LICENSEES HAVE DIFFERENT PLANS

The first two North Dakota farmers to be licensed to grow industrial
hemp have different plans for their future crops, assuming the
federal government allows them to be cultivated.

Dave Monson, of Osnabrock, in northeastern North Dakota, and Wayne
Hauge, of Ray, in the northwestern corner of the state, on Tuesday
received the first two licenses issued under new state rules for
growing the crop.

Hemp can be used to make numerous products, from food to clothing,
and Monson said he has received calls from potential buyers as far
away as Taiwan. Monson, who also is a state lawmaker, wants to sell
both hemp seed and fiber.

"I hope to capitalize on every part of (the plant)," he said. "There
will be no problem finding a market."

Hauge said he wants to grow and sell registered hemp seed to other farmers.

"I think it's a viable crop," he said. "I think it would work well in
rotations in both eastern and western North Dakota."

Hemp is a cousin of marijuana and falls under federal anti-drug
rules, even though it does not produce a high. That means farmers
licensed by North Dakota to grow hemp must also obtain approval from
the federal Drug Enforcement Administration, which is not certain.

The annual federal registration fee is $2,293. Monson said the
federal fee to import seed from Canada, where hemp is legally grown,
would be an additional $1,147, though he and state Agriculture
Commissioner Roger Johnson said one person could import seed for
several farmers.

The state license costs a minimum of $202. Monson said with
licensing, registration and seed expenses, "before you even get out
of the chute you're looking at $400 an acre (in costs)."

Hemp still can be profitable, Monson said.

"You're looking at $500 an acre for seed and whatever you can get for
fiber ... $100 per acre for straw would be realistic," he said.
Organically grown hemp could fetch as much as $900 per acre, Monson said.

If he gets federal permission, Monson plans to seed 10 acres of
industrial hemp this spring to "test the waters." Hauge plans to grow
100 acres.

Both farmers also grow other crops, including the more traditional
wheat and barley. Monson also grows canola, and Hauge last year
experimented with black beans.

Neither farmer plans to build a fence around his hemp field. A fence
is not part of the state licensing requirements, though one would be
needed under federal rules.

"They have this additional crazy requirement that is designed for
drugs," Johnson said. "Chain-link, razor-wire topped, 10 to 12 feet
high, 24-hour surveillance."

Johnson has urged the DEA to ease its rules, and plans to meet with
officials in Washington, D.C., again early next week to "request that
they work in every way possible with us."

Law enforcement officials worry that industrial hemp crops could
shield stands of illegal marijuana. Supporters of legalizing hemp
cultivation say that fear is unfounded.

In a related development, the North Dakota House on Tuesday approved
legislation that gives North Dakota State University the authority to
import and resell industrial hemp seed. The bill now goes to the Senate.

The bill is HB1490.