Washington State Department of Agriculture puts hemp on hiatus due to money shortage

Washington’s hemp program, not yet a year old, has stopped issuing licenses because of a budget deficit. Restarting the program for a second growing season may depend on whether state lawmakers are willing to invest $287,000 into nurturing a hemp industry that faces high regulatory costs.“Without the additional appropriations, we would need to shut down the program,” state Department of Agriculture spokesman Hector Castro said. “Without the funding, it’s not a sustainable program.”The program’s costs are largely driven by the fact that hemp, according to federal law, is a federally controlled substance and can be legally grown and processed only under state supervision. Oversight varies from state to state. Washington chose a high level of control, intended to build a sturdy hemp industry not vulnerable to federal intervention.The cost of closely regulating hemp, however, has far surpassed the fees collected from growers and processors. While some other states, including Oregon, have registered hundreds of hemp businesses, Washington has issued only seven licenses, collecting $8,139 in fees and spending $146,000 in oversight. The licenses must be renewed annually.