MarketOverview

HempBizJournal.com n @HempBizJournal

Strategic information and data for the hemp induStry n issue 1 n 2016

the rebirth of an american industryA strategic business overview of the U.S. hemp industryAs we ink the inaugural issue of the Hemp Biz Journal, North Carolina, the 27th state of the union, is legalizing the cultivation of in-dustrial hemp. A green wave of opportunity is sweeping America—and it shows no sign of stopping.

Hemp Biz Journal estimates the U.S. hemp industry reached $500 million in sales in 2015 and project it to reach $1.5 billion by 2020. Hemp industry insiders say they’ve seen this coming for the better part of a decade. With hemp growing legally in 26 countries, the U.S. has lagged the global hemp market, embroiled in a prohibition dating back to the 1930s. Spurred by legislative changes and a more tolerant political climate for cannabis, states like Colorado, Tennessee and Kentucky are starting to see their memories of hemp prohibition fade away. Now the young U.S. hemp market is experiencing a new set of problems: growing pains.

With these growing pains comes the opportunity for entrepreneurship, invest-ment and innovation. And this is happening across many states. Driven by a competitive

American culture, a good old-fashioned work ethic, and a strong agricultural back-bone, the U.S. hemp industry is poised to deliver on a century of promises to become a billion-dollar industry. This means more jobs and opportunities across the entire hemp value chain. With full federal legal commercial cultivation and processing all but imminent for the U.S. hemp industry, the dialogue among hemp CEOs and thought leaders has shifted from how we legalize hemp to how we nurture this young indus-try in a responsible way to help it reach its potential. To help achieve this, the Hemp Biz Journal gathered a group of industry insiders and leaders to research, analyze and gather market data and business infor-mation to empower you to make decisions in the fledgling, opportunity-filled hemp in-dustry. With that as our mission, we set out.

To better characterize the size of the U.S. hemp market, the Hemp Biz Journal studied sales and trends in seven major product categories and many more sub-categories. We talked to industry thought

leaders, manufacturers, government reg-ulators, scientists, farmers and many oth-ers, conducting more than 125 interviews for this inaugural issue. We pulled import and export statistics, looked at industry data from associations such as the Euro-pean Industrial Hemp Association, Hemp Industries Association, International Hemp Building Association and point-of-sale data from SPINS. HBJ studied market size and penetration rates for comparable indus-tries such as natural and organic foods, supplements, organic textiles, natural and organic personal care products and the medical and adult-use cannabis industry. We attended the United Nations Business Forum and met with chief sustainability executives of multinational corporations, heads of banks and government leaders. Our mission: We want this inaugural issue to provide you with the best “overview” of the U.S. hemp industry by analyzing hemp across global market trends, climate adap-tation, value chains and the numerous con-sumer categories across the hemp industry.

n Market Overview . . . . . . . . . . . . . . . . 1n Letter from publisher . . . . . . . . . . 2n CBD special report . . . . . . . . . . . . . . .8n From past to present . . . . . . . 13n Sustainable agriculture . . . .14n Green building

and climate change . . . . . . . . . . . 17n Processing . . . . . . . . . . . . . . . . . . . . . . . . . . 20n Fibers, materials

and more . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22n Hot consumer products . . . 24n A new paradigm for

regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . 26n Hemp Leader Q&A . . . . . . . . . . . . 28

continued on page 3

printed on tree free hemp paper Made in the USA

To my friends, colleagues and readers:

Mother Earth, our common home, faces more challenges today than ever before. Our wasteful,

single use society has polluted our oceans with plastics, raped our rain forests with chain saws

and covered our land with toxic chemicals. The industrial revolution powered by coal and other

fossil fuels has failed Mother Earth – and the common good for all.

To build an advanced, sustainable society requires changes to our lifestyles, models of

production and consumption, and the existing structures of global power and commerce.

I am proud to call myself an agent of change and servant to Mother Earth. And if you are one

too, I thank you.

What you are about to read comes from an in-depth investigation into solutions to climate change and innovations to achieve the United Nation’s Sustainable Development Goals for 2030. We began by asking a lot of questions: Which agricultural commodity uses little water? Which

regrows quickly? What kind of biomass is best for sequestering atmospheric carbon dioxide? What can be

the foundation of a green industrial renaissance? What crop can do all of this and help eradicate hunger?

Our questions led us to an expected answer… hemp. 

The more we learned about hemp, the more amazed we were by its promise and potential. We focused

on the economic and commercial applications of hemp because we believe business is a powerful force for

social good and environmental change. We believe the crisis of hunger, poverty and climate change are a

single crisis and must be addressed through an integral ecology.

At its core, the Hemp Biz Journal is the result of an ambitious mission to inform titans of industry, entrepreneurs, investors and political leaders about hemp, and how it can be used as foundational crop for economic, social and environmental progress.

What you are holding is the first Issue of the Hemp Biz Journal. Thank you for purchasing it! By

reading this cover to cover you will be armed with a greater understanding of the entire market. You

will enjoy a clearer picture of how to capitalize on the opportunities in the hemp market and be in a

better position than almost anyone who has not purchased a subscription to the Hemp Biz Journal. This

is your trusted guide to success in the hemp industry. 

As the market leader in researching and understanding the cultivation, processing, distribution and sale

of hemp, the Hemp Biz Journal brings unparalleled expertise and insight. As a Hemp Biz Journal subscriber,

you are not only gaining access to the thinking of some of the best business minds in the space, but you are

differentiating yourself in an industry where knowledge is power, and a superior understanding of the market

dynamics can separate success from failure. 

Failure is not an option for the hemp industry. And failure is not an option for you. We stand on the verge

of building a sustainable industrial revolution to help our common home for generations to come. These are

thrilling times where new millionaires — and possibly billionaires — are about to be made. They will not only

be making a profit, but helping people and the planet, too.

I am excited to be partnering with you in this emerging industry powered by the incredible plant we call hemp.

Hempfully Yours,

Sean “Octavius” Murphy

@Octavius

Common Home Media, Inc.

Hemp Biz Journal, Publisher

n Printed on tree-free hemp paper n 100% SUStAinAble n MAde in the USA

Letter from the pubLisher

3

Hemp Biz Journal research showed con-sumer sales of hemp products rose to $400 million in 2014, up 26 percent over a year earlier. The market has continued at a similar pace for 2015 but is poised for tremendous growth in many consumer categories in the not too distant future. While purely indus-trial hemp products — those manufactured for industrial applications — are estimated to contribute only 4 percent of market sales in 2015, we estimate that by 2020, products in-cluding green building applications, oil-well liners, automobile parts and non-woven or technical fabrics will storm the market and contribute one-quarter of sales.

The U.S. hemp industry will grow from a niche industry filled with activists and startups to a nationally recognized mar-ket expected to reach $1.5 billion in sales in 2020. In all, the U.S. hemp market will be a catalyst for innovation and spur growth across the broader global market. Truly, these are exciting times filled with poten-tial and opportunity. Now that the seeds are planted, it’s on all of us to grow the industry we’ve imagined. Let’s get started.

Hemp: What it is – and what it isn’tTo understand where the hemp industry is going, it is important to begin with a brief review of the incredible plant we call “can-nabis”—a plant we will demonstrate is po-sitioned to launch a new global health and wellness industry and catalyze an eco-in-dustrial revolution. Never before has a common plant held such potential for both modern society and the environment.

The Department of Agriculture interprets industrial hemp as any part of the cannabis plant, whether growing or not, containing a THC concentration of no more than three-tenths of one percent (0.3 percent) on a dry weight basis. In short, cannabis plants that exceed 0.3 percent THC are classified gener-ically as “Marijuana/Marihuana” while can-nabis plants that contain less than 0.3 per-cent THC are classified as industrial hemp. As such, lawmakers have utilized the presence of THC to define two general categories of the cannabis plant: industrial hemp and marijuana. HBJ refers to industrial hemp as “hemp” and “marijuana” (or “marihuana” as it is sometimes spelled) as the psychotropic drug (whether used for medicinal or rec-reational purposes), and “cannabis” as the plant species that has industrial, medicinal

and recreational varieties. The language tra-ditionally used in conversations about can-nabis has been one of the biggest problems in accurately representing the agronomic truths about the plant.

Cannabaceae is a family of plants that in-cludes 170 species, grouped into 11 genera, including Cannabis (hemp and marijuana), Humulus (hops) and Celtis (hackberries). Cannabis contains three primary subspe-cies — Sativa, Indica and Ruderalis – and has a record of usage dating back thousands of years. Historical data shows how past cul-tures of Asia, India and Europe utilized the cannabis plant for industrial and medical benefits. Ancient documents from Egyptian and Greek physicians have also been found illustrating its medical usage for ailments, artifacts and widespread industrial use.

The industrial revolution powered by coal, petrochemicals and lumber is not only re-sponsible for polluting our planet but may also be responsible for creating hemp pro-hibition. While domestic production of hemp was encouraged from the 1600s to 1890 — through the use of hemp in making sails, rope and clothing — the cultivation and pro-cessing of hemp became restricted under the Marijuana Tax Act of 1937. According to many hemp industry insiders who draw upon the research and writing of Jack Herer, a pow-erful group of American industrialists — in-cluding John D. Rockefeller, William Ran-dolf Hearst and the Dupont Co. — conspired to demonize the hemp industry in the 1930s, setting the stage for decades of prohibition.

While it is not fully clear how complicit these industrialists were in creating hemp prohibition, what is clear is the man be-hind it all was Harry Anslinger, the first commissioner of the Treasury Department’s Federal Bureau of Narcotics (FBN), and his wife’s uncle, Andrew Mellon, who appoint-ed Anslinger secretary of the Treasury and gave him a budget of $100,000. A known racist and staunch supporter of prohibi-tion, Anslinger had everything he needed to demonize “marihuana” and collude with industry magnates to stymie hemp’s eco-nomic and industrial potential.

Despite Ansligner’s best efforts, the war on cannabis is now failing, and research continues to prove the effectiveness of this plant for a myriad of uses. With decades of research backing cannabis as a positive ad-dition and another therapeutic tool in the western pharmacopeia, patients and doctors

About Hemp biz JournAl www.HeMpBizJournal.coM

The Hemp Biz Journal is the premier business publication for industrial hemp. we provide data, market intelligence and strategic information to an exclusive group of businesses and investors. The insights shared in HBJ publications are based on expectations, estimates and projections as of the date such information is available. The market conclusions drawn are based upon a number of estimates and assumptions that, while considered reasonable by Hemp Biz Journal as of the date of such statements, are inherently subject to market fluctuations and business, economic and competitive uncertainties and contingencies. HBJ industry estimates and analysis are meant to be fluid and will be updated if and when new insights and information becomes available. we encourage you to further distribute, publish and/or reproduce our findings to help build the hemp industry but to please cite and give proper attribution to the Hemp Biz Journal.

Hemp Biz Journal’s market research reports provide business intelligence and thought leadership to all levels of the hemp industry. each report is exhaustively researched by our staff of industry experts and presents an analysis of markets, trends, competition and strategy in the u.s. and global hemp industry.

StAffSean MurpHy n Publisher

carla ooyen n Market Research Director

Jane HoBack n Managing Editor

Brenda GallaGHer n Designer

HbJ editoriAl AdviSorScHerie arnold n CEO, MediQi

MorriS BeeGle n Founder, Colorado Hemp Co.

cHriS BoucHer n V.P., Cannavest

Ben droz n Legislative Liaison, Vote Hemp

douG Fine n Hemp Author and Expert

JaSon lauve n Executive Director, A.H.A.

david link n Chief Advocate, JDB Advocates

landon lonG n CEO, Vapor Penz

wendy MoSHer n CEO, New West Genetics

zev paiSS n Executive Director, National Hemp Association

Janel ralpH n CEO, Harmony CBD

patrick rea n CEO, Canopy Boulder

ricHard roSe n Executive Director, M.H.A.

andrew Stoll n CEO, OLMC LLC

JeFF Swartz n CEO, Green Fence

continued from front cover

4 hemp Biz Journal n January 2016 HempBizJournal.com

used to be the desired trait. In the current hemp CBD market in Colorado, for example, the majority of production is from cloned female genetics with a focus on the can-nabinoid-rich flowers and is either sold in its raw form (flower and/or chaff) typically with intent to extract for the essential oils of the plant, or in the already extracted oil form. Although limiting in reaching the true expression of what cannabis has to offer, the industrial hemp classification of cannabis (below 0.3 percent THC dry weight) offers breeders and product manufacturers room to develop and form positions with long-term market potentials in niche cannabi-noids as well as CBD.

Hemp experts see the market for indus-trial hemp as potentially greater than that for consumer adult use cannabis sales. The Hemp Biz Journal estimates the size of the hemp CBD market alone to have risen from a market that didn’t exist a few short years ago to an $85 million market in 2015. We expect growth in sales of these products will be one of the primary drivers of the broader hemp industry, with a compound annual growth rate of 33 percent forecast for 2015-2020.

An overview of the global industrial hemp marketIndustrial hemp is an agricultural com-modity already being cultivated globally for use in a wide range of products — foods and beverages, supplements, bio-fuels, tex-tiles, industrial applications such as oil-well linings and green building materials as well as other manufactured goods. Propelled by emerging foreign and domestic interests, consumer and industrial innovations for hemp are growing like never before and are

high”). This differentiation is important. The cannabis plant contains far more than two cannabinoids and other components that can be beneficial to humans. Policies pro-posed and approved focusing on individual cannabinoids — such as CBD — may impose unforeseen limitations on future research and development of cannabis-based indus-trial and medicinal applications, particu-larly when considering the opportunities of whole plant usage versus isolated com-pound usage.

Interest in CBD extracted from hemp is on the rise, thanks in large part to the fast-paced growth of the legalized adult use can-nabis industry.

Although the cannabis plant can express over 100 phytocannabinoids, every canna-binoid and endless cannabinoid varianc-es create opportunities for research and development. Niche markets in Colorado and Kentucky are forming around growing cannabis for cannabinoids other than THC. Although the classic industrial hemp appli-cations have been touted as industrial or nutritional in their end form, any cannabis plant can be bred to produce below a 0.3 percent THC threshold and yield a spectrum of cannabinoids. As long as the cannabis plant remains under 0.3 percent THC, it is classified as industrial hemp. This classifi-cation is key as it allows for more cost- ef-fective commercialization using outdoor growing conditions, low-cost traditional farming techniques and different regulatory authorities (Department of Agriculture vs. Marijuana Enforcement Division).

As we explore the developing non-THC cannabinoid markets under the classifi-cation of industrial hemp, remember that increasing the THC cannabinoid potential

alike are taking a stand for access. Cannabi-noid therapies are being researched, and the evidence remains positive; the human body was designed with cannabis in mind. Hemp, it turns out, is both an industrial commodi-ty that can be used to help the environment, and a medicinal herb that can be used to help humans and other mammals.

Understanding the CBD hemp market segmentResearch during the 20th century revealed the Endocannabinoid System (ECS) and var-ious compounds within cannabis called Phytocannabinoids, commonly know sim-ply as (Cannabinoids). The ECS is a group of endogenous cannabinoid receptors located in the mammalian brain and throughout the central and peripheral nervous system. All mammals — by virtue of being mammals — have an ESC that scientists and doctors are beginning to understand. What we do know is this system is involved in a variety of physiological processes including appe-tite, pain sensation, mood and memory. Two primary endocannabinoid receptors have been identified, CB1 and CB2, and are found predominantly in the brain and nervous system (CB1), as well as peripheral organs and tissues (CB1 & CB2). Mammals are liter-ally wired to receive cannabinoids.

The two cannabinoids most widely dis-cussed include tetrahydrocannabinol (THC) and cannabidiol (CBD); however, over 100 cannabinoids have been identified and oth-er important components to the cannabis plant, such as terpenes and flavonoids, have become a significant topic of research. Like caffeine and alcohol, THC is a substance that interacts with neuro-receptors in the brain to create a psychoactive effect (i.e. “being

Whole hemp company, colorado, uSa

5

The natural and specialty retail channel, including chains such as Whole Foods Mar-ket and Sprouts Farmers Market as well as thousands of small health food stores, is currently the most popular place to pur-chase hemp food products, with HBJ esti-mating that this channel contributed ap-proximately 70 percent of sales this year. This channel, known as the incubator for healthy food brands, has been carrying hemp products for many years, and the cus-

tomers are familiar with the offerings, thus future growth in this channel is expected to be a little slower than other channels.

Hemp foods have only been intro-duced to the mass market retailers, such as Costco and Kroger, on a (market rel-ative) large scale in the last few years, helping to drive the recent quick growth of hemp food sales overall. While direct sales channels, such as the internet and network marketers, are often a good way for new brands to enter the market and gain a small following, these channels currently only account for a small per-centage of hemp food sales. This is likely to change as national hemp regulations become clearer and more mainstream companies are willing and able to include hemp in their alternative seed and grain product portfolio. Because food is one of the more established segments in the hemp market, HBJ projects average annu-al growth of hemp foods to be 16 percent

is reaching a tipping point. The federal government now allows farmers to part-ner with state agriculture departments and institutions of higher learning to plant “pilot project” test crops on U.S. soil. Over the last decade, a small hemp market has developed in the U.S. that has relied on imported hemp — both finished goods and raw materials. These hemp-based goods have largely consisted of personal care products, foods and tex-

tiles, which currently account for more than two-thirds of the U.S. hemp indus-try’s total sales, or $340 million in con-sumer sales in 2015.

HBJ estimates that hemp-based food product sales accounted for 19 percent of hemp consumer sales in the U.S. in 2015. Sales are projected to reach $95 million in 2015, with hemp seeds and hemp milk be-ing among the most popular categories. While the hemp food market has grown tremendously over the last few years, nearly doubling since 2012, it is still a small segment of the natural foods industry. Ac-cording to Nutrition Business Journal, total sales of natural and organic foods in the U.S. are slated to reach $69.7 billion in 2015, which equates to a nascent penetration of about one-tenth of a percent for hemp foods. This penetration is highest in the snack food category, where the popularity of hemp seeds has allowed close to a 1 per-cent penetration.

being researched for an array of applica-tions from airplanes to nano-materials.

The global hemp industry is just that – global. China continues to lead cultivation, processing, manufacturing and product ex-ports, especially textiles. As China consoli-dates its position as the source to buy hemp fiber at the lowest price, Europe races ahead toward innovations in manufacturing hemp products for consumers who want lifestyles geared toward health and sustainability. In 2015, European nations are estimated to have cultivated over 20,000 hectares (al-most 50,000 acres) of hemp.

Europe continues to lead the industry in using hemp as a solution for climate change with green building applications. According to a 2013 E.I.H.A study, 26 per-cent of hemp fibers from the 2010 harvest were used for insulation material applica-tions, and 15 percent of hemp shivs were used in construction applications. Europe is also setting the standard for market cat-egories such as supplements and industrial applications. Major car manufacturers — including Mercedes Benz and BMW — are using hemp to manufacture the cars of the future, and GW Pharmaceutical — with a market capitalization of approximately $1.5 billion — is leading research efforts in the hemp pharmaceutical arena.

Canada has staked its claim as a major player in the hemp market with over 85,000 acres scheduled for harvest in 2015. The im-portance of the Canadian market was fur-ther solidified in June 2015 when the leader in the hemp food market, Manitoba Har-vest, was acquired for $100.4 million (three times revenue) by Compass Holdings, a U.S. private equity conglomerate. Then in De-cember 2015, the Compass Holdings sub-sidiary, Fresh Hemp Foods Ltd. (“Manito-ba Harvest”), made an add-on acquisition of Hemp Oil Canada, Inc. for $30 million. HOC had net revenues of $12.9 million last year, and now the combined companies will do nearly $40 million in total revenues, with about 150 employees. With legal hemp growing and Justin Trudeau’s recent elec-tion as prime minister, Canada will continue to reach new medical cannabis heights and be a leader in hemp food.

By the numbers: the U.S. hemp industry todayWhile the global hemp industry races ahead, the emerging U.S. hemp industry

6 hemp Biz Journal n January 2016 HempBizJournal.com

U.S. market growing pains:What’s holding the market backWhile HBJ’s market research, along with general industry sentiment, indicates that the hemp industry is poised for strong fu-ture growth, there are still hurdles to jump in order for the industry to meet its poten-tial. This section categorizes the top three challenges and opportunities in the U.S. hemp market.

ChaLLengesThe need for full federal commercial legalizationThe Agricultural Act of 2014 (“farm bill,” P.L. 113-79) provided that research insti-tutions and state departments of agricul-ture may grow industrial hemp as part of an agricultural pilot program, if allowed under state laws where the institution or state department of agriculture is located. The farm bill also established a statuto-ry definition of “industrial hemp” as the plant Cannabis saliva L. and any part of such plant with a delta-9 tetrahydrocan-nabinol (THC) concentration of not more than 0.3 percent on a dry weight basis. The enacted fiscal year 2015 appropria-tions (P.L. 113-235) further blocked federal law enforcement authorities from inter-fering with state agencies, hemp grow-ers and agricultural research. Although it is possible to grow cannabis under 0.3 percent THC, we believe this classifica-tion is not ideal and is restricting the U.S. hemp industry as a whole. Although it would take constitutional amendments in individual states to raise the percentage of THC allowed for hemp classification, many advocates and industry experts re-gard 1 percent THC at dry weight as the more reasonable THC threshold, saying that 1 percent THC is still a trace percent-age and meets the same regulatory goals, but provides a more reasonable breeding and cultivating framework for hemp.

The U.S. industry received a strong show of legislative support when Senate major-ity leader Mitch McConnell added a pro-vision to the agricultural appropriations bill to help hemp farmers transport crops across state lines without federal inter-ference. “Kentucky’s industrial hemp pilot programs continue to prosper,” McConnell said, “and I want to make sure our legal hemp producers can safely transport their

2015 on 6 percent growth. The majority of these products are either hemp oils or meal supplement products that include hemp protein powder. The rising popular-ity of hemp protein is tied closely to the rising popularity of healthier, vegan pro-tein offerings in sports nutrition and meal supplement products. The hemp supple-ment market is currently very small com-pared to the overall supplement market, which according to Nutrition Business Journal will reach $38.6 billion in 2015 on 5 percent growth.

Other consumer products that contain hemp include pet food and supplements, household cleaners, cigarette paper, tra-ditional paper products and jewelry and craft items such as twine. These other products are estimated to contribute be-tween $10 million and $15 million to the hemp industry in 2015 and remain the smallest product niches.

HBJ predicts that sales of hemp-based industrial products will post the strongest growth over the next five years. While HBJ predicts that sales of hemp-based products like oil well linings, insulation, fiberglass, biofuels, bio-plastics and ani-mal bedding and feed accounted for only about $20 million in sales in 2015, this market is projected to skyrocket to ap-proximately $400 million by 2020. This growth will be highly dependent upon increased domestic hemp production and the addition of the appropriate processing facilities located stateside.

for 2015-2020, which is slower than many of the emerging hemp industry segments but slightly above the natural and organic food market as a whole.

A wide array of personal care products with hemp on the ingredient panel are currently in the market, from hair care to lotions, bath soap to deodorant. Because of hemp’s antibacterial properties, soaps with hemp are the most popular personal care category. The quantity of hemp may not always be very large in these products, but they reflect growing interest in the benefits of hemp in personal care prod-ucts. Hemp Biz Journal estimates that 2015 will see hemp personal care product sales surpass the $150 million mark on 14 per-cent growth. This is relative to the entire natural and organic personal care market, which is estimated by Nutrition Business Journal to be $12.5 billion.

The hemp consumer textiles industry, including apparel items and household products like purses and backpacks, is projected to contribute close to $100 million in consumer sales to the hemp market in 2015. By contrast, the Organic Trade Association estimated that all U.S. consumer organic textile sales reached $1.1 billion in 2014.

Beyond food, personal care and textiles, hemp-based supplements are also gaining popularity with consumers. Dietary sup-plements that include hemp (but are not CBD concentrates) are estimated by HBJ to post $45 million in consumer sales in

7

2015 State hemp legislation

Key

States that have passed legislation in accordance with Section 7606 of the farm bill

States that have currently introduced or have momentum to have hemp legislation introduced and passed.

States that planted in 2015★

crops between states, including to states that maintain processing facilities, so they can fully capitalize on the commercial po-tential for this commodity.”

Among the challenges associated with a lack of full federal commercial legalization are banks, including state-chartered banks, and their reluctance to provide services to hemp growers for fear of being prosecuted for violations of federal laws and regula-tions. Full federal legalization will end their reluctance, and the market will expand. Other industry challenges include a re-cent controversy on Native American tribal lands. An October raid on the Menominee land in Wisconsin showed that better, more powerful legislation needs to be enacted to protect and encourage industrial hemp cultivation, processing and distribution on Native American sovereign lands.

Seed quality and availabilityAccording to hemp author and expert Doug Fine, “the biggest hindrance to the emerging hemp industry in 2015 was seed importation. The wording of federal legal-ization in the 2014 farm bill requires the assistance of state agriculture programs. Some states, like Kentucky, are helping their farmers in every way, and seed im-ports have been very smooth.” In addition to legislative changes, such as Sen. McCo-nnell’s previously noted, industry leaders want to have certified seed programs es-tablished through third parties like univer-sity agriculture schools or state agricul-ture departments. Certified seed programs need to be set up to conduct tests on the seeds. Setting up certified seed program will help culture seeds to get germ rates, improve field visits to verify uniformity and verify labels and purity–all of which the industry needs. State programs should conduct a variety of trials and report the data to the industry so farmers can choose which variety best suits their needs.

Federal farm programs and pesticidesAccording to industry insiders, the USDA has recently issued organic certification for industrial hemp crops as long as the crop is being grown in accordance with the 2014 farm bill language. With organic certifica-tion now available for hemp farmers, the hemp industry is in position to demand other federally appointed funds, including crop insurance, low-interest loans for farm

expansion and conservation reserve. Estab-lishing these programs – quickly – will be challenging and is much needed. Addition-ally, there are no Environmental Protection Agency approved pesticides (herbicides, insecticides, fungicides, etc.) currently reg-istered for use on industrial hemp. Options produced by the USDA will be limited, and all roads point to the need for full federal commercial legalization to establish the ap-propriate federal programs.

opportunitiesThe immediate opportunities in the U.S. hemp industry focus on advancements in cultivation techniques and developing processing infrastructure. As innovations take root across the value chain and the general public becomes more educated about hemp, the billion-dollar market in the U.S. will emerge. In the pages of Hemp Biz Journal, we’ll explore the following opportunities in detail. We share with you the companies and leaders taking advan-tage of these opportunities and how you can, too.

Innovations across the industrial hemp value chain Cultivation can be labor-intensive and processing is expensive to set up. As the

market emerges, farmers and entrepre-neurs will address these challenges as opportunities. Cultivation techniques will advance and large processors are already coming online in Colorado and North Carolina.

Better education — from farmer to the publicBest practices for growing legal hemp (testing under 0.3 percent THC) are not widely understood in the U.S., interstate commerce is illegal, commercialization strategies are underdeveloped and invest-ment capital is still focused on the legal marijuana industry. Industry associations are underfunded yet are still producing results. As the green wave of hemp op-portunity sweeps America, everyone will know more about hemp and be able to ride the wave.

The hemp CBD market The story of 2015 was the emergence of the hemp CBD market in Colorado and Ken-tucky. The momentum in these states will continue. In the following article, we pro-vide you with the insider knowledge, data and strategic business information to take advantages of these opportunities in the hemp CBD market. Turn the page, and let’s dive in.

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About Hemp biz JournAl www.HeMpBizJournal.coMThe Hemp Biz Journal is the premier business publication for industrial hemp. we provide data, market intelligence and strategic information to an exclusive group of businesses and investors.

tHAnk youSwe would like to thank the following groups and associations for their help building the foundation of the u.s. hemp industry. May it grow and prosper!

european HeMp induStry aSSociation

HeMp induStrieS aSSociation

induStrial HeMp BuildinG aSSociation

Medicinal HeMp aSSociation

vote HeMp

initiative cHanvre

a subscription to the Hemp Biz Journal is your trusted guide

to success in the hemp industry. As the market leader

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distribution and sale of hemp - including cannabidiol (“cBd”) –

the Hemp Biz Journal brings unparalleled expertise and insight. As

a Hemp Biz Journal subscriber, you are not only gaining access to

the thinking of some of the best business minds in the space, but

you are differentiating yourself in an industry where knowledge

is power and a superior understanding of the market dynamics

can separate success from failure.

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hemp investor summit at noco hemp expoApril 1-2, 2016 n Loveland, CO n nocohempexpo.com

25% Coupon Code: HBJSummit

〉〉 HBJ Hemp Market Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . JANUARY〉〉 Hemp Investor Summit at NoCo Hemp Expo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .APRIL〉〉 HBJ The Hemp CBD Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .MAY〉〉 HBJ Sustainability and Climate Change. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . JULY〉〉 Hemp Biz Summit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .AUGUST〉〉 HBJ Hemp Industry Value Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .OCTOBER

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