Updated: Jan 19, 2019
Unsatisfied with the outcome of the 1997 hemp study, the Kentucky Hemp Museum the Library sponsored the Economic Impact Study of Industrial Hemp in Kentucky in July, 1998. The study was funded with the help of the Deni Montana Foundation and conducted by the University of Kentucky's Gatton College of Business and Economics.
The study analyzed the potential economic impact of industrial hemp in Kentucky by examining both the current markets for hemp as well as possible new markets. The outcome of this study was quite positive, concluding that there are currently several niche markets for hemp in the U.S. including horse bedding, seed oils, and specialty papers along with newer markets for hemp like automobile parts such as upholstery, fiber composites and carpeting. The results showed "the economic impact of hemp could mean hundreds of jobs and millions of dollars for Kentucky."
See press release below from the Kentucky Hemp Museum & Library:
Independence Day for KY Farmers: University of Kentucky to Release Hemp Research
The following is a press release from the Kentucky Hemp Museum and Library:
[LEXINGTON, KY] - A study of the economic impact of industrial hemp for Kentucky will be released on July 3, 1998 at 3:00pm at Ashland, the estate of the "Great Compromiser" and noted hemp farmer, Henry Clay. The University of Kentucky's Carol Martin Gatton College of Business and Economics conducted the study for the Kentucky Hemp Museum & Library.
The University of Kentucky study concludes that industrial hemp production in Kentucky will have a positive impact on Kentucky's economy. To meet current demands, industrial hemp production would be more profitable to Kentucky farmers per acre than all other current agronomic crops, except tobacco. The study also indicates that developing an industrial hemp industry in Kentucky would generate employment and economic prosperity for rural communities.
Andy Graves, President of the Kentucky Hemp Growers Cooperative says, "This study should go a long way to dispelling law enforcement's contention that industrial hemp is not economically viable and brings us one step closer to 'Independence Day for Kentucky Farmers'."