by HempingtonPost | Dec 14, 2019
United States regulators say hemp businesses should not be treated with any more suspicion than other bank customers.
The number of banks in the United States willing to lend to hemp producers can be counted on one hand. That is about to change.
Federal and state bank regulators announced Tuesday that they were scrapping a burdensome requirement that banks said kept them away from the hemp business. Banks will no longer have to treat their hemp customers as suspicious and file reams of paperwork to anti-money-laundering authorities for each interaction.
The change could provide a major boost to a niche product that began its own legalization process last year.
“Banking has been an ongoing problem,” said Erica McBride Stark, the executive director of the National Hemp Association, a trade group for growers. “So this actually should be quite helpful.”
Hemp products are made from the same plants that produce marijuana, but they are cultivated to have far less tetrahydrocannabinol, or THC, the chemical that produces a “high” when ingested. The plants’ stalks can be woven into fabric and their seeds processed into oils used in food, but they cannot be made into drugs.
Even so, federal law long considered hemp to be as forbidden as cocaine and heroin. But with the legalization of marijuana spreading across the country — 33 states have legalized the drug for medical use and 11 states will allow sales for recreational use by January — lawmakers in Washington decided to do away with the designation for its milder sibling.
Last year Congress legalized hemp as a crop and directed the Agriculture Department to start regulating hemp production. It took the agency almost a year to devise rules for the industry, but once they were released, on Oct. 31, bank regulators prepared to take action. Tuesday’s statement, from the Federal Reserve, the Federal Deposit Insurance Company and other state and federal regulators, informs banks that they can now treat hemp producers like other customers, as long as the companies can prove they’re following licensing requirements.
The restrictions on the industry had held back even Ms. Stark’s organization, a nonprofit that does not actually produce hemp. The trade group had problems getting basic services because banks were worried that it could be receiving proceeds from a crime when it collected its members’ dues.
The Agriculture Department rule change on its own did not help. “They understood that hemp was removed from the federal Controlled Substances Act but because of the paperwork that was involved, a lot of them were just like, yeah, it’s just not worth it,” she said.
Rob Nichols, the president of the American Bankers Association, a trade group, said his members had been pushing for the change for some time.
Last month, the association surveyed 1,800 agriculture-focused banks in the country and found that almost half had gotten questions from their farmer-customers about whether they would still do business with them if they started growing hemp.
“We appreciate the steps regulators have taken today to clarify regulatory expectations for banks, and we look forward to working with them as they develop additional guidance,” Mr. Nichols said.
While the change will help businesses making clothes and other hemp products, it does not affect the legal marijuana businesses dealing with the same problems. The federal government still considers marijuana to be illegal, and even local banks have been too worried about getting in trouble to deal with them.
But banks large and small have come together to support a bill in Congress, the SAFE Banking Act, that would legalize marijuana banking by stipulating that the proceeds of a state-sanctioned marijuana business would not be considered illegal under federal anti-money-laundering laws.
The House of Representatives passed a version of the bill, and the banking industry is pushing the Senate to take it up. If it were to become law, it would let banks dive into a lucrative new industry that has been plagued by security concerns and is desperate for even the most basic services, like checking accounts and credit card processing.
Even though banks have been slow to embrace the cannabis industry, investors have been geared up to profit from it. Analysts tracking publicly traded companies have added pot producers to their portfolios, in order to help investors decide where best to maximize their exposure to the industry. Ultrarich venture capitalists have begun to treat pot businesses like tech start-ups.
Banks have been the buzzkills. When Uruguay became the first country in the world to legalize marijuana two years ago, American banks warned their Uruguayan counterparts that they would cut them off if they provided services to pharmacies selling the drug. Banks in Canada, where marijuana has been legal for the past year, are still worried about doing business with pot producers in case it causes them problems south of the border.
Still, it wasn’t clear on Tuesday that the change to hemp regulations would immediately influence bankers’ attitudes. Bankers will still have to study up on the complicated licensing requirements that states and the Agriculture Department have devised for hemp growers.
In the meantime, hemp growers’ hopes might still be dashed. Ms. Stark said she had heard Wells Fargo was considering offering banking services to hemp businesses, but a Wells Fargo spokesman said the bank was taking no such steps.
This story first appeared at The New York Times.
Emily Flitter covers banking and Wall Street. Before joining The Times in 2017, she spent eight years at Reuters, writing about politics, financial crimes and the environment. @FlitterOnFraud
by HempingtonPost | Dec 11, 2019
Dallas-based Panda Biotech [on Tuesday] announced it is developing its first industrial hemp processing facility to produce high-quality, textile-grade fiber and premium cellulose. The “Panda High Plains Hemp Gin,” to be located in Lubbock County, Texas, is expected to be the largest hemp decortication center in the United States and one of the largest in the world.
Panda Biotech plans on deploying the most technologically advanced, highest capacity and first-of-its-kind industrial hemp decorticating equipment ever used to separate the fiber and cellulose from the stalk. The Panda Biotech Hemp GinsTM will be based on smaller versions of proven decortication technology that have been used throughout Asia and Europe for decades.
To ensure the highest quality fiber, the company will only process hemp stalks that are harvested prior to the maturation of the seed and flower, which are the parts of the plant used in CBD products.
Panda Biotech has also secured the rights to purchase a 255,000 square foot processing facility in Shallowater, Texas in the heart of cotton country. More than 130,000 tons of Texas-grown industrial hemp is expected to be processed annually into textile fiber and cellulose.
In the lead up to today’s announcement, Panda Biotech has engaged key stakeholders in the Texas High Plains region including the local farming community, academic institutions and elected officials. Panda Biotech is also establishing business relationships with large potential off-takers for the fiber and cellulose to be produced at its Texas facility. In addition, the company is assembling a “first in class” advisory board composed of some of the top industrial hemp, textile and cellulose experts in the nation as well as agronomists experienced in the seeding, cultivation and harvesting of industrial hemp.
“After more than a year of due diligence — which has included an analysis of the hemp fiber and cellulose industries in the People’s Republic of China, various European countries and Canada — we have concluded that the processing of hemp stalk for industrial uses will be the next multi-billion-dollar business in the United States,” said Scott Evans, executive vice president of Panda Biotech. “Hemp fiber and cellulose will help manufacturers meet the needs of today’s eco-conscious consumers who increasingly require environmentally friendly products and services. As a result, hemp will be a game changer for both agriculture and industry for generations to come.”
Formation and growth of the industrial hemp industry
The U.S. hemp industry was made possible due to the passage of the federal Hemp Farming Act of 2018. Panda Biotech was subsequently formed after the provisions of the Act were incorporated in the 2018 U.S. Farm Bill that was signed into law by President Trump on Dec. 20, 2018. Both chambers of the Texas state legislature unanimously passed House Bill 1325, that was signed into law on June 10, 2019, by Texas Governor Greg Abbott. The law authorizes the production and manufacture of industrial hemp crops in the State of Texas pending final approval of Texas’ hemp regulations by the USDA which is expected in the coming weeks. The law ensures Texas farmers are able to participate in a rapidly growing industry with a new viable crop option that should also be a boon to rural economies.
The global industrial hemp market is projected to grow from $4.6 billion in 2019 to $32 billion by 2022.
Benefits of industrial hemp fiber and cellulose
Industrial hemp used for manufacturing applications is highly valued for its natural durability, rapid growth and environmental sustainability. The processed fiber and cellulose from industrial hemp can be used in the production of a multitude of products including textiles, a wide array of building materials, paper products, automobile composites, nanomaterials, bio-plastics and finishing products such as caulking, sealants, varnishes and paints. In addition, research indicates that hemp-based supercapacitors offer a less expensive alternative to materials currently used in rechargeable batteries for applications such as smartphones and electric cars. As a result, industrial hemp is poised to transform numerous multi-billion-dollar industries.
by HempingtonPost | Dec 11, 2019
Hemp is a type of cannabis that contains less THC and more CBD. THC is the psychoactive component responsible for providing the effect of a “high.” It can be dangerous when consumed in large amounts. However, CBD is useful in treating various medical conditions.
In December last year, the Trump administration legalized hemp, which contains less than 0.3% THC, by clearing the Agriculture Improvement Act of 2018, also known as the farm bill. Apart from medicinal values, hemp has a variety of industrial usages, such as clothing, food and beverages, paper, and construction. Let’s look at hemp’s uses in the health and wellness sector.
Hemp’s uses in health and wellness
Although the US federal government has legalized hemp, the FDA hasn’t approved any CBD products except Epidiolex, which treats seizure disorders in patients over two years old. However, many hemp-derived CBD products are used in treating ailments such as anxiety, pain, dystonia, and Parkinson’s disease.
In July 2019, Brightfield Group said it expected the sales of CBD products to reach $5 billion in 2019, year-over-year growth of 706%. The market research company also expects the industry to reach $23.7 billion by 2023. Its report stated that tinctures have the largest share in the CBD market, followed by topicals, vape oils, and capsules. It added that companies are working on developing innovative CBD products, such as facial scrubs, sunscreen, and sparkling water. CBD’s vast market potential appears to have attracted many cannabis players.
Last week, Canopy Growth (WEED) (CGC) introduced its CBD products in 31 US states under the First & Free brand. In October, the company acquired a 72% stake in BioSteel Sports Nutrition, which produces and markets sports nutrition products. The company expects to introduce CBD sports nutrition offerings in US markets by early next year.
In August this year, Aurora Cannabis (ACB) completed the acquisition of Hempco Food and Fiber. The acquisition could expand Aurora’s hemp-derived CBD business. The company also partnered with mixed martial arts organization UFC to conduct clinical research on the effectiveness of CBD in treating pain, inflammation, and other medical conditions.
However, recently, the FDA announced that it could not conclude CBD products were safe using the available data. It warned consumers that CBD products could cause injury to the liver, drowsiness, and diarrhea. Now, let’s look at the industrial usage of hemp.
Many industrial usages
- As reported by Hemp Basics, hemp is useful in making ropes, sacks, carpets, nets, and webbing due to its strength and durability. Its durability also helps in making jeans, shoes, and sports clothing.
- As reported by TreeHugger, hemp seeds contain protein, calcium, and iron. TreeHugger expects the plant to act as an ingredient in food and dietary health supplements.
- Due to its sturdiness, hemp can come handy in making building materials such as fiberboard and pressboard.
- The TreeHugger article reported that currently, hemp-derived paper forms only a small percentage of hemp’s use. The article added that hemp has the potential to provide a renewable and sustainable source of pulp for paper but that a lack of innovation has increased its production costs.
- Hemp oil can be processed to produce biodiesel.
Apart from health and wellness benefits, hemp has a variety of industrial usages. With a wide range of usages, we expect the hemp sector to have a considerable scope going forward. For more cannabis-related news and updates, check out 420 Investor Daily.
This story first appeared at Market Realist.
by HempingtonPost | Dec 11, 2019
As the first year of hemp farming in Michigan ends, industry leaders say they hope to make plastics and wood from the plant’s fiber — once they hurdle the obstacles to market expansion.
“Every part of it has uses, but the infrastructure isn’t in place to make use of those parts,” said Dave Crabill, communications director for iHemp Michigan, the recently founded association of local industrial hemp farmers.
The state’s pilot program allowed farmers to grow industrial hemp if they signed a research agreement. The state agriculture department is currently accepting 2020 applications from farmers for a second year in the program.
An estimated 15,000 to 30,000 acres of Michigan hemp were grown under that agreement, but the number fluctuates regularly based upon when license applications come in to the state government’s system, said Jennifer Holton, director of communications for the Michigan Department of Agriculture & Rural Development in an email.
Hemp had been illegal primarily because it is part of the cannabis family, just like marijuana. The 2018 federal farm bill removed hemp from the list of controlled substances and the 2014 farm bill permitted universities and state agriculture departments to study the crop.
Hemp fibers are traditionally used in fiber-based products, including rope, clothing and mattress-tops, said Theresa Sisung, associate field crops specialist for the Michigan Farm Bureau.
But processing hemp into cannabidiol, or CBD oil used in wellness programs, boosted the plant’s popularity.
An estimated 285,000 acres of industrial hemp were planted in the U.S. in 2019, up from 78,000 acres in 2018, according to research conducted by Brightfield Group, a market intelligence firm for legal cannabis industries.
The firm expects an annual growth rate of 75% per year through 2023.
Michigan’s pilot program was permitted by the U.S. Department of Agriculture when it lifted the ban on hemp plants in 2018.
New federal hemp rules were announced last month, including provisions for the U.S. Department of Agriculture (USDA) to approve hemp production plans, if the plants don’t test positive for excessive concentration of psychoactive chemicals.
As a member of the cannabis family, hemp can have THC, the psychoactive compound in marijuana, and CBD, marketed as a wellness product to treat anxiety and minor pain relief. Hemp is legally used for CBD.
USDA regulations require hemp to maintain a THC content below .3%, and states must collect the samples to ensure compliance with them. As the industry matures, it could change Michigan’s manufacturing practices, Cabrill said.
Sunstrand, a Kentucky hemp processing company, is using hemp to create sustainable manufacturing materials like wood and oil-based plastic.
“There is a significant lack of processing in the state,” Sisung at the Michigan Farm Bureau said. “There are a lot of shady people involved in the hemp industry right now because it is so new.”
Some Michigan farmers agreed to send hemp crops to a processing company, only to never hear from the processor again, she said.
Crabill said that for sustainable materials to gain traction, a purchase order from a plastics company that needs hemp fibers is necessary.
But the interest in hemp continues to surge. A breakthrough in making hemp products a cost-competitive plastic substitute could come within three years, Crabill said.
It’s not that Michigan can’t grow the crop, Sisung said.
“We’re seeing it grown all over the state,” she said. “We do have some good soil here”
But before Michigan can revolutionize the hemp product market, farmers have to follow government standards, Crabill said.
Farmers are concerned about unintentionally cross-pollinating with marijuana plants, causing their hemp crops to violate federal law. This is a bigger concern since Michigan’s legalization of recreational marijauna
“A hemp plant is like a horny teenager,” Crabill said. “The pollen of a male plant can travel as far as 20 miles away — the standard is at least 7 miles.”
Crabill said the pollen also increases the concentration of the chemicals near the top of a cannabis plant, which is the portion of the plant that regulators test for THC.
The testing for THC needs improvement, said Brandon Canfield, an associate professor of chemistry at Northern Michigan University.
Hemp is a new commodity, and the history of cannabis criminalization has prevented a robust quality test, Canfield said
Canfield runs the university’s medicinal plant chemistry program. He said the amount of THC in hemp varies depending on when and how you test for it.
Complicating things further, Sisung said, some states have tested for total THC as opposed to a specific kind of THC with a lower concentration.
Any plant that tests above .3% of THC concentration has to be destroyed and any individual with a hemp plant that tests above half a percent is criminally negligent, Crabill said.
This story first appeared at Great Lakes Echo.
by HempingtonPost | Dec 7, 2019
Hemp paper is stronger and more environmentally sound than wood paper.
This story is originally from RXLeaf.com
Hemp is a truly remarkable plant. It’s essentially the gift that keeps on giving. In addition to CBD oil, food, clothing or fuel, it can also make hemp paper. This paper type is likely the ideal replacement to wood pulp paper in our quest for a greener, cleaner world.
What is Hemp Paper?
The hemp plant is rich in cellulose. When boiled, beaten, or shredded into tiny fibers it can then be spread onto sheets that are pressed and dried to make a pulp.
When compared to wood pulp, hemp pulp offers several advantages. Fibers are generally four to five times longer than those found in wood pulp. This is something that leads to higher tear resistance and tensile strength in the resulting paper.
Hemp paper is commonly used in applications where there’s a need for high-strength paper as in the case of banknotes, stamp papers, and postal stamps. While many view it as a viable alternative to wood pulp, production costs are higher, something that currently prevents its widespread adoption.
The Benefits of Hemp Paper
The benefits of hemp paper extend far and wide as seen below. They include the quality of the paper itself to the associated efficiencies in cultivation as well as the wide-reaching environmental benefits.
- Hemp offers superior quality paper: Hemp paper fibers do not decompose or deteriorate by turning yellow or brown like wood pulp paper does.
- Quick growing: Hemp stalks grow in four months, while trees take between twenty to eighty years.
- Increased yields: One acre of hemp on average will produce as much paper as four to ten acres of trees.
- Environmentally friendly: Recycling hemp paper up to eight times is normal, while pulpwood paper can only tolerate three times.
- Less harmful chemicals: Bleaching must occur with woodpulp paper via a process that uses many toxic chemicals. Hemp pulp requires no bleaching.
- Reduced deforestation: Disturbed and angered by the images of the Amazon rainforest burning this year? Well, the wider adoption of hemp paper substantially reduces the alarming rates of deforestation.
- Abundant cellulose: Cellulose is the principal component of paper. Trees contain thirty percent cellulose, while hemp plants contain up to eighty-five percent cellulose.
Can Hemp Reduce the Global Carbon Footprint
Hemp has some notable advantages when it comes to carbon footprint. This is something of great relevance in these challenging times for the global climate.
An Australian parliamentary report recently studied the role of industrial hemp in carbon farming. It concluded that hemp can absorb “more CO2 per hectare than any forest or commercial crop and is therefore the ideal carbon sink.”
The abilities of hemp to sequester carbon is nothing short of remarkable. Hemp begins to sequester carbon as soon as it is seeded. And one hectare of industrial hemp can absorb twenty-two tonnes of CO2. This translates to 1.62 tonnes of sequestered CO2 per ton of harvested hemp.
The fact that fast-growing hemp can grow to heights of thirteen meters in less than four months means that it’s often seen as the ideal solution when compared to other agroforestry alternatives.
In addition, hemp grows even in nutrient-poor soil. It requires minimal amounts of water and no artificial fertilizers are necessary.
Pulp Paper is a Big Source of Pollution
As the raw material for pulp paper, trees have always been widely available and affordable. With such affordability comes high consumption and high waste levels. But how does the production of pulp paper contribute to the global carbon footprint?
Science disputes just how much of a polluter the paper industry is. Studies exist that put forward strong arguments for both sides. One Chinese case study, published in Applied Energy (2015), claimed that within China, CO2 emissions from the paper industry, “ranged from 126.0 Mt to 155.4 Mt”. The report touted it as being the “largest source of carbon emissions.”
A report published in the Environmental Engineering and Management Journal (2012), provided a thorough breakdown of the environmental impact of pulp and paper mills. Researchers attributed the environmental impact from the wood pulping industry to come from the bleaching process. The resulting pollutants that are subsequently introduced to the environment are chiefly made up of harmful sulfur compounds and nitrogen oxides that pollute the air.
Wastewater is also a concern, and discharged bleaching effluence consists of chlorinated organic compounds. These human-made chemicals, known as xenobiotics, persist in the environment for considerable periods. Pulp mills are also voracious consumers of water. With the discharging of waste waters often taking place at a rate of twenty to one hundred cubic meters per ton of product.
The Counter Evidence for Hemp Paper
Evidence put forward from the U.S. Environmental Protection agency paints a rather different picture, however. The research claims that, “greenhouse gas emissions from the pulp and paper industry has dropped from 44.2 to 37.7 million metric tons CO2”. The fifteen percent betterment is due to improved energy efficiency and the, “increased use of less carbon-intensive fossil fuels.”
Furthermore, a report published by the National Emissions Inventory (2014) claims that “the pulp and paper industry in North America produced only about 0.5 percent of the total carbon emissions in 2014.”
Paper Production and Deforestation
While the short term effects of the industry will inevitably cause a debate, few can argue with the increased rates of deforestation.
The destruction of forests around the globe essentially results in the destruction of, not only local habitat, but . Birds and animals thrive in the forest and are much more vulnerable to predators with the continuous cutting down of trees.
An article that appeared in National Geographic (2019) cited the fact that much of the wood that fuels the paper industry comes from illegal logging operations in the Amazon. In the past fifty years, seventeen percent of the Amazonian rainforest has been destroyed. While not all of this can be attributed to paper production, it certainly does make the case for sustainably sourced hemp as a viable alternative.
The Future of Hemp Paper
With the recent spread of legalized cannabis across much of North America, the aversion by association that many have toward hemp is slowly beginning to wane. With the recent passing of the Farm Bill, hemp has once again become a viable crop. And along with paper production, it’s wide and varied uses may just be the catalyst for some positive global changes.
This story first appeared at RX Leaf.
