One processor goes online, second is planned in New York State

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The capacity for hemp processing in the U.S. state of New York looks to be ramping up quickly, with one facility recently starting operations and an announcement this week that a second factory is planned.

CNY Hemp Processing, Canastota, New York, recently went online and will produce hemp oil, fuel pellets and animal bedding, according to company president Stephen Halton.

The company also is taking fiber waste from CBD producers and turning it into bedding material for farm animals

CNY will add five workers over the next few months and is exploring development of a satellite facility, Halton said.

Canadians get license

Meanwhile, Canada’s Canopy Growth Corp. announced this week it will build its first American-based production facility after it was granted a hemp license in New York.

The license will let Canopy process and produce hemp as the company moves ahead with plans to establish a hemp industrial park for extraction and other production, Canopy said in a press release.

State is supportive

Hemp stakeholders in New York are taking advantage of an enlightened and supportive approach to the crop by state officials. The state last year earmarked $650,000 for a $3.2 million hemp processing plant near Binghamton in the south central part of the state, and set aside $2 million in last year’s budget for a state-run hemp seed certification program. The state in 2017 established a $5 million industrial hemp processing grant program for qualified projects related to hemp production.

Canopy said it will invest between $100-150 million in its New York facility.

Canopy, based in Smiths Falls, Ontario, said it plans to announce the new factory’s location, most likely in the state’s Southern Tier region, within the next three months, and said it will source hemp exclusively from U.S. farmers.

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