Hemp Fiber Processing Grants Available in Missouri

The Missouri Department of Agriculture has made funding available for the processing of industrial hemp fiber. The department will award grants of up to $200,000 for reimbursement of expenses associated with the expansion of processing capacity for industrial hemp fiber in Missouri.

The Missouri General Assembly appropriated $700,000 to help build Missouri’s industrial hemp fiber processing infrastructure. Increased processing capacity will create additional marketing opportunities for Missouri industrial hemp producers.

Industrial hemp is used for a variety of products, including paper, textiles, construction materials, fuel, culinary oils and body care products. Once a major agricultural crop in Missouri, production of industrial hemp ceased during the 20th century due to concerns about illicit use of marijuana, a plant cousin to hemp. The 2018 Farm Bill legalized hemp production on the federal level, and Missouri established an industrial hemp program the same year. Production of industrial hemp is tightly regulated to ensure the product does not contain THC, the drug component of marijuana.

“This long-neglected plant offers great potential as a value-added commodity for Missouri agricultural producers,” said Sen. Justin Brown, who supported the Industrial Hemp Grant Program as a member of the Senate Appropriations and Agriculture committees. “The Department of Agriculture’s hemp grant program will help provide the resources farmers need to expand their production of this exciting crop.”

This is a reimbursement grant, with a minimum 25% cash match required. Eligible expenses are limited to equipment used for processing industrial hemp fiber and direct costs for the installation of such equipment. Applicants must be based in Missouri.

Grant applications are due by Oct. 22, 2021, and grants will be awarded on or before Nov. 8, 2021. Expenses must be incurred between the date of award and March 1, 2022. All grant recipients must submit a reimbursement request and progress report no later than April 1, 2022, detailing activities and advancements toward project completion.

For a grant application or more information about the Industrial Hemp Processing Grant or other grant opportunities available through the Missouri Department of Agriculture, call (573) 751-4211 or visit the Department online at Agriculture.Mo.Gov.