HemperFi

Ms. Woertz:

Congratulations on your new post as CEO of Archer Daniels Midland. It's a notable switch for ADM to bring on a female from the Oil & Gas industry, and I was pleased to hear the news that ADM is serious about becoming a leader in the carbohydrate economy.

That said, HemperFi has not exactly praised ADM in previous posts. Given ADM's unmitigated pursuit for profit maximization with disregard towards the small-scale famer, it's unlikely that favorable entries will suddenly appear.

However, I'm hopeful that ADM sits at a historic crossroads. Here's a wonderful opportunity to fix a less-than-perfect (and I'm being gracious here) company history. Your noted advocacy against MTBE in the 1990s and your clear commitment to biofuels leads me to believe that perhaps we can look forward to more grounded, fairer, better governed, ADM.

And lastly, a favor. We need your help in the misguided, non-fact-based, anti industrial hemp campaign the current administration has brought to bear on the American public. It's not right for farmers and other would-be entrepreneurs, not to mention the environment and the public.

Thank You,
HemperFi

Posted by M at 12:00 AM | Permalink

Kenaf, like flax and industrial hemp is a fibrous crop particularly suited for paper-making. Botanically related to cotton and okra, Kenaf grows in Southern states such as Alabama, Florida and Texas where the long growing season, with plenty of rain, helps Kenaf producers obtain maximum yields.

In the 1950s, the Department of Agriculture undertook a study of more than 500 plants to determine the most-promising non-wood plant for use in paper (including printed money). Kenaf eeked out a win in that study. Much like industrial hemp, Kenaf bast and core fibres can also be used in cardboard and other paper products. However, Kenaf enjoys the benefit that most paper mill equipment does not need to be modified. That alone makes it an interesting alternative to wood pulp-based newspaper for mills. Per the University of Wisconsin-Extension:

newspapers made from kenaf pulp have been shown to be brighter and better looking, with better ink laydown, reduced ruboff, richer color photo reproduction and good print contrast. Quality analyses showed kenaf newsprint to have superior tear, tensile and burst ratings.

Like so many other non-wood fibre crops, Kenaf's success is deeply lilnked with local processing options for farmers. Transportation costs of getting the fibre to a processing facility determine the profitability of this crop. However, Kenaf "...plants provide about three-five times more fiber per harvest than southern pine trees, which can take 7-40 years before they can be harvested." At least one paper company --Vision Paper-- has fully embraced Kenaf...their "About" page is worth checking out>. Among other things, it states: "We use the kenaf as our raw material instead of trees. We manufacture pulp and paper, without using any chlorine compounds, and we sell the paper to printers, companies, and organizations nationally."

Posted by M at 03:00 AM | Permalink

1945 saw the peak of ethanol production in the United States at a whopping 600,000,000 gallons of ethanol production. Many people do not realize that back then plant matter served as the primary feedstock for all sorts of chemical products, including paint, ink, solvents and fuel. The Once and Future Carbohydrate Economy published by the Institute for Local Self Reliance brings the point home: In the 1820s, Americans used two tons of vegetables for every ton of minerals. Over the next 100 years, that balance would effectively reverse itself.

Not known to many, the American nation has a deep roots in ethanol and biofuel production. By the mid 1930s, common household tems, such as Rayon (made from wood pulp), telelphones, silk stockings, dentures (made from cotton), and a broad range of other bio-plastic consumer items were widely used by Americans. Quoted from the The Once and Future Carbohydrate Economy:

At the end of the 19th century the names of chemical companies and products often contained a form of the word cellulose, a living chemical consisting of a long string of carbon and hydrogen and oxygen molecules (thus the word carbohydrate). The name of one of the country's largest chemical manufacturers, Celanese Corporation, was a contraction of "cellulose" and "the easy feeling" of wearing acetate apparel.

Ultimately what killed the carbohydrate economy was the incredibly weak prices of oil. In the 1940s, oil sunk under 1 dollar a barrel and effectively wiped the carbohydrate economy off the map.

The The Once and Future Carbohydrate Economy is some of the best reading on ethanol that I've come across...I highly recommend it. In case you don't have the time to read the whole piece, I've clipped one more section on the history of gasoline and ethanol that's a must read (in fact, read on).

Continue reading "600 million gallons of ethanol" »

Posted by M at 10:26 AM | Permalink

Last June, the Tasmanian Health Minister made Australian history by issuing the first permit that allows the use of hemp in a food product. It's a small, but very significant step, particularly given that the license is only valid for dog food. Ian Rochfort, a part-time paramedic and geese farmer, is no stranger to hemp...he's been feeding his geese hempseed for years. “The geese loved it, and they grew on it beautifully,” Rochfort is quoted as saying in The Veterinarian.

Looks like Australia lags behind the Europe and North America on industrial hemp legislation and commercialization. There are some good signs. The Australia and New Zealand Food Advisory Committee has recommended that the Australian federal government legalize the use of hemp in human food, but so far, there's been little in the way of legislation. There is a growing list of Australian states that have -at some poin in the past 20 years- held industrial hemp trials. They include, Victoria, New South Wales, Tasmania, Western Australia, South Australia, but not, the Northern Territory. Of these, Victoria has the most progressive industrial hemp laws, which allow commercial cultivation. Of course, without a market, the total acreage is less that 100 hectacres per year.

By the way, Rochfort has posted a somewhat uninspiring "Why Hemp?" treatise...consisting of largely chemical analysis of hemp seed. If you were wondering what exactly was in hemp seed, Rochfort's one-page-site tells all.

Posted by M at 01:01 AM | Permalink | Comments (2)

Flax, much like hemp, has a myriad of commercial uses, many of which overlap with industrial hemp as a fibre and food crop (i.e., seed). It turns out that flax has had marginal success in the United States. Flaxseed prices peaked in 2004-2005 at nearly 700 Canadian Dollars per ton, but are projected to drop to 325 Canadian Dollars per ton in 2006.

For anyone seriously considering flax (or hemp) as a rotational crop, the Canadian government has published a useful guide called Flaxseed: Situation and Outlook. The guide states: "The US is forecast to produce 0.43 Mt of flaxseed for 2005-2006, a sharp rise from the 0.27 Mt per year produced for the previous 3 years. The increase is due to a rise in seeded area resulting from the unusually high flaxseed prices of 2004-2005." U.S. farmers, not wanting to miss the pricing peak, are ramping up production for a record U.S. 2006 harvest. Free market economics dictate that, barring any drought, frost or other externalities, the markets will shoulder a much lower price in light of greater supply.

Ok, but what yield rates does one need to sustain to make money from flax? Canadian farmers need about 32 bushels per acre yield rates if they are to cover their costs. However, in 2000 Canadian farmers only managed to harvest approximately 20 bushels per acre.

That said, it's somewhat puzziling why Canadian farming acreage dedicated to flax has been on the rise. The short answer seems to be that farmers are willing to gamble that prices will rise again, and therefore include flax as a rotational crop.

Where processing facilities exist, especially processing facilities that target niche commercial segments (e.g. organic flaxseed oil), things seem to be going well. This is perhaps the biggest takeaway for soon-to-be industrial hemp farmers in the U.S.: entrepreneurs must link with co-operatives and local governments to ensure success. I'll have some examples shortly on HemperFi.

Posted by M at 02:28 AM | Permalink | Comments (5)

Flax as a rotational crop in North America is on the upswing. It can be grown for both fibre and seed, and farming implements required to harvest the crop are readily available and well understood by North American farmers. Much like industrial hemp, flax's versatility make for countless commercial possibilities, including: clothing, food (as an oil), feedstock, and paper. Somwhat delicate, prone to lodging and physically short, harvesting and processing flax has it's share of complications.

Canada leads global flax production while India, China, the Commonwealth of Independent States, and Argentina are notable players in the international flax trade.

In 2001, the United States produced 11.5 million bushels of flax on 585,000 acres. North Dakota is the biggest U.S. producer with 327,000 acres of flax that yielded 6.8 million bushels annually, while in 2000 Minnesota had about 10,000 acres of flaxseed, yielding 198,000 bushels. The United States imports about 1.9 million and exports about 2.4 million bushels of flax annually. (Source)

Like hemp, flax is touted as an excellent rotational crop with similar commercial uses. Given the similarities, the question is why American farmers have not embraced flax more widely. Is the market limited?

More flax discussion to come on HemperFi...in the meantime, here are some useful links (and many more here).

- Fiber Flax Farming Practices in the Southeastern United States
- Flax: Alternative Field Crops Manual. Prepared by the ­University of Wisconsin and University of Minnesota
- Flax Crop Production - by the Flax Council of Canada

Posted by M at 12:30 PM | Permalink

The Industrial Hemp movement has inspired Bolivian president Evo Morales to tout the coca plant as a commercially viable industrial crop. Running under the moniker of "Coca sí, Cocaína no", Morales and supporters have undertaken a successful marketing campaign espousing the virtues of the coca plant. Much like hemp, the coca plant can be used in everyday products such as shampoo, food, and cookies.

Seen by many as a champion for the poor, Evo Morales' humble beginnings make him an ideal spokesperson for poor coca farmers. His political saavy was honed during his years as an influential union leader in Bolivia's central coca-growing region. His poplularity has extended beyod Bolivia...Morales is fast becoming a rising interntaional star. He recently met Condolezza Rice and presented her with a miniature coca-leaf guitar:

("The gift was well received. We will just have to check with our customs to see what rules apply. We certainly hope we can bring it back (to Washington)," said a senior State Department official who attended the meeting.)

It should be noted that the U.S. and other countries have contributed some 700 million dollars to combatting coca cultivation and production in the central Bolivia. Much of this money was spent on eradication and the establishment of seemingly suitable alternative crops such as pineapples. These efforts have been an total disaster for Bolivian farmers..."the development projects failed when it became apparent that the region's remoteness makes shipping pineapples and bananas too expensive, and that prices for the crops can't compete with coca" writes Der Spiegel.

The industrial hemp movement has clearly set an example for Morales, the decriminilization of coca lobby, and coca production farmers. The issue is, that unlike hemp (which is genetically and chemically different from marijuana), coca is used for both legitimate products and illegal cocaine. This could spell a disaster for the drug war, given that Bolivia could soon become a huge exporter of legally grown coca leaf. I thought the U.S. DEA had it's hands full with the industrial hemp issue, but really it's a cakewalk compared to Bolivia's coca legalization campaign.

Posted by M at 03:00 PM | Permalink

The Manitoba Composites Innovation Centre (CIC) received an additional $6.6M funding boost from the Canadian government. Much of the spending will be earmarked for the CIC's new bio composites lab. This lab, specifically researches molding and pressing techniques using straw, flax and hemp.

Funded by the national Canadian government, regional governemnt and Canadian composite technology businesses, the fact that this latest round formalizes the creation of a bio composites lab should not be overlooked. The CIC has a decent track record of commercial cooperation and has cleverly teamed-up, rather than competed with the potentially overlapping (and much larger) National Research Council of Canada (NRC). In 2004, the CIC signed a memorandum of understanding with the NRC to cooperate in composites, particularly aerospace composites...the primary focus area of the NRC's compsites effort.

Manitoba is the example to watch...they are clearly laying down a smart, well-orchestrated, demand-creation strategy. Ultimately, entities like the CIC create frutiful symbiotic dependencies...In this case, between hemp famers and Canada's composites industry.

Posted by M at 02:49 PM | Permalink

Two University of Minnesota researchers "have become the first to unequivocally separate hemp plants from marijuana plants with genetic markers."

Ok, so what?

I believe that the ability to "fingerprint" hemp and distinguish it from marijuana probably does little for the industrial hemp movement in the United States in the short term. On the other hand, this technique gives pro-hemp lawmakers a footing with which they can genetically distinguish hemp cultivars from marijuana. Yet, the pro DEA camp is unlikely to be swayed. The DEA's refusal of issuing hemp cultivation permits is not linked to a definitive testing method (such as DNA fingerprinting). Keep in mind, the DEA's marijuana eradication method hinges on spotting cannabis cultivation from the air (and car-bound college interns and bored cops). Therefore a lab test isn't really going to help make their life easier. Perhaps the researchers could splice in a glow in the dark gene or make industrial hemp look unhemp like...that way, legal hemp plots could be easily indentified. That is...until the other guys figure it out too.

One thing is clear. Hemp is now in the crop genetics club....and that means that big business (for better or worse) can't be far behind.

Posted by M at 09:01 PM | Permalink

I don't pretent to be fashion-conscious, but my wife can spot good design from the sidewalk. Although there are plenty of hemp stores selling all kinds of hemp clothing articles, I ask myself: "Do the fashion conscious really regard hemp as fashionable?". After all, with all this hoopla the big question still remains whether or not hemp be able to break out of niche markets.

The branding still smacks of decidedly "alternative'...which is fine, but limits the impact of hemp as a primary garment material. One company has taken a decidedly anti-corporate message to market: BlackSpot Shoes. Union labor, hemp and used tires are the main ingredients of BlackSpot's "Unshwoosher" line of Converse-lookalikes. These shoes feature a hand-drawn "sweet spot" on the toe to facilitate "kicking corporate ass!"

That's just great.

Let's face it, most hemp clothes are, for the most part, "formless" and "un-hip". There are people going beyond the "coolness" of hemp by actually bringing style and utility to the market. They will be the ones that will put hemp back into the clothing mainstream.

Posted by M at 08:01 AM | Permalink

While you're blissfully munching on your next hemp bar, consider that since October 2001 some very determined Canadians and Americans have joined forces to combat the DEA's self declared ban on hemp seed and oil. I'm not going to take you through the grueling legal details, but one thing is for sure...the DEA frittered away bales of taxpayer dollars.

On February 24th, 2004 --after much legal wrangling-- the 9th Circuit Court fo Appeals issued an opinion which invalidated the original 2001 DEA interpretive rule. Then came the DEA appeals, which eventually culminated in the June 28th denial by the 9th Circuit for a rehearing. Besides the fact that the industry successfully joined forces with hemp activist groups, the cherry on the sundae was delivered in February of 2005 when the 9th Circuit forced the DEA to reimburse 21 thousand dollars of legal fees to Dr. Brommer's Soaps. The significance? The court can only force reimbursement of legal fees in cases where the claim was "not substantially justified". In other words, the 9th Circuit Court of Appeals told the DEA they'd wasted everyone's time. Since the DEA was overruled, you'll be happy to know that the industry experienced a reported 65% rise in hemp bread, bars, and granola products between 2004 and 2005.

While all this was going on, TestPledge was created because the industry recognized that many people worried about false positive drug test results as a result of consuming hemp foods and products. TestPledge is not a watchdog or certifying organization, but it does require its producers and processors to: "commission THC tests on each and every lot of shelled hempseed and oil, performed by a properly accredited laboratory according to the official Health Canada protocol." Ah yes, we can now breathe a little easier.

Ok, enough for now...tune in to HemperFi later this week to read about a judge that recently deemed the DEA's hemp cultivation ban "asinine".

Posted by M at 10:21 PM | Permalink

Ok, here's a lighthearted entry (gotta have at least one per week) ...5 interesting uses for hemp

1. Sushi! Yup, hemp seed is a vital ingredient for shichimi-togarashi.

2. Cars. Audi Volkswagen, Ford and BMW are experimenting with hemp for possible inclusion in cars. Henry Ford, however, is credited with the idea. He produced a hemp car (the Hempmobile) with all hemp-based bodywork in 1941.

3. Houses...Insulation (Isochanvre®), fiberboard, roofing tiles (Enviroshake), wallboard, paneling and bricks.

4. Candy...I know, I know it's somewhat troubling. Hemp gummy bear anyone?

5. Personal Lubricant...yes, I originally had lip balm as number 5, but I took the low road and went with this product which "contains ingredients to accentuate the most intimate moments."

Posted by M at 12:01 AM | Permalink

USDA Organic Hemp is here...or at least in Canada. The Organic Producers Association of Manitoba (OPAM) provides a "credible certification system" in order to "promote organic food production and consumption." Manitoba Hemp's "certification specialist" has been busy...their home page boasts eight "certs" including a the "USDA Organic" seal of approval. It turns out that OPAM is an USDA Accredited Certifying Agent (ACA) and, therefore, can bestow the seal on anyone complying with the USDA requirements. A quick glance at the USDA 'question and answers' page reveals that all "naturals" are allowed unless prohibited on the National List." And yes, I did check the National List...hemp is not on there.

Posted by M at 09:49 AM | Permalink