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CBD Archives - Hemp Market Report

Debra BorchardtDebra BorchardtDecember 4, 2019
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3min00

On Tuesday, The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), the Financial Crimes Enforcement Network (FinCEN), and the Office of the Comptroller of the Currency issued a statement clarifying banking rules around hemp customers.

Key Takeaway

The key takeaway from the statement is that banks no longer need to file the onerous Suspicious Activity Report, known as SARS for hemp farmers.

The statement said, “Because hemp is no longer a Schedule I controlled substance under the Controlled Substances
Act, banks are not required to file a Suspicious Activity Report (SAR) on customers solely because they are engaged in the growth or cultivation of hemp in accordance with applicable laws and regulations. For hemp-related customers, banks are expected to follow standard SAR procedures, and file a SAR if indicia of suspicious activity warrants.”

Michael Weiner is a partner at the international law firm Dorsey & Whitney and the chair of its Cannabis Practice Group said, “This statement is limited to hemp growers and not to other businesses related to hemp or CBD from hemp.  For banks that are already providing banking services to hemp growers, the word “solely” may cause banks to hesitate to cease filing suspicious activity reports for these customers.  For banks that are reluctant to provide banking services to hemp growers, this statement is unlikely to provide sufficient comfort to enter the market.”

“Further, FinCEN stated that it would issue additional guidance following further review of the USDA interim final rule, perhaps following issuance of final rules from the USDA following the current public comment letter.  Banks may delay making any changes to their banking services until issuance of such additional guidance,” Weiner added.

The statement went on to add “When deciding to serve hemp-related businesses, banks must comply with
applicable regulatory requirements for customer identification, suspicious activity reporting, currency transaction reporting, and risk-based customer due diligence, including the collection of beneficial ownership information for legal entity customers.”

Many in the industry are not interpreting the language as starkly as Weiner. Most believe the statement gets all hemp customers off the hook with banks. However, banks tend to be very conservative and may opt to only apply the SARS guidelines to the growers and not the extended hemp family of CBD producers.


Julie AitchesonJulie AitchesonDecember 2, 2019
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5min00

Skateboarding has long been considered an “outlaw” sport on the recreational spectrum, attracting those for whom the structure and homogenous culture of organized athletics holds little appeal. Its anti-establishment origins, outlined in greater detail in this 2013 Skateboarding Magazine article, can be traced back to surfer culture, as wave riders realized there might be a way to surf city streets with the same élan and excitement that they applied to hanging ten in the water.

Both snowboarders and skateboarders have been associated with having a friendly relationship with cannabis. There is speculation that the original California high schoolers that met at 420 to get high, most likely rode on skateboards. Snowboarding’s admittance into the Olympics made many athletes ponder kipping the event if they had to give up smoking pot. The Olympics seemed to look the other way. Many professionals in both sports made no effort to hide their love of cannabis, which kept the rebellious nature of skateboarding intact.

But in recent years, skateboarding has moved away from the fringes and into the limelight with the popular X Games, an extreme sports event produced, hosted, and broadcast by ESPN, and demonstrated by the fact that skateboarding will be an official Olympic sport in Tokyo in 2020. This has given rise to some concern that the stereotype of the stoner skater will be proven true enough to keep some of the sport’s top athletes out of contention, as it did skateboarder Corey Juneau. Ranked seventh in the world, Juneau was suspended for six months after testing positive for THC in 2018.

As skateboarding’s competitiveness, popularity, and main street respectability grow, some of the sport’s biggest names are stepping out in front of companies that promise clean, potent, risk-free performance enhancement through CBD. Michael Apstein, a founding partner of Primary Growth Partners, says that “There is a long history of outlaw brands from other market segments breaking through to the general market – from surfing and skateboarding to extreme sports and certainly in music, apparel and recreation brands.” As the benefits of CBD gain visibility in all corners of the marketplace, skateboarding’s top athletes are endorsing products that provide low THC or THC-free alternatives to marijuana. Old school skateboarding legend Tony Hawk has even developed Birdhouse CBD Balm by producer Canna Hemp, a line of CBD recovery creams that target the epic aches and pains of the action sports market.

Professional skateboarder Andy McDonald, 23-time X Games medalist and 10-time world champion, recently partnered with CBD manufacturer Extract Labs to spread the word about the benefits of CBD for extreme sports athletes. McDonald, who used his platform as a professional skateboarder to take an anti-drug message all the way to the Clinton White House, credits the pain-alleviating benefits of hemp-derived CBD for helping him manage the cumulative effects of over 35 years of skating.

Social CBD, a company that markets a range of hemp-derived CBD products that guarantee a 0.0% THC content, recently hooked X-Games Skateboarding gold medalist Nyjah Huston as a spokesperson. Huston stakes his legacy as the winningest skateboarder in history on Social CBD’s promise to deliver a product pure enough to endure the scrutiny of the Olympic committee.

As skateboarding continues to move deeper into the mainstream of competitive sports, its shining stars will no doubt continue to seek out the healing benefits of CBD and the sponsorship dollars of those companies intent on making it the must-have, performance-enhancing supplement for extreme athletes.


Tee CorleyTee CorleyNovember 26, 2019
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4min00

Company: RAD Extracts

Product: Chocolate Mint Full Spectrum Hemp Extract in MCT Oil

Price: Prices Vary (Reseller Product)

What Makes This Product Unique: Based out of Colorado, RAD Extracts is a leader among high CBD full-spectrum hemp extract. This product is available for white-label and private-label purchases by wholesalers, distributors, and sellers who need to purchase large quantities of hemp extract.

RAD Extracts believes that hemp extract is most beneficial when the cannabinoids, terpenes, and flavonoids are working synergistically. This means you won’t find isolates here. Grown certified-organic, the hemp is cold extracted using food-grade alcohol, and 3rd party tested to ensure it is below the legal limit of THC (which is 0.3% at this time). The takeaway: this product is best sold to people who want to experience the “entourage effect” of full-spectrum and broad-spectrum CBD.

Review: We sampled RAD Extracts’ Chocolate Mint Full Spectrum Hemp Extract in MCT Oil. Stored in an amber glass bottle, the label is simple and to the point. The glossy black sticker is slightly crookedly stuck to the glass, displaying a supplement fact sheet and the classic warnings you’d see on supplements of any kind (i.e. These statements have not been evaluated by the FDA, etc.).

However, since RAD Extracts sells to wholesalers, you can have your company logo printed on the label. You can also choose from amber, green, or blue glass bottles. The end design is your decision.

We always like to see hemp extract carried in MCT oil. Naturally derived from coconuts, MCT oil has health benefits of its own. Known to increase metabolism and packed full of antioxidants, MCT oil is safe to consume and apply topically.

While the packaging notes that a serving size is 1ml, the short, fat dropper has no measurement marks on it. Typically, 1ml is about a dropper-full, but in this case, you’ll just have to guess.

True to RAD Extracts’ mission, the flavor of this full spectrum extract packs a strong hempy punch. The earthy hemp flavor was immediately noticeable as we dropped this oil under our tongues. However, we were pleasantly surprised as gentle chocolate notes began to arise. Queue the minty after-taste, which delightfully accented the earthy natural flavor. As you know, it’s important to keep CBD oil under your tongue for 60 – 90 seconds to get the full effect. This symphony of flavors made that easy!

Perhaps it was psychosomatic due to the rich flavors, but we noticed the relaxing effects of this full spectrum concoction within minutes. Unlike some full-spectrum CBD oils, this one kept us clear-headed and energized alongside the calming effects. It seems to be a great anxiety-reducer and perfect for twice a day dosing.

 


Tee CorleyTee CorleyNovember 22, 2019
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4min00

Company: Bluebird Botanicals

Product: Hemp CBD Essential Lotion & Hemp CBD Sport Lotion

Price:

  • Essential: $34.96 for 3.4oz, or $59.96 for 6oz
  • Sport: $59.96 for 6oz

What Makes This Product Unique: Bluebird Botanicals strives to make a difference. With certified bioplastic recyclable packaging, certified cruelty-free testing, and a low carbon footprint, Bluebird Botanicals goes above and beyond for the environment – and does even more for their customers. In fact, this world-leading manufacturer of hemp products has assistance programs for people on long-term disability, low-income individuals, and veterans. Finally, they support and donate to over 12 non-profit organizations.

If that doesn’t instill faith that this company truly cares about its products, we don’t know what will.

Review: Moving past this do-gooder distraction, let’s talk about Bluebird Botanicals’ CBD lotions. We sampled their Hemp CBD Essential Lotion for daily use and their Hemp CBD Sport Lotion for athletes.

Our hats are off to Bluebird Botanicals’ design department. The packaging is simple yet fun. Bright green marks the Essential Lotion while a vibrant orange denotes the Sport Lotion. Elegant hemp-related icons decorate the background while bold font tells you everything you need to know about the product.

But that packaging isn’t the only difference between these two lotions.

Hemp CBD Essential Lotion is intended for daily use on dry, aged, or irritated skin. Touting vegan, non-GMO, paraben-free, and cruelty-free ingredients, this nutrient-rich emulsion contains full-spectrum hemp extract, jojoba oil, carrot extract, rosemary oil, and coconut oil. This combination is flooded with healthful omega fatty acids, amino acids, and vitamins. Importantly, there are no harmful chemicals, like SLS, or synthetic fragrances added.

Traditional lotions add chemicals and alcohol to make them feel light and weightless. These additives may feel good at first, but they dry out your skin in the long run. On the other hand, the Essential Lotion went on unusually thick. It required about 30 seconds of massaging before it sank in and lost visibility. However, we felt moisturized for the rest of the day. The earthy scent of hemp is a strong musk that overwhelmed the natural aromas of the other ingredients.

Hemp CBD Sport Lotion is designed to soothe inflammation with warming and cooling sensations. Like the Essential Lotion, Bluebird’s Sport Lotion is vegan, non-GMO, and cruelty-free. The full-spectrum hemp extract contains over 100 cannabinoids, including CBD. Added to this lotion are antioxidant-rich ginger, arnica and corn mint, jojoba, and coconut oil.

The Sport Lotion has a minty-fresh scent, though not as overwhelming as you’d find with products like Bengay. The cooling effect is also milder. We did not notice a warming effect with this lotion. Like the Essential Lotion, this product goes on thick and requires some massaging before the yellow-green streaks fully disappear. It is equally as effective, however, as we felt our skin was sufficiently and safely moisturized and nourished.


Julie AitchesonJulie AitchesonNovember 19, 2019
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4min00

CBD products are finding a robust market among yoga moms, career women with boho-chic sensibilities, and social media lifestyle mavens alike. These are busy women with the means to incorporate wellness and lifestyle elements into their daily routines that might have once been the exclusive purview of L.A. celebs or NYC fashionistas. Their purchasing power is real, their willingness to put money down on the latest trend to achieve inner peace and outer glow bottomless, and the lengths to which manufacturers are willing to go to win their business boundless.

CBD Workout Gear

Behold athleisure company Acabada, which markets active lifestyle clothing similar to that sold by Lululemon (NYSE: LULU) and Kate Hudson’s Fabletics line. Acabada is the first brand to offer workout wear laced with CBD oil. At $160 for a pair of leggings, the company’s claim that this line decreases soreness and shortens workout recovery time bets hard on the dedication of women in their late twenties to mid-forties to optimal health in a booty-boosting package.

Yoga Lovers 

An article by Rochelle Bilow on Wanderlust.com (a website popular with both aspirational yoginis and those already at the leading edge of wellness trends) proposes that CBD is the perfect way to take your yoga “to an entirely new level of chill”. According to Bilow, CBD is a shortcut to the “zen mind” that is the golden goal of yoga practice.

Luxury CBD

Christine Yi (who was profiled by marie claire magazine as one of fifteen women to watch in the CBD industry) is co-founder of Potli, a company that focuses on CBD-infused food and cooking essentials. She conceptualizes her business as one that creates “ingredients for the elevated life.” The concept of “the elevated life” aptly defines the CBD promise to the same affluent women, median age 34, who follow goop, Gwyneth Paltrow’s popular lifestyle brand. Prone to jumping on the latest trend to offer a make-up free glow, fit body, and buddha mind, this population will happily plonk down $55 for a Lavender Sleep Mask from Kana Beauty for an “elevated” sleep experience.

According to a Gallup poll conducted in August of this year, the top three reasons that Americans use CBD products are pain, anxiety, and sleep. In a study conducted by the National Institute of Health Research in the UK, it was found that women are twice as likely to be affected by anxiety as men while The National Sleep Foundation claims that not only are women more likely to have sleep disorders than men, but also more likely to experience nighttime pain.

These statistics suggest that it is not just slick marketing that is driving the charcoal lemonade-sipping, Gwyneth glow-seeking crowd to the marketplace in search of the next best thing in CBD (Votary Super Seed Facial Oil anyone? A bargain at $110!). However, when it comes to finding ways to lure women with a wellness bent to open their wallets and minds to the benefits of CBD, Madison Avenue seems to understand that it’s the promise as much as the product that matters.

 


Julie AitchesonJulie AitchesonNovember 15, 2019
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2min00

Product: Hemptown Chew CBD Gum (Mint Flavor) by Hemptown USA

Company: Hemptown USA

Hemptown Chew CBD Gum has the look of a TUMS tablet, but softens easily in the mouth with a subtle yet strong enough mint flavor to overpower any of the musty grassiness of many CBD-infused products. As with other “natural” chewing gums using sweeteners such as sorbitol, mannitol, xylitol, and/or stevia (Hemptown Chews uses all of these), the flavor quickly dissipates while the texture becomes rubbery, making chewing laborious. However, with a stated fifteen milligrams of CBD and five milligrams of CBG (Cannabigerol, the “chemical parent” of CBD and THC) per serving, Hemptown Chews have a lot more to offer the consumer than a more supple stick of Wrigley’s.

The packaging is pleasingly minimalist, with two servings per pouch. The fact that the gum is sugar-free, gluten-free, and has zero calories appealed to my inner health nut, while the high concentration of CBD and of CBG prompted me to keep working the gum over after it had lost its flavor and initial marshmallowy texture. Within about five minutes, the familiar lassitude I associate with CBD descended with a pleasant drop of my shoulders and a loosening in my chest that signaled a switch from the fight-or-flight mode of my workday to the rest-and-digest vibe I slip into once I clock out for the evening. Unfortunately, it was only twelve-thirty.

Though the physical relaxation was pleasant, for me the effect on my cognitive function was too strong. I enjoyed the gum’s swift action and its potency (if not the mouthfeel and flavor after the first minute or so) but would restrict my use of this product to times when efficiency and laser focus are not required. While perhaps well-suited for those CBD users with a higher tolerance, for me, Hemptown Chew is a “functional gum” whose function will be purely recreational.


Tee CorleyTee CorleyNovember 12, 2019
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3min00

Company: Hudson Hemp

Product: MCT Oil

What Makes This Product Unique: Hudson Valley Hemp puts a special emphasis on regenerative organic farming – meaning not only do they practice organic farming, but they use methods that revitalize the soil throughout the process. Their overall goal is to go beyond sustainability by making efforts to replenish ecosystems. They operate on the belief that regenerative hemp growing practices will ultimately result in increased biodiversity and reduce social injustice. If that’s a stance you can get behind, keep reading.

Review: As seems to be the company’s motto, Hudson Hemp keeps it simple from seed to packaging. With the typical hemp-textured green-grey label, they provide little information and even less creative design. Perhaps they’re trying to send a message, but as a consumer, I’d like to know more about what I’m getting.

But let’s not judge an oil by its bottle. MCT oil is an excellent carrier oil derived from coconuts. Naturally nutritious, MCT oil, which stands for medium-chain triglycerides, is a healthy fatty acid missing from many Western diets. It can be used as a stand-alone weight loss supplement as it increases the metabolism and has thermogenic effects in the liver. Or, it can be mixed with CBD oil to apply to topically, or even cook and eat, as it has a high smoke point.

Despite the underwhelming packaging presented by Hudson Hemp, the MCT oil full spectrum hemp extract did not disappoint. An orb-tipped dropper made the 18 drop serving size easy to measure, delivering 10mg of full-spectrum hemp extract. The texture of the oil was thin with very slight viscosity. Unlike some MCT oils, it lacked any potent coconut scent, making it easy to add to my morning tea.

The hemp extract also lacked any noticeable flavor. Made from the aerial parts of the plant (think stems and leaves), full-spectrum hemp includes everything but the THC. I noticed a reduction in caffeine-related anxiety and jitters. 

Using it as an herbal and weight loss supplement, I did notice a reduced appetite and a bout of increased energy. I make sure to use it every morning before I eat for maximum metabolism-boosting effects.


StaffStaffNovember 8, 2019
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9min00

With the surge of medical marijuana and CBD-THC -free products across the US, medical patients in Florida can rest assured that they can legally obtain medical marijuana for certain health and pain-related conditions at a medical marijuana dispensary in Florida.

Florida’s Compassionate Medical Cannabis Act was signed into law on June 16, 2014, by Governor Rick Scott. This act allowed for specialized doctors in Florida to order low- THC cannabis for patients from January 2015.

That said, recreational marijuana is illegal in Florida, and medical patients that need medical cannabis have to go through Florida’s system of obtaining a medical marijuana card to use at a medical marijuana dispensary.

A Florida doctor must follow certain conditions before being allowed to order low-THC cannabis for Florida patients. These conditions include the following:

  •  The physician must be licensed under Chapter 458 and 459 of the Florida Statutes
  •  Attend an 8-hour training class
  •  Write and pass an examination

With Florida federally legalizing hemp in 2018, there are numerous CBD companies selling hemp online. By 2019, smokable medical marijuana was made legal in Florida, although there is still a bit of a wait to get a prescription. March 18, 2019, Bill provisions include the following:

  •  Allows the possession and use of smokable medical marijuana from a medical marijuana dispensary. 
  •  It allows for the use of a marijuana delivery service used for smoking marijuana to be purchased from a vendor other than a medical marijuana treatment center.
  •  Regulates the amount of smokable marijuana to no more than a 35- day supply for a 35-day period, or no more than one 70-day supply for a 70-day period.
  •  The 35-day supply cannot amount to more than 2.5 ounces, with patients not allowed to have more than 4 ounces of smokable marijuana at a time.
  • Dispensed marijuana products need to remain in their original packaging.
  •  Patients are prohibited from smoking medical marijuana in public, at work, or on private property when not permitted by the owner.

That said, medical marijuana can only be purchased at a medical marijuana dispensary in Florida.

Reasons for Legalization

Over 70% of Florida voters approved wanted medical marijuana approved by 2016. Voters believed that qualified medical patients should have the right to smoke medical marijuana or take it in whichever form they most preferred. 

There was also Florida’s appeal of a lawsuit following the ban. Today, chronic pain is the most common reason patients use to get the state-approved medical marijuana card in Florida. They need to get a marijuana card first so that they can visit a medical marijuana dispensary.

Patients Options

Marijuana is a Schedule 1 drug under Federal Law, which means Federal Law supersedes State Law. Marijuana that contains a high amount of THC is effective for patients with different medical conditions such as:

  •  Autism
  •  ADHD
  •  Chemotherapy
  •  Parkinson’s Disease
  •  To increase appetite
  •  Pain management
  •  Glaucoma
  •  Depression

Risks and Opportunities 

Long-term research is still not available as to the safety of all CBD products. Harvard adds that “without sufficient high-quality evidence in human studies we can’t pinpoint effective doses, and because CBD is currently being mostly available as an unregulated supplement, it’s difficult to know exactly what you are getting. If you decide to try CBD, talk with your doctor — if for no other reason than to make sure it won’t affect other medications you are taking,” adds Dr. Grinspoon, MD, Harvard Health Publishing. 

Whether you’re purchasing medical marijuana from a medical marijuana dispensary or THC-free CBD, patients need to question where their product comes from, and who is responsible for the final quality of the product. The US made medical marijuana and CBD-THC-free products tend to be a higher-quality product with fewer contaminants like heavy metals and pesticides.

Quality control measures in the US come into play in a big way of protecting consumers. That said, consumers still need to ask for a certificate of analysis or COA to examine the analytical testing of the final medical marijuana product from a third-party lab. This guarantees safety and a high –quality product for all patients. 

A medical marijuana dispensary in Florida will have to follow certain rules and regulations, and can only start dispensing medical marijuana after obtaining a receipt of a medical marijuana dispensary license. 

Keep in mind that Florida law requires that medical marijuana patients meet up with their provider at least twice a year. In 2019, the Florida School board also approved a plan to establish a policy to allow for the use of medical marijuana from a medical marijuana dispensary. With medical dispensaries generating millions in sales this year, it’s not surprising that medical marijuana patients may have a hard time making a choice with the huge array of cannabis products, and extended CBD brand lines.

Author:

Olivia Davis is an enthusiastic, creative author and the Communications Assistant at Dr.Green Relief – Medical Marijuana Doctors. Our mission is to aid patients with qualifying conditions to get their MMJ Card so they can use, possess and cultivate medical marijuana legally.

 


StaffStaffNovember 7, 2019
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7min00

The USA has a new boom for hemp farmers. Though it is forbidden to consume cannabis at the federal level, 33 states legalized its usage for medical purposes and 11 states don’t mind about you smoking hemp for your personal advantage. 

Let’s distinguish the difference between hemp and marijuana. There are over 50 thousands of goods that have hemp as one of the ingredients. They include clothes, cosmetics, beverages, food, construction supplies, etc. These two types of crops are cultivated from one sort of plant, Cannabis sativa L. However, hemp has only 0.3% of THC (Tetrahydrocannabinol), the addictive component of marijuana. This means, that hemp can’t make you high and doesn’t have a similar effect as smoking a joint of marijuana. 

According to Barclays Bank and EssayShark, the size of the legal cannabis market reached $28 billion in the past year. If the USA legalizes the full cannabis market, it will enhance to $41 billion by 2028.  In case the medical usage is legalized in Europe and at the federal level, the market will grow to $55 billion. It’s logical that such perspectives attract lots of investors. This fact led to the appearance of many hemp-related startups in 2018. At the beginning of 2019, their total value was worth $1.2 billion.

It’s not surprising that these tendencies and potential increased the number of new hemp farmers. There are limits to growing cannabis, but they are quite ridiculous. For example, you can’t grow more than three sorts of the plant. A person can freely grow up to 6 bushes of hemp. People who managed to “catch the wave” of planting cannabis have now grown to the earning millions of dollars. The average price for their final product is seven thousand dollars per one kilo. Farmers are sure that it’s better to work legally and the prohibitions only support the drug dealers and the development of the black market.

The product that had been illegally brought to the USA turned into legal goods. Authorities imposed taxes and customs on them. Workers involved in the hemp industry obtained official employment, government establishments started checking the quality of the product. As a result, the price for legal cannabis increased by 5-6 times in comparison to the illegal options. Many people with low budgets prefer purchasing under-the-table weed instead of paying more. Thus, the new hemp farmers who want to have a stable income must sell their product almost without any retail margin to compete with the existing offers until they have a stable audience of customers. 

Due to the high demand and the global madness over an opportunity to earn money in this industry, many people attempt starting their own production of hemp. Those people who have never had experience with anything related to agriculture (it is agriculture by any measure) have a strong belief that it’s a piece of cake. New hemp farmers usually make the same mistakes. They don’t compile a harvest plan and take into account the weather conditions. As a result, they might lose their yield or have a smaller amount of crop than expected.

Another reason that influences the new businessmen is their confidence in finding the customers or contractors for selling their products. Experienced and considered farmers search for the contractors prior to planting the crop. Therefore, they can estimate the approximate number and the workforce required to cultivate and process the product. The majority of new farmers rely on independent contractors who have to cultivate, harvest, and dry their crops. Unfortunately, many such contractors make only verbal promises and don’t satisfy their customers’ needs. As a result, farmers fail to yield and process hemp to have a final product for sale. 

It’s difficult for amateur farmers to enter the market and beat the competition. The huge processing and harvesting companies in the industry leave almost no chances for small businesses. Thus, even if you consider all the negative factors like unfortunate weather, low prices, lack of labor, and create a perfect harvesting plan, there is still a high possibility that you might push your income into the red. The industry is facing the oversupply of hemp which leads to the decreased rates. Many farmers hurry to fire-sale their crops to anyone not to lose all the money and efforts put into the cultivation, harvesting, and processing. 

The hemp market is definitely flourishing in the USA. Unfortunately, the equipment, workforce, knowledge, skills, and time required to grow cannabis might be too much for the newbie farmers. They tend to underestimate the efforts and financial risks for entering this sphere. 

Guest post by Kelly Pethick


StaffStaffNovember 5, 2019
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4min00

Virginia’s Governor Ralph Northam announced that the first commercial hemp fiber processing plant, Vitality Farms, LLC, will soon be launched in Wythe County. According to the statement, the facility is currently operating as Appalachian Biomass Processing with plans to invest $894,000 and create 13 jobs.

Plant To Buy $1 Million in Hemp 

The plant intends to purchase at least 6,000 tons of industrial hemp valued at $1 million or more from farmers in Virginia in the following three years.

Governor Northam further said that his goal is to pursue every avenue meant to bring economic prosperity to the communities. He also noted that industrial hemp production opens the state of Virginia to a sea of opportunities such as new jobs and businesses. Governor Northam added that Virginia is dedicated to developing a booming and sustainable hemp industry, and he believes that by establishing the processing plant, a market will be opened for the farmers and growers of industrial hemp.

In March, Governor Northam aligned Virginia’s hemp law to the 2018 Farm Bill by signing the bill legalizing commercial farming and processing of industrial hemp. The announcement was marked as the first economic development in the hemp industry in Virginia.

The Secretary of Agriculture and Forestry, Bettina Ring, said that farmers in the Southern and Western regions if Virginia could benefit highly from the hemp as it has much potential. She further noted that for areas growing industrial hemp to benefit from the crop’s great potential, they must have a processing facility and robust markets for selling hemp products. In Virginia, the number of registered industrial hemp farmers is more than 1,100 and the local hemp market is growing, said Ring.

The governor’s announcement noted that the Appalachian Biomass Processing will use a specialized decorticator to process bales of hemp stalks into two raw agricultural products. The company will sell bast fiber to a North Carolina company for further processing and sale to the textile industry, while the woody core of the plant, or hurd, will be sold to a Virginia company for use as animal bedding. A native of Wythe County, company founder Susan Moore has cultivated substantial industry knowledge and relationships through experience conducting research in partnership with VDACS and the University of Virginia.

Working with Wythe County to snag the project for the Commonwealth is the Department of Agriculture in Virginia and Consumer Services. Agriculture and Forestry Industries Development, through Governor Northam, awarded the project a $25,000 grant. Wythe County was supposed to match the grant amount with local funds.

The Governor’s office released a statement saying that the company will process hemp stalk into agricultural products with a specialized decorticator. Appalachian Biomass Processing will sell the processed bast fiber to another company in North Carolina for further processing, which will later sell the finished product to the textile industry. The woody core of hemp will be used as animal bedding.

 



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