HEMP GROWERS TAKE CASE TO HIGHER AUTHORITY

Pot -- or not pot. That seems to be the question.

Two North Dakota farmers on Wednesday took their battle to grow
industrial hemp to the Eighth Circuit U.S. Court of Appeals in St.
Paul, where their attorney argued that hemp is so distinct from
marijuana that it should not be subject to federal regulation. At
stake, say hemp sellers and would-be farmers, is a potentially
booming commodity that would help U.S. growers and consumers alike.

"I get real excited about it because of our economic times. It's a
crop that would be very, very lucrative," said Lynn Gordon, owner of
the French Meadow Bakery, who attended oral arguments at the U.S.
Courthouse in St. Paul. French Meadow makes Healthy Hemp bread,
muffins and bagels -- all big sellers, Gordon said -- but must buy
its hemp from Canada.

"I pay so much for it now," she said.

Federal law allows the import and sale of non-drug hemp stalk, fiber,
oil and seeds in the U.S., saying it is separate from marijuana. In
fact, hemp is used in paper, textiles, food and even fuel. But
federal law also lumps hemp and marijuana together -- they both are
classified as Cannabis sativa L. -- when it comes to growing the
plants, making it almost impossible for U.S. farmers to legally raise the crop.

Garrison Courtney, a spokesman for the U.S. Drug Enforcement
Administration, the reason for the prohibition is simple -- hemp and
marijuana come from the same plant and all parts of the marijuana
plant contain some level of THC, the narcotic that produces the
"high." THC is a controlled substance under federal law.

"To get hemp, you have to grow a marijuana plant. To grow a marijuana
plant, you have to be registered with the DEA," Courtney said.

Still, in 2006, North Dakota put the finishing touches on a law that
established the licensing of industrial hemp farms. The law requires
the plants to be nearly narcotic-free and establishes strict rules
that no other part of the hemp plant -- mainly, the leaves or flowers
- -- can leave the farm. At the time, the law also required farmers to
go to the DEA for a certificate of registration.

David Munson and Wayne Hauge, licensed hemp farmers in North Dakota,
did that. Munson, who is also a state legislator, said he paid $2,300
for a DEA permit in February 2007. He's still waiting. A request by
North Dakota State University to grow a small hemp crop for research
was recently approved after nearly a decade of waiting.

"We needed to get the decision early enough so we could actually get
the crop in the ground," Munson said.

In the meantime, the North Dakota Legislature amended its law to no
longer require DEA approval. But Hauge and Munson held off planting,
saying they have no desire to run afoul of the feds.

"I don't want to risk losing my farm," Munson said.

So the men filed a lawsuit in June 2007, seeking to have the federal
courts decide the issue.

Last November, U.S. Chief Judge Daniel Hovland of North Dakota ruled
against them, saying: "Industrial hemp may not be the terrible menace
the DEA makes it out to be, but industrial hemp is still considered
to be a Schedule I controlled substance under the current state of
the law in this circuit and throughout the country."

Now, it will be up to the appellate court to decide. A ruling could
take months.

Melissa Patterson, a Justice Department attorney, told the judges
that the issue shouldn't really be decided by the courts. She said
the farmers should first complete the registration process set up by
the DEA. After the hearing, Patterson declined to comment further.

Joe Sandler, an attorney for the farmers, urged the appeals court to
recognize that with strong state regulations in place, there really
is no need for federal oversight of North Dakota-licensed hemp producers.

Hemp advocates say the federal government used to encourage hemp
production. It should do so again, Gordon said.

"It really is a wonder crop," she said, touting its diversity of uses
and high nutritional value. "But I think the real answer is going to
be Congress saying 'Hey, it's okay.'"

Munson said he just wants to legally grow a crop that would be
healthy for his fields -- and his bottom line.

North Dakota farmers have been battling wheat scab, he said. Planting
hemp -- a hearty plant that needs little attention -- into his
rotation of wheat, barley and sunflowers would help. It would also
mean about $800 per acre in gross income, a nice number for the 10
acres he has planned.