CannabisNewsWire
Editorial Coverage: The hemp industry is growing in North
America and appears to be set for further expansion thanks to
legislation making its way through the U.S. Senate.
- Hemp is a cultivar of the cannabis sativa plant that lacks the
active drug ingredient that makes marijuana users high.
- It can be used to produce medicinal CBD oil as well as fibers
for rope, paper and canvas.
- Even in difficult growing conditions, hemp can provide higher
profits than many other crops.
- It has a lower environmental impact thanks to low water
consumption and little need for chemical fertilizers or
pesticides.
Marijuana Company of America, Inc. (OTC: MCOA) (MCOA
Profile) has hemp already growing at cultivation sites
in Canada and the United States, experimenting with improved
strains and cultivation techniques. As a provider of hydroponic
equipment, Scotts Miracle-Gro Company (NYSE: SMG)
is benefiting from the growing cannabis industry and will likely
see increased sales thanks to a recent acquisition. Another
provider of hydroponics, GrowGeneration Corporation (OTC:
GRWG), has already seen a dramatic increase in sales
thanks to acquisitions and the rise of cannabis. Micron
Waste Technologies, Inc. (OTC: MICWF) (CSE: MWM) is
launching specialist waste treatment equipment for cannabis
growers. And as federal hemp legislation comes closer to passage,
Future Farm Technologies (OTC: FFRMF) (CSE: FFT)
is producing millions of hemp seeds ready to be planted by farmers
in Maine.
To view an infographic of this editorial, click here.
Bringing Hemp Back
The past decade has seen a rush to embrace legal cannabis in
North America. In the United States, 31 of the 50 states now allow
its use for medicinal purposes while another 15 allow products
derived from cannabis but with restrictions on their active
chemicals. Nine states also allow the sale and use of recreational
cannabis.
These changes have largely overlooked an important class of
cannabis: hemp. This variety of the cannabis sativa plant does not
contain tetrahydrocannabinol (THC), the psychoactive ingredient
that is the basis of marijuana’s recreational appeal. Historically
used in making rope and fabric, hemp became illegal alongside other
forms of cannabis because there was no way to distinguish between
them. But with new ways to provide that differentiation, industrial
hemp appears to be on the cusp of returning to widespread
agricultural use in the United States.
The Hemp Revival
Changes in legislation have already allowed a number of
companies, including Marijuana
Company of America, Inc. (OTC: MCOA), to start growing
hemp in the United States and Canada. But as with so much else
about cannabis production, this has been somewhat hampered by
restrictions at the federal level. Now a change
appears to be forthcoming.
In 2014, the Farm Bill allowed farmers to start growing hemp for
research purposes. Hemp farming quickly took off, reaching 25,713
acres of harvested land in 2017. And current efforts are afoot to
make the crop fully legal.
This isn’t just a publicity-grabbing move from the liberal left.
A bill put before Congress by Republican Sen. Mitch McConnell of
Kentucky aims to make hemp cultivation legal. It has cross-party
support and looks likely to pass despite the partisan divides in
Washington. If it does, the bill will allow companies such as MCOA
to expand their efforts and may encourage more farmers to grow
hemp.
The financial potential of a hemp crop is staggering. The plants
can currently be used to produce cannabidiol (CBD) oil, which is
used in medicines and wellness products such as those sold by MCOA.
Some farmers are expecting revenues of $90,000
per acre for the oil, compared with only $600 per acre for
alfalfa, which is currently one of the most popular crops in the
United States.
There’s even more profit to be made from a properly developed
hemp industry. Given full legalization, a revival of such ancillary
industries could allow farmers to profit from both CBD oil and what
is currently a waste product once the plant is processed, reviving
the hemp fiber industry after nearly a century.
A Better Crop for the Environment
One of the great advantages of hemp is that it’s easier to grow
in dry climates than many other crops. Though it needs more water
than other crops during the first few weeks of growth, hemp
subsequently needs less water and is less vulnerable to drought.
This makes it an ideal crop for farmers in arid environments, such
as parts of the western United States, as well as those currently
facing the impact of climate change.
Reduced water consumption is one of several factors that make
hemp an environmentally friendly crop. Growing hemp doesn’t require
pesticides and herbicides, meaning that the soil can be left clean
and given a chance to recover between other crops. Hemp can also be
used instead of trees to produce paper fibers, thus saving trees
and reducing the geographical footprint of paper production.
Hemp is a fast-growing plant, capable of growing up to 20 feet
in 100 days, allowing farmers to potentially grow a substantial
crop in a relatively small area, even in soil conditions where
other plants might struggle to survive. With legalization expected
with the passing of the Farm Bill, hemp cultivation may grow beyond
the small crop levels currently established by companies such as
MCOA. An increasing number
of farmers are already planting hemp. Once the red tape is
eliminated, more will surely jump on board this bandwagon.
Getting Ahead of a Growing Industry
This change is good news for MCOA and its existing hemp
cultivation projects. Legal change will give the company
credibility as an early adopter in a suddenly expanding field, with
the advantages in technique that experience brings.
One of the company’s projects is the continued development of
Hemp Agro-Industrial Zone (HAIZ) in New Brunswick, Canada, with its
partner Global Hemp Group (CSE: GHG). There, MCOA and GHG have been
working with the government to explore different approaches to hemp
cultivation and encourage the industry in the region. Supported by a government grant, MCOA and GHG have
been conducting experiments that study and evaluate soil conditions
and pest problems that could affect hemp crops. Drones allow
researchers to accurately assess the success of crops and gain a
better understanding of what makes hemp grow best.
More recently, the company has also established a hemp cultivation site in the state of Oregon in
another joint venture project with GHG. This 109-acre site features
both indoor and outdoor cultivation that allows the company to
maintain a steady supply of plants throughout the year.
At the Oregon facility, MCOA and GHG are cultivating hemp
varieties with particularly strong yields of CBD. This active
ingredient in hemp is being used in a growing variety of medical
and wellness products, with applications including increased
alertness, the control of epilepsy and pain management. By collecting and analyzing data on hemp strains to
augment CBD development, MCOA hopes to establish better profits and
wider availability for this important medicine.
Businesses Benefit from Hemp
The ascendance of hemp cultivation and the wider cannabis sector
is bringing benefits for companies in supporting services.
Scotts Miracle-Gro Company (NYSE: SMG) recently
completed the acquisition of Sunlight Supply,
Inc., the leading distributor of hydroponics products in the
United States. This $450 million deal is the largest transaction
Scotts has ever made and will double its sales to cannabis growers,
who make extensive use of hydroponic equipment. The lawns and
gardens specialist might not be growing cannabis, but as
legalization spreads and the sector grows, the company certainly
stands to profit from the plant.
Another provider of growing equipment, GrowGeneration
Corporation (OTC: GRWG), is also set to benefit from an
expanding sector. By selling hydroponic systems, nutrients and
materials for hydroponic cultivation, the company has seen a steady
increase in its profits. Its sales increased 80
percent in 2017, and it has acquired several smaller companies
to ensure its growth. The company expects U.S. hydroponic sales to
exceed $4.5 billion by 2020, thanks to exponential growth driven by
the cannabis sector.
Micron Waste Technologies, Inc. (OTC: MICWF) (CSE:
MWM) also supports cannabis cultivators but in a different
way. The company provides onsite waste management systems that turn
organic waste into clean water. Micron Waste has targeted marijuana
cultivators as one of the markets for its products. To celebrate
this growing market, the company recently ran a contest to name its specialist cannabis waste
digester.
Another specialist in indoor growing equipment, Future
Farm Technologies (OTC: FFRMF) (CSE: FFT) specializes in
LED lighting and vertical farming solutions. Not content with
providing supplies to the cannabis sector, the company has entered
the market itself with a hemp farm in Maine. The farm is soon
expected to provide over 15 million hemp
seeds to farmers in the region, which will allow the growers to
quickly increase hemp cultivation if the current Farm Bill passes
into law.
After being banned for decades, industrial hemp is seeing a
rapid rise in North America. It offers opportunities for farmers
and suppliers of cultivation equipment. And perhaps most
importantly, it offers an environmentally friendly crop for
difficult growing conditions.
For more information on Marijuana Company of America, visit
Marijuana
Company of America, Inc. (OTC: MCOA)
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