. That gives you a little perspective on how often something like this comes along. We see a huge trajectory path for this crop to grow in the state."
- Justin Helt, Co-Owner of the Ohio Hemp Company
However, according to Tim Almond, chairman and co-founder of Heartland Industries, the process has been challenging. From the outset, Almond says his company and the farmers supplying the raw materials faced significant challenges learning to cultivate and work with the ancient crop.
“It had been illegal for 80 years, a lot of the knowledge and planting equipment has been either lost or transitioned to corn, soybeans, and wheat,” said Almond. “Farmers didn’t know what technology would work. So we had to understand how to plant the crop all over again.”
"It had been illegal for 80 years, a lot of the knowledge and planting equipment has been either lost or transitioned to corn, soybeans, and wheat. Farmers didn’t know what technology would work. So we had to understand how to plant the crop all over again."
- Tim Almond, Chairman and Co-Founder of Heartland Industries
The hemp fiber grown by the Ohio Hemp Company and other farming suppliers in the Midwest is used by Heartland Industries to produce small hemp pellets known as “nurdles.” After the initial processing, the nurdles are sent to Ravago, where they are combined with plastic nurdles to make a bioplastic composed of 70% plastic and 30% hemp fiber. The end product is then used to manufacture parts for the auto industry.
“Everybody wants to have a product that’s better for the environment, but it’s hard to do it if it compromises the cost and it compromises performance. We found a happy balance with the plastic manufacturing world where we can use this ingredient at 30% in the recipe, and we could see cost savings, we can see weight reduction, we can see performance maintaining the same, but most importantly, we can see the reduction in carbon footprint,” Almond said.
"Everybody wants to have a product that’s better for the environment, but it’s hard to do it if it compromises the cost and it compromises performance. We found a happy balance with the plastic manufacturing world where we can use this ingredient at 30% in the recipe, and we could see cost savings, we can see weight reduction, we can see performance maintaining the same, but most importantly, we can see the reduction in carbon footprint."
- Tim Almond, Chairman and Co-Founder of Heartland Industries
The new agreement contracts the Ohio Hemp Company to provide hemp fiber to Heartland on a non-binding, year-over-year basis. To help meet the demands and plan for future expansion, Helt and Richardson are investing in new infrastructure by building a new processing and storage facility and researching new varieties of hemp.
According to Helt, the new agreement with Heartland Industries and other significant developments at his operation are positive signs that the demand for hemp is growing in the region.
“It means everything to the growth of this company and to the growth of the industry in (Ohio) to have a major processor (with) a great demand. All the different pieces of the puzzle are finally coming into place to create an entire industry from front end to back end, from the plant in the field all the way to the end consumer. It’s beautiful to see,” said Helt.
"It means everything to the growth of this company and to the growth of the industry in (Ohio) to have a major processor (with) a great demand. All the different pieces of the puzzle are finally coming into place to create an entire industry from front end to back end, from the plant in the field all the way to the end consumer. It’s beautiful to see."
- Justin Helt, Co-Owner of the Ohio Hemp Company
It is sometimes a wise reminder to those individuals invested in the long-term success of the hemp industry that the plant and its downstream derivatives have only been legal for roughly six years.
While the fabulous success early on may have set unrealistic expectations for the young and burgeoning industry, developments like the new relationship forged between the Ohio Hemp Company and Heartland Industries should serve as an example of just how versatile hemp could become for future growers, manufacturers, and consumers.