As Senate Brings Legal Change, Hemp Offers Hope for American Farmers

NEW YORK, August 22, 2018 /PRNewswire/ --

CannabisNewsWire Editorial Coverage

The hemp industry is growing in North America and appears to be set for further expansion thanks to legislation making its way through the U.S. Senate.

• Hemp is a cultivar of the cannabis sativa plant that lacks the active drug ingredient that makes marijuana users high.
• It can be used to produce medicinal CBD oil as well as fibers for rope, paper and canvas.
• Even in difficult growing conditions, hemp can provide higher profits than many other crops.
• It has a lower environmental impact thanks to low water consumption and little need for chemical fertilizers or pesticides.
  

Marijuana Company of America, Inc. (OTC:MCOA) (MCOA Profile) has hemp already growing at cultivation sites in Canada and the United States, experimenting with improved strains and cultivation techniques. As a provider of hydroponic equipment, Scotts Miracle-Gro Company (The) (NYSE:SMG) is benefiting from the growing cannabis industry and will likely see increased sales thanks to a recent acquisition. Another provider of hydroponics, GrowGeneration Corporation (OTC:GRWG), has already seen a dramatic increase in sales thanks to acquisitions and the rise of cannabis. Micron Waste Technologies, Inc. (OTC:MICWF) (CSE:MWM) is launching specialist waste treatment equipment for cannabis growers. And as federal hemp legislation comes closer to passage, Future Farm Technologies (OTC:FFRMF) (CSE:FFT) is producing millions of hemp seeds ready to be planted by farmers in Maine.

To view an infographic of this editorial, click here.

Bringing Hemp Back

The past decade has seen a rush to embrace legal cannabis in North America. In the United States, 31 of the 50 states now allow its use for medicinal purposes while another 15 allow products derived from cannabis but with restrictions on their active chemicals. Nine states also allow the sale and use of recreational cannabis.

These changes have largely overlooked an important class of cannabis: hemp. This variety of the cannabis sativa plant does not contain tetrahydrocannabinol (THC), the psychoactive ingredient that is the basis of marijuana's recreational appeal. Historically used in making rope and fabric, hemp became illegal alongside other forms of cannabis because there was no way to distinguish between them. But with new ways to provide that differentiation, industrial hemp appears to be on the cusp of returning to widespread agricultural use in the United States.

The Hemp Revival

Changes in legislation have already allowed a number of companies, including Marijuana Company of America, Inc. (OTC:MCOA), to start growing hemp in the United States and Canada. But as with so much else about cannabis production, this has been somewhat hampered by restrictions at the federal level. Now a change appears to be forthcoming.

In 2014, the Farm Bill allowed farmers to start growing hemp for research purposes. Hemp farming quickly took off, reaching 25,713 acres of harvested land in 2017. And current efforts are afoot to make the crop fully legal.

This isn't just a publicity-grabbing move from the liberal left. A bill put before Congress by Republican Sen. Mitch McConnell of Kentucky aims to make hemp cultivation legal. It has cross-party support and looks likely to pass despite the partisan divides in Washington. If it does, the bill will allow companies such as MCOA to expand their efforts and may encourage more farmers to grow hemp.

The financial potential of a hemp crop is staggering. The plants can currently be used to produce cannabidiol (CBD) oil, which is used in medicines and wellness products such as those sold by MCOA. Some farmers are expecting revenues of $90,000 per acre for the oil, compared with only $600 per acre for alfalfa, which is currently one of the most popular crops in the United States.

There's even more profit to be made from a properly developed hemp industry. Given full legalization, a revival of such ancillary industries could allow farmers to profit from both CBD oil and what is currently a waste product once the plant is processed, reviving the hemp fiber industry after nearly a century.

A Better Crop for the Environment

One of the great advantages of hemp is that it's easier to grow in dry climates than many other crops. Though it needs more water than other crops during the first few weeks of growth, hemp subsequently needs less water and is less vulnerable to drought. This makes it an ideal crop for farmers in arid environments, such as parts of the western United States, as well as those currently facing the impact of climate change.

Reduced water consumption is one of several factors that make hemp an environmentally friendly crop. Growing hemp doesn't require pesticides and herbicides, meaning that the soil can be left clean and given a chance to recover between other crops. Hemp can also be used instead of trees to produce paper fibers, thus saving trees and reducing the geographical footprint of paper production.

Hemp is a fast-growing plant, capable of growing up to 20 feet in 100 days, allowing farmers to potentially grow a substantial crop in a relatively small area, even in soil conditions where other plants might struggle to survive. With legalization expected with the passing of the Farm Bill, hemp cultivation may grow beyond the small crop levels currently established by companies such as MCOA. An increasing number of farmers are already planting hemp. Once the red tape is eliminated, more will surely jump on board this bandwagon.

Getting Ahead of a Growing Industry

This change is good news for MCOA and its existing hemp cultivation projects. Legal change will give the company credibility as an early adopter in a suddenly expanding field, with the advantages in technique that experience brings.

One of the company's projects is the continued development of Hemp Agro-Industrial Zone (HAIZ) in New Brunswick, Canada, with its partner Global Hemp Group (CSE:GHG). There, MCOA and GHG have been working with the government to explore different approaches to hemp cultivation and encourage the industry in the region. Supported by a government grant, MCOA and GHG have been conducting experiments that study and evaluate soil conditions and pest problems that could affect hemp crops. Drones allow researchers to accurately assess the success of crops and gain a better understanding of what makes hemp grow best.

More recently, the company has also established a hemp cultivation site in the state of Oregon in another joint venture project with GHG. This 109-acre site features both indoor and outdoor cultivation that allows the company to maintain a steady supply of plants throughout the year.

At the Oregon facility, MCOA and GHG are cultivating hemp varieties with particularly strong yields of CBD. This active ingredient in hemp is being used in a growing variety of medical and wellness products, with applications including increased alertness, the control of epilepsy and pain management. By collecting and analyzing data on hemp strains to augment CBD development, MCOA hopes to establish better profits and wider availability for this important medicine.

Businesses Benefit from Hemp

The ascendance of hemp cultivation and the wider cannabis sector is bringing benefits for companies in supporting services. Scotts Miracle-Gro Company (The) (NYSE:SMG) recently completed the acquisition of Sunlight Supply, Inc., the leading distributor of hydroponics products in the United States. This $450 million deal is the largest transaction Scotts has ever made and will double its sales to cannabis growers, who make extensive use of hydroponic equipment. The lawns and gardens specialist might not be growing cannabis, but as legalization spreads and the sector grows, the company certainly stands to profit from the plant.

Another provider of growing equipment, GrowGeneration Corporation (OTCQX:GRWG), is also set to benefit from an expanding sector. By selling hydroponic systems, nutrients and materials for hydroponic cultivation, the company has seen a steady increase in its profits. Its sales increased 80 percent in 2017 , and it has acquired several smaller companies to ensure its growth. The company expects U.S. hydroponic sales to exceed $4.5 billion by 2020, thanks to exponential growth driven by the cannabis sector.

Micron Waste Technologies, Inc. (OTC:MICWF) (CSE:MWM) also supports cannabis cultivators but in a different way. The company provides onsite waste management systems that turn organic waste into clean water. Micron Waste has targeted marijuana cultivators as one of the markets for its products. To celebrate this growing market, the company recently ran a contest to name its specialist cannabis waste digester.

Another specialist in indoor growing equipment, Future Farm Technologies (OTCQX:FFRMF) (CSE:FFT) specializes in LED lighting and vertical farming solutions. Not content with providing supplies to the cannabis sector, the company has entered the market itself with a hemp farm in Maine. The farm is soon expected to provide over 15 million hemp seeds to farmers in the region, which will allow the growers to quickly increase hemp cultivation if the current Farm Bill passes into law.

After being banned for decades, industrial hemp is seeing a rapid rise in North America. It offers opportunities for farmers and suppliers of cultivation equipment. And perhaps most importantly, it offers an environmentally friendly crop for difficult growing conditions.

For more information about Marijuana Company of America, please visit Marijuana Company of America Inc. (OTC:MCOA).

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

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. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with CNW or any company mentioned herein. The commentary, views and opinions expressed in this release by CNW are solely those of CNW and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW and FNM for any investment decisions by their readers or subscribers. CNW and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are 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, FNM, 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 & FNM 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 and FNM undertake no obligation to update such statements.

CannabisNewsWire (CNW) & NetworkNewsWire (NNW) are proud to be affiliated partners of the Investor Brand Network (IBN)

About IBN
Over the past 10+ years we have consistently introduced new network brands, each specifically designed to fulfil the unique needs of our growing client base and services. Today, we continue to expand our branded network of highly influential properties, leveraging the knowledge and energy of specialized teams of experts to serve our increasingly diversified list of clients.

Please feel free to visit the Investor Brand Network (IBN) http://www.InvestorBrandNetwork.com

Corporate Communications Contact:
CannabisNewsWire (CNW)
Denver, Colorado
http://www.CannabisNewsWire.com
Office: +303-498-7722
Editor@CannabisNewsWire.net


Media Contact:
FN Media Group, LLC
NNW@FinancialNewsMedia.com
+1-(954)345-0611