What is Hemp? |
Cannabis Sativa L is believed to be one of the oldest crops cultivated in history. There are many subspecies of Cannabis Sativa L, but the two most commonly referred to are hemp and marijuana.
Is Hemp Marijuana? No. While both come from the Cannabis sativa L plant, hemp and marijuana are genetically different. There are several main differences between hemp and marijuana. Generally speaking, hemp is grown to produce fiber that can be used in oils, seeds, clothing and in foods. Marijuana is generally produced for its psychoactive effect – or to get the user high. The main difference is the level of tetrahydrocannabinol (THC) and cannabidiol (CBD). While marijuana contains higher levels of the psychoactive compound THC, hemp contains very low levels of THC, typically less than 0.3%, and higher levels of CBD. |
Hemp Products |
What is hemp used for?
A crop with a competitive advantage, hemp rests within a marketplace on the cusp of innovation. Highly versatile, its use spans nine markets:
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Benefits of Industrial Hemp |
Hemp is the strongest natural fiber in the world, a “super-plant” with enormous inherent value that:
Compared with other oils, hemp carries the lowest percentage of saturated fats. It also provides a higher quality protein of greater concentration than soy. In addition, hemp does not require pesticides to grow. It thrives in a variety of climates and soil types, purifies soil, suppresses weeds, and can be harvested just four months after planting, making it a sustainable crop that is easy on the planet. |
Hemp Legalization |
Industrial hemp has long been overlooked for its health, industrial and agricultural benefits due to regulatory restrictions, as well as a lack of financing and infrastructure development. This is poised to change with the Presidential signing of the 2018 U.S. Farm Bill.
Hemp and the 2018 U.S. Farm Bill Though the 2018 U.S. Farm Bill covered a wide range of important agricultural issues, its impact on hemp and CBD companies was especially profound. Previous legislation did not differentiate hemp from marijuana. However, the 2018 U.S. Farm Bill defines industrial hemp as a subspecies of the cannabis plant that includes less than 0.3% THC, and allows for expansion of hemp cultivation beyond previous hemp farming pilot programs. The bill opens the door for hemp farming more broadly and allows for the transportation of hemp across state lines. This legislation also removes restrictions on the sale, transportation and use of hemp products that are produced in a legally compliant manner. |
Hemp Business Opportunities |
As a result of the changing legislative environment, and broad market interest in the crop, hemp companies expect to see significant growth within their industry.
The estimated total retail value of hemp products sold in the U.S. in 2016 was $688 million, a 20% increase over the $573 million in 2015.* The hemp market in the U.S. is projected to hit $1.65 billion in 2021, six times what it is now according to the Marijuana Business Journal. In addition, federal legalization could triple the overall hemp market to $2.5 billion by 2022, with $1.3 billion of those sales from hemp-derived CBD products, according to New Frontier Data, a cannabis market research firm. Hemp production is expected to grow significantly from 23,000 acres in 2017 to 108,000 acres in 2019, a 370% increase.* These market forecasts bode well for those interested in investing in hemp and for those interested in new funding for hemp businesses. *Source: Naturally Splendid, January 2017. |
Hemp News
Sanitas Peak stays close to the latest industry news – from emerging benefits of hemp and CBD, hemp regulation changes, hemp farming changes at the state level, hemp extraction best practices, hemp business news, and beyond.
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Sanitas Peak Financial is a team of seasoned, resourceful and focused investment leaders seeking to finance and catalyze the growth of industrial hemp in the United States. We have the capital and experience to unlock opportunities for investors looking for strong financial returns and borrowers seeking capital to finance their businesses.
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