The Business of CBD - The Modern-Day Gold Rush

Cannabidiol, or CBD as it is commonly known, is a naturally occurring chemical compound derived from the cannabis plant and the production of CBD has become one of the fastest growing industries in America.  Unlike THC, the active derivative in marijuana, CBD does not have psychoactive or intoxicating effects and is commonly used for both people and animals today.  In fact, CBD can be found in nearly anything from food and dog treats to clothing and even mattresses.³

Hemp, which is a cannabis plant that had been grown for many purposes for thousands of years, had its growth suppressed over 90 years ago. Though it was once legal, and even mandated to grow hemp in some places, it was made illegal in the 1930’s for fear of the potential economic impact that many versatile hemp products could have on other industries ranging from paper to plastics.  To justify the law making it illegal, the government used marijuana as their reason, though many people today are led to believe it was the other way around.

With the passing of new federal legislation regarding the legality of growing hemp for the purpose of CBD production, every state in America will be able to grow hemp for CBD production by 2021. Demand within the United States, coupled with the worldwide demand for CBD products overall, is escalating at an exponential rate.  Recent studies suggest that CBD sales in the United States will exceed $20 billion by the year 2024.¹

CBD is well known for its extensive medicinal benefits which may include anything from claims of reducing stress to curing cancer.  This wide variety of potential applications and benefits is creating such hype and demand that we are seeing larger fortune 500 companies jumping into the industry to produce CBD products to bring to market.²  That said, the question becomes, is there any real substance behind all the claims of CBD’s benefits and if so, is there still room to enter the CBD market?

Wholesale CBD is sold by the kilogram. In early 2014, when just a handful of states had begun to legalize hemp, the price per kilogram was as high as $40,000.  Today, companies are selling kilograms of CBD for as little as $2,000.  All you have to do is Google “CBD” and you will find hundreds if not thousands of companies offering a wide range of CBD products, both wholesale and retail.  So, with such a high demand for CBD, why the sudden drop in price?

The reason is that CBD, which was once a boutique and difficult to find ingredient, has now turned into a commodity with buyers, sellers, brokers and market makers. Each year the acres of farmland utilized for growing hemp are nearly doubling and even tripling in some areas. As the production of hemp from these additional farmers comes online, the demand for CBD has not kept up with supply.  As a result, we have seen prices plummet. For hemp farmers, what was once a guaranteed sale has turned into a surplus of product for which there aren’t enough buyers. This increased hemp production, coupled with the still limited hemp processing capacity, has created a supply glut.

As is common with many new “hot” industries that grow too fast, growing pains will create a ‘flush out’ period. As the price of CBD continues to decrease, the smaller mom and pop companies, including both hemp farmers and hemp processors, will not be able to survive.  That said, once these growing pains balance out again, the price of CBD should stabilize and could potentially even rise again.

In addition to this balance in hemp farming and production, new USDA regulations which require rigorous testing of hemp crops could potentially render a large number of CBD genetics obsolete.  USDA regulations now demand that hemp used for the production of CBD may not exceed 0.3% THC, and many, if not most CBD genetics will exceed this threshold, creating a challenge for farmers to find a reliable CBD genetic. The risk of federal prosecution and the potential inability to sell their harvest may cause many hemp farmers to sit on the sidelines or return to farming their original crops rather than growing hemp.

Perhaps even more encouraging to those looking to enter the market, is that in addition to the already booming CBD industry, we are now seeing a great deal of hype for another hemp derived cannabinoid called Cannabigerol, or CBG.  CBG is the precursor, or stem cell, for over 113 other cannabinoids including CBD and THC.  The potential for this new derivative is creating waves of excitement in the industry and we expect to see explosive growth for CBG in the coming years.

In conclusion, there is most definitely still room to enter the lucrative CBD or CBG market.  The potential growth of the CBD and CBG industry is exponential and still in the very early stages.  The keys to success when entering this quickly growing market are to stay flexible, the CBD market is changing constantly with new regulations and technology; be well capitalized to ensure your ability to shift gears in this dynamic market; stay ahead of the curve, be an innovator and stay up to speed on the newest trends; and be vertically integrated, with your own farm, processing and products so that you are not reliant upon other companies. With these things in mind, it is possible to achieve great success and stake your claim in the business of CBD – the modern-day Gold Rush.

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1. https://www.forbes.com/sites/irisdorbian/2019/05/20/cbd-market-could-reach-20-billion-by-2024-says-new-study/#58a5d53d49d0
2. https://www.fool.com/investing/2019/04/30/4-surprising-companies-now-selling-cbd-products.aspx
3. https://zbdbed.com/

How Hemp is Changing Agriculture

The recently-passed Farm Bill, and its subsequent legalization of hemp growth and distribution, would change the agricultural landscape once and for all. Fast-forward one year, and it's clear that many of the respected financial magazines’ predictions for the future of the hemp industry are already coming true.

For example. The 2018 Forbes article forecast a "hemp renaissance" in America that would drastically overhaul our country's relation to hemp, allowing consumers to discover the literal hundreds of uses of the plant, in industries from textiles to cooking. Of course, we can attest that this is happening- a quick scan of the shelves of your neighborhood pharmacy will show that CBD-infused products are big business. Hemp-derived oils are popping up everywhere, from skincare products to natural supplements, and even in unexpected places like chocolate and hemp dog treats!

The reason for the sudden surge of popularity in CBD-infused products is the sudden availability of hemp, thanks to the passing of the Farm Bill. Additionally, and perhaps more unexpectedly, the "Green Rush" has caused numerous young people to switch gears and ditch their chosen career paths to become hemp farmers.

There is a phenomenon happening, calling hemp a "gateway crop" for young farmers who originally set out to lead a completely different life in an entirely different industry. This can be a boon for the agricultural industry as a whole; in recent decades, farming, which was once the top profession among early Americans, is facing serious decline. A recent Time Magazine article details the financial crisis among small farmers in America as they face extinction due to insurmountable debt. However, with rising interest in growing hemp as more and more states decriminalize and legalize cannabis products, the number of farmers under the age of 35 has begun to grow exponentially, an industry in danger of dying out as older farmers retire or pass away may become revitalized, thanks in large part to the massive hemp trend.

And it's only the beginning- since hemp is a relatively easy crop to grow, farmers of other crops who are seeing the sudden boom in the CBD industry are likely to want to begin growing hemp themselves. After all, growing hemp is not much different from growing any other type of crop, and seasoned farmers with a solid agricultural background are used to changing up the types of products they grow and harvest in response to consumer demand. The global industrial hemp market size is predicted to reach $10.6 billion by 2025 - that's not the sort of thing a farmer would want to pass up!

One of the most exciting things about hemp is the fact that we've barely even scratched the surface in terms of understanding how the plant can benefit our daily lives. Because it was considered an illegal crop for 81 years up until the passing of the 2018 Farm Bill, little research has been conducted on hemp in relationship to other crops like corn. However, scientists believe that hemp can hold the key to re-imagining the way we live and even potentially help us to lessen our dependence on diminishing natural resources. As we push to get away from depending upon the use of fossil fuels in favor of sustainable resources, hemp has shown significant potential as a biodiesel fuel. Furthermore, because hemp takes out significantly larger amounts of carbon dioxide per acre than other plants, it can also be considered effective against global warming and climate change. This means that any fuel produced from hemp would have the additional benefit of reducing, rather than increasing, carbon dioxide levels in our atmosphere.

If legal hemp becomes a key player in the clean technology race, as many scientists believe it will, the demand for hemp farmers will surge even greater than it already has. In addition to hemp as a fuel source, it has a variety of potential uses that can help make greener, more sustainable products and help us protect the environment. 100% biodegradable and able to be composted, recycled, and reused, hemp is an ideal material to help us lessen and perhaps eventually eliminate our global dependency upon single-use plastics and other non-biodegradable materials. As we collectively strive to reduce our carbon footprint and look for new, sustainable materials that are as convenient as plastics, hemp is likely to come up in more and more conversations. By positioning themselves as hemp farmers now, cannabis growers stand to see a considerable potential profit when hemp inevitably catches on among manufacturers and consumers alike. This may cause a serious uptick in an already surging cannabis industry, pushing more and more farmers to begin growing hemp as one of their chief crops.

For farmers who wish to capitalize on the growing CBD boom, it is essential that they first establish themselves as reputable hemp growers. This all begins with high-quality products grown from hardy, reliable feminized hemp seed from an experienced hemp seed company. By ensuring that each crop is of premium quality, hemp farmers can build a reputation as producers and attract big-name companies to contract exclusively with their farm for hemp supply. Thanks to the relative ease with which hemp clones can be planted and harvested, novice farmers will be able to grow cannabis that is of exceptionally high quality, even with little previous experience.

The face of agriculture may be changing, but the demand for quality crops will always remain the same. Hemp farmers who want to compete in this growing market need to be sure that their crops meet or exceed the exacting standards of companies who are ready to embrace the CBD trend. Quality factors still matter! A cultivar consistently high in CBD, organic growing practices, extraction, storage, and supply chain issues are all vital to success. The Green Rush is in full swing, and agriculture will never be the same again. Hemp has breathed new life into a proud and necessary industry, and people are taking notice!

HempMy Pet™ Announces Agreement with Tarleton State University for Research Study on the Effects of CBD in Horses

HempMy PetTM, an HM Health LLC company, announces that it has signed an agreement with Tarleton State University, a member of The Texas A & M University System, for a research study on the Behavioral and Physiological effect of full spectrum Abacus™ Cannabidiol (CBD) oil when used to mediate stress and pain in Horses.

The objective of the research program is to explore opportunities that full spectrum Abacus™ CBD oil may provide to the livestock industry as a tool to mediate stressors, minimize injury during transport and handling, and promote health by minimizing overstimulation of the hypothalamus, pituitary and adrenal glands, commonly called the HPA axis.

Environmental stressors such as handling, transport and housing can affect aspects such as weight gain and feed efficiency, in addition to stimulating stereotypic behaviors such as bar biting, self-mutilation and excessive aggression. Cannabidiol (CBD) has been shown to decrease anxiety from a variety of different stimuli in studies with both dogs and mice.

“We have already seen an overwhelmingly positive response in the first clinical trials study we did with Colorado State University Veterinary Medicine & Biomedical Sciences, using our full spectrum infused oil to assess the impact of hemp-derived Cannabidiol (CBD) on dogs suffering with chronic pain and decreased functionality due to osteoarthritis. We are excited to now be a part of this study for horses, because we believe that the findings will be just as positive and will continue the advancement of using hemp-derived products as medicine for many ailments for all types of animals that can greatly benefit from this plant” says Natalie Mondine, Co-Founder and COO of HM Health LLC / HempMy Pet.

In various laboratory animal and human studies, it has been suggested that cannabidiol (CBD) is able to reduce both anxiety and obsessive-compulsive disorders (OCD), however the effects of CBD on indices of stress in livestock have not yet been reported. This study, undertaken by Tarleton State University, will investigate the bioavailability, sensitivity, pharmacokinetics, sex effects, derivatives and total body clearance in horses.

The Tarleton University professor who will oversee the study, Dr. Kimberly Guay, Ph.D., P.A.S, said “We are excited to explore and quantify the potential benefits and associated physiological effects of CBD in horses and other domestic animals.”

The hope is that the study will reveal potential benefits of CBD use in that livestock, horses specifically, that may save producers and horse owners money due to lowered disease and injuries, and most importantly, overall improved quality of life and welfare of domesticated animals.

About HempMy PetTM / HM Health LLC

HempMy PetTM, a division of HM Health, LLC (who also owns Colorado CBD Seed and Abacus™ hemp genetics), offers CBD-infused products for dogs, cats and horses. All products are made with their own in-house, full spectrum oil derived from their proprietary Abacus™ genetics, grown in their greenhouses and facilities located in Loveland, Colorado. For more information, please visit www.hempmypet.com or email directly support@HempMyPet.com.

Colorado CBD Seed Announces Agreement to Donate Feminized Hemp Seed to University of Georgia for Agricultural Hemp Research

Colorado CBD Seed, an HM Health LLC company, has signed an agreement with UGA, the University of Georgia, to donate their proprietary Abacus Early Bird™ feminized hemp seed, a cultivar known for its early maturity and vigorous growth, for purposes of agricultural hemp research .

The objective of the research is to see how the Abacus Early Bird™ hemp cultivar performs in certain parts of the state of Georgia given the macroclimate conditions.  Marc Brannigan, co-founder and CEO of HM Health LLC states, “We are very excited to work with UGA. We have seen how well our Abacus Early Bird™ has performed in many parts of the country already, and we expect it to perform very well in the Southeast as well.”

The humid subtropical climate throughout most of the state of Georgia that includes long, hot summers followed by short and mild winters can create specific challenges for agricultural hemp production.

Ranked the No. 2 college in the United States with agricultural and horticultural plant breeding degrees, the UGA College of Agricultural & Environmental Sciences at the University of Georgia (CAES) is an international leader in agricultural research that helps plant breeders develop adaptable, more advanced plant varieties.  The UGA Institute of Plant Breeding, Genetics & Genomics (IPBGG) is a leader in science surrounding the development of new crop varieties and understanding the crop traits necessary to achieve maximum efficiency with improved plant cultivars.

Colorado CBD Seed Announces Agreement with University of Florida to Donate Feminized Hemp Seeds for Agricultural Hemp Research

Colorado CBD Seed, an HM Health LLC company, announces that it has signed an agreement to donate their proprietary Abacus Early Bird™ feminized hemp seed, a hemp cultivar known for its early maturity and vigorous growth, to the UF, University of Florida for agricultural hemp research.

The objective of the university’s research program is to see how the Abacus Early Bird™ cultivar performs in different parts of the state of Florida given the state’s high humidity and heat conditions. 

Marc Brannigan, CEO and Co-founder of HM Health LLC, and a graduate of the University of Florida says, “It is a great feeling to be a part of this project with the University of Florida and to be a part of their research in the hemp industry. We feel the Early Bird™ hemp cultivar will do well in both northern and southern Florida.”

Humidity is a critical element in hemp cultivation.  Hemp crop success can be heavily impacted by humidity levels so it is extremely important to know how a particular hemp cultivar will perform when attempting to grow the crop outdoors in high humidity regions of the country. The goal is to produce crops resistant to disease and mold complications while maximizing both plant health and yield. 

The University of Florida Institute of Food and Agricultural Sciences (UF/IFAS) has developed an international reputation for its accomplishments in agricultural research.  With facilities located throughout Florida’s diverse climate, their research on the performance of the Abacus Early BirdTM cultivar will be a valuable asset for farmers seeking to produce successful crops in similarly challenging climates.

About Abacus Early Bird™

Abacus Early Bird™ is a proprietary hemp strain developed by Colorado CBD Seed, an HM Health LLC company(which also owns HempMy Pet™), for large scale agricultural farming in climates that present a potential challenge with either limited levels of sunlight or limited amounts of warm weather suitable for farming.

About Colorado CBD Seed / HM Health LLC

Colorado CBD Seed is a boutique hemp breeding company in Loveland, Colorado focusing on rich, full-spectrum genetics including one of a kind terpene profiles that are perfect for both full spectrum oils and smokable hemp flower. Colorado CBD Seed is most notable for bringing the original Abacus™ hemp cultivar to market and recently developing the Abacus 2.0™, Cherry Abacus™ and Abacus Diesel™ for the rapidly developing hemp industry. For more info, please visit ColoradoCBDseed.com or email directly at info@ColoradoCBDseed.com.

Why Growers Want Feminized Hemp Clones

Each year, at the start of hemp planting season is here, numerous farmers set their sights on achieving bountiful crops that yield a promising harvest for CBD production.

But as more and more states are finishing up legislation to pass hemp cultivation laws for coming planting season, experienced growers are beginning to see a shortage of feminized hempseeds and clones, and are becoming fearful that there will soon not be enough to go around.

The U.S. Department of Agriculture (USDA) announced in April 2018 that it would regulate imports of hempseed, now that hemp is no longer considered a controlled substance by the U.S. Drug Enforcement Agency (DEA). In fact, most of the industrial hempseed imported into the United States over the past four years from international markets are of the food and fiber hemp varieties.

Cannabidiol genetics, however, are still primarily a U.S.-based market. Even though a substantial number of U.S. businesses have been cultivating feminized seed from CBD varieties since the passing of the 2018 Farm Bill, farmers are still having a hard time locating premium quality feminized hempseeds and clones, as more and more reputable vendors sell out of their stock. As a result, the market demand for quality feminized CBD hemp seeds is as high, if not greater, than it was in 2019.

What is a Feminized Hemp Seed?

When cannabis plants are pollinated naturally or with traditional breeding techniques, they can produce both male or female seeds, known as regular seeds. As in most species, regular seeds occur with about an even split between the two sexes. This means that cannabis farmers who plant their crops with standard seeds have about a 50% chance of yielding a female plant from each one.

Because of this, growing cannabis from regular seeds isn't an efficient method. It would be like baking cookies in a bakery and burning every other batch! Growers who plant regular seeds have to make up for the probability of about half of their plants being male. Though male plants are somewhat valuable to hemp seed breeders, people who are growing for flower won't have much use for them. Additionally, too many male plants can spoil a grow, since there won't be enough feminized hemp plants to yield a substantial crop for CBD production. To avoid this, hemp growers choose to plant feminized seeds so they can ensure a premium grow every time.

Several techniques exist for producing feminized seeds. One old-school method is to stress out a healthy female plant by interrupting its light cycle during flowering. While that works to a degree, the more common method these days is to spray down female plants with a colloidal silver or silver thiosulphate solution. This technique allows growers to control the sex of a plant without any genetic modification.

Both colloidal silver and silver thiosulphate solutions are a blend of water and fine silver particles, and they work in approximately the same way. The silver solution inhibits the production of ethylene, a hormone involved in flowering. The result is a female plant, but one that produces male flowers with pollen sacs. Since those pollen sacs only develop on a plant with female genetics, that means female genetics are all they carry. When those flowers pollinate another female plant that has not been treated by silver solutions, the resulting seeds are almost certain to be female.

Treating plants with a silver thiosulphate solution results in seeds that will produce feminized plants almost 100 percent of the time, and many breeders have found this to be the most effective method for maintaining the integrity of the seeds and the availability of future feminized plants.

Growers who start their garden using feminized seeds can enjoy a number of advantages. By eliminating the guesswork of germinating regular seeds, feminized seeds streamline the growing process, saving space and time. Feminized plants that have been grown from feminized hemp seeds can be used to produce feminized hemp clones. A clone is, of course, an exact genetic copy, in this case of a feminized hemp plant.

Though there are many advantages for growers using feminized hemp clones, their challenge has been obtaining seed at a reasonable price point, with germplasm of sufficient genetic consistency to generate the high-CBD yields, yet be confident that all plants under management contain less than 0.3% THC.

Feminized clones are much more difficult to produce than many realize. The multiplication factor is a mere fraction of seed production, while the space requirement for stock plants and propagation of them is significantly higher---.

That being said, it is the only way one can relatively guarantee a female crop. Seed is extremely difficult to completely vet and know how well feminized the seed is and what type of variation the grower will get in growing that lot of seed. While many hemp seed companies claim that their clones are 100 percent feminized, that's not entirely true. Many of them fall somewhere into the 95-98 percent feminized range.

As more and more states are changing their cannabis laws, demand for feminized seed continues to grow. It is essential that growers of hemp for CBD or other cannabis products ensure that their feminized hemp seed or feminized hemp clones are coming from a reputable source, in order to yield the most bountiful crops per growing season.

HM Health LLC Announces their Colorado-Based Hemp Seed Company Partners With USDA Organic Spinach Farming Giants

ColoradoCBDSeed.com, an HM Health LLC company, announced that it has partnered and signed a multi-year contract to supply high-quality organic hemp seed to AZ Hemp, whose partners include, Melissa Winnaman and Alan Bornt one of the largest USDA organic spinach and spring mix farmers in the country.  Bornt and Sons 100-year-old family-run farm is helmed by commercial grower Alan Bornt, who farmed over 10,000 acres last year of certified organic farmland in Arizona and California which is farmed all year around due to the micro climate. Bornt and Sons supplies stores such as Kroger and Whole Foods with more than half of the spinach, and spring mixes sold in the United States. Together the two companies plan on cultivating over 6000 acres with three harvests a year of certified organic hemp which will total over 20,000 tons.

AZ Hemp co-founder Melissa Winnaman has over 20 years of sales experience including starting several successful lines of natural beauty products focused on natural organic ingredients. Winnaman also has a background in organic and sustainable farming practices.

HM Health LLC co-founder Natalie Mondine has over 15 years of experience in the herbal and dietary supplement markets and one of her most recent accomplishments include obtaining one of the first USDA Organic certifications for Brannigan’s previous company CBDRx.

Brannigan has over 25 years of cannabis cultivation experience and his previous company, CBDRx received one of the first USDA Organic certifications for hemp in 2016. Brannigan and partner Natalie Mondine are the founders of HM Health LLC whose lines include (HempMy Pet), a CBD-infused pet product.

ColoradoCBDseed.com is committed to growing thoughtfully-cultivated organic hemp genetics, including feminized hemp seeds with a focus on CBD, CBG, THCV and strain specific terpene profiles. Their most recent hemp strain Abacus™ has been grown entirely in the USA.  Their partnership with AZ Hemp ensures that the seed supplied for their giant-scale certified organic hemp farming operation will be optimal for the exact scale, conditions, climate, and soil being used. Brannigan added: “To have one of the first USDA Organic certifications of hemp in 2016 and now to be teamed up with one of the largest USDA Organic farmers is a dream come true as we can now bring the Quality, Quantity and Consistency of certified organic hemp to the marketplace and supply the wholesalers and consumers products they can trust.”

For more information, please contact Melissa Winnaman at mwinnaman@yahoo.com.