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The first hemp crop in neighboring Logan County is pictured in 2014 — the same year that hemp was legalized in the State of Colorado. — Journal-Advocate

Investors warm to hemp as growers take the plunge

    This season, Bruce and Ken Rosenbach plan to oversee the growth and harvest of 750 acres of hemp — one of the first attempts to raise the crop in Phillips County.
    Although markets and regulations are still taking shape, and Bruce conceded they’re still learning the ins and outs of the industry, the venture rides a wave of national interest in hemp.
    “Needless to say, we’re new at it, and we’re learning as we go,” Rosenbach said. “But that’s part of what intrigues me about it, is the unknown. It’s definitely an exciting time to be doing this.”
    Hemp, which belongs to the same family of plant as marijuana, has dozens of applications, including textiles, biomass, paper and extracts. Rosenbach hopes to sell his crop to be processed into CBD oil, which is used in cosmetics and dietary supplements.
    Besides its versatility, hemp is also attractive to growers for its low water requirement, resistance to pests and benefits for soil quality.
    The market for hemp has boomed since the passage of the 2018 U.S. Farm Bill, which legalized the industry at the federal level. Prior to December, the federal government did not distinguish hemp from marijuana, which remains a controlled substance. Although the plants are biologically similar, hemp contains a relatively tiny amount of THC — the chemical that gives marijuana its “high.”
    Financial institutions have been reluctant to invest in hemp, even in states where the industry is legalized. But the game is changing for farmers like Rosenbach, who have seen potential funding sources multiply as regulations loosen.
    Bill Weber of High Plains Partners is one of the funders of the Rosenbach venture. He said individual investors have been leading the charge to fund the hemp industry,  with many being more willing than banks to shoulder the risks associated with growing hemp.
    “Hemp has been around for a while, but a lot has changed recently,” he said. “The demand is going to increase massively, and the supply is already increasing.”
    A major concern for both growers and investors is uncertainty over what action the government will take if the THC content of a crop is found to exceed the legal limit of 0.3%. If a plant tests “hot,” farmers may be forced to destroy their entire crop.
    Last year, the Colorado Department of Agriculture forced one Yuma farmer to destroy 80 acres of hemp after it tested over the legal limit, costing the man more than $143,000 in projected earnings. The State of Kentucky seized and burned close to 100 pounds of hemp in a similar high-profile case in 2017.

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