Thursday, May 17, 2018

Oregon Cannabis Processor Hit With CBD Oil Violations

By Leafly Staff

An Oregon cannabis company was hit with a number of violations for allegedly delivering CBD oil to unlicensed retailers, state cannabis regulators announced this week.
Portland-based Modern Medicinals routed CBD oil to at least two health and wellness centers in Oregon, the Oregon Liquor Control Commission said on Monday. The company also allegedly falsified track-and-trace data in order to allow the products to be diverted.
Oregon cannabis producers are exploring growing hemp for CBD in light of rapidly falling cannabis prices.
According to the Oregon Liquor and Cannabis Board, Modern Medicinals delivered the CBD oil to Mandala Medicine & Wellness, which offers acupuncture and massage therapy in Portland, and Salem Hypnosis Solutions, which uses hypnosis in therapies to promote things such as weight loss, smoking cessation, stress reduction, and memory improvement.
Regulators announced Monday that Modern Medicinals has accepted a letter of reprimand for the charged violations, withdrew its request for a hearing, and allowed its processor license to expire. Regulators ratified the stipulated settlement on April 19.
In an email to Leafly, a company representative stressed that Modern Medicinals will continue to produce CBD oil under a Oregon Department of Agriculture license. The company denied willfully disregarding the law.
“Operating under the advice of our then-cannabis attorney, we drafted a position paper that spelled out a legal pathway for bringing CBD-only products into the non-dispensary market,” the representative said. “We immediately stopped this practice when notified by the OLCC that our position was not in keeping with the OLCC rules. (And we strongly disagreed with the OLCC assertion that we willfully falsified data to deliver product.)”
In addition to three violations for the alleged diversion, Modern Medicinals was hit with a fourth violation for claiming its CBD oil, which was produced as an adult-use cannabis product, had “comprehensive pain relief properties” and other “medicinal effects.”
More and more state-licensed cannabis producers are exploring growing hemp for CBD oil production in light of rapidly falling cannabis prices in Oregon. Since 2015, the price for a gram of cannabis has fallen about 50%, according to a report by the Oregon Office of Economic Analysis. Meanwhile, farmers can reportedly make more than $100,000 an acre growing hemp.
As grower Jerrad McCord told the Associated Press, “Word on the street is everybody thinks hemp’s the new gold rush.”

Tuesday, May 15, 2018

California Hemp Business Workshop Friday June 22 in Santa Monica

By Brian Webster

I want to invite you to attend the next California Hemp Business Workshop, Friday June 22nd 10:00 AM to 5:00 PM in Santa Monica.  This is the workshop’s first announcement.
The workshop is centrally located at: 321 Santa Monica Blvd. Santa Monica, CA 90401
near the Santa Monica Third Street Promenade, with easy access to restaurants and public transport, in the downtown area of Santa Monica.
At the workshop you will; learn the latest information about hemp business opportunities in California, get presentations from California hemp business leaders, receive a workbook on California Hemp market information and state regulations, and be able to network with hemp business peers, startups, and members of the California Hemp Association.
This workshop is a great value to people at all levels of the industry.
Many California Hemp industry leaders will be there.
I’m sure it will be time well spent for you.
I would be glad to answer any questions you may have.
Please feel free to call or email me anytime and share this with others.
Cheers – Brian
CA-Hemp & the California Hemp Association Present
The California Hemp Business Workshop
A One-Day Workshop - Friday June 22, 2018
10:00 AM to 5:00 PM
321 Santa Monica Blvd. Santa Monica, CA 90401
Learn the latest information about hemp business opportunities in California.
Get presentations from California hemp business leaders.
Receive a workbook on California Hemp market information and state regulations.
Network with business peers, startups, and the California Hemp Association (CHA)         
Morning Session: 10:00 – 12:00 noon - Hemp Farming 
Lunch Break: 12:00 – 2:00 PM
Afternoon Session:  2:00 – 5:00 PM - California Hemp Business 
$200. Ticket - includes workbook, plus CHA individual membership ($60. Value)
$100. CHA Member Ticket - for CHA members - includes workbook
$50. Student & Government Rate Ticket - includes workbook
This workshop has limited space and will sell out, as did all our previous workshops.  
Buy your ticket online ASAP!


Congress Considers Three Hemp Amendments To Farm Bill

By Kyle Jaeger

Image result for hemp plant

A bipartisan group of congressional lawmakers submitted three far-reaching cannabis amendments to a House agricultural bill on Friday. Two of the measures would legalize hemp, a non-psychoactive cousin of marijuana, and another would allow banks to provide financial services to hemp businesses.
The first, introduced by Reps. Thomas Massie (R-KY) and Jared Polis (D-CO), would remove hemp from the list of federally banned substances.
A second measure, submitted by Reps. James Comer (R-KY) and Earl Blumenauer (D-OR), along with Polis, would also legalize hemp in an approach similar to pending legislation recently filed in the Senate by Majority Leader Mitch McConnell (R-KY).
Another proposal, submitted by Rep. Andy Barr (R-KY), seeks to amend the pending Farm Bill by creating “a safe harbor for financial institutions that provide services to hemp legitimate businesses” that operate under state-authorized research programs in accordance with the provisions of an earlier version of the Farm Bill that was enacted in 2014.
The House members’ amendments will be put up for consideration by the body’s Rules Committee next week; but that panel is headed by chairman Pete Sessions (R-TX), who has routinely declined to allow floor votes on cannabis-related measures. Whether or not Sessions clears the cannabis measures for consideration, the overall Farm Bill is expected to go before the full House later next week.
McConnell’s stepped up push for hemp legalization could spur his party colleagues in the other chamber to allow one or more of the amendments to move forward. But even if House action does not occur, cannabis provisions could still make it into the final version of the Farm Bill. That’s because the Senate majority leader has already said he intends to insert the text of his standalone hemp bill into his chamber’s version of the legislation this month. That means the language would be up for consideration by the bicameral conference committee that later merges the House and Senate bills into one proposal to be sent to President Trump.
In 2014, McConnell successfully attached language to prevent federal interference in hemp research in that year/s version of the Farm Bill.

“Who knows how big it could be,” McConnell said in an interview last month, referring to the economic potential of hemp for rural states. “Tobacco was awfully big. I don’t know whether it could be that big or not. But there won’t be an argument about whether it’s not good for you.”

“The momentum for hemp farming is growing fast and has great potential to generate job and economic development,” Eric Steenstra, president of Vote Hemp, told Marijuana Moment in an email. “The three proposed hemp amendments to the Farm Bill will help advance the industry and we strongly support them.”

Four nations to watch in the hemp market

By Kristen Nichols

The United States may be driving innovation in international marijuana markets, but when it comes to hemp, U.S. producers are scrambling to catch up with established trade opportunities for a crop that has long been legal in other countries.
Hemp is taking root in the United States, thanks to the 2014 Farm Bill, which allowed limited production. But booming U.S. demand for hemp products is still largely filled by overseas producers.
According to the U.S. Congressional Research Service, hemp imports surged an astounding 1,200% between 2005 and 2015 – from $5.6 million to about $78.2 million.
Most of that growth was in hemp seeds, both viable for planting and sterilized and hulled for eating.

The United States imported a negligible amount of hemp seeds in 2000, but that sum climbed to $54.1 million in 2015, according to CRS.
That doesn’t mean that U.S. hemp producers and processors don’t have ample opportunity to expand in global markets.
Marijuana Business Magazine talked with hemp producers and activists about the best international opportunities for exporting hemp and hemp-derived products.
Click here to read more on where they expect to see the most business opportunities in coming years:
  • France
  • Australia
  • Canada
  • India

By HID Staff

Hemp isn’t as immune to drought as supporters claim, according to a Colorado State University soil researcher who analyzed two years of Colorado hemp production.
“There are a lot of myths about this crop, and one of them is that it doesn’t need much water,” said Brian Campbell, a doctoral student in Soil and Crop Sciences who monitored hemp’s water use on two Colorado plots in 2015 and 2016.
Campbell saw his hemp plants – some seed varieties and some fiber varieties – struggle without irrigation.
“It’s not that the plant won’t grow” without much water, Campbell explained.
“But it’s a no-brainer – you should irrigate your hemp plants if you want them to do well in Colorado.”
He presented his findings last month at the Institute of Cannabis Research conference at Colorado State University-Pueblo. He’s awaiting publication in an agronomic journal.
Campbell found that hemp’s reputation as a good dryland crop – meaning a crop grown without irrigation – isn’t deserved in areas without abundant rainfall.

On his northern Colorado plots, for example, Campbell grew one hemp plot with regular irrigation and the other in drought conditions where the plants got only about 8 inches of rain during its life cycle. The irrigated plants yielded a healthy average of 1,100 pounds of seed per acre, with some acres producing more than 2,000 pounds of seed per acre. The nonirrigated hemp plants yielded an average of just 400 pounds of seed per acre.
“I’ve heard a lot of people promoting hemp as a low-water-use crop, and from what I’ve seen, it’s pretty high compared to other crops,” said Campbell, who specializes in specialty oilseed crops. “I wouldn’t suggest dryland cultivation here without irrigation.”
Campbell’s water research is among the first studies to apply modern large-scale farming methods to a crop still shrouded in mystery. Decades of illegality for hemp production has left the crop way behind other commodity crops in terms of what agronomists know about how to grow it profitably.
Purdue University’s Hemp Project reports that most varieties of hemp need about 25-30 inches of rain a year, especially in the early weeks of life. But that’s about as exhaustive as university research into hemp and water use goes.
Purdue’s research also applies only to the American Midwest, and researchers warn that the hemp industry is plagued by “large information gaps that have developed with regards to production, pest management and economic impact.”
Campbell’s work resonated with some Colorado hemp farmers who attended the conference.
“You definitely need to do some irrigation,” said Bridget Gay, who grows and processes 50 acres of CBD-rich hemp in central Colorado for her company, High Country Lab.
Gay has grown hemp since 2015 and has learned through trial and error that her hemp plants need roughly 6 gallons of water per week to thrive.
“It doesn’t grow on its own unless you’re by a stream,” she said.
Campbell noted that he researched seed and fiber varieties, not the flower varieties grown by Gay and most other hemp farmers. Campbell pointed out that much more research needs to be done around growing CBD varieties of hemp.
“Cropping for CBD, there’s nothing out there” to tell farmers how much water they need, Campbell said. “It’s all shooting in the dark right now.”

Arizona Govenor Ducey signs bill to allow hemp farming

By Howard Fischer

Field of Hemp

Don’t be surprised if sometime next year you see acres and acres of what appears to be marijuana growing, unfenced, in the desert.
But don’t bother stopping to pick some to smoke.
Gov. Doug Ducey on Monday signed legislation that finally authorizes Arizona farmers to grow hemp. Proponents contend that the plant, which can produce things like fibers for clothing and oils for soaps, would give Arizona farmers some new options to make money off something that likely would grow well in the desert environment.
“This bill opens Arizona to the possibility of a new agricultural product,” the governor said in a prepared statement, saying the measure “could have a positive economic impact for the state.”
And it’s only taken nearly two decades to get here.
The issue isn’t so much industrial hemp. Instead it’s the fact that it really is a form of marijuana.
Prior legislation was sidelined amid questions of how law enforcement could differentiate between crops.
The law that takes effect next summer seeks to resolve that two ways.
First, it contains a clear chemical definition of what is not being made legal. That includes anything with a concentration of tetrahydrocannibinol, the psychoactive element of marijuana, of more than 0.3 percent.
“Expecting to get high on hemp is like expecting to get drunk on a case of O’Doul’s,” quipped Sen. Sonny Borrelli, R-Lake Havasu City, during debate on his legislation, referring to the non-alcoholic beer. “It’s a waste of time.”
Second, the only people who will be able to grow the crop are those who have permission of the state Department of Agriculture. The agency will not only be able to inspect the facilities but also prohibit the use of hemp seeds it has not specifically authorized.
And the agency is going to get $500,000 a year to hire inspectors and police the industry.
This change is a long time in coming.
The House and Senate actually voted in 2001 to allow the state’s universities to research industrial hemp as a cash crop, only to have the measure vetoed by then-Gov. Jane Hull, who said she didn’t want to spend public money on a project that “may detract from the goals I support.” Anyway, Hull pointed out that federal law prohibited the possession and growing of all forms of cannabis plants.
Legislation in 2002 to have research funded by commercial interests faltered even with sponsors having a press conference in front of an American flag made with hemp fibers.
Part of what changed is the 2014 federal Farm Bill which specifically allows universities and state to cultivate industrial hemp for research if allowed by state law and the grow sites are certified and registered by the state. And a 2015 federal law removed hemp from the list of controlled substances as long as its THC content did not exceed 0.3 percent.
The National Conference of State Legislatures reports at least 35 states have now passed law related to industrial hemp.
Borrelli said hemp farming makes sense in a place like Arizona, where farmers could probably get four cuttings of the plant a year.
“It’s very economical,” he said, saying hemp uses 90 percent less water than cotton.
Even with all that, this year’s measure still raised questions. Sen. Gail Griffin, R-Hereford, wanted to know how law enforcement will know whether a crop is legit or not. Borrelli said the key is a grower or processor having proper credentials.
If not? “Then they’re going to go to jail,” he said.
Borrelli also said that context is important.
He said most of the marijuana being cultivated for medical use is grown in climate-controlled greenhouses. But hemp, Borrelli said, is likely to be found in an open field.
And Sen. John Kavanagh, R-Fountain Hills, a former police officer, said law enforcement has access to field test kits that can quickly determine whether a plant is legal or otherwise.

Why the Hemp Business Isn’t Slowing Down Anytime Soon

By Bethan Jenkins

There has never been a better time to launch a cannabis hemp business, what with the industry seeing expeditious growth over the last few years.
Hemp is usually cultivated in in the northern hemisphere. Closely related to the Cannabis sativa plant species, hemp was originally spun into fiber some 10,000 years ago, according to Hemp, Inc.
A fast-growing plant with an abundance of medical and industrial uses, hemp is rich in essential fatty acids, including linoleic acid (Omega-6) and alpha-linolenic acid (Omega-3).
The crop is not to be confused with marijuana.
It is non-psychoactive, so don’t expect to get high from hemp! What you can expect from this crop, however, is a sustainable renewable resource that is gaining global demand.
‘Ganjapreneurs’ are acknowledging this fact and jumping on the cannabis hemp business bandwagon, which has the potential to be incredibly lucrative in a flourishing market.
CannabisNow’s great infographic demonstrates these attributes:

Hemp is a Sustainable Renewable Resource

Just one acre of hemp can be used to produce enough fiber to the amount of 2-3 acres of cotton. A single acre of hemp could also produce close to 1,000 gallons of methanol in one growing season. In fact, the crop is commonly used as an alternative clean burning fuel.
Also used to create paper, hemp is strong, soft and long-lasting. What’s more, the sustainable renewable resource is not susceptible to mold and mildew, nor does it necessitate any pesticides or herbicides quite like cotton does.
Perhaps one of the most environmentally friendly and beneficial crops of them all, hemp requires minor amounts of fertilizer to grow in abundance. Even if it is burned as a fuel, hemp will not negatively impact the environment.
How, you ask?
Well, when it is burned as a fuel it emits the same type of carbon dioxide (CO2) that the environment takes in. This makes hemp an appealing choice for environmentally-conscious cannabis hemp business owners.

A Brief Insight into the History of Hemp in America

During the Colonial times through World War II, hemp was an essential crop. The hemp seed was brought to Colonial America by the Puritans. It was widely planted and used as a fiber for the creation of sails, lines and caulking work.
In the year 1841, Congress passed a law that requested the Navy to acquire hemp from domestic farmers. A 1919 article in the Kentucky Agricultural Experiment Station Bulletin no. 22 claims that hemp made its way from Virginia to Kentucky just before the Revolutionary War.
Dependence on hemp soared throughout America during the 19th and Early 20th Centuries. Increased levels of production commenced in states like California, Illinois and Nebraska.
Things soon changed throughout the 20th Century, when the federal government and individual states started to criminalize cannabis in all forms.
Possession or transportation of cannabis was made illegal across the United States under federal law as per the Marihuana Tax Act of 1937. However, the medical and industrial use of hemp was excluded from this law and an excise tax imposed on all hemp sales.

The Modern Hemp Industry in the U.S.

Today’s hemp industry is thriving, thanks to lighter regulations at the state level and increased awareness of the plant’s benefits, many of which are medically-focused.
Hemp and Cannabidiol (CBD) are tolerated a lot more now than they were in the past. Doctors, scientists and the general public are embracing cannabis research and hemp production, with hemp-derived CBD quickly becoming one of the most in-demand products.
A 140 percent increase in the number of acres licensed for hemp cultivation in the top 10 hemp-growing states was noticeable between the years 2016 and 2017. During the same period, the number of hemp producers swelled to double the amount.
Estimates from Cannabis research firm Brightfield Group reveal how the U.S. market for hemp-derived CBD crept up to $291 million in 2017. By 2021, researchers believe it will inflate to $1.65 billion.
If you thought that was impressive, get this: in 2017 there were three times more hemp producers in Oregon, Tennessee, and Vermont than the previous year.
Growth spread throughout other states, too, with Minnesota’s cannabis hemp business producers increasing by 533 percent, while New York experienced 425 percent growth and North Dakota welcomed a 600 percent hike in production levels.
Hemp programs expanded in Colorado and Kentucky throughout 2017 – two of 10 top hemp-producing states. Today, these states account for 64 percent of the total acres registered for cannabis hemp business production.
The average number of acres registered for hemp production in the U.S. in 2017 was 1,787. This is an increase of 377 percent from the 374 acres licensed for hemp cultivation in the previous year, non-inclusive of Colorado and Kentucky.

Uncertainty is Not Threatening U.S. Hemp Industry’s Future

Although uncertainty plagues the cannabis hemp business industry in regards to how things will look in the future, this is not stopping policymakers and entrepreneurs from getting a slice of the U.S. hemp market.
Based on data gathered by hemp-advocacy group Vote Hemp, hemp crops throughout the U.S. have doubled this year.
In a total of 18 states, Vote Hemp discovered that there were 23,346 acres of space being used for hemp cultivation in 2017. Compared to the 9,649 acres of space being used for hemp cultivation back in 2016, this recent figure verifies growth of more than double.
A whopping 1,456 farmers have already been issued with state licenses to grow hemp in the U.S. this year. Furthermore, the number of universities conducting hemp research is on the incline, with the number rising from 30 in 2016 to 32 in 2018.
State licenses to cultivate hemp have been issued to 1,456 farmers so far this year and 34 states include hemp laws on the books. Vote Hemp President Eric Steenstra used this report as a way of driving Congress to make hemp farming legal nationwide.

Hemp Production Could Impact Other Industries

It is important to remember the implications that the cannabis hemp business industry may have on other industries.
Primarily, the pharmaceutical industry is going to take a big hit, and not in a good way. Opioid medications are being replaced with hemp-derived CBD oils, whether the oil is being used as a substitute by an epileptic child, an elderly person with Parkinson’s disease, or a cancer patient with chronic pain.
In 2016 alone, almost 19,000 Americans lost their lives to opioids. As fewer people seek out over-the-counter medications from pharmacists and the like, the pharmaceutical industry may struggle to keep up with hemp businesses. Nevertheless, the negative impact that hemp production may have on the pharmaceutical industry is not really a big issue, considering the number of lives it could possibly save.
The positive impacts of hemp production on other industries far outweighs the negatives. Way before hemp cultivation was prohibited, the plant was widely used in many other industries. Paper, textiles, canvas, rope, clothing, construction, biofuel, plastic composites – these are just a few examples of the things that hemp was (and still can be) used to create.
With the rising number of hemp farms throughout the U.S., it is inevitable that the aforementioned industries will benefit in the long-term. Lower production costs and higher demand for hemp-based products will likely translate to wealth for workers in alternative industries.

The U.S. Hemp Industry is in the Infantile Stages

Complete hemp cultivation is still illegal at the federal level, but this is not stopping ‘cannapreneurs’ from launching their very own cannabis hemp business.
The downside to this fairly fresh industry is that hemp producers cannot grow hemp in states that have not set up a hemp program. Many people are also questioning the legality of hemp-based extracts, such as hemp-derived CBD. Hemp farmers statewide are continuously trying to discover the best cultivation practices. However, the demand for products developed from US-grown hemp remains unclear.
The good news is that even the most traditional farmers out there are getting involved in the cannabis hemp business industry. Since industrial hemp boasts a plethora of uses, is it any wonder why farmers are growing their own hemp as an advanced investing strategy against lower-valued yields, like alfalfa or cotton?
Moreover, certain states have demonstrated enthusiasm to support the burgeoning hemp industry by accepting more cultivators into hemp programs and modifying acreage restrains across the board.