A hemp producer based in Dayton, Ohio has a new customer for its crop after the firm signed a deal with a processor in nearby Michigan to provide raw material for hemp-based bioplastics. Under its new contract with Detroit-based Heartland Industries, Ohio Hemp Company will provide hemp fiber to produce bioplastic that will eventually become auto parts manufactured by a Belgian firm.

Ohio Republican Governor Mike DeWine signed legislation to legalize hemp in the state in 2019, the year after Congress legalized the crop on the national level with the passage of the 2018 Farm Bill. TJ Richardson and Justin Helt, the owners of Ohio Hemp Company, were among the first farmers in the state to farm the crop. They planted 11,000 cannabinoid hemp plants in 2020 to take advantage of the then-booming CBD market.

After the CBD market began to retract, Richardson and Helt pivoted to growing hemp plants bred to produce grain and fiber, rather than CBD and other cannabinoids. Because of the versatility of hemp, the company still had opportunities with the crop to explore.

“My grandpa always says that hemp is the most exciting new thing in agriculture since soybeans in the 50s,” Helt told agriculture news source Farm and Dairy. “That gives you a little perspective on how often something like this comes along. We see a huge trajectory path for this crop to grow in the state.”

Richardson and Helt knew from the time they launched their operation that there are a multitude of uses for hemp. After transitioning away from CBD hemp, the partners began looking for businesses near Ohio that were using the crop in their products. Before long, Richardson and Helt discovered Detroit-based Heartland Industries, a hemp processing facility founded in 2020. In 2022, the company began a partnership to provide hemp fiber to Ravago, a Belgian bioplastics manufacturer. 

Tim Almond, chairman and co-founder of Heartland Industries, said that from the beginning, his company and the farmers it works with faced challenges as they learned to grow and work with the crop.

“It had been illegal for 80 years, a lot of the knowledge and planting equipment has been either lost or transitioned to corn, soybean and wheat,” said Almond. “Farmers didn’t know what technology would work. So we had to understand how to plant the crop all over again.”

Heartland Industries uses the hemp fiber grown by Ohio Hemp Company and other farmers in the Midwest to manufacture small hemp pellets known as nurdles. After this initial processing, the nurdles are transported to Ravago, where they are mixed with plastic nurdles to produce a bioplastic composed of 70% plastic and 30% hemp fiber. The bioplastic is then used to manufacture parts for the auto industry.

“Everybody wants to have a product that’s better for the environment, but it’s hard to do it if it compromises the cost and it compromises performance,” Almond said. “We found a happy balance with the plastic manufacturing world where we can use this ingredient at 30% in the recipe, and we could see cost savings, we can see weight reduction, we can see performance maintaining the same, but most importantly we can see the reduction in carbon footprint.”

To maximize efficiency, Heartland Industries originally began partnering with farmers in Michigan to source the hemp the company needs. But as the hemp fiber market grew, it also started working with growers in nearby states including Indiana, Illinois and Ohio.

In 2022, Ohio Hemp Company began growing and researching dual-purpose hemp that produces both fiber and grain. Last year, the company grew 100 acres of the crop. Thanks to the new contract with Heartland Industries, Helt and Richardson plan to plant 200 acres of dual-purpose hemp this year.

The hemp grower’s new agreement is a purchase contract to provide hemp fiber to Heartland Industries on a non-binding, year-over-year basis. Ohio Hemp Company is in the process of adding new infrastructure to support its expanding operations. The firm is building a new processing and storage facility, as well as researching new varieties of hemp.

Helt said that the new contract with Heartland Industries and other developments at his operation are signs of the growing demand for hemp in the region.

“It means everything to the growth of this company and to the growth of the industry in (Ohio) to have a major processor (with) a great demand,” said Helt. “All the different pieces of the puzzle are finally coming into place to create an entire industry from front end to back end, from the plant in the field all the way to the end consumer. It’s beautiful to see.”

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Ohio cannabis regulators last week released a draft proposal of rules to govern recreational marijuana production and sales. Voters legalized recreational marijuana in Ohio with the passage of Issue 2 in the November 2023 off-year election, making the state the 24th in the nation to largely end the criminal prohibition of cannabis.

Issue 2, which passed with 57% of the vote, legalized recreational marijuana in Ohio for adults 21 and older, who are permitted to possess up to 2.5 ounces of marijuana and up to 15 grams of cannabis concentrates. The new law also legalizes marijuana cultivation for personal use, allowing adults to grow up to six cannabis plants at home. Households with more than one adult are permitted to grow a total of 12 plants.

The successful ballot measure also created a new state agency dubbed the Division of Cannabis Control (DCC), which will have the authority to “license, regulate, investigate, and penalize adult use cannabis operators, adult use testing laboratories, and individuals required to be licensed,” according to the text of Issue 2. 

Until last week, the DCC had not yet released any rules to govern recreational marijuana production and sales in Ohio, where medical marijuana was legalized by state lawmakers in 2016. Without regulations, consumers in the state were left without a legal avenue to purchase recreational weed, a situation Governor Mike DeWine characterized as “goofy,” according to a report from online news source Cleveland Scene.

Proposed Rules Set Requirements For Legal Weed Businesses

The new proposed regulations set rules for 13 areas of recreational cannabis production and sales, using the regulations from other states that have legalized marijuana as a guide. Among the new regulations is a requirement that retail pot dispensaries be located at least 500 feet away from schools, parks, playgrounds, churches and libraries. 

Sales of recreational cannabis are restricted to adults aged 21 and over, who are required to show identification. Customers of dispensaries are required to be “escorted and monitored by an assigned registered employee at all times.” Retail dispensaries are required to close by 11 p.m.

Additionally, dispensaries are not permitted to choose or change a business name without approval from the DCC. Before beginning operations, dispensaries are required to deposit $50,000 in an escrow account, while testing labs must deposit $7,500 and the largest weed cultivators are required to maintain an escrow account of $750,000.

The regulations put limits on dispensary owners’ interest in other cannabis businesses, limiting them to one cannabis cultivator, one cannabis processor and eight retail dispensary locations. The proposed rules also set security requirements for cannabis businesses and mandate standards for the proper disposal of cannabis waste.

Retail Weed Sales Could Begin Within Weeks

Under the new rules, existing medical marijuana dispensaries could be licensed to sell adult-use cannabis as soon as June 7. Recreational dispensary licenses will be issued later, perhaps as soon as September 7.

Brian Vicente, founding partner of the cannabis and psychedelics law firm Vicente LLP, characterized Ohio’s proposed adult-use cannabis regulations as “a sensible starting point for the Buckeye state.”  

“Unlike recent legalization states like New York that opted to draft legalization regulations from scratch, the Ohio rules clearly borrowed ideas from earlier states—resulting in a refreshing level of sophistication and understanding of the needs of both cannabis consumers and business owners,” he wrote in an email to High Times. “These regulations include commonsense ‘best practices’ for businesses in important areas like waste disposal and quality assurance, which should lead to a smooth roll-out and ongoing operations. Consumers will be able to access cannabis from stores until 11 p.m. and through drive-up windows, which will foster widespread access.”

The DCC is accepting public comments on the proposed adult-use cannabis regulations through April 17. The agency noted that the rules have not yet been finalized and are subject to change by state lawmakers.

“The following information is based on the initiated statute ballot measure approved by voters. Because it is an initiated statute, it may be amended by the state legislature,” the proposal reads. “Any amendments to the statute could impact the timeline for the rulemaking and licensing processes, and dispensary sales.”

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Ohio Governor Mike DeWine last week called on state lawmakers to pass legislation to ban hemp products with psychotropic cannabinoids such as delta-8 THC, saying that the intoxicating products pose a risk to children. The legislature reconvenes this month, with lawmakers already planning to consider new legislation to regulate recreational marijuana, which was legalized by the state’s voters in November. 

The House of Representatives is expected to return to the Ohio Statehouse on Wednesday, two weeks earlier than planned. The Senate will also return to session later this month, with cannabis regulation one of the top priorities for the state’s lawmakers.

Ohio voters legalized recreational marijuana with the passage of Question 2 in the 2023 off-year election. The initiative legalizes cannabis for use by adults and sets the stage for regulated sales of recreational marijuana.

The legislature’s Republican majority is planning to pass legislation to more closely regulate adult-use cannabis in the state. And at a press conference on January 3, the Republican governor called on lawmakers to pass legislation banning intoxicating hemp products including delta-8 THC and hemp-derived delta-9 THC, the cannabinoid largely responsible for the “high” experienced when smoking marijuana. 

“It is intoxicating, it is something that needs to be banned, and again, the legislature could ban it,” DeWine said in a statement cited by local media. “These hemp products can be sold anywhere in the state of Ohio, and we have no jurisdiction, we have no laws to prohibit that, we can do absolutely nothing.”

DeWine and GOP leaders in the legislature had originally hoped to pass a bill restricting some provisions of Question 2 before the initiative went into effect on December 7. After failing to reach a consensus, however, lawmakers delayed work on the legislation until the new legislative session. 

House Reconvenes This Week

The House is returning early to attempt to override DeWine’s veto of a bill limiting gender-affirming healthcare for children. In his remarks last week, the governor said the early return would allow lawmakers to revisit cannabis regulation, noting that he is concerned the lack of regulation will encourage unregulated marijuana sales. 

“I will just say that since the house is coming back next week, this might be a good time to take up and deal again, something they did not do, which is to deal with the marijuana issue,” said DeWine. “We still have a situation in Ohio every single day where people can use marijuana, they can possess marijuana, they can even plant marijuana, grow it, but they can’t buy the seeds, legally they can’t buy marijuana.”

The governor added that if the House is unable to pass legislation to regulate marijuana, he hopes that lawmakers will shift their focus to regulating intoxicating hemp products.

“At the very least, if they can’t do that, I would hope they can deal with something that is very real across the state of Ohio and that is intoxicating hemp,” said DeWine. “I can take you, if you drive from here to the governor’s residence, we can take you to a place right there where kids, 12, 13, 14, any age can walk in and buy it.”

Republican Senator Huffman is currently working on a bill to regulate intoxicating hemp products that is based on language contained in the state Senate’s proposal to regulate marijuana. Huffman said he wants to ensure that the legislation is balanced with concerns from the state’s hemp retailers, who say that a bill that is too restrictive could harm the industry. 

“There are some really good CBD products out there, but there’s others that are manufactured in a way that are intoxicating and not safe,” Huffman said in an interview with Statehouse News Bureau, noting that language in a state budget proposal to regulate delta-8 THC and delta-9 THC was removed from the proposal last summer.

In his comments last week, DeWine acknowledged Huffman’s efforts, noting that it might take a separate hemp cannabinoid regulation bill to pass muster with lawmakers in the state House of Representatives.

“I know that the House has said they don’t want to take up marijuana in the same bill that they do intoxicating hemp,” said DeWine. “So, what Senator Huffman has started to do, and I just want to congratulate him and thank him for that, he is now drafting a separate bill.”

The governor emphasized that state lawmakers should move quickly on regulating hemp cannabinoids in the interest of protecting children in Ohio.

“If we want to talk about protecting kids, dealing with intoxicating hemp is something we need to deal with,” the governor said.

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