Senate Majority Leader: Farm Bill Will Lift Federal Hemp Ban

DISTRICT OF COLUMBIA: Senate Majority Leader Mitch McConnell (R-KY) reaffirmed on Friday that provisions lifting the federal prohibition of hemp will be included in the engrossed language of H.R. 2: The Agriculture Improvement Act of 2018 (aka the 2018 Farm Bill). The must-pass legislation is currently being debated by leadership in conference committee.

“If there’s a Farm Bill, it’ll be in there. I guarantee that,” McConnell told reporters. He added: “I don’t want to overstate this – I don’t know if it’s going to be the next tobacco or not – but I do think it has a lot of potential. And as all of you already know, in terms of food and medicine but also car parts. I mean, it’s an extraordinary plant.”

The hemp-specific provisions, which Sen. McConnell included in the Senate version of the bill, amend federal regulations to further expand and facilitate state-licensed hemp production, research, and commerce. The language also for the first time amends the federal Controlled Substances Act of 1970 so that industrial hemp plants containing no more than 0.3 percent THC are no longer classified as a schedule I controlled substance. (See page 1182, Section 12608: ‘Conforming changes to controlled substances act.’)

Senator McConnell previously shepherded hemp-related language (Section 7606) in the 2014 version of the Farm Bill, permitting states to establish hemp research and cultivation programs absent federal approval. A majority of states have now enacted legislation to permit such programs.

Lawmakers are seeking to finalize and pass the 2018 farm legislation prior to year’s end.


For more information, contact Justin Strekal, NORML Political Director, at (202) 483-5500.

 

Senator McConnell and Commissioner Quarles Announce Hemp Legislation

KENTUCKY: U.S. Senate Majority Leader Mitch McConnell (R-KY) and Kentucky Commissioner of Agriculture Ryan Quarles (R-KY) announced today the impending introduction of legislation in the United States Senate to support Kentucky’s hemp industry. The Hemp Farming Act of 2018 will legalize hemp as an agricultural commodity and remove it from the list of controlled substances.

Senator McConnell took the first step to support hemp in 2014 by using his leadership position in the Senate to spearhead a provision to legalize hemp pilot programs in the Farm Bill. Since then, the research has shown the potential of hemp as an agricultural commodity.

“Hemp has played a foundational role in Kentucky’s agricultural heritage, and I believe that it can be an important part of our future,” Senator McConnell said. “I am grateful to join our Agriculture Commissioner Ryan Quarles in this effort. He and his predecessor, Jamie Comer, have been real champions for the research and development of industrial hemp in the Commonwealth. The work of Commissioner Quarles here in Kentucky has become a nationwide example for the right way to cultivate hemp. I am proud to stand here with him today, because I believe that we are ready to take the next step and build upon the successes we’ve seen with Kentucky’s hemp pilot program.”

“Here in Kentucky, we have built the best Industrial Hemp Research Pilot Program in the country and have established a model for how other states can do the same with buy-in from growers, processors, and law enforcement,” Commissioner Quarles said. “I want to thank Leader McConnell for introducing this legislation which allows us to harness the economic viability of this crop and presents the best opportunity to put hemp on a path to commercialization.”

The Hemp Farming Act of 2018 will help Kentucky enhance its position as the leading state on hemp production. It builds upon the success we have seen through the hemp pilot programs by allowing states to be the primary regulators of hemp, if the U.S. Department of Agriculture approves their implementation plan. This legislation also will remove the federal barriers in place that have stifled the industry, which will help expand the domestic production of hemp. It will also give hemp researchers the chance to apply for competitive federal grants from the U.S. Department of Agriculture – allowing them to continue their impressive work with the support of federal research dollars.

Senator McConnell plans to introduce the bill in the Senate, with Senator Rand Paul and a bipartisan group of members, following this state work period.

Tour Legal Hemp Farm In Kentucky Saturday, September 30, RSVP By September 29

KENTUCKY: Ananda Hemp is inviting the media to tour their 500-acre hemp farm and production facility on Saturday, September 30 from 12-3 at 2155 Grays Run in Cynthiana, KY.

A Farm Bill passed by Congress has included an amendment granting states and universities the right to research hemp. Several states have since started research projects, but Kentucky is at the forefront, experimenting with creating a new industry around this plant.

Meet 8th generation tobacco-turned-hemp-farmer, Brian Furnish, and hear how he is working with key members of Congress to change industrial hemp laws. Plus, get a tour of our laboratory to see how the hemp plant is processed.

For more information visit Ananda Hemp.

HIA 24th Annual Conference 
Is Sept 9-11 In Lexington, KY

KENTUCKY: The Hemp Industries Association (HIA), a non-profit trade association consisting of hundreds of hemp businesses, will host its annual conference Saturday, September 9, 2017, through Monday, September 11, 2017, in Lexington, Kentucky.

The 24th annual conference will feature a hemp research field day and farm tour of the University of Kentucky Spindletop Research Farm, and additionally a separate private research facility and processing plant; two days of speaker and panel programming; and a hemp exhibition open to the public. Prior to the hemp research field day & farm tour, there will be a members-only annual general meeting on Friday September 8.

The conference will focus on the theme Share the Vision, and is expected to be the most highly attended conference in the history of the HIA.  The Share the Vision HIA conference is coordinated in partnership with the American Society of Agronomy, University of Kentucky College of Agriculture, Food and Environment, and the Crop Science Society of America.

The Hemp Industries Association annual conference brings together top experts in the industrial hemp industry, as well as farmers, entrepreneurs and advocates who are creating the future of hemp farming and manufacturing in the U.S.  Kentucky’s former Agriculture Commissioner and hemp pilot program pioneer turned Congressman, U.S. House Representative James Comer (R-KY) is expected to speak on national policy, which is a highlight given his primarily sponsorship of the recently introduced Industrial Hemp Farming Act, H.R. 3530.” said Colleen Keahey, Executive Director of the Hemp Industries Association.

David Rheins Keynote Address At Indiana Cannabis Chat 1.0

The following is a transcript of MJBA Executive Director David Rheins’ keynote speech at Indiana Cannabis Chat 1.0, last week’s educational mixer held at the historic Antelope Club in downtown Indianapolis.  The event was produced put by the Indiana Libertarian Party of Marion County, and sponsored by Curved Papers.


Thank you, it is an honor to be able to address this historic first Indiana Cannabis Chat 1.0 event.

As Chris mentioned, my name is Dave Rheins. I am the founder and executive director of the Marijuana Business Association, or MJBA.  MJBA is a national trade organization serving the legal cannabis industry.  We represent hundreds of licensed cannabis businesses and the many professional services companies upon whom they rely.  We support grassroots communities in Washington, Oregon, Colorado and New York/New Jersey with plans to add more as new legal states like California, Nevada, Massachusetts and Maine come online.

We host professional networking meetups, educational panels, seminars and workshops, host job fairs and vendor fairs, and run several cannabis-related media sites, including MJHeadlineNews, Marijuana Channel One and the MJNewsNetwork.

I am a Hoosier, born and raised in Indiana.  I grew up in Indianapolis, graduated North Central and Indiana University, where I studied Journalism and English.

I spent my professional career at the intersection of popular culture, technology and commerce at places like Rolling Stone, SPIN and AOL Time Warner.  My work with the MJBA is a natural part of that continuum.  Pot Culture is Pop Culture.

MJBA was founded in 2012, before Colorado or Washington passed their historic voter initiatives legalizing adult personal use of cannabis, creating the first regulated pot marketplaces.

After 80 years of prohibition, our challenge was to create, from the ground up, a system of producing, processing and retailing a heretofore illicit product. Not only did we need to put in place the mechanisms of a whole new marketplace, we needed to reintegrate the underground cannabis industry and lifestyle into the mainstream economy.  Normalization is our greatest challenge.

Legalization came by way of voter initiative, not legislation. Meaning that the people and not the political parties heralded in this enormous societal change. In fact, no major politician supported Washington’s I-502 or Colorado’s Proposition 64. And when both passed, the state was mandated to create a system for regulating, taxing and supervising this nascent industry.  Every new legal state has had to create a system of commerce – and a regulatory schema that worked.  Each of the 8 legal states has its own idiosyncratic set of rules and regs, and within each state, counties and municipalities add their own layer of rules and taxes, or in some case opt out of legal pot altogether.  Your participation in the education and advocacy in your community is crucial.

The challenge has been enormous, made only more difficult due to the complexities of federal prohibition – which restricts the growth of the industry by inhibiting its access to those things it needs to grow: everything from simple banking and commercial capital, to medical research.  Legal cannabis businesses operate at an extreme disadvantage when it comes to taxation.  IRS Code Section 280-E restricts these state-regulated and legal businesses from deducting anything beyond simple COGS (Cost of Goods Sold), and the resultant high tax level making profitability elusive indeed.

Federally, marijuana is still classified as a Schedule 1 substance under the Controlled Substances Act.  Federal prohibition has resulted in a crazy-quilted patchwork of state industries, no two alike, as every state government, and every community within these legal jurisdictions decide what legal cannabis will look like.  And it is here that there is the greatest opportunity for the entrepreneur and independent investor.

It is at the state and local level that decisions are being made as to what legal products will be available, how they are grown, tested for quality and safety, packaged, distributed, advertised, marketed, sold and taxed.  Decisions about potency, are being made by local participants in each community.  Early entrants are uniquely being given the opportunity to define the marketplace.  While our cannabis revolution is national, and indeed international in scope – the biggest opportunities are local.

 Indiana will have the opportunity to build the legal cannabis marketplace that works best for its citizenry.

Let’s level set the business opportunity.  According to the National Conference of State Legislatures, A total of 29 states, the District of Columbia, Guam and Puerto Rico now allow for comprehensive public medical marijuana and cannabis programs.  In addition, 17 states allow use of “low THC, high cannabidiol (CBD)” products for medical reasons in limited situations or as a legal defense. Those programs are not counted as comprehensive medical marijuana programs.

Indiana’s House Bill 1148 would legalize the use of cannabidiol for patients with treatment-resistant epilepsy. The oil is derived from the cannabis plant but would be allowed to contain only up to .3 percent THC.

Eight states and the District of Columbia now have legalized small amounts of marijuana for adult recreational use.

The legal cannabis industry is the fastest growing industry in our economy. Tens of thousands of new licensed cannabis companies have created hundreds of thousands of new jobs and generated hundreds of millions in new tax revenues.

According to New Frontier Data, legal consumer spending across North America grew 34 percent in 2016 to $6.7 billion and can be expected to grow at a 27 percent compound annual growth rate (CAGR) over the next five years, to $22.6 billion in 2021

“While the uncertainty created by the mixed signals coming out of the Administration may cause a temporary dip in some valuations of cannabis companies and some more risk-averse institutional investors and multinational companies may continue to stay on the sidelines, it won’t impact the growth of the market much at all,” said Troy Dayton, CEO of ArcView Market Research. “No matter what the administration does, states will continue to issue cannabis licenses to a long line of applicants and licensed cannabis outlets will continue to have long lines of consumers ready to purchase this product from regulated establishments.”

More facts:

  • North Americans spent $56.1 billion on legal and illicit cannabis products in 2016, about half of the $105 billion they spent on beer. But only $6.7 billion of that was spent legally and 87 percent of that came from just five states and Canada;
  • Growth in legal cannabis sales has already eroded the illicit market. This erosion will greatly accelerate in 2018 with the arrival of legalized adult-use programs in North America’s two biggest markets, California and Canada. Meanwhile, the 20 states without legal cannabis programs contributed nothing to the accelerating erosion of the illicit market;
  • Voters in Florida, Arkansas, Montana, and North Dakota passed medical cannabis initiatives in 2016.  This means that 63 percent of Americans can legally obtain cannabis with a doctor’s recommendation;
  • Voters in California, Massachusetts, Nevada, and Maine passed adult-use measures in 2016. This more than tripled the portion of Americans that will be able to purchase cannabis without a doctor’s recommendation in their home state to 21 percent; Compound annual growth rates above 50 percent since adult-use legalization in Colorado and Washington drew significant new segments of the investment community into the legal cannabis industry in 2016, driving triple-digit gains in public stocks and double-digit gains in capital raised by operating companies and a growing group of cannabis-focused investment funds;

For Hoosier investors who want to capture some of the industry’s rapid financial growth, but aren’t able or don’t want to get involved with plant-touching firms that grow or sell cannabis and products still prohibited under federal law, lots of opportunities exist.   Here are some of my favorites:

    • Real Estate
    • Logistics/Distribution
    • Software
    • Security
    • Lighting
    • Soil
    • Hardware: big ag tech for growers, extraction machines for processors, and point of sale for retail; consumer products (vapes and accessories)
    • Nutrients and hydroponics
    • Testing, Labs & Quality control
    • Genetics
    • Packaging
    • Branding, Marketing and promotion
    • Business Intelligence
    • Professional services – Legal, Accounting, Business planning
    • Investment – penny stocks, equity and debt investment

Hemp is the most immediate opportunity for Hoosiers.

According to Vote Hemp approximately 9,650 acres of hemp crops were planted in 15 states during 2016 in the U.S., 30 universities conducted research on hemp cultivation, and 817 State hemp licenses were issued across the country. This hemp cultivation is legal in 32 states, which have lifted restrictions on hemp farming and may license farmers to grow hemp in accordance with Sec. 7606 of the Farm Bill, the Legitimacy of Industrial Hemp Research amendment.

Historically: Indiana has had a long and proud hemp history.  In 1930, it was the third largest crop grown in the state. And in 1940, there were six hemp processing plants in Indiana alone.

Hemp was grown widely until the 1970s Controlled Substances Act. 2 acres of hemp were cultivated in Indiana last year for research purposes.

Today:  Indiana Hemp Law   Year Passed: 2014 Summary: Senate Bill 357 authorizes state regulators to begin the process of licensing farmers to grow hemp commercially.The American Farm Bureau led by the Indiana Farm Bureau recently endorsed ending the federal prohibition on industrial hemp at its annual meeting in January.

Most recently, the US House of Representatives approved language in the federal Farm Bill to allow pilot studies specific to hemp cultivation to take place in states that have authorized them. Indiana’s farmers ought to be able to take advantage of this pending change in federal law.
Statute:
 Ind. Code § 15-15-13-7 (2014)

Gov. Eric Holcomb signed Indiana’s first medical cannabis legislation in April. It legalizes cannabidiol or CBD – for the treatment of epilepsy.

How will Growing & Processing of CBD be governed in Indiana?

Kentucky grew more than 2500 acres of hemp last year, making it the second largest producer behind Colorado. The Hemp CBD representing $130 million in sales in 2016 with growth at a 53% AGR (Adjusted Growth Revenue).

CannaFest Destiny:

A recent editorial in the Indy Star from Indiana Attorney General Curtis Hill, whom I understand will be in this same hall tomorrow, acknowledges that legalization is sweeping the country and the unstoppable trend is headed this way.  Legalization is coming to Indiana, sooner than you think.

The question for you thought-leaders in the audience should be HOW to get in on the ground floor of this emerging market.  We suggest that you start by 1) Getting Informed 2) Getting Connected  3 )Activating attend conferences, organize more Cannabis Chats and join groups – political and business.


See related article: http://mjnewsnetwork.com/events/cannafest-destiny-tour-stops-at-first-church-of-cannabis-in-indy-on-june-13th-2018/

 

 

 

 

 

 

 

CV Sciences Sponsors Murray State University’s Hemp Field Day August 4, 2016

Open To Public, The Event Marks a Year of Exceptional Strides in Research and Gives Attendees the Rare Opportunity to View Hemp Research Plots First Hand

KENTUCKY:  Murray State University is just one of several universities in Kentucky that has partnered with CV Sciences to further the research and development of the industrial hemp industry. This year marks the third year of the relationship, with the first field being planted in May of 2014. This Hemp Field Day, held on Murray State University’s campus — will serve as an opportunity to reflect on both successes and failures when it comes to cultivating the long dormant crop. The event will feature speakers, research presentations, and serve as an opportunity for all attendees to view the progress of several hemp fields currently in growth.

“As you would expect with any pilot program, there have been bumps along the way, and there are still many unanswered questions but we have to start somewhere to develop this crop,” said Tony Brannon, Dean of the Hutson School of Agriculture at Murray State University, “We were able to get the seed in the ground earlier this year and we are excited to let people view the crop and share what we’ve found and what we’re learning.”

The public event is an opportunity for industry stalwarts to network, share information, and gather new research insights. The field day will also allow those who are curious about the industry to find out more about the past, present, and future of industrial hemp. Beginning at 1:00 p.m., the educational program will consist of hemp program updates from Josh Hendrix, director of business development, domestic production for CV Sciences, Inc., the , local farmer partner Joseph Kelly, and University of Kentucky graduate researcher Leah Black. Stuart Tomc, VP of Human Nutrition at CV Sciences will deliver the day’s keynote address entitled “The Cannabis Disruption: Bringing Hemp Back,” which will discuss the reasons hemp is relevant and important right now.

The second portion of the day will be devoted to field visits, where attendees will be able to view current research plots and take part in agronomic discussion. At 3:30 p.m., attendees will leave MSU’s West Farm, park at the Cherry West Kentucky Exposition Center and proceed to the Field Sites.

Josh Hendrix, who is a Kentucky hemp farmer in addition to his role at CV Sciences said, “[t]his is an industry on the cusp of some big developments, but there is still a lot of opportunities for education and for outreach about what it is that we are doing. We’re looking forward to giving people the chance to see the fields for themselves, as a tangible marker for how far we’ve come and where we might be able to go with this.”

The Daily 202: Kentucky Is Latest Battleground In The Marijuana Wars

KENTUCKY: Happy Monday morning from Richmond, Ky., where the governor’s race, just one week from tomorrow, is a true toss-up. I’m crisscrossing the state talking to voters and trailing the candidates. During a debate at Eastern Kentucky University last night, some of the biggest fireworks came over whether to allow medical marijuana.

“There is unequivocal medical evidence … that there are benefits for those with cancer and epilepsy,” said Republican Matt Bevin. “It should be prescribed like any other prescription drug.”

Democrat Jack Conway, running as a tough-on-crime attorney general, touted his endorsement from the Fraternal Order of Police and fretted about “a lost generation” of young people to narcotics, particularly prescription pain pills.

“I don’t want to hear from some hipsters out in Hawaii saying Kentucky needs medical marijuana,” Conway said. “Because, if you have medical marijuana, there’s going to be more of it. Chances are there will be more accidents on our roads by young kids because there’s more of it. If we need it, the medical community has to come convince me. … And I haven’t heard from any of them.”

McConnell Inserts Hemp Provision Into Senate Farm Appropriations Bill

KENTUCKY:  U.S. Senate Majority Leader Mitch McConnell has inserted into the Senate farm appropriations bill a provision aimed at making it easier to process legally grown industrial hemp. The measure would help farmers transport hemp between states so the crop can be developed for commercial purposes.

“Kentucky’s industrial hemp pilot programs continue to prosper, and I want to make sure our legal hemp producers can safely transport their crops between states, including to states that maintain processing facilities, so they can fully capitalize on the commercial potential for this commodity,” McConnell, R-Louisville, said in a news release from his Washington office. The provision “re-emphasizes that industrial hemp from a farm bill research program is an agricultural commodity,” he said.

State Agriculture Commissioner James Comer said the provision was vital to developing a thriving hemp industry in the state.

Kentucky Industrial Hemp Production Starting Second Planting

KENTUCKY: From THC levels to plant shape and uses, industrial hemp is worlds apart from its cannabis cousin marijuana, Maysville Rotary Club members learned on Tuesday.

Speaking at its meeting was Adam Watson, manager of the Organic Certification Program at the Kentucky Department of Agriculture.

Watson is also coordinator for the industrial hemp program in Kentucky which has been progressing since the passage of Kentucky Senate Bill 50 in 2013 and the Federal Farm Bill enacted in 2014.

Currently in the experimental stage, hemp production methods at the 20 Kentucky growers have been in line with how the plant is grown in Canada, Watson said.

Estimated crop value would be in the $600 to $800 per acre planted, Watson said.

 

Mitch McConnell’s Love Affair with Hemp

KENTUCKY: Last May, a shipment of 250 pounds of hemp seeds left Italy destined for Kentucky as part of a pilot project made legal by the 2014 federal farm bill. Kentucky farmers had long hoped for a crop that could fill the void left by the decline of tobacco, and many thought that industrial hemp, which is used in a vast array of products, could be that crop.

The hemp seeds cleared customs in Chicago, but when the cargo landed at the UPS wing of Louisville International Airport, the Drug Enforcement Administration seized it, arguing that importing hemp seeds required an import permit, which could take six months to process. If farmers couldn’t get those seeds into the ground by June 1, the entire first year of the hemp pilot program would be dashed.

The DEA would have succeeded in blocking the seeds from reaching Kentucky farmers and university researchers but for the efforts of the state’s agricultural commissioner, who sued the agency and, most improbably, Mitch McConnell.

McConnell—then the Senate’s minority leader—worked furiously to free the seeds from the DEA’s clutches and continued the pro-hemp drumbeat throughout 2014, as he campaigned for reelection. This year, as Senate majority leader, he’s taken a further step by co-sponsoring the Industrial Hemp Farming Act of 2015.