In sports, as the saying goes, there’s no gain without pain. However, not all pain is the same, at least according to researchers at the John Hopkins School of Medicine. They note that there is good pain and bad pain.
Stress in the muscles as they develop strength causes the former, but excessive training can overload and damage muscles, resulting in bad pain. Regardless of taxonomy, pain is an athlete’s constant companion, and, in the search for more effective escapes from it, many are ditching traditional anodynes and turning to cannabidiol (CBD) products like those provided by Cannabis Strategic Ventures, Inc. (OTC: NUGS). The company is offering athletes a way to ease their pain with its Fitamins CBD line. It recently signed Art ‘One Glove’ Jimmerson to be brand ambassador for the label.
Jimmerson knows a thing or two about pain. He is a former professional boxer and mixed martial arts fighter, as well as a pioneer of the Ultimate Fighting Championship (UFC) franchise. His appointment as brand ambassador was announced on November 10 at the UFC 25th Anniversary Fight Night in Denver, Colorado, an event that was viewed by millions of fans. Jimmerson’s journey in contact sports took flight in 1983, while still an amateur, after he became the National Golden Gloves Middleweight champion. He went on to achieve an admirable record of 51-18 over a 20-year career that lasted from 1983 to 2002.
Cannabinoids are gaining increasing prominence as acceptable alternatives to traditional analgesics, such as ibuprofen and acetaminophen, with THC and CBD garnering the most attention. Depending on jurisdiction, a variety of restrictions on the use of THC, some of which also limit the availability of CBD, exist, although, since CBD has no psychotropic effect, regulation of CBD tends to be less restrictive than for THC. The advantages of CBD are that it offers some of the same medical benefits (anti-inflammatory, anti-anxiety, analgesic effects) as THC, but without the legal and psychological complications.
CBD has an effect on the brain’s serotonin and vanilloid receptors, and it thus lightens mood and the perception of pain. It also acts as an antioxidant, neutralizing free radicals in the body that damage tissues and cells by “stealing” their electrons. As such, its therapeutic value is increasingly being recognized, and, in January 2018, the World Anti-Doping Agency (WADA) removed CBD from its list of banned substances. This clears the way for the Fitamins line to be marketed to the sports industry.
The market for CBD therapies is buoyant. Hemp-derived CBD sales are ballooning at a CAGR of 55 percent. They are set to hit $1 billion by 2020. As word spreads on the field about CBD’s effectiveness in treating pain, expect the Fitamins brand to get a place on the team.
The Farm Bill removes hemp from the Controlled Substances Act.
First and foremost, the 2018 Farm Bill nationally legalized hemp. Before, hemp with more than 0.1 percent THC was classified as a Schedule 1 Controlled Substance, on par with heroin and ecstasy. This legislation dates back to the 1970s, but cannabis prohibition has deep roots going back to the Marihuana Tax Act of 1937.
hemp field on the prairies
Before this legislation, there was no legal distinction between hemp and marijuana. Though both are varieties of the cannabis plant, hemp contains only traces of the psychoactive cannabinoid THC, meaning that it cannot get you high. As stated by the Drug Enforcement Administration (DEA), “Cannabinoids, such as tetrahydrocannabinols (THC), and cannabinols (CBN) and cannabidiols (CBD) are found in the parts of the cannabis plant that fall within the CSA definition of marijuana, such as the flowering tops, resin, and leaves.”
By signing the Farm Bill, Trump removed hemp from the Controlled Substance Act (CSA). Specifically, hemp that contains less than 0.3 percent THC now has legal standing distinct from psychoactive cannabis, or weed. This means that the DEA and U.S. Department of Agriculture can no longer curb, or prosecute, hemp farmers.
Major hemp farming and sale restrictions have disappeared.
Even when hemp was a Controlled Substance, hemp farming across the country did exist. This is thanks to industrial hemp pilot programs legalized by the 2014 Farm Bill. For example, New York’s Industrial Hemp Agricultural and Research Pilot Programallows universities to apply for licenses to research hemp cultivation. Businesses can also farm industrial hemp, with the proper licensing, per this new program.
But hemp farming is in its infancy. In 2017, 19 states were farming hemp under pilot programs. Thanks to hemp’s shaky legal status, cross-state hemp trade is difficult and hemp farmers do not have access to government subsidies or traditional methods of financing. Hemp farmers had to approach normal business considerations just like anyone in the cannabis industry — until Trump signed the 2018 Farm Bill.
The Farm Bill replaces DEA restrictions with USDA regulations. This would mean that farmers can certify their hemp crops as organic or American grown and trade nationally and internationally. In broad terms, hemp can become like wheat, corn, and cotton in the eyes of the government, banks, researchers, and farmers.
The U.S. hemp market could be worth over $10 billion by 2025, by conservative estimates.
Hemp product sales reached $820 million in 2017, up 16 percent from $688 million in 2016. This is only the beginning of the hemp boom: The entire hemp market will be worth $10.6 billion in 2025, according to Grand View Research. However, other estimates show the CBD market growing to twice that size in less time. By contrast, $10.6 billion appears conservative.
CBD sales could reach $22 billion annually by 2022.
CBD, the non-psychoactive cannabinoid otherwise known as cannabidiol that is found in hemp and marijuana, is one of the biggest contributors to hemp market growth. Today, CBD sales account for 23 percent of hemp product sales by market share.
Though cannabis research is still nascent, studies and personal accounts have already shown that CBD can dramatically reduce seizures, chronic pain, acne, anxiety, depression, nausea, addition, sleep disorder, and more. For all these reasons, medicinal and medical CBD oil and hemp oil use is growing.
And the fact that CBD cannot get you high makes it an incredibly versatile form of cannabis. In other words, a growing number of adults and children use CBD day-to-day.
CBD is only one of many types of hemp-derived products.
The Farm Bill could transform the way we make fuel, paper, textiles, building materials, plastics and much more.
Hemp is the strongest natural fiber in the world. Virtually anything can be made using hemp, including fuel, clothing, packaging, concrete, cosmetics, fiberglass, and other essential products. Hemp also contains nourishing omega-3 fatty acids, making it an increasingly popular dietary supplement.
Not only is hemp a stronger material than many of those it could replace, but it’s also more environmentally friendly and economical to farm. Cultivating hemp does not require pesticides or herbicides. Cotton farming takes 50 percent more waterto farm and 400 percent more water to process than hemp. One acre of hemp yields as much dry materials as four acres of forest. For all these reasons, hemp is one of the oldest and most-versatile crops in existence. Hemp prohibition is a modern invention.
Hemp’s various applications are nothing short of revolutionary. Today, industrial hemp only accounts for 18 percent of the market. Textiles and food derived from hemp account for 13 and 17 percent, respectively. Though a CBD market explosion may be the most immediate consequence of the Farm Bill, it’s only a fraction of what the hemp market could become. Cars, fuel, buildings, and other necessities of modern life can all be made more cheaply and sustainably with hemp.
Growing hemp could lift some of the burden placed on farmers by Chinese tariffs.
U.S. farmers, now more than ever, are in desperate need of an economical crop like hemp. Trump’s tariffs have caused major disruptions in U.S. trade with China. Specifically, China has levied a 25 percent tax on American soybeans, wheat, corn and sorghum in response to Trump’s $50 billion worth of tariffs imposed on Chinese goods in early 2018.
As a result, American farmers have taken a major hit. China bought $14 billion in U.S. soybeans in 2017. In July 2018 alone, the price of soybeans fell 14 percent as farmers struggled to sell off their crops. Though Trump and Chinese President Xi Jinping have agreed to postpone the $267 billion worth of tariffs to be levied against China on January 1, the still-existent 25 percent tax on American goods is still hurting U.S. farmers.
The Farm Bill gives farmers a viable alternative to soybean, wheat, corn and other commonly exported crops. And from the White House’s perspective, American-grown hemp puts a dent in Chinese hemp production. Since the U.S. has been unable to meet its hemp demands yet, we import around $60 million of hemp per year. Much of it comes from China, the world’s leading cannabis producer and researcher.
The Farm Bill benefits consumers, farmers — and Trump.
We’ve only scratched the surface of hemp’s many uses, not to mention its ability to curb some of America’s most pressing health and political problems. To name a few:
Research has shown that CBD can help patients struggling with addiction, or serve as an alternative pain medication.
Hemp fuel could be a viable alternative to fossil fuel.
Hemp farming is more sustainable, versatile,and economical than any other large-scale crop farming.
The only thing that stands between the U.S. and a booming hemp market is outdated perception. Now that Trump has signed the Farm Bill, the hemp market is poised to change.
The edibles category is especially ripe for innovation
Legal cannabis is the fastest growing industry in North America, with significant implications for the food and beverage industry. The recently released State of Legal Marijuana Markets report from Arcview Market Research and BDS Analytics projects retail sales of legal cannabis will climb from 2017’s $9.2B to $24.2B in 2021—an impressive 27% CAGR.
From medical applications to health, wellness, relaxation, and recreation, no other ingredient has offered food and beverage companies such wide-ranging potential in the form of consumer benefits and methods of consumption. Consumers in states where the substance is legal now have a rapidly expanding variety of choices of cannabis and products containing cannabis.
The edibles category is especially ripe for innovation. According to the BDS Analytics trend study Public Attitudes and Actions Toward Cannabis in North America, 54% of US adults age 21 and older have tried cannabis, as have 51% of Canadians age 18 years and older.
Among consumers of edibles, baked goods are the most common and preferred edible cannabis product.
PHOTO COURTESY OF: getty images
The study defines adults age 21 years and older (residing in states where the drug is legal) who have consumed cannabis or products containing cannabis in the past six months as “Consumers.” Last spring, these Consumers made up 23% of the US population. Another 38% are “Acceptors.” These are adults who would consider consuming cannabis or cannabis products in the future. Rejecters—those who would not consider future consumption—comprise 39% of adults.
The majority of persons in the Consumer group don’t fit the “stoner” stereotype. They are men and women with an average age of 40 years. Compared to Acceptors and Rejecters, they are more likely to be working full-time; many are raising families. They describe themselves as “physically active” (38%), “very social” (30%), “creative” (50%), and are more likely to say they are “satisfied with life” (40%) versus the Acceptors and Rejecters.
The majority of these cannabis Consumers are most experienced with inhalable and prefer that product form. However, 20% already prefer cannabis-infused edibles. Among consumers of edibles, baked goods are the most common and preferred edible cannabis product. Gummy candy is a distant second, followed by chocolate and hard candy.
Infused edibles are not just about the psychoactive component of cannabis, THC (tetrahydrocannabinol). Cannabis-derived terpenes are used in beer brewing to impart or enhance flavor, and cannabis contains more than 100 cannabinoid compounds. Of these, cannabidiol is by far the most prevalent. Cannabinoids offer a new toolbox for food and beverage R&D, from flavorants to functional health benefits for managing pain, sleep, and inflammation.
Legalization of these compounds has created a need for food industry best practices, standardization, safety, and other competencies. The need for communication and education is also growing. Many adults in the US are either uninformed or misinformed about CBD and THC: 42% don’t know if there are differences in the effects of CBD or THC, and 35% incorrectly believe that there are no differences. Many (46%) believe incorrectly that any hemp product will make them “high.”
In the states where cannabis is legal, brands are now emerging across new categories of edibles for moms, medically motivated seniors, outdoor enthusiasts, and even Fido. At the same time, consumers are evolving in their attitudes and practices, creating significant innovation opportunities for cannabis-infused foods and beverages.
Originally appeared in the December, 2018 issue of Prepared Foods as The Eye on High.
President Trump signed into today an $867 billion farm bill that provides billions in aid to U.S. farmers while rejecting deep cuts to the federal food stamp programs sought by some House Republicans.
“We have to take care of our farmers and ranchers, and we will take care of them,” Trump said at the signing ceremony, going on to praise congressional Democrats for what he called their hard work on the bill.
The hemp provision, which was secured in the final version of the bill under the leadership of Senate Majority Leader Mitch McConnell (R-KY), will allow farmers to apply to cultivate and sell the crop. The industry will be lightly regulated by the U.S. Department of Agriculture.
It’s been decades since hemp was banned in the country as part of the broader prohibition against marijuana. But even as the crop remained illegal to grow, the market for hemp-derived products ballooned. It’s just that the products have had to be imported.
Now, after months of debate on various other aspects of the legislation, the Farm Bill has finally arrived on the president’s desk—and with Trump’s signature, the long-awaited end of hemp prohibition.
The $3.5 billion cannabis industry is one of the nation’s most energy intensive, often demanding 24-hour indoor lighting rigs, heating, ventilation and air-conditioning systems at multiplying grow sites.
Legal cannabis cultivation in the U.S. consumes an estimated 1.1 terawatt-hours of electricity a year, according to the 2018 Cannabis Energy Report, published by Scale Microgrid Solutions along with New Frontier Data and the Resource Innovation Institute. Companies managing these solutions are great ways to diversify your cannabis industry risk.
Indoor growers are looking to cut spiraling electricity consumption with custom-built microgrids in U.S. states where cannabis cultivation is legal. A company that seems to be in the right place at the right time to capitalize on this huge market inefficiency is CleanSpark, Inc. (CLSK)
CLSK has a unique microgrid solution for the cannabis industry. Their mPulse software reduces the monthly electricity bill of indoor grow-houses by up to 82%! They do this by virtually eliminating the demand charges that can account for almost 50% of the utility charges for such a facility.
Pressure is mounting on the cannabis industry to improve its margins after a lackluster 3rd quarter, companies like CLSK can help do just that.
The company just released an impressive letter to shareholders highlighting: an agreement for an $18.3 million ‘Zero Net Energy’ Microgrid with an S&P 500 Member Real Estate Investment Trust (REIT), near completion on a $900,000 contract to install a ‘turn-key advanced microgrid system’ at the U.S. Marine Corps Base Camp Pendleton, has been awarded 2 patents, and updated an acquisition that could be a huge boost to the company’s year end revenues.
CLSK’s acquisition, Pioneer Custom Electrical Products, has delivered $32 million in products since 2016 and has $5 million in backlog. They have also received a $2.4 million equipment order as part of a contract for the new U.S. Embassy in Beirut, Lebanon which should end up on CLSK’s balance sheet.
Another company, Dominion Energy provides nearly 6 million customers in 19 states with electricity or natural gas, headquartered in Richmond, VA. The company is committed to sustainable, reliable, affordable, and safe energy and is one of the nation’s largest producers and transporters of energy with nearly $80 billion of assets providing electric generation, transmission and distribution, as well as natural gas storage, transmission, distribution, and import/export services.
