il-june-18

The Use of Federal Water for Growing Hemp:
An Interview With Reclamation's Steve Davies
Although the Agricultural Act of 2014 includes provisions
for the growth of industrial hemp for research purposes under
state-approved programs, the use of federal water had been
in question given hemp’s classification under the Controlled
Substances Act. However, in late May 2018, the Bureau of
Reclamation’s Montana Area Office issued the first permit
for the use of federal water from a reservoir operated by
Reclamation to irrigate industrial hemp. Only one permit has
been issued so far; however, this action could allow for the crop to
grow in popularity throughout the West.
In an interview with Tyler Young, writer for Irrigation
Leader, Montana Area Office Manager Steve Davies speaks
about the recently issued permit. Mr. Davies elaborates on
Reclamation's process to issue the permit, how interested
applicants should approach the application process, and his
perspective on the future of hemp production in Montana.
Tyler Young: Please tell our readers about the approved
request to use federal water for growing industrial hemp.
Steve Davies: In June 2017, we received a request for a
water service contract from an individual who was leasing
agricultural lands adjacent to the Helena Valley Irrigation
District near Reclamation’s Canyon Ferry Reservoir for
the purpose of growing industrial hemp. The lands being
leased in this situation were not actually within the district’s
boarders, but were adjacent to the district’s canal. The
request came to Reclamation because we have the authority
of market water from the Canyon Ferry Reservoir, so the
individual asked for a water service contract for federal
water to grow the industrial hemp.
Unfortunately, the grower had already planted the crop in
2017, prior to contacting Reclamation for the water service
contract. This was the first formal request that Reclamation
had received for that purpose. We have a policy that requires
upholding the Controlled Substance Act of 1970, which
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specifically included hemp as a prohibited crop. Although
the 2014 Farm Bill contained provisions that allowed for
exemptions to the Controlled Substance Act, we were unable
to get to a decision on whether we could lawfully provide
water for this purpose before the crop dried up several weeks
later. About 69 acres of crop was lost.
In 2018, this same grower submitted another request
for a water service contract prior to planting the industrial
hemp crop. This new request included comprehensive
documentation about how the grower’s plan to grow
hemp fit the narrow exemptions of the Farm Bill Act.
Reclamation was in a much better position of making sure
we could legally provide the water based on this additional
documentation. In particular, we were able to confirm that
this plan had the involvement of the state Department
of Agriculture and an institution of higher learning and
that the cultivated crop was for research purposes under
an established agricultural pilot program. Each of the
required provisions identified in the Farm Bill were met,
and we were assured that we could legally provide the water
and not get caught between the Controlled Substance
Act and the Farm Bill Act. A water service contract was
subsequently issued in May 2018 prior to the grower
planting the crop. We really have to give this individual
credit for doing the legwork necessary to demonstrate how
she legally fit this program.
Looking at the overall timeline for dealing with this
situation, it was really important for Reclamation to get
this decision right. We did not want to issue a water service
contract for this crop and find ourselves in the position later
of having to back out. This request was just in Montana,
but Reclamation operates in the 17 western states. The
cultivation of hemp and marijuana has gained popularity as
several states, such as in California, Colorado, and Oregon,
have legalized marijuana, so we must pay attention to the
particular uses that growers want federal water for.
IRRIGATION LEADER
PHOTO COURTESY OF STEVE DAVIES.