Why a Hemp Checkoff Program Might Soon Become a Reality
February 19, 2021 
The National Industrial Hemp Council (NIHC) and The Hemp Industries Association (HIA) have announced results of a survey on industry attitudes towards a hemp checkoff program.
The results of the survey, which yielded 270 responses, show that nearly eight out of every ten growers and processors support a checkoff program for research, promotion, and consumer education. Roughly six of ten also support being assessed a nominal fee to fund a program.
“This is exciting news for our industry that there is such wide consensus to support such a program,” says Patrick Atagi, Board Chairman of the National Industrial Hemp Council. “We believe that a checkoff program will help the industry not only develop markets for hemp products, but also fund much-needed research and educate consumers on the usefulness and versatility of hemp.”
HIA President Rick Trojan says it’s clear from the survey response that there is a broad level of excitement around the idea of a national hemp checkoff program, and significant interest in the potential return the hemp industry could see from an effective research and marketing program under USDA.
“We in the industry recognize the incredible potential of this agricultural commodity, and there was a strong consensus around the importance of educating the market about the value of hemp across the supply chain for food/grain, fiber, and cannabinoids,” Trojan says. “It’s encouraging to see the positive feedback this dialogue with the industry has generated so far, and we look forward to continuing to partner with the NIHC and other forward-looking allies to explore the tremendous opportunity a national checkoff represents for hemp.”
USDA checkoff programs seek to promote farm commodities and expand market opportunity for farmers, importers, and industry stakeholders. Funded through assessments on the produced commodity at the first point of sale, checkoff programs allow producers of commodities to pool resources for research, education, and promotion efforts that can expand sales and improve production efficiencies.
Currently, USDA’s Agriculture Marketing Service (AMS) oversees 23 checkoff programs for various commodities ranging from cotton to pork to Christmas trees. A study in 2018 by Texas A&M found that the existing 23 checkoffs had a return on investment for farmers and ranchers ranging from $3 to $17 in value that came back to the producers for every checkoff dollar invested.
The NIHC and HIA are now working to form a task force of representatives from across the industry that would discuss the details of how a hemp checkoff would be structured and operate. The effort of the working group would guide the development of a proposal to submit to the USDA that will include an industry analysis, justification for the program, objectives, and the impact on small businesses.
Complete survey results are available here.
In a follow-up conference call, representatives from the associations and others in the hemp industry addressed additional concerns. For example, while checkoff programs have caused contention in other markets, Atagi said he doesn’t think this is likely in the hemp industry, due to the vital need for education on a young but expanding crop. He also emphasized that a checkoff program would not place any limits on production, either in terms of volume or process.
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