ALBERTA FARMERS SLOW TO TRY GROWING HEMP

When the prices of farm commodities went to pot two years ago, Brian
McIllroy joined a small group of Canadian farmers growing hemp.

The crop had been heaped in praise and talk of potential after the federal
government gave farmers the green light to grow an industrial version of
hemp in 1998. With the psychoactive drug properties of marijuana bred out
of the seeds, industrial hemp was seen as an untapped source of fibre
material and vegetable oil.

But in its first full year of production, hemp crops have been slow to take
off.

Farmers across the Prairies experimented with a few hundred acres last
year, but only Manitoba farmers have started large-scale hemp operations.

An estimated 15,000 acres of hemp were planted in Manitoba this year -- the
most in the country. Alberta farmers were less swayed by the hype, planting
slightly more than 1,000 acres.

"We are past the stage of having it as a hype crop where everyone was
laughing, tee-hee, at the mention of it," said McIllroy, who farms in Manitoba

"I still think the potential is there, but what we have to do is get
organized and find the markets. It's going to be a real battle."

The challenge has been finding buyers. While a few large hemp processors
have set up shop in Manitoba, the balance of processing capacity in the
country is still heavily weighted towards Ontario.

Most hemp grown in Canada is harvested for its seeds, which are crushed for
their oil and used in niche-market cooking products as well as specialized
shampoo, soap and skin cream.

Stan Blade, a director of crop diversification for Alberta Agriculture,
said the province will need a more mature processing market before farmers
buy into it as much as other niche crops, such as field peas.

"Last year, farmers were just looking at hemp as something to try. This
year, they're in it for the commercial business," Blade said.

"But if it's not going to pay the bills, farmers aren't going to do it."

Alberta Agriculture has began looking into ways to increase seed and fibre
production.

A program that will test hemp over the next year as feed for livestock is
unique in Canada and could open up a new door for the crop. The forage hemp
will be tested on cattle against a more traditional mixture of oats and
barley. Hemp plants can grow over 10 feet tall and produce ample amounts of
foliage, which could be attractive to farmers, Blade said.

"When you show farmers a field of 12-foot-tall crops, people get excited
about the possibilities," he said.

Eastern processors have began selling hemp fibre as an alternative to
petrochemical materials used in the fabric lining of cars and the backing
on carpet.

Whether the projected markets will pan out, "your guess is as good as
mine," said Blade. "We see this with a lot of new crops, it's not always
clear how things will shake out."

The harvest outlook for hemp is positive, despite some of this year's hemp
crops experiencing wind and hail problems, said Guy Cloutier of Cloutier
Agraseeds.

"The acres have grown significantly, but the weather problems may have put
a sour taste in some of the producers' mouths," he said.

Hemp

Agricultural hemp growing was legalized in 1998 by the federal government.
It had been banned in 1938 along with marijuana cultivation.

Agricultural hemp carries only trace levels of the drug
tetrahydrocannabinol and has no recreational value.

The hemp is harvested for its fibre which can be turned into fabric and
particle board. The oil from hemp seeds is used in specialty cooking oils
and beauty products.

Farmers who grow hemp are subject to criminal background checks. The crop
is monitored as well.

There are 1,000 acres of agricultural hemp grown in Alberta. Manitoba is
Canada's biggest producer with an estimated 15,000 acres.