Hemp - Potential Boon to New Mexico

Besides the opportunity it presents to positively impact New Mexico’s economy, hemp is a multi-use crop with substantial benefits for the environment.  Hemp is versatile; its fiber and seeds are harvested for everything from milk and oil, to biofuel, paper products, and textiles.¹

It’s estimated hemp will grow into a $2.6 billion business by 2022, and with the passage of New Mexico House Bill 581 industrial hemp is now a legally regulated crop in New Mexico.²  Hemp is a sustainable crop, less impactful on our natural resources, requiring less water and energy than traditional crops such as cotton, and is naturally pest-resistant.³

To cultivate and harvest hemp, farmers must be licensed and meet stringent growing guidelines, including limiting their plants’ delta-9-tetrahydrocannabinol (THC) concentration to no more than three-tenths of a percent (0.3%).⁴ THC is the compound in marijuana that causes a high. Since THC levels are strictly limited, hemp cannot be used recreationally as a drug. 

The New Mexico Environment Department offers resources, rules, and applications to entrepreneurs looking to invest in hemp cultivation.

As a non-profit financial co-op rooted in organic banking and permaculture, preserving and protecting the well-being of our members, our community, and our environment is at the heart of what we do. Connect with a member of our team, and we’ll help you realize your green business’ full potential.

Kawtar El Alaoui
505-256-6080
Kawtar.ElAlaoui@sandia.org
Commercial Services Officer
Sandia Area Federal Credit Union

References

1Palmer, B. (2011, April 12). Hemp versus cotton: Which is better for the environment? Retrieved from https://slate.com/technology/2011/04/hemp-versus-cotton-which-is-better-for-the-environment.html.

2Baca, M. C. (2019, April 28). Opportunities are growing for hemp. Retrieved from https://www.abqjournal.com/1308093/opportunities-are-growing-for-hemp.html.

3Cherrett, N., Barrett, J., Clemett, A., Chadwick, M., & Chadwick, M. J. (2005). Ecological Footprint and Water Analysis of Cotton, Hemp and Polyester. Ecological Footprint and Water Analysis of Cotton, Hemp and Polyester. Stockholm: Stockholm Environment Institute. Retrieved from https://mediamanager.sei.org/documents/Publications/SEI-Report-EcologicalFootprintAndWaterAnalysisOfCottonHempAndPolyester-2005.pdf

4Olivia, (2019, March 19). Hemp Basics: What Acequia Farmers Should Know about the Hemp Renaissance in New Mexico. Retrieved from https://lasacequias.org/2019/03/19/hemp-basics-what-acequia-farmers-should-know-about-the-hemp-renaissance-in-new-mexico/.