Springfield Business Journal_2021-03-29

HOMETOWN HEMP Over 800 acres of hemp seed were planted in Missouri in 2020, the inaugural year of the state’s industrial hemp program. Most of the crop will be harvested for floral or fiber products. Floral (cannabidiol) 46% Fiber 37% Floral (cannabigerol/ Other) 9% Seed 7% Grain 1% Propagules 0.2% Source: Missouri Department of Agriculture creekside.elfindaleretirement.com 1601 South Fort, Springfield, MO 65807 | (417) 831-3828 Active, Independent Living! “Staff knows & calls each resident by his or her first name.” —Verified Review Gracious Living • Exciting Choices • Affordable Pricing (417) 886-1330 www.regent.bank Secure Additional FDIC Insurance Up to $125,000,000 * Stop worrying & earn excellent rates while keeping your money liquid. *Maximimum FDIC Insurance is $250,000, but using the ICS® network we are able to help clients secure additional FDIC coverage of up to $125,000,000. Member FDIC Equal Housing Lender ©2020RegentBank |www.regent.bank SPRINGFIELD BUSINESS JOURNAL · 7 MARCH 29-APRIL 4, 2021 later that year approving the industrial hemp program under the supervision of the MDA. State officials say the legislation legalized the crop and exempts it from the list of controlled substances and the defi- nition of marijuana. Hemp is cannabis that contains 0.3% or less THC by dry weight. By January 2020, the program began ac- cepting applications. Each application costs $750 and is renewable annually. In production Buehler Farms LLC in Mount Vernon was among the licensed hemp producers last year. Co- owner David Buehler said his century farm currently is using the plant exclusively to produce CBD supplements. The farm is selling CBD-infused elderberry syrup, elderflower hemp honey and herbal salve through its El- der Farms line. “Hemp was an alternative we could grow on a small acre- age and process ourselves to put right directly into our products,” he said, not- ing Buehler Farms plants in May and harvests in September. Buehler said the first-year goal was to start small and grow hemp on 5 acres of the 400- acre farm. The plan is to add another 5 acres this year, he said. “It’s very expensive to put it out,” he said. “We didn’t want to put out more than we could take care of.” Kyler Brown, sales director and co-own- er of Elder Farms LLC, said last year’s in- vestment was around $120,000, including $90,000 for equipment. While declining to disclose last year’s revenue, Buehler said he was “very happy” with how the company’s CBD-infused hemp products sold. Elder Farms’ products sell in roughly 150 retailers in five states, Brown said, pointing to 30 Hy-Vee stores in Mis- souri, Kansas and Iowa, as well as all three shops of MaMa Jean’s Natural Foods Market LLC. “We were delayed a little bit on planting because of wet weather at the very beginning,” Buehler said, noting investment costs should be entirely recouped this year. “We didn’t really have any insect problems until the very last. Other than that, it went re- ally well.” Brown said the company’s hemp production for now re- mains focused on floral for CBD products. “As the market evolves, fiber is definitely something we’re interested in from a sustain- able and renewable point,” he said. “Process- ing is really the bottleneck with that. We’ll just have to see how the next few years pan out.” Raffety said his Charleston family farm in southeast Missouri intends to be among hemp producers this year. Weather issues prevented him from getting involved in 2020. “We hope to get some seed in the ground on a limited scale this year,” he said, noting planting might start at 20 acres. “I’m looking more toward fiber, because that’s where we have relationships now.” There’s a lot of education farmers have to absorb, Raffety said, adding the indus- try was basically destroyed almost a cen- tury ago. “We’re learning which varieties work better than others on planting and emer- gence,” he said. “All of this is new again. We’re having to re-create this entire in- dustry.” Mixed experiences Of the 800 acres planted last year in the state, 69% were successfully grown to har- vest, according to MDA data. Nearly all of the remaining acreage was unharvested due to a variety of factors, including weather, pest or disease, lack of a market and unfavorable pre- liminary test results. Freeman said early year projections for the program are difficult. “It’s kind of a mixed experience right now,” she said. “People are still trying to figure out exactly how it fits into their operation and what they want to do with the opportunity.” Raffety said the slightly lower numbers this year may be an indication that potential producers are being more cautious about jumping into a new agricultural area. It’s a strategy he recommends. “Start small and learn, and go from there,” he said. “Don’t go out and try to plant 1,000 acres of this stuff in year one.” Hemp: Farmers harvest 70% of planted crop Continued from page 1 FROM THE COVER Sami Jo Freeman considers the state’s first hemp growing season as “pretty strong.” HEATHER MOSLEY