420 with CNW – Hemp Legalization Could Pave the Way for Marijuana Decriminalization

The Farm Bill of 2018 is getting its final touches to reconcile the versions approved by Congress and Senate. The bill will allow the cultivation of hemp, a plant that has for long been a controlled substance alongside cannabis. Marijuana advocates see the legalization of hemp as a precursor of what will inevitably happen with regard to cannabis since both plants belong to the same family.

Hemp contains just trace amounts of THC (tetrahydrocannabinol) and is rich in CBD (cannabidiol) while cannabis has a high CBD and THC content.

Hemp has often been called “industrial hemp” because of its numerous industrial applications, such as its use in the production of biofuel and in the construction industry. Hemp is also used in the skincare industry as well as having medicinal uses from CBD oil.

Previously, hemp could only be grown if permission was granted in order to get a supply for pre-approved research projects. The new bill will classify hemp as an agricultural product, so one will no longer need a permit to cultivate it.

This decision may look simple at the surface, but it signals a major shift of policy since the new classification would remove the legal stigma of treating hemp as a dangerous plant/substance. It is this undertone that cannabis advocates are counting on for the rescheduling of marijuana since cannabis is closely related to hemp.

It is hoped that cannabis will soon be regarded as an intoxicant that isn’t so dangerous that it deserves the “pariah” status that has been slapped on it for decades.

Economic reasons played a major role in shifting attitudes towards hemp. The diverse uses to which hemp can be placed offer numerous avenues through which local, state and federal authorities can earn tax revenues.

The same prospects exist in the cannabis industry, so there is no reason to think that economic reasons will not come into play as the voices for cannabis legalization get louder across the country and in Congress or Senate.

Descheduling cannabis appears to be taking the same path as same-sex marriages. Society is awakening and questioning whether there is any justification to continue criminalizing cannabis, and the players in the political class are adjusting their positions in light of the shift at the grassroots. Cannabis is no longer the outlier topic it once was.

You can bet that the developments around hemp are of keen interest to companies like Canopy Rivers Inc. (TSX.V: RIV) and Chemistree Technology Inc. (CSE: CHM) (OTCQB: CHMJF) because of the medicinal applications to which CBD can be put.

More from CannabisNewsWire

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CannabisNewsWire.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

420 with CNW – Federal Report Shows More Banks Doing Business with Cannabis Companies

A quarter-three report for 2018 released by the Treasury Department’s FinCEN (Financial Crimes Enforcement Network) shows that the number of financial institutions that are doing business with marijuana businesses has increased by 20 percent from what it was at the start of this year.

The data gathered by FinCEN shows that 111credit unions and 375 banks had cannabis businesses as clients by the end of September.

This latest report has no surprises since previous quarterly reports by the agency showed a steady increase in the number of financial institutions willing to work with cannabis businesses even if national laws regard marijuana as an illegal substance.

The Q3 report comes hot on the heels of the electoral victories scored by marijuana in the midterm polls. Michigan voters approved adult-use cannabis while voters in Utah and Missouri voted in favor of medical marijuana.

The recent general political developments also seem to favor the marijuana industry in some form, especially when one considers the fact that the Democrats have taken control of Congress. National opinion polls also show record-high support for marijuana legalization, and the politicians may think twice before ignoring this tide.

Meanwhile, the ABA (American Bankers Association) started collecting data from its members regarding the challenges that they are facing as they serve the cannabis industry. The data collected will be used to apply pressure upon Congress and the relevant regulators to institute helpful reforms in the stifling banking laws.

At the same time, a number of key players in the federal government, such as the Treasury Secretary Steven Mnuchin, have expressed a willingness to find ways for cannabis businesses to keep their cash safely instead of in bags as is the current practice.

The Federal Reserve chair has also acknowledged that the current legal regime makes it hard for financial institutions to have any certainty regarding how to work with cannabis businesses in the states where cannabis is legal. He feels that this needs to change.

States where cannabis is legal are also speaking up in different ways. For example, financial regulators in 13 states wrote to Congress asking for protections for the banks doing business with marijuana businesses.

More hope for financial institutions is coming from the consensus that seems to be forming in both Congress and Senate in favor of new legislation geared at fixing the impasse between federal and state banking laws with respect to offering services to cannabis businesses.

The big question now is whether the Republican-leaning Senate will cooperate when it matters if the Democrats in Congress pass cannabis-friendly bills. VIVO Cannabis Inc. (TSX.V: VIVO) (OTCQX: VVCIF), Youngevity International, Inc. (NASDAQ: YGYI) and the entire cannabis industry would be glad if these two houses agreed and removed the existing ambiguity in the financial laws affecting cannabis banking.

More from CannabisNewsWire

About CannabisNewsWire

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CannabisNewsWire.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

420 with CNW – Alaska Credit Union Opens Its Doors to Cannabis Businesses

Credit Union 1 in Alaska has announced that it will begin a pilot program of offering financial services to cannabis businesses in the state. This pilot program is scheduled to start in the first six months of 2019.

The step taken by Credit Union 1 is a brave one because the majority of the financial institutions in the country are hesitant to have cannabis businesses as clients due to the prohibitions at the federal level. Credit Union 1 is chartered at the state level.

The Credit Union revealed that it was driven by security concerns when making the decision to pilot offering banking services to the cannabis industry. James Wileman, the CEO of Credit Union 1, said that they didn’t have any moral or political opinion about cannabis when deciding to get involved in providing banking services to marijuana businesses.

Officials from the tax division of Alaska welcomed the decision taken by Credit Union 1, calling it “extremely good news.” They are right to feel that way, because it will be much easier for the tax authorities to collect their dues once there is a clear paper trail to track all the sales in the state.

Alaska is already enjoying massive tax returns from the marijuana industry. For example, the state received approximately $11 million in taxes from January up to September this year.

Marijuana businesses are also excited by the opportunity, and they are wondering why it took so long for a financial institution to take the plunge and welcome cannabis businesses. Many are wishing they could participate in the pilot program instead of waiting for the services to be rolled out to more businesses sometime in the future at the successful conclusion of the pilot program.

The situation in Alaska shows how slowly systems change in order to accommodate new realities. For example, voters approved recreational marijuana in 2014 and the state started issuing retail licenses in 2016, but not a single cannabis company has been able to get any form of banking services.

However, it was just a matter of time before the allure of the resources in the cannabis industry became too strong for the banking industry to ignore. Chances are high that many other financial institutions will be watching the developments at Credit Union 1 before coming to the table as well.

Cannabis companies like American Premium Water Corp. (OTC: HIPH) and Cannabis Strategic Ventures, Inc. (OTC: NUGS) welcome the pioneering efforts of Credit Union 1 and other financial institutions that are trailblazers in their jurisdictions in terms of providing essential financial services to this nascent industry.

More from CannabisNewsWire

About CannabisNewsWire

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CannabisNewsWire.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

420 with CNW – Missouri Welfare Recipients Uncertain Whether Medical Cannabis Will Affect Benefits

The midterm elections last month saw a large number of Missouri voters turn out to vote in favor of Amendment 2, the ballot measure which was intended to legalize medical marijuana. The passing of that amendment means that Missourians have an extra option to deal with various health conditions, such as PTSD, cancer and Parkinson’s disease. However, those receiving welfare benefits from the state aren’t sure whether the use of cannabis will make them ineligible for the benefits which they rely on for their sustenance.

The Department of Social Services in Missouri revealed that it has not yet reached a position regarding the status of beneficiaries who opt to use medical marijuana. However, the department offered no timeline regarding how soon the policy review would be complete.

Currently, the law requires that applicants for the Temporary Assistance for Needy Families be screened for drug use. Those who don’t show up for the test, and those who test positive for various drugs, including marijuana, immediately become ineligible to receive the benefits for three years.

Nonetheless, not everyone is tested, although everyone is asked about drug use. The welfare officers have the discretion to decide who is selected to be tested and who enrolls for the program without undergoing the drugs test.

As things stand, welfare benefits recipients may have to play it safe and abstain from medical marijuana even if they badly need it. This option is a tough one, but if one is faced with a choice on whether to risk being declared ineligible for three years after testing positive for cannabis or waiting until the Department of Social Services decides the way forward, then the abstinence choice becomes the less harmful one.

The dilemma on whether to consume medical cannabis or not isn’t just weighing on the mind of welfare recipients alone. Employees in various government departments, such as those working in the correctional facilities, also don’t know where they stand regarding the recently passed law legalizing medical marijuana.

The law bars the consumption of marijuana in all correctional facilities. However, it is not clear whether someone working in a correctional facility (warders, for example) can lose his or her job when drugs tests return a positive result for marijuana. Once more, the officials in charge of the Department of Correctional Services aren’t ready to commit one way or the other regarding this grey area.

One is tempted to think that it is still early days since medical marijuana was legalized in the state, so different stakeholders are still digesting the implications, and how to react to the new reality. Meanwhile, welfare recipients and workers in government departments remain uncertain about what the future holds for them regarding medical marijuana. Everyone watching the developments in Missouri, including Therma Bright, Inc. (TSX.V: THRM) (OTC: THRBF) and TransCanna is hoping that the necessary clarification is provided sooner rather than later so that those who desperately need medical cannabis can access it without fear of being victimized.

More from CannabisNewsWire

About CannabisNewsWire

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CannabisNewsWire.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

420 with CNW – Scientists Discover How Marijuana and Hemp Differ

Scientists have for long wondered why the cannabinoids in hemp differ in quantity from those present in cannabis, yet these plants are genetically similar. Research was conducted to generate a chromosome map of cannabis sativa and the findings shed light on this important question.

The study brought to light the fact that the THC and CBD composition of hemp and cannabis was largely a product of mutations resulting from viruses that entered the chromosomes of the cannabis plant millions of years ago.

The result of that viral invasion at the genetic level was that cannabis split into two distinct variations, that is, hemp and cannabis. Hemp largely contains CBD while cannabis has varying amounts of CBD and THC, but cannabis has markedly higher THC levels than hemp.

The enzymes that triggered the production of the varying levels of CBD and THC in these two plants look identical at the genetic level, but they differ in genetic expression. Consequently, it is possible to extract one gene and leave the other, thereby growing a plant with only one of the major cannabinoids. For example, the THC gene can be removed so that plants with only CBD can be grown, and the same can be done to the CBD gene in cannabis.

The scientists thought that human selection was partly responsible for the wide prevalence of cannabis strains since, from ancient times, people have been known to propagate plants that gave them the desired output. Consequently, varieties that had balanced CBD and THC may have been ignored and left to disappear from the genetic pool while those with high THC were kept as our forefathers enjoyed the “high” derived from those varieties. Hemp survived this primitive form of selection because it had other uses, such as making rope from its tough fibers.

What does this research show the current crop of scientists? There is still so little known about cannabis. This information gap may not necessary be the fault of the scientific community, but it can be attributed to the decades of prohibition that made it nearly impossible to perform any meaningful research on cannabis.

Jonathan Page, one of the main researchers in this Canadian study, remarked that the legal walls are gradually collapsing, so scientists should take the lead in generating information about this versatile plant. For example, the full implications of this chromosome map produced by Page’s research are yet to be fully understood. The Flowr Corporation (TSX.V: FLWR), The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) and other cannabis companies welcome the new body of information that has been added to what is currently known about marijuana.

More from CannabisNewsWire

About CannabisNewsWire

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CannabisNewsWire.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

420 with CNW – Supply Shortages Could Delay Issuance of Cannabis Retail Licenses in Alberta

The seemingly endless supply shortages ever since recreational cannabis was legalized have started having a domino effect on the Canadian pot industry. The latest news is that the province of Alberta will not issue any more cannabis retail licenses for up to 18 months, unless the supply shortages are addressed by the licensed producers who are mandated to grow and avail cannabis to the recreational and medical cannabis markets.

The Alberta Gaming, Liquor and Cannabis (AGLC) commission made the announcement, adding that the matter was out of their hands.

So far, 65 retail stores were approved and started operating. The province had promised to increase the number to about 250 stores within a year after legalization. However, the ongoing shortages have thrown a spanner in the works, and it may not be possible to hit that target.

Matters may worsen on the supply side if Ontario starts retail sales at the beginning of April next year as planned.

The moratorium on new licenses is biting the business community hard. This is because many of the potential retailers had already leased expensive premises for the retail stores, and now they are continuing to pay rent yet they aren’t operational. For how long can they keep making these rent payments before closing for good?

It isn’t clear what recourse the staff who had already been hired will have in light of this extended delay for new stores to open.

It seems the only winner in this situation is the black market, because consumers keep resorting to the illicit market in order to get what they want. Black market dealers are having a field day meeting the needs of a market that was blown wide open after legalization on October 17.

Meanwhile, Alberta is getting jittery because the delays in licensing new operators may drive investors to Ontario. That capital outflow would take needed tax dollars with it. Alberta is the only province that has so far put a halt on the issuance of new retail licenses.

Their position is understandable given that it makes less sense to bring more retailers on board when the current ones cannot even get half the cannabis that the need to satisfy clients. In fact, it has been widely reported in the local press that buyers are so desperate for recreational cannabis that they are maintaining 24/7 vigilance in order to be first in line when a new consignment of cannabis is delivered to a retail store. The supply chain should have been planned better to avoid such an extended shortage. Sunniva Inc. (CSE: SNN) (OTCQB: SNNVF) and Supreme Cannabis Company Inc. (TSX.V: FIRE) (OTCQX: SPRWF) aren’t happy about the bad rap that the industry is getting due to these persistent shortages.

More from CannabisNewsWire

About CannabisNewsWire

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CannabisNewsWire.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

420 with CNW – Smoking Cannabis Makes You Less High than Vaping It, Study Finds

As the law and people’s attitude towards marijuana gradually eases up, questions are emerging about how the different methods of consuming marijuana compare against each other. Well, scientists at Johns Hopkins University School of Medicine sought to answer that question by looking into how vaping cannabis differs from smoking it.

With just 17 participants, this study can be aptly described as a small one. However, its findings cannot be discounted when one considers the thoroughness invested in investigating what the researchers had set their minds upon.

First, the study participants were recruited on the basis of being healthy and having abstained from marijuana for at least a month prior to the study. There were eight women and nine men selected for the study.

These selected participants were then given marijuana at varying levels, that is, at concentrations of 0 milligrams (placebo), 10 milligrams and 25 milligrams. This marijuana was given a week apart, and the participants had to consume it within an eight-hour window.

The researchers then subjected the participants to psychomotor and cognitive function tests, tested how much THC was present in their blood, and then recorded their vital signs (pulse, blood pressure, etc.).

Additionally, the study volunteers were asked to complete a questionnaire in which they reported their subjective assessment of how they felt after consuming the cannabis. For example, they were asked to state whether they felted nauseated, anxious, restless or motivated.

The researchers discovered that vaping appeared to trigger stronger effects among the study participants when compared to smoking marijuana, and this was given further credence when lab tests showed that the level of THC in the blood of the participants was higher in the samples taken after they had vaped the substance.

Other scientists who reviewed the findings commended the researchers for focusing on infrequent users of cannabis since all other research centered on regular consumers. Additionally, the methodical approach taken also attracted acclaim.

However, some observers wondered whether the use of pipes to smoke marijuana could give results that were representative of the marijuana joints (cannabis rolled in a paper) that are commonly smoked.

Furthermore, the study participants were asked to vaporize their marijuana three times in quick succession in order to complete their “dose” for the day. This may differ from what people normally do, that is, vaporize once before taking a long break. Consequently, the study could have brought out the extreme effects that are rarely seen among normal users.

Nevertheless, the study provides valuable information that will be useful to particularly individuals taking medical marijuana. This is because such individuals can adjust the dosage based on the method of use. Cannabis companies like Sproutly Canada, Inc. (OTCQB: SRUTF) (CSE: SPR) (FRA: 38G) and Sugarmade, Inc. (OTC: SGMD) certainly appreciate the insights provided to users and the industry by the research at Johns Hopkins.

More from CannabisNewsWire

About CannabisNewsWire

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CannabisNewsWire.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

420 with CNW – Marijuana Could Improve the Memory of Older People, Study Finds

Researchers from the University of Bonn in Germany and Hebrew University in Jerusalem (Israel) have done a study to investigate whether cannabis can improve brain function once endocannabinoid system (ECS) activity is increased by administering cannabis.

Lead researcher Andreas Zimmer and his team got three categories of mice for this study. The first group of mice was two months old while the second group was 12 months old. The third group of mice was 18 months old. These three groups represented the young, mature and old age-groups respectively.

The mice in each age group either received a placebo or had an implant that released THC slowly into the bloodstream. This was done consistently for 28 days after which several days were allowed to elapse with no THC being administered. This abstinence period was referred to as the washout period.

Additionally, all the mice (whether they got THC or a placebo) took part in memory and behavioral tests. For example, one activity involved testing whether the mice recognized other mice to which they had been exposed prior to receiving the placebo or THC.

Another test required the mice to locate a safe platform in a pool of water. The time taken during this activity was recorded for all the mice in the study.

The results of the study were eye-opening. For example, the young mice (the group which was two months old) showed a deterioration in their memory function after receiving THC. In contrast, the mature (12 months old) mice showed an improvement in their memory function. How could this be?

The researchers studied the brain structures of these mature mice and discovered that the brains suddenly looked young (comparable to those of the two-month old mice). Specifically, the hippocampus acquired new synaptic spines, a sign that brain neurons could now communicate more effectively with each other, and thereby heighten brain activity.

In other words, the THC had rewritten the genetic programming of the brains of the mature mice. The researchers used the elimination method to discount any other factor which could be responsible for the improved brain function and the result was that the THC reversed the aging of the brain cells.

What do these results mean for humans? The work done by Zimmer and his team shows a high likelihood that older humans can see improvements in brain function if they consume cannabis. However, this isn’t a certainty until human trials are done and documented. The good news is that Zimmer has already secured funding to study how THC affects memory function in humans.

The study involving human subjects will paint a clearer picture of how cannabis can be used to combat mental decline with age, especially dementia. Redfund Capital Corp. (CSE: LOAN) (OTC: PNNRF) (Frankfurt: O3X4), SinglePoint, Inc. (OTCQB: SING) and the entire cannabis industry wish Zimmer and his team of researchers all the best in their bid to broaden how much we know about cannabis and its medicinal value.

More from CannabisNewsWire

About CannabisNewsWire

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CannabisNewsWire.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

420 with CNW – Australians to Conduct First Marijuana Clinical Trial for Brain Cancer

Two Australians, a naturopath and a neurosurgeon, have teamed up to conduct the first clinical trial in the world aimed at finding out whether cannabis can be used to treat glioblastoma, one of the most aggressive forms of brain cancer.

This type of cancer affects at least 1,000 individuals in Australia alone each year. Sadly, the majority of the patients diagnosed with glioblastoma die within one year and only 5 percent survive for five years after diagnosis.

Dr. Janet Schloss, a naturopath based in Brisbane, and Prof. Charlie Teo, a famous neurosurgeon, have teamed up to explore how patients can have better chances of surviving this cancer if medical cannabis is used alongside the conventional cancer treatments (chemo, radiotherapy and surgery).

The Australian researchers aren’t starting from zero. They have accessed studies conducted in Spain to the effect that medical cannabis inhibits the regrowth of brain tumors in animals. Some human studies have also shown that cannabis may help brain cancer patients to survive for longer.

This research only became possible after Australia made legal changes that permitted the use of some forms of cannabis for medical purposes in 2017. This legal step meant that researchers could now shift from just looking into the side-effects of cannabis consumption to studying how cannabis could be used as a medicine.

Dr. Schloss revealed that she was inspired to do this research after Spanish researchers used cannabis injections to reduce the size of brain tumors. Their research will focus on preventing the regrowth of the brain tumors because patients normally succumb to the condition when suppressed tumors regrow rapidly and cause the death of the patient.

For now, the researchers are recruiting study participants. This stage will be followed by a clinical trial lasting three months in which patients will consume 2ml of cannabis oil each night. The oil was carefully formulated by BioCeuticals to contain as little THC as possible in order to prevent the patients from waking up groggy, or affecting their sleep.

The researchers will document the extent to which cannabis supports the conventional treatments used to treat glioblastoma. The research is being conducted at the Endeavour College of Natural Health, and the New South Wales Ministry of Health has approved the clinical trial. The researchers hope that their findings will increase the options available to the patients who desperately need help in fighting this serious type of cancer. The cannabis community, including companies like Phivida Holdings Inc. (CSE: VIDA) (OTCQX: PHVAF) and Plus Products Inc. (CSE: PLUS), are waiting with bated breath for the outcome of this groundbreaking research.

More from CannabisNewsWire

About CannabisNewsWire

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CannabisNewsWire.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

Hemp Industry Sees Profitable Harvest as Farm Bill Approaches Finale

CannabisNewsWire Editorial Coverage: With the end in sight for the 2018 U.S. Farm Bill, which contains provisions likely to grant hemp full agricultural legalization, and revenues from existing hemp products rising, hemp farmers are seeing reasons for excitement this fall.

The Farm Bill is set to finally pass through Congress in the near future.
Predicted hemp revenues for the next few years are soaring.
Hemp is doing particularly well in states with supportive politicians, such as Kentucky.

Sugarmade, Inc. (OTC: SGMD) (SGMD Profile) has made the most of this opportunity through investment in Hempistry, a hemp cultivator with big plans for expansion. The popularity of cannabidiol (CBD) products means that hemp may soon surpass the value of other cannabis products, which is providing strong profits for companies such as Tilray, Inc. (NASDAQ: TLRY). This popularity will likely to lead to growth in the food and beverage industry, one reason why Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has received substantial investment from that sector. HEXO Corp. (OTC: HYYDF) (TSX: HEXO) plans to increase its 310,000 square feet of cannabis cultivation space to almost 1 million square feet by the end of the year. Meanwhile, Aphria (NYSE: APHA) (TSX: APHA) is developing new products to tap into Canada’s lucrative market.

To view an infographic of this editorial, click here.

Hemp Rides High on Wave of Change

Four years ago, it would have been virtually impossible to talk about a hemp industry in the United States. As a variety of the cannabis plant, hemp had been made illegal under legislation decades ago despite not containing significant quantities of the active drug compound that gets marijuana users high from other distinct forms of cannabis. State level reforms had done nothing to protect hemp on a federal level, and the plant was struggling to make its mark.

All that changed with the 2014 Farm Bill, which allowed for the cultivation of hemp at trial and research sites. Together with the emergence of laws in more cannabis-friendly states, this has allowed the industry to take off in a big way. Hemp is being put forward as a potential cash crop to be used in producing fibers, medicines and health foods. Farmers are starting to see big profits from hemp crops. And with fresh legislation on the verge of passing in Washington, the industry appears set for a surge in growth.

Fighting over the Farm Bill

For companies invested in hemp, such as Sugarmade, Inc. (OTC: SGMD), one piece of legislation has dominated the political landscape over the past year — the 2018 Farm Bill.

Farm bills are pieces of legislation passed by Congress every few years as the previous iterations expire. They set out government policies on issues of agriculture and food supply. As complicated pieces of law covering multiple topics, these bills are much haggled over by both houses, and the 2018 bill has been no exception. Divisions over food stamp rules and immigration policy has held up its passage for months.

This year’s farm bill has Sugarmade’s attention because of a section that will remove quality hemp production from drug enforcement restrictions nationwide. Backed by Senate Majority Leader Mitch McConnell, this has been one of the less controversial parts of the bill despite hemp’s illicit history. The possibility of offering struggling farmers a valuable cash crop is one that both parties can get behind.

Unfortunately, this important change for hemp was left in limbo thanks to the other battles over the bill. But now discussions in committee are finally moving towards a finished bill that unifies the House and Senate versions, as the lame duck Republican house majority tries to pass a law it can stomach before control of a dominant voting bloc passes to the Democrats.

Bottom line: the legalization of hemp cultivation could be just days away.

Hemp Heads into the Mainstream

This political change has been facilitated by shifting public attitudes towards hemp. The plant is increasingly popular in food and body care products and has been singled out as one of the top trends for next year by Whole Food Market. That’s good news for Sugarmade, which recently launched its own industrial hemp initiative, as it means there’s not just a consumer market for hemp-derived products but also the political will to make production easier.

These shifts in attitudes are reflected in the varying fortunes of states as well, with some receiving far stronger support for their hemp industry than others. For example, Kentucky’s hemp industry is bolstered by advocacy from the state’s politicians. Congressman James Comer has been outspoken in supporting the state’s industry and in pushing to get the Farm Bill approved.

Sugarmade is among the companies benefiting from Kentucky’s positive attitude towards hemp. The business has invested $1 million in Kentucky hemp company Hempistry to support its high-grade hemp operation for the U.S. market. Harvest of this year’s crop has recently started, following a test harvest of samples by the Kentucky Department of Agriculture (KDA), and the company is inviting interested parties to place bids on the crop. With demand for hemp rising, Hempistry’s legally grown, CBD-rich crop is likely to be in high demand.

Rising Hemp Revenues

One of the reasons behind Sugarmade’s investment in Hempistry is the dramatic rise in revenues from hemp crops. A few years ago, no one could have predicted the popularity hemp would achieve by 2018. The crop was mostly a side note, a reminder of the days when its fibers were used to make ropes and sales. When interest in CBD started to expand, producers realized that it could be extracted from industrial hemp. By turning this interest into a separate industry, businesses could sell CBD without becoming entangled in a mass of legal and social uncertainties.

Companies that have made strong investments in hemp cultivation, such as Sugarmade, will gain considerably from hemp’s ascendancy, to the benefit of managers and common share investors. Jimmy Chan, CEO of Sugarmade, commented, “Demand for industrial hemp and products derived from hemp is soaring with no let up in sight. We expect our direct investment into Hempistry to be accretive to common shareholders, and our supply agreement to be lucrative. All of us at Sugarmade see a tremendous opportunity to become a supplier to this fast-growing sector.”

Expanding the Hemp Harvest

With the hemp market growing so fast and the Farm Bill promising to make hemp farming easier, many companies are looking to expand their operations. Having just harvested 100 acres of CBD-rich hemp, Hempistry is focusing on achieving a 10-fold increase in its acreage next year, which would make it one of the largest hemp cultivators in North America.

This expansion is happening alongside that of companies in the related cannabis sector. In Canada, recreational legalization has been big news for companies such as Tilray, Inc. (NASDAQ: TLRY), one of the largest cultivation companies in the country. A leader in research, production and distribution, Tilray has seen staggering financial growth over the past year, with an 85 percent rise in revenue during the third quarter and a 78.9 percent rise for the year to date. Legal and social changes have created the space for a substantial new industry to flourish across North America and beyond, bringing in big bucks for the companies that pioneered the sector.

Growth into the beverage and whole food markets is a likely next step for many hemp and cannabis companies, and big players on the inside of those industries have started to take note. Constellation Brands, a leading American beverage manufacturer, has invested billions of dollars in Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), one of the largest cannabis growers in Canada. Canopy Growth is relatively small fry compared to the power of Constellation Brands, but the funds such a corporate giant can spare make a big difference in an emerging industry. The result is likely to be the development and marketing of CBD-infused foods and drinks, pushing the industry into places it hasn’t previously reached.

HEXO Corp. (OTC: HYYDF) (TSX: HEXO) produces cannabis through its Hydropothecary brand and recently announced plans to develop nonalcoholic, cannabis-infused beverages with Molson Coors Canada. This joint venture with one of the world’s biggest beer makers is a significant move to position HEXO in the burgeoning cannabis-infused drinks market. The company also announced that it has closed on the acquisition of its first major facility outside of Quebec.

Aphria (NYSE: APHA) (TSX: APHA) has also seen rising revenues and profits since 2016, thanks to the growth of this innovation-led market. It recently announced a collaboration with Perennial, Inc., to develop products for the Canadian market, a critical region for any company looking to expand beyond the United States.

With hemp revenues on the rise and politicians about to ease the way for hemp farmers, this is a sector that’s likely to keep growing in strength for years to come.

For more information on Sugarmade, visit Sugarmade, Inc. (OTCQB: SGMD)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.