American Farmers: Forget Soy. Check out Hemp’s Price Per Acre and Help the US win the China Trade War

For the first time in decades, the United States finds itself embroiled in an international trade war. So far, billions of dollars worth of tariffs have been slapped on both foreign and domestic goods; and few groups have felt the pain of this war more than American farmers. Could industrial hemp production help give farmers, and the United States, a critical edge in this trade war? The data seems to suggest so, and in this special report, the Hemp Business Journal will walk you through the numbers and show you how.

Although the U.S. is involved in several international disputes, the most crucial front in the trade war is with China. China is one of the United States’ largest trading partners, and one of their most painful trade attacks is their 25% tariff on soybeans.

Soybean Prices Crushed

The reason soybean tariffs are so painful to U.S. farmers is that soybeans are their second largest export to China. In 2017, the U.S. sold approximately one-third of its soybean harvest to China, totaling $14 billion. At this very moment, there is a cargo ship loaded with $20 million worth of soybeans just sitting in the South China Sea, waiting for the trade war to end before it can offload its goods.

Although the owners of the cargo ship can afford to stay out to sea for an extended period of time, soybean farmers aren’t so lucky. Even without international trade disputes, soybean prices have been falling in recent years, and now, according to a report by the University of Illinois’ Department of Agricultural and Consumer Economics, the price is so slow it’s hard to economically justify planting it.

At the soybean market price peak in 2012, farmers were able to make $160 per acre after costs. But now, thanks mainly to the trade war, prices have fallen so far that farmers have gone from making a modest profit off their crop to losing approximately $20 per acre of soybeans. Projections for 2019 are dire, with farmers set to lose $47 per acre.

Hemp to the Rescue

So where does hemp fit into this economic picture? Industrial hemp cultivation would help the United States gain an edge in the trade war with China in two way. The first way is that a growing US hemp industry would cut into Chinese hemp exports. As the largest exporter of hemp in the world, China would stand to lose its parts of its export market if a competitor like the United States could develop processing infrastructure to cut into its market share.

The second reason is that full-scale hemp cultivation could help relieve some pressure for beleaguered soybean farmers. For farmers feeling the heat of soybean tariffs, hemp represents a viable alternative crop that can be far more profitable, according to Joe Hickey, Director of Corporate Relations and Founder of Atalo Holdings.

“Some of these farmers out here in Kentucky, if they make $30 or $40 an acre, they’re just happy they didn’t go in the hole,” said Hickey. “But hemp is a completely different ball game. We haven’t even scratched the surface yet.”

Atalo Holdings is one of the largest hemp farming co-ops in the state of Kentucky, with more than 60 farmers as part of the group. According to Hickey, the profitability of hemp depends primarily on what you grow it for. At present, there are three primary purposes that hemp is currently cultivated for grain/seed, fiber, and CBD.

Hemp grain can sell for anywhere between $0.60-$0.65 per pound, and on average, hemp farmers get about 1000lbs of hemp grain per acre. After taking into account costs, which can range from $300 to $350, farmers can make around $250 to $300 per acre.  Similarly, hemp fiber sells for approximately $260 per ton. On average, hemp crops can yield about anywhere between 2.5 to 3 tons of hemp fiber per acre, which means after costs farmers can make upwards of $480 per acre in profit. Much of the fiber market depends on industrial processing capacity, and at present, there is little in the emerging US market.

When it comes to determining the profitability for hemp cultivated for CBD extracts, the math is wide-ranging for farmers.

Hemp CBD Cultivation Types

There are two main methods for cultivating hemp for CBD. The first model is the agronomic method, which is where hemp is grown like any other agricultural commodity crop. The advantage of the agronomic method is that it is both cheap and carries less risk than other methods of cultivation. The drawback, however, is that it yields less CBD.

The second model is called the horticultural method, where hemp is grown in a manner similar to cannabis. Growers using this method will often use the term “short, bulky Christmas trees” to describe their crop.  The advantage to this model is that farmers get significantly higher yields of CBD than the agronomic model. The drawback to the horticultural model is that it is more expensive and not yet scaleable for most farmers.

Depending on the state, circumstances, and cultivation method; cultivating hemp for CBD can generate anywhere between $2,500 and $75,000 per acre. With such an incredible range of profits for farmers, the paradox of choice and learning curve on how exactly to grow hemp remains for many US farmers.

That said, even at its lowest price, hemp is significantly more profitable than soy at its peak price or any other agricultural commodity for that matter.

2018 Farm Bill

If the United States wants to gain a critical edge in its trade war with China, it should wholeheartedly embrace industrial hemp cultivation. Although industrial hemp cultivation is technically allowed in the United States under Section 7606 of the 2014 Farm Bill, restrictions stand in the way of the industry from reaching its full potential.

Currently, there is an amendment attached to the Agriculture Improvement Act of 2018, also known as the 2018 Farm Bill, that would fully legalize the cultivation of hemp. Sponsored by Senate Majority Leader Mitch McConnell (R-KY), the amendment would go a long way towards putting farmers back to work and the United States on top in the international hemp trade; so long as legislators pass the 2018 Farm Bill this fall.

Original Article By, Hemp Business Journal 

 

CV Sciences, Inc. to Host Second Quarter 2018 Financial Results

LAS VEGAS, July 20, 2018 (GLOBE NEWSWIRE) — CV Sciences, Inc. (OTCQB:CVSI), preeminent supplier and manufacturer of hemp-derived phytocannabinoids including cannabidiol (CBD) oil and developer of specialty pharmaceutical therapeutics, announced that it is scheduled to host a conference call to discuss its second quarter 2018 financial results on Wednesday, August 1, 2018 at 1:15pm PT/4:15pm ET.

CV Sciences’ Chief Executive Officer Joseph Dowling will lead the call to provide an operational and financial summary of the second quarter ended June 30, 2018.

Event: CV Sciences Second Quarter 2018 Financial Results Call
Date: Wednesday, August 1, 2018
Time: 1:15pm PT/4:15pm ET
Telephone access (U.S. and Canada): 877-407-8293
Telephone access (International): 201-689-8349
Live webcast:www.cvsciences.com under Investors section

In order to ensure adequate time for any software downloads that may be necessary to listen to the webcast, attendees are encouraged to connect to the website 10-15 minutes prior to the live event.

If you are unable to participate in the call at this time, a replay will be available for 14 days starting on August 1, 2018, at approximately 7:30pm PT/10:30pm ET. To access the replay, please dial 1-877-660-6853 in the U.S. and 1-201-612-7415 for international callers. The conference ID# is 13681926.

About CV Sciences, Inc.

CV Sciences, Inc. (OTCQB:CVSI) operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD; and, a consumer product division focused on manufacturing, marketing and selling plant-based CBD products to a range of market sectors. CV Sciences, Inc. has primary offices and facilities in Las Vegas, Nevada and San Diego, California.  Additional information is available from OTCMarkets.com or by visiting www.cvsciences.com.

Original Article By: GlobeNewswire

FORWARD-LOOKING DISCLAIMER

This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties.

Hemp, the Biomass Power Plant

multi-usage-hemp

The wonders of hemp as an alternative crop for farmers continue to amaze the world. It’s a crop that’s easy to grow, is gentle on the soil and provides a way for farmers to grow another cash crop. Research indicates that hemp can become a bio-fuel of the future.

Recent Hemp Developments

Recent developments around world relating to the production of hemp show that hemp can be used as an additive to create cake mixes, milk, pasta and even bread. Hemp by-products are also an answer to providing alternative fuels in the energy sector. Scientists and researchers have used hemp to make biofuel and industrial oil.

According to Klara Marosszeky, an Australian hemp advocate, growing hemp is a sustainable alternative for small farmers. It’s also great for the environment. “The biomass it produces is the equivalent to a similar area of forest [per year], but it’s produced in a four month period of growth,” Marosszeky said. “It’s really an opportunity for farmers to earn a good income because they have the opportunity to value-add on farm.” The complete interview with Marosszeky can be read here.

Creating Fuel from Hemp

hemp-fiberThe process of creating useful products from hemp have been demonstrated by researchers at the University of Alberta in Canada. The research shows hemp as a potent power plant. They have taken the waste from the hemp cannabis plant and transformed it into a carbon nanomaterial that can be used as a substitute for more expensive graphene. Graphene is a nanomaterial used in batteries and high-power super capacitors. Uses for super capacitors include fast-charging batteries used in laptops and smartphones and braking systems in vehicles, including buses and

Hemp as Fuel

pyrolytic-reactor-biomassHemp falls under a fuel classification known as biomass. Biomass simply describes matter that is produced biologically, such as through farming. This hemp biomass is then processed into fuel via chemical decomposition or biological digestion. A complete treatment of hemp for fuel and human consumption can be found here.

Pros and Cons of Hemp

Hemp is a plant that grows in nearly any type of soil. It needs little or no fertilizers or pesticides. It’s easy on the planet, creating no greenhouse gas. It’s acceptance, though, as a useful crop is still hindered by governments who see hemp as a drug.

Common Myths & Misconceptions

  1. Smoking hemp will get a person high.
    The THC levels in industrial hemp are minimalised (less than 0.3%) and can give you a headache at best.
  2. Farmers grow industrial hemp all over the world.
    Farmers DID grow hemp extensively in the 1930s. The war on drugs put a stop to that.
  3. Anyone can grow hemp within the United Kingdom.
    You must hold a licence (under strict guidelines) from the Home Office. The growth of seeds which germinate into marijuana plants is restricted.
  4. Hemp is not economically viable, so it should be outlawed.
    Why should government be allowed to determine what crops are profitable?

What Is CBD? Here’s What to Know About Cannabidiol

Since CBD seems to be on everyone’s lips — literally — let’s run through what CBD is, what CBD does to your body, and what the health benefits are.

By: 

What is CBD, or cannabidiol, that everyone’s buzzing about? If you don’t already, you’re about to see this stuff everywhere.

We’re on the edge of a CBD explosion. The U.S. market for CBD products is estimated to be worth $2.1 billion by 2020, up 700 percent from 2016; the World Anti-Doping Agency removed CBD from its list of banned substances; the Food and Drug Administration just approved an epilepsy medication containing CBD oil for the first time.

You can rub CBD oil on your skin or drop it under your tongue; you can eat it as a sugarcoated gummy or drink it as a Goop-approved cocktail. There’s evidence (some scientific, plenty anecdotal) that it helps with epileptic seizures, opioid addiction, PTSD, arthritis, anxiety, insomnia, nausea, chronic pain, and much more. If you believe the hype, CBD can do just about anything for your physical and mental health — and it won’t get you high as a kite.

Since CBD seems to be on everyone’s lips — literally — let’s run through what CBD is, what CBD does to your body, and whether CBD is legal.

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What is CBD?

The cannabis plant contains more than 100 different chemical compounds known as cannabinoids, which interact with the body’s endocannabinoid system in ways that researchers are still working toward understanding.

One of those cannabinoids is CBD, or cannabidiol (pronounced cann-a-bid-EYE-ol). CBD is non-psychoactive, which means it won’t get you high — and there’s a growing body of evidence that it has a number of health benefits.

 

CBD vs. THC: What’s the difference?

The main one is that CBD will not make you high. Of all those different cannabinoids found in the cannabis plant, the two best known are CBD and THC, or tetrahydrocannabinol.

CBD and THC are both found in marijuana, but it’s the THC that’s responsible for weed’s mind-altering effects. THC is psychoactive; CBD is not. As long as your CBD products don’t contain THC — or contain very small amounts of it — you can reap their potential benefits without going full Pineapple Express.

 

What are the benefits of CBD?

There’s plenty of anecdotal evidence that CBD helps treat a variety of ailments. People are turning to oils, gummies, and other CBD food and drink products to relax at the end of a long day. Retired NFL players are using CBD to manage physical pain, debilitating headaches, and sleeplessness. Spa clients are even using CBD skin products to fight signs of aging.

We’re still in the early stages of understanding CBD’s effects on the body, but there’s already scientific evidence — some of it funded by the U.S. government — that CBD has legitimate medical benefits, too.

To name just a few: Animal research and small-scale human studies have pointed to CBD’s anti-anxiety and anti-inflammatory properties, NPR reports. A study is underway to see how CBD helps patients with PTSD and alcohol use disorder, and another is exploring how CBD might help curb drug cravings in people with opioid addiction. Cannabinoids like CBD may also be effective at treating cancer-related side effects, according to the National Institutes of Health.

 

CBD and epilepsy

You’ve probably come across a viral story about CBD’s seizure-fighting capabilities in patients with epilepsy.

“I have seen cases where a child who’s having hundreds of seizures a day got put on CBD and had a truly phenomenal benefit,” Dr. Orrin Devinsky, MD, director of the Comprehensive Epilepsy Center at NYU Langone Health, tells MensHealth.com — though he adds that those miracle cases happen fairly infrequently.

“We should absolutely test CBD across as many epilepsy syndromes as possible.”

Devinsky puts more weight behind the scientific advancements: In June, the FDA approved an epilepsy drug called Epidiolex, which contains a purified form of CBD oil. In controlled clinical trials, the drug was proven to reduce seizures in people with Dravet syndrome and Lennox-Gastaut syndrome — and it didn’t produce as many of the unpleasant side-effects that come with other epilepsy medications.

“It’s exciting,” Devinsky says — but he still has questions. Dravet syndrome and Lennox-Gastaut syndrome comprise “well under 5 percent” of epilepsy cases in the U.S. “What about the other 95 percent, with regard to CBD?” he asks.

Studies on CBD and epilepsy with focal seizures, for instance, showed the compound was no more effective than a placebo.

“The jury’s still out,” Devinsky says. “This is why we do science. People who think they know ahead of time are often wrong. My own view is to be humble, skeptical, and open-minded. We should absolutely test CBD across as many epilepsy syndromes as possible.

SHUTTERSTOCK

 

Is CBD legal?

Effectively. While the U.S. Drug Enforcement Administration still classifies marijuana and its extracts — including CBD — as illegal, because the FDA’s declaration that Epidiolex is a “safe and effective” treatment option, CBD has to be reclassified lower on the DEA’s Controlled Substances Act, and it must happen in the next 90 days, per a DEA spokesperson.

New York Southern Tier Hemp Summit

 

Join us for the first annual Southern Tier Hemp Summit, an event designed to bring industry leaders together with the community to educate, network, and plan for the future.

Registration to attend is free of charge but spots are limited.   

There will be four panel discussions on topics such as; The CBD Market, Farming, Food and Fiber, and Public Policy. Panelists are experts in their fields with years of experience from research to retail and everything in between.

Businesses will be displaying their products and services at tables in the concourse. If your company is involved in the hemp industry, reserving a table is free of charge.

https://www.binghamtonhomepage.com/news/up-to-the-minute/southern-tier-hemp-summit/1247017027

The Growing Future Of Industrial Hemp

 

At the time of writing, the cultivation of industrial hemp is currently legal in 34 out of 50 U.S states. Hemp enthusiasts may be wondering why we aren’t already seeing a hemp revolution. The wheels of progress turn slowly, and mass-scale industrial hemp production might still be far away.

Even though the hemp market was worth an estimated $581 million in 2013, the sweeping legalization of 2014 didn’t trigger the massive response many predicted.

Hemp was already being imported and used in a variety of products – skin-care lotions, hemp milk, hemp seeds, and industrial materials – but domestic production of the hemp plant was prohibited in America.

By 2016, the hemp market had grown moderately to $688 million a year, but this represents just a fraction of its potential. A gap in the generational knowledge still exists, and has drastically slowed hemp’s progress.

The criminalization of hemp in 1937 has resulted in crucial farming knowledge being lost to the ages, as farmers gave up their hemp crops for legal alternatives. Now, American farmers are racing to catch up, and the hit-and-miss nature of their task results in lost yields, and lost profits.

During World War 2, Soviet scientists sacrificed their lives to preserve precious seed banks which contained their most efficient wheat strains. The strains had been perfected over decades and were deemed more important than any one soldier’s life.

This little factoid should emphasize the importance of what we’re dealing with here – American farmers do not currently have this kind of ancestral knowledge when it comes to hemp. They are starting from scratch, and the process takes time.

Another roadblock in the mass-scale production of the plant comes in the form of mass-market farming machinery which simply isn’t set up to deal with industrial hemp.

Industrial hemp fiber is tougher and bulkier than most, and the current industrial machinery isn’t equipped to process it. American manufacturers will need to invest in a large scale renewal of their machinery in order to efficiently process bulk amounts of hemp.

Such an investment would come faster if it weren’t for the fact that hemp remains a contentious issue for many people. The old associations between hemp and its psychoactive cousin still haven’t disappeared, and many consumers are still hesitant to even consider getting into the hemp market.

Simple economics tells you that there has to be demand for there to be supply, and at the moment the hemp market is in something of a stalemate. Producers won’t grow more until people want more, and people won’t want more until hemp becomes more widespread and accepted culturally. In other words, the hemp market is in a catch-22.

Some industry experts predict a massive growth boom in the hemp market in the near future. Others predict a complete bust. This kind of uncertainty is symptomatic of the entire hemp set-up in the United States.

No one doubts the plant’s uses, but it’s a golden oldie that’s currently trying to find its way in a world that tried to forget it.

History Of Hemp

Hemp is an ancient plant that has been cultivated for millennia. The Columbia History of the World (1996) states that

that weaving of hemp fiber began over 10,000 years ago! Carbon tests have suggested that the use of wild hemp dates as far back as 8000 B.C.

In Great Britain, hemp cultivation dates back to 800AD. In the 16th Century, Henry VIII encouraged farmers to plant the crop extensively to provide materials for the British Naval fleet. A steady supply of hemp was needed for the construction of battleships and their components. Riggings, pendants, pennants, sails, and oakum were all made from hemp fiber and oil. Hemp paper was used for maps, logs, and even for the Bibles that sailors may have brought on board.

Cultivation 

Hemp drying
17th Century America, farmers in Virginia, Massachusetts, and Connecticut were ordered by law to grow Indian hemp. By the early 18th century, a person could be sentenced to jail if they weren’t growing hemp on their land! Hemp was considered to be legal tender. For over 200 years in colonial America, hemp was a currency that one could use to pay their taxes with! (Don’t try that today, kids!)

The 1850 U.S. census documented approximately 8,400 hemp plantations of at least 2000 acres. Strains in cultivation included China hemp, Smyrna hemp, and Japanese hemp.

For years, hemp farmers used a hand break operated machine when harvesting. Finally, a machine was built that would take care of all the processes, breaking the retted stalks and cleaning the fiber to produce clean, straight hemp fiber which was equal to the best grades prepared on hand brakes. This machine was able to harvest 1000 pounds or more of clean hemp fiber per hour. This breakthrough made cultivating more fiscally attractive by reducing labor costs. By 1920 the hemp crop was entirely handled by machinery.

Hemp Fuel(see hemp fuel)

In 1896 Rudolph Diesel had produced his famous engine. Like many others, Diesel assumed that the diesel engine would be powered by a variety of fuels, especially vegetable and seed oils. Henry Ford of the Ford Motor Company seeing the potential of biomass fuels operated a successful biomass conversion plant producing hemp fuel at their Iron Mountain facility in Michigan. Ford engineers extracted methanol, charcoal fuel, tar, pitch, ethyl acetate and creosote, fundamental ingredients for modern industry. Today these are supplied by oil-related industries.
Prohibition

Viewing hemp as a threat, a smear campaign against hemp was started by competing industries, associating hemp with marijuana.

Propaganda films like “Reefer Madness” assured hemp’s demise.

When Congress passed the Marijuana Tax Act in 1937, the decline of hemp effectively began. The tax and licensing regulations of the act made hemp cultivation nearly impossible for American farmers. Anslinger, the chief promoter of the Tax Act, argued for anti-marijuana legislation around the world.

An interesting situation arose during World War II as American Farmers were prohibited from producing hemp because of the 1937 law. However, the Japanese attack on Pearl Harbor halted the importation of Manila hemp from the Philippines, prompting the USDA to rethink their agenda and creating a call to action with the release of the film Hemp for Victory, motivating American Farmers to grow hemp for the war effort. The government formed a private company called War Hemp Industries to subsidize hemp cultivation. One million acres of hemp were grown across the Midwest as part of this program. As soon as the war ended, all of the hemp processing plants were shut down and the industry again disappeared. However, wild hemp may be found scattered across the country.

From 1937 until the late 1960s the United States government recognized that Industrial Hemp and marijuana were two distinct varieties of the cannabis plant. After the Controlled Substances Act was passed, hemp was no longer recognized as being distinct from marijuana.


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