HOPES STILL HIGH FOR HEMP

New Uses Are Needed For Hemp Fibre, Says An Area Grower, As Low-Priced
Imports Flood The Market.

Eight years after it was legalized, industrial hemp growers are still
waiting for that big break that will make it a mainstream crop in Ontario.

Dan Scheele is one of the folks keeping the faith. He's holding a hemp
field day on his farm south of Ingersoll today.

Scheele, vice-president of the Ontario Hemp Alliance, estimates there
are about 20 hemp growers in the province working about 500 to 1,000
acres.

Scheele grows 23 acres of hemp, in addition to 175 acres of corn,
soybean and wheat.

"The hemp is a main crop. It looks like that 23 acres will be the most
profitable this year," said Scheele.

Scheele admits he is fortunate to have a contract to supply hemp seed
at 70 cents a pound. The seed is used to produce hemp oil, flour and
other products that have found a solid market in health food stores.

But the market for hemp fibre has dried up due to a flood of imports
from nations such as China.

"China is doing it so cheap that no one can compete. Any specialty
market can be flooded out easily."

Scheele said growers need to find a new market for hemp fibre, such as
replacing the fibreglass used in auto parts.

"If we can replace that type of material in an industrial setting,
hemp will take off. That will give me a margin of $200 to $400 an acre."

Once a popular crop in pioneer days, hemp was outlawed in Canada in
1938 because it is related to marijuana, even though it has almost no
THC, the chemical that produces the "high."

Hemp's legalization in 1998, along with the establishment of the Kenex
processing plants in Pain Court and Hempline in Delaware, raised high
hopes for a flourishing hemp-processing industry.

But Kenex ran into early problems when shipments to U.S. customers
were stopped at the border. The company went to court and eventually
had the border opened to hemp products, but the company had suffered a
major setback.

Scheele still faces stringent restrictions on growing hemp. His
licence requires criminal background checks, and he must provide GPS
co-ordinates of his hemp fields to the OPP so the plants are not
confused with marijuana plants.

He said hiding marijuana in a hemp field would be foolish.

"All that hemp pollen would contaminate the marijuana and you would
have the worst dope ever," Scheele said.

Scheele's field day will feature a hemp version of a corn maze, paper
making and spinning wheel demonstrations and hemp clothing. Foods made
with hemp such as pretzels, baklavas and ice cream will also be available.

Scheele is hoping for a good turnout at the field day because the crop
still has a high curiousity factor. One hemp field on a highway near
the town of Arthur became a traffic hazard because so many motorists
slowed down or stopped to have a look.

With the price of Ontario's primary crops -- corn, wheat and soybeans
- -- depressed by world markets, Scheele said hemp still offers a
profitable alternative.

"Farmers do not want to go hat in hand to the government. We want to
take our money from the marketplace and the big three just aren't
doing it anymore," he said.

"All that hemp pollen would contaminate the marijuana and you would
have the worst dope ever," Scheele said.

Scheele's field day will feature a hemp version of a corn maze,
papermaking and spinning wheel demonstrations and hemp clothing. Foods
made with hemp, such as pretzels, baklava and ice cream, also will be
available.

Scheele hopes for a good turnout because hemp still has a high
curiosity factor. A hemp field near Arthur became a traffic hazard
because so many motorists stopped to have a look.

With the price of Ontario's primary crops -- corn, wheat and soybeans
- -- depressed by world markets, Scheele said hemp offers a profitable
alternative.

"Farmers do not want to go hat in hand to the government. We want to
take our money from the marketplace and the big three just aren't
doing it anymore."