The proposed program would have allotted seven figures to jumpstart hemp processing in Colorado.
had requested $5 million for a new initiative to improve the state's hemp industry by helping businesses acquire a key piece of processing equipment, but the proposal wasn't approved.
According to the CDA, Colorado had one working decorticator as of last November, and the department believes there are only two more in the United States; the machines are manufactured outside of this country. Building a hemp-processing facility with a decorticator can cost anywhere from $600,000 to $3 million, the CDA notes.for hemp decortication operations, on the condition that each company matched the state funding for facility construction.
Colorado's legalization of recreational marijuana in 2012 made the state an early leader in hemp production, with the state topping the country in registered acreage for hemp farming in 2019. But the state's registered hemp farming acreage dropped nearly 42 percent from 2019 to 2020, according to the CDA, and last year's numbers are expected to show another dip.
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