by HempingtonPost | Aug 23, 2019
By Jeff Greene – The Florida hemp Council
It’s true. Hemp is the next cash crop. However, before you buy a bag of seeds on the internet, locate a plot of land in sunny Florida, and toss seeds like Johnny Appleseed expecting money to grow out of the ground, first, do the research. I can’t stress enough how important it is to look before you leap; I recommend working with an association to act as a professional guide because navigating these waters will be no easy task.
Case in point, July 2019 is on record as the day merchant service providers threw the hemp industry a major-league curveball. The hemp industry had been on a winning streak and many newcomers to the business hadn’t lived through the bleakness of instant bank account closings, bad product, no product, or wire and revoked merchant privileges, but for those in the industry for any length of time, this was their normal. “I have experienced and heard stories of CFOs spending 60-70% of their time over the last three months completing applications for banking and merchant services,” said Christopher Martinez, Chairman and President of The Florida Hemp Council. The good news is some banks and merchant service providers realize the burgeoning opportunity and are lining the bases with new payment options.
Are your seeds Certified? Seeds are only certified to variety and not to levels of THC, or CBD because this data does not exist…yet. And for every state which has legalized hemp, it’ll take two to three years before a farm turns a significant profit. The growing farms in Florida will not be any different.
As we overcome these obstacles and swing for the fences, the next fastpitch is CBD processing. CBD extraction is the topic of conversation lately and there’s no doubt investment into CBD extraction is already happening in Florida. However, fiber production requires retting, degumming, and decortication. This fiber production technology is advanced in China but woefully neglected in the United States. We know big manufacturers have been sniffing around but until big money jumps into space we can expect it to move at a snail’s pace.
Rounding out the inning are the retailers, which legally must register with Florida to ensure they’re not selling unregistered or uncertified products, plus all organic labeling is accurate and consumer safety. It’s important that retailers request a Certificate of Analysis (COA) for each product being sold in their stores from an accredited 3rd party laboratory. Per the FDA, CBD cannot medically cure or treat what ails you, so labels must not claim to do so. Consumers are learning anecdotally via social media and online how CBD, CBG, CBN, and the entourage effect can help with certain health conditions. If products go to a retailer, manufacturer, or another reseller, no health claims are allowed by law on the product label or marketing.
So, as a fledgling industry, where consumers can’t be told how to ingest the products, or how much product to administer, retailers must exercise caution over the watchful eye of law enforcement, manufacturers need clean extraction, and farmers need certified seeds, then how is our business going to grow from under the radar to $20 billion over the next five years? The answer is simpler than you’d suspect – consumers see firsthand that the products work for them and they spread the word. Retailers educate themselves by joining organizations such as the Florida Hemp Council, while manufacturers and farmers do what they have always done, meet consumer demand.
by HempingtonPost | Aug 20, 2019
A federal financial agency released updated guidelines on banking in the hemp industry on Monday, following up on requests from multiple lawmakers to provide clarity on the issue.
The National Credit Union Administration (NCUA) said in its interim guidance that providing banking services to hemp businesses is allowable since the crop and its derivatives were federally legalized under the 2018 Farm Bill. The notice also emphasized the economic potential of hemp and the role credit unions can play as the industry continues to develop.
“Lawful hemp businesses provide exciting new opportunities for rural communities,” NCUA Chairman Rodney Hood said in a press release. “I believe today’s interim guidance keeps with the mission of the nation’s cooperative credit system to serve people who have been overlooked and underserved.”
“Many credit unions have a long and successful history of providing services to the agriculture sector,” he said. “My expectation is that credit unions will thoughtfully consider whether they are able to safely and properly serve lawfully operating hemp-related businesses within their fields of membership.”
In a letter sent to Sen. Michael Bennet (D-CO) last month, which the presidential candidate’s Senate office shared exclusively with Marijuana Moment, Hood noted that NCUA was “working on possible future guidance to financial institutions”but that such guidance would be subject to change depending on what regulations the U.S. Department of Agriculture (USDA) ultimately develops.
In the meantime, the new interim guidance notes that “growth in hemp-related commerce could provide new economic opportunities for some communities, and will create a need for such businesses to be able to access capital and financial services” while clarifying that credit unions “may provide the customary range of financial services for business accounts, including loans, to lawfully operating hemp related businesses within their fields of membership.”
While NCUA said that it is “generally a credit union’s business decision as to the types of permissible services and accounts to offer,” it highlighted the need to comply with the Bank Secrecy Act (BSA) and with Anti-Money Laundering (AML) requirements, in particular:
—Credit unions need to maintain appropriate due diligence procedures for hemp-related accounts and comply with BSA and AML requirements to file Suspicious Activity Reports (SARs) for any activity that appears to involve potential money laundering or illegal or suspicious activity. It is the NCUA’s understanding that SARs are not required to be filed for the activity of hemp-related businesses operating lawfully, provided the activity is not unusual for that business. Credit unions need to remain alert to any indication an account owner is involved in illicit activity or engaging in activity that is unusual for the business.
—If a credit union serves hemp-related businesses lawfully operating under the 2014 Farm Bill pilot provisions, it is essential the credit union knows the state’s laws, regulations, and agreements under which each member that is a hemp-related business operates. For example, a credit union needs to know how to verify the member is part of the pilot program. Credit unions also need to know how to adapt their ongoing due diligence and reporting approaches to any risks specific to participants in the pilot program.
—When deciding whether to serve hemp-related businesses that may already be able to operate lawfully–those not dependent on the forthcoming USDA regulations and guidelines for hemp production–the credit union needs to first be familiar with any other federal and state laws and regulations that prohibit, restrict, or otherwise govern these businesses and their activity. For example, a credit union needs to know if the business and the product(s) is lawful under federal and state law, and any relevant restrictions or requirements under which the business must operate.
“Hemp provides new opportunities for communities with an economic base involving agriculture,” the notice states. “The NCUA encourages credit unions to thoughtfully consider whether they are able to safely and properly serve lawfully operating hemp-related businesses within their fields of membership.”
After USDA releases its rules for the hemp industry, which are expected to come ahead of the 2020 planting season, NCUA said it “will issue additional guidance on this subject.”
Senate Majority Leader Mitch McConnell, who like Bennet has also pressured federal regulators to clear up confusion around hemp banking, took credit for NCUA’s response and celebrated the new guidance.
“I’m delighted to hear the NCUA has answered my call on behalf of Kentuckians to ensure the legal hemp industry can access much-needed financial services,” McConnell said in a press release. “Although President Trump signed into law my initiative last year to remove hemp from the federal list of controlled substances, many of my constituents have told me about their difficulty receiving loans and other services that are necessary to successfully run a hemp business.”
“Through this guidance by the NCUA, I look forward to more hemp farmers, processors and manufacturers starting or growing their operations with the help of Kentucky’s credit unions,” he said. “As Senate Majority Leader, I’ll continue advocating for Kentucky’s priorities throughout the federal government, and I’m proud of today’s positive news.”
Credit unions have generally been friendlier to the marijuana and hemp industries than have conventional banks, and NCUA has similarly taken a more proactive role in evolving to meet the demands of these burgeoning markets.
For example, the agency’s head clarified earlier this month that credit unions wouldn’t be punished simply for serving hemp businesses so long as they were following standard procedures. NCUA also released a draft rule in July that would allow people with past drug convictions to work at credit unions.
Cannabis banking issues have received significant congressional attention this session, with a bipartisan consensus emerging around creating a legislative fix so that hemp and marijuana businesses are able to access financial services.
The hemp industry in particular has enjoyed bipartisan support since the crop was legalized, but while marijuana remains a federally controlled substance, more lawmakers from across the aisle are expressing interest in affording cannabis businesses the same access in order to increase financial transparency and mitigate public safety risks associated with operating on a largely cash-only basis.
The House Financial Services Committee approved a bill in March that would protect banks that service marijuana businesses from being penalized by federal regulators, and the Senate Banking Committee also held a hearing on the issuelast month.
Banking Chairman Mike Crapo (I-ID), who suggested earlier this year that his panel wouldn’t convene to discuss the matter as long as cannabis is federally illegal, has since taken a stance that the issue needs to be resolved.
But while advocates hoped that legislation to address marijuana banking problems would be taken up by the full House ahead of the August recess, that window closed and attention is now turned to a potential hearing in the fall.
This story originally appeared at Marijuana Moment.
by HempingtonPost | Aug 19, 2019
In 2017, the Nevada Department of Agriculture issued 26 permit for hemp growers as a research program. In 2018, hemp was removed from the Schedule 1 federal drug list, and turned into an agricultural commodity. Now there are more than 200 hemp grower in the silver state.
In 2017, the Nevada Department of Agriculture issued 26 permit for hemp growers as a research program. In 2018, hemp was removed from the Schedule 1 federal drug list, and turned into an agricultural commodity. Now there are more than 200 hemp grower in the silver state.
Don Blunt is one of the more than 200 farmers growing hemp this season, and it’s his first since joining the industry. They’re about seven to eight weeks away from their first harvest, but right now they’re making space to grow more next year.
“We’re going to clear another 50 acres next year, We have a 50-acre farm this year and it’s doing quite well,” Blunt says. “We have about 110 thousand plants, and the growing cycle is 120 days and we’re about halfway there.”
Blunt opened his farm in March and planted his first hemp plants in June. He decided to start a hemp farm after CBD cured his migraines. He had gone to neurologists at the Mayo Clinic and Stanford and nothing worked prior.
“That was about a little less than a year ago,” Blunt says. “And I’m headache free now I lost all of my migraines because of the CBD.”
There’s demand for industrial hemp products like rope, but Blunt plans to sell all of his hemp for CBD use. He likes the medicinal effects, and likes the variety of products.
“Tinctures, the vapes, the balms, the rubs for arthritis and so forth,” Blunt says. “We’ve had several inquiries for cancer treatments for the pain. Pets is a huge market. We give all of our pets CBD.”
In order for hemp to be legally sold by farmers, it has to be tested for THC, and can’t have more than .03 percent of THC. Blunt says that’s not hard to meet if you buy quality product.
“It’s all about the genetics,” Blunt says. “If you buy good seeds from the proper people. We actually do third-party testing with three different labs in three different states.”
Blunt says he could add more acreage down the line. He hopes as the industry grows and more states recognize cannabis and hemp as useful products, banks will be more open to doing business with them.
“They have kind of grown in their horns so to speak,” Blunt says. “They’re not supporting hemp at this time. And I hope that changes because it makes it tough on us farmers.”
Blunt has six full-time employees, and adds about 30 workers when it’s time to harvest because there’s so much extra work.
This story originally appeared at ktvn.com
by HempingtonPost | Aug 19, 2019
CBD treatments are promising, but far more research needs to be done before federal authorities can allow them in foods and dietary supplements, according to a leader of the U.S. Food and Drug Administration’s new cannabinoid work group.
Talking to the National Industrial Hemp Council, Lowell Schiller warned CBD producers in attendance that the FDA plans to treat hemp extracts like any other new ingredient going into foods or drugs – meaning that without research on dosing and drug interactions, the agency is unlikely to approve over-the-counter use.
“We don’t hold a grudge against (cannabinoids), but we also don’t hold them to a lower standard of safety or absolve them of other requirements,” he told the gathering in Portland, Oregon.
“Consumers have a right to expect the same level of FDA protection with respect to hemp and derivatives like CBD as they would expect with respect to any other substance.”
Schiller repeated FDA concerns about:
- Potential adverse effects from CBD use, including liver damage.
- The lack of data on long-term use of CBD.
- Unproved claims of therapeutic benefits from CBD.
“If we don’t think we’ll have the data to say that some level of CBD can be safely added to a food or dietary supplement, then we wouldn’t want to create an exception for CBD,” he said.
Schiller told the industry group the FDA is excited about cannabinoids’ potential for therapeutic use, but more research is needed. He said the agency would report progress on its cannabinoid review in “early fall.”
COMMENTS:
Ray: There is that “more research” propaganda again. No one believes the FDA simply because they play the Fake News card and because they know they picked the wrong side when it came to the cannabis plant. There is plenty of research and testimonials on the side effects and benefits of cannabis including CBD if they really want to find it.The FDA gave us Fentanyl and:Infliximab. Brand Name: Remicade.
Used For: Crohn’s disease, rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, plaque psoriasis, and ulcerative colitis.
Side Effects: Cancer (Skin, Lung, breast cancer, gastrointestinal) labored breathing, joint pain, pneumonia.Do you know what product helps patients with Chron’s disease? Yep, cannabis. And cancer is not a side effect.
Deetew: Wow, the FDA wants a lot of information on CBD before jumping to conclusions. Keep in mind that the GW Pharmaceuticals study that showed liver damage from CBD used acute doses of 180,000 mg of pure isolated CBD in a 75 kg individual —beyond anything anyone would ever use or afford. Also, I can buy a barrel of Ibuprofen and destroy my kidneys and stomach lining, and the FDA won’t care about my safety. —Why, because it already gave me chronic gastritis, and the FDA doesn’t care. Don’t believe that the FDA isn’t biased against CBD, because they most certainly are either receiving revolving door promises from GW Pharmaceuticals, or they are getting straight up bribed. Investigate.
Mike: Hopefully we can unmark the alleged “proprietary” chemovar that GW PHarma is using and show that the same effects can be achieved with hemp and cannabis extracts.
Bev: The FDA allows neurotoxic, endocrine disrupting, fluoride to be given to children. Fluoride was NEVER tested, but can be prescribed because it was grandfatered! Spare us your concern about CBD products, oh font of wisdom FDA, you merely want control.Fluoride is a drug that has only been approved for topical application. Children’s sodium fluoride anti-cavity supplements were never found safe or effective by the Food and Drug Administration (FDA). Sodium fluoride supplements are routinely fed to little children to prevent tooth decay. They are drugs requiring a dentist’s or physician’s prescription. FLuoride supplements were “grandfathered in” before the 1938 law was enacted requiring drug testing. So, products on the market before 1938 were presumed safe by the FDA who allowed grandfathered drugs to be sold without any testing. Once a drug is on the market for any reason, doctors can use them to treat any disease or condition. Sodium fluoride was on the market pre-1938, but not to stop cavities and not for any medical reason. Sodium fluoride sold as a rat poison.
Cyrus Emerson: CBD needs to be approved before Hemp can move into the textile market. Ha ha. As an investor this has been a painful adventure with my stock going lower and lower all the time.Even after becoming Federally legal my investment continues to find all time lows.If the FDA doesn’t approve CBD a lot of other investors will feel the pain too.
Poncietta M Chavez: It would seem to me that the FDA would want a drug with few side effects. CBD has been proven to help many medical conditions when nothing else could. The testimonials are out there, it is no big secret. When one look at the side effect of many of the drugs that are currently on the market and are FDA approved, I do not understand how they can even consider that the side effects far outweigh the disease/condition that is being treated. Many of these approved drugs are more harmful than the condition that they are treating but doctors do not hesitate to prescribe these to their unsuspecting patients because they have something to gain from the big pharmaceuticals. The big pharmaceutical could care less because it’s the bottom line that counts … to heck with human life … consider it collateral damage. I’d bet anything that none of these individuals would take or allow their loved ones to take any of these meds. Through the years, there have been drugs that have been approved and it’s not until there is a rash of deaths or other serious side effects does the FDA decide to pull the drug from the market.PRIME EXAMPLE: Celecoxib Safety DebatedThe safety of the COX-2 inhibitor celecoxib (brand name Celebrex) came under scrutiny when the other COX-2 inhibitors were taken off the market more than a decade ago.The medical literature includes studies showing an increased risk of serious cardiovascular problems with celecoxib.
The Food and Drug Administration (FDA) position is that the risk for certain patients is worth the benefit of celecoxib. Taking the lowest effective dose of celecoxib, for the shortest time possible, is advised by the FDA, and prominent warnings are required on packages for all nonsteroidal anti-inflammatory (NSAIDS), including celecoxib, highlighting the risks.6
Results of a long-term, multinational clinical trial that began in 2006 to assess and compare the risk of celecoxib with other common NSAIDs have not yet been released.7NEED I SAY MORE?
Serg: This is such an absurdity. The FDA does not care about your safety, all they care about is the almighty dollar. Their line about research on long term effects is a farce. The perfect example: Just watch any commercial on medication and listen to the ridiculous amount of side effects on each and every product, some of which include death or suicidal tendencies. All they say is consult your doctor or discontinue use. What a joke.
Mike: Big Pharma knows the benefits of CBD and is pushing the FDA to delay it as long as possible so they can corner the market. They obviously control FDA just they and the other big corporations do congress….
This story originally appeared at Hemp Industry Daily.
by HempingtonPost | Aug 14, 2019
The chairman of the influential House Judiciary Committee authored a message to NORML’s email list on Monday—a notable signal of how the cannabis legalization movement has entered the mainstream corridors of power on Capitol Hill.
Rep. Jerrold Nadler (D-NY), who last month filed legislation to remove marijuana from the Controlled Substances Act and begin repairing the harms of prohibition enforcement, asked the advocacy group’s supporters to write their own members of Congress in support of his bill, the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act.
“America has a moral responsibility to pass my legislation to end the prohibition of marijuana and take on the oppression at the heart of the War on Drugs,” Nadler wrote. “I’m proud to work with NORML to create a more just national marijuana policy.”
The bill will “once and for all end the destructive policy of federal marijuana prohibition in America” and “remedy the widespread inequities and injustice this policy has brought upon tens of millions of Americans,” the chairman told the legalization group’s members.
Beyond descheduling cannabis, the MORE Act would create processes for the expungement and resentencing of prior convictions and prevent government agencies from blocking access to federal benefits or impeding citizenship status for immigrants due to marijuana use.
Additionally, it would levy a five percent federal tax on cannabis sales, with some revenue earmarked for job training and legal aid programs for people impacted by prohibition enforcement as well as loans for small marijuana businesses owned by socially and economically disadvantaged people.
Its introduction comes amidst what observers are saying is the most marijuana-friendly Congress in history. Less than eight months into the two-year session, dozens of cannabis proposals have been filed, seven hearings have been held on the issue and legislation to increase marijuana businesses’ access to banking services has cleared a key committee.
“With Chairman Nadler’s leadership, we believe that the MORE act will likely be the first bill to end federal marijuana criminalization ever to pass in a chamber of Congress,” NORML Political Director Justin Strekal said in an interview. “Representative democracy is not a spectator sport. Now is the time for the majority of Americans who support legalization to demand reform from their legislators, just as Mr. Nadler’s message to our members indicated.”
Sen. Kamala Harris (D-CA), a 2020 presidential candidate, filed a companion version of Nadler’s bill in the Senate.
“In 1977, I cast my first vote as a freshman member of the State Assembly to decriminalize marijuana in my home state of New York,” the chairman wrote to NORML’s supporters. “Since then, I have been committed to ending the criminalization of marijuana. The criminalization of marijuana is a mistake and caused grave harm, disproportionately to those who are poor or people of color, and we must take action.”
Nadler’s bill was endorsed by a group of justice-focused organizations such as ACLU and NAACP in a letter to House leaders earlier this month.
“Criminal justice involvement deprives individuals from low-income communities of color equal access to economic opportunity,” the groups wrote. “Incarceration robs families and communities of breadwinners and workers. Thus, any marijuana reform bill that moves forward in Congress must first address criminal justice reform and repair the damage caused by the war on drugs in low-income communities of color.”
Calling the proposal an important step “to bolster communities ravaged by the war on drugs,” the groups are pushing congressional leadership to see that it is “swiftly marked up and immediately scheduled for floor consideration” following the August recess.
“The hysteria around marijuana is starting to lift as states across the country lead the way in reforming their marijuana laws. It is time for the federal government to follow suit,” Nadler wrote in the new message to NORML’s list. “Marijuana is a public health and personal freedom issue, not a criminal one. We can no longer afford the moral or financial costs of the War on Drugs.”
The New York congressman sent a separate email to his own campaign list last month asking his supporters to sign a petition backing his cannabis bill.
Also last month, a Judiciary subcommittee held a hearing on marijuana prohibition at which members of both parties express broad support for ending or scaling back federal prohibition, with disagreement mostly focusing on the details or competing proposals to do so.
This story originally appeared on Forbes.
