Texas Hemp: Videos Outline Legal, Budget, Risk Management Considerations

    Field of hemp. Photo: Clemson University

    With the hemp growing season in Texas rapidly approaching, a team of Texas A&M AgriLife Extension Service economists released a video series, “Economic and Legal Considerations for Production in Texas,” to address key areas of interest for Texas hemp producers.

    House Bill 1325 was signed into law by Gov. Greg Abbott in June 2019, authorizing the production, manufacture and retail sale of industrial hemp in Texas. Texans began growing hemp in 2020, with the Texas Department of Agriculture reporting more than 5,000 acres permitted and 1,150 producers licensed in 2020.

    However, the U.S. Department of Agriculture’s final hemp rule became effective on March 22. The video series outlines some of the changes and details important to producers.

    “We are excited about this project and think it will be a great source of information for farmers considering hemp production in Texas,” said Tiffany Lashmet, J.D., AgriLife Extension agricultural law specialist, Amarillo.

    Video series and authors

    The Texas A&M Department of Agricultural Economics team obtained funding through the Southern Extension Risk Management Education Center to deliver producer-oriented resources and information on the legal and economic considerations for hemp production in Texas.

    The video series includes 29 videos ranging from about two minutes to 15 minutes covering everything from the basic overview to legalities, budgeting and crop insurance. Included are:

    • George Knapek, Ph.D., program manager for representative farms, The Agricultural and Food Policy Center, Bryan-College Station, provides an overview of the basics. This video is designed for anyone who wants to learn more about hemp production and the hemp industry.
    • Lashmet relates the key legal issues for hemp producers. She covers the USDA Final Hemp Rule, the Texas Department of Agriculture regulations, contracting considerations for producers, and other legal issues such as nuisance, trespass and hemp for feed.
    • Justin Benavidez, Ph.D., agricultural economist, Amarillo, gives a detailed walk-through of hemp budgets for various products and a price outlook and overview.
    • Greg Kaase, Ph.D., risk management economist, Bryan-College Station, explains the Financial and Risk Management, or FARM Assistance, program and how it can help with financial analysis and comparisons of different crops.
    • Steven Klose, Ph.D., risk management economist, Bryan-College Station, discusses crop insurance options for hemp producers in Texas.

    Lashmet asks that those who view the videos would be sure to take part in the short evaluation to let them know if the information provided was helpful.

    More information

    Information about the AgriLife Extension hemp program and variety testing results is continuously updated as it becomes available. AgriLife Extension will also begin helping provide growing-season hemp potency testing this year.

    For more production information, contact Calvin Trostle, Ph.D., AgriLife Extension agronomist and state hemp specialist, Lubbock, at ctrostle@ag.tamu.edu.

    For more legal or economic information, contact Lashmet at tiffany.dowelllashmet@ag.tamu.edu or Benavidez at justin.benavidez@ag.tamu.edu.

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