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This Multiple Listing Service Reeks Like Pot
Legal changes federally and state-wide have allowed cannabis and hemp growers to come out of the shadows and grow their businesses in more traditional ways. Hemp has become totally legit, with the government recognizing it as just another legal crop. Cannabis has gained full and limited legality in a number of states, and growers have good reason to believe it might become legal on the federal level in the next decade. These changes have a number of ramifications, with specialized real estate businesses being one of the most important. If you want to grow or sell cannabis or hemp, you can find the properties that you need on multiple listing services (MLS), just as other mainstream businesses do.

MLS Basics

Before the late 1800s, real estate brokers listed and sold properties for their own clients. This practice naturally limited the amount of business that they could do. Toward the end of the century, brokers began getting together and sharing information on their listings, promising other brokers compensation if they found a buyer. This new era of cooperation led to more sales and a better income for everyone involved. Now there are more than 800 multiple listing services that help realtors, buyers and sellers efficiently and profitably move real estate.
In recent years, the real estate industry has seen the development of cannabis MLS‘s and hemp MLSs, which lets those interested in growing pot or hemp find suitable and legal properties for their efforts. Interested parties no longer have to go underground to make their real estate transactions, and there is no need to hide their crops, at least in a number of states. As long as everyone involved has the proper licenses, the deals go through just as any commercial property transaction would.

Growth of Cannabis and Hemp Industries

The amount of legal cannabis sold in the United States has grown considerably in recent years and is expected to continue its expansion. In 2017, the legal pot industry in the US was $9 billion. Experts predicted that the number would grow to $11 billion in 2018 and $21 billion in 2021. This expanding industry also means jobs for many, with over 100,000 employed by marijuana businesses in 2017. That number is expected to more than double by 2021.
The US government is benefiting from this burgeoning business by collecting billions in taxes from legitimate growers and sellers. In the past, that money was all underground and the government saw nothing of it. In fact, they spent untold amounts trying to find and destroy these crops.
Hemp production was already on the rise after years of being depressed. Now that it’s been made legal through federal law, the business is set to quickly expand in the next few years. Hemp production in 2017 had risen to $820 million and is expected to triple in 2018 to approximately $1 billion. If hemp proves as profitable as some hope, a number of farmers may look to it as a replacement for crops such as soybeans, which are falling in value due to current tariffs.

Cannabis Multiple Listing Services

Since the business is booming, real estate experts are trying harder to fulfill the specific needs of cannabis and hemp businesses. The laws governing cannabis vary greatly state by state, so those in the industry need brokers who are specialists in this area to navigate local and state regulations. Sellers may also place restrictions on sales, eliminating those in the cannabis industry as buyers.
In response to this demand, some traditional MLSs have a specialist or perhaps two working with cannabis and hemp clients. Of course, that number is not enough, particularly in states such as California where recreational marijuana was recently legalized.
A better solution has been the creation of cannabis MLS such as 420 Property. This website touts itself as the largest cannabis marketplace and offers a huge number of listings for cannabis and hemp-friendly properties. It also helps connect users to others in the industry while selling insurance and offering financing options. A number of similar services are also doing business, which means that growers and sellers have a better chance of finding the properties they need at competitive prices. They also receive help navigating the legal issues involved with setting up their businesses.
Since hemp has recently been legalized, farmers should not have much difficulty in finding properties to grow it. The biggest challenge will be for farmers to adjust to this new crop and work it into their current crop rotation.
The cannabis and hemp industries are headed for even greater success in the coming decade and will continue to attract more people to the business. As a result, finding the right real estate for their endeavors becomes more important. Fortunately, specialized cannabis and hemp MLSs such as 420 Property fill that real estate niche and make it much easier for individuals and companies to find the land or buildings that they need. The cannabis and hemp boom is real and should continue for years to come. As a result, growers and sellers will find more help from the mainstream business community.
February 13, 2019Comments Off
The History of Hemp Production in the United States
Hemp has been a controversial topic in recent decades in the US, but the crop itself has been in production for thousands of years. In fact, a piece of hemp fabric has been dated back to 8,000 BC. The United States has a long history of its own hemp production, which included the original colonies. Recent legal changes regarding the production of hemp mean that this crop is going to explode in the next decade, possibly becoming a staple crop, much as soybeans and corn are now. Hemp is now taking its place as a driving force in the United States’ agricultural industry.

The Founding Fathers

Hemp has been produced in the United States from the very beginning of its settlement by Europeans. In fact, several founding fathers grew hemp on their land, including George Washington and Thomas Jefferson. Colonial farmers in Jamestown, Virginia, Massachusetts and Connecticut were legally required to grow a certain amount of hemp during the 1600s because the crop produced such necessary products. In the 1700s, farmers were encouraged to grow hemp by way of incentives such as bounties and subsidies. Hemp was desirable for the fabric, rope and paper it produced as well as other useful items. In fact, some farmers used hemp to pay their taxes. Perhaps most surprising of all, Thomas Jefferson wrote the Declaration of Independence on hemp. Hemp was prized and not considered in any way to be a controversial crop in the founding colonies of the US.

19th Century Hemp Production

Hemp growing spread as the nation expanded. By the 19th century, hemp was a big crop in a number of states, with Missouri, Illinois and Kentucky leading the way. Production remained strong until the late 1800s when demand for the rope used as rigging began to wane due to the dominance of steamships. After the Civil War, Kentucky was the only remaining state with a true hemp industry until WWI, when increased demand sparked a resurgence in hemp production in several states. Hemp production was made significantly easier when harvesting the crop became mechanized. WWII also temporarily bolstered the hemp industry. After the war, hemp as a significant crop ceased to exist for some time.

Factors in Declining Hemp Production

Several factors killed off much of the remaining hemp production. The Marijuana Tax Act of 1937 was meant to limit the use of marijuana as a drug. In the process, it turned over regulation of hemp growing to the Department of Revenue, which was in charge of licensing growers. Hemp farmers also had to pay a hemp tax and sign an agreement that they would not use the plant as a drug. This change did discourage some hemp production, but the biggest blow to hemp came from the development of cheap, mass-produced synthetic fibers in the 1950s.

Current Production Status

Despite its complicated legal status, hemp had made a comeback in the United States in recent years, in large part due to the popularity of CBD oil, which has helped a number of patients with pain, seizures, anxiety and other physical and emotional ailments. Hemp production has also been aided by the legalization and/or decriminalization of marijuana. A number of states legalized hemp on the state level in the last decade. In December of 2018, a new farm bill became law that legalized hemp growing on the federal level. Since farmers are now able to purchase crop insurance for hemp, production is expected to grow significantly in the coming years. Hemp production is already a big industry in some states, however.

States Leading in Hemp Production

Colorado is more closely associated with cannabis production, but it is also the leading producer of hemp. On the state level, hemp was legalized in Colorado back in 2012, so producers have had a huge headstart on the competition.
Kentucky has retaken its place as a major producer of hemp since the crop was legalized by state legislators in 2013. Before the change in federal law, there were over 200 licensed hemp growers in the state as well as 43 processors.
Oregon, North Dakota, Minnesota and New York are other major producers of hemp. These states benefited from their legislators legalizing hemp years before the federal law changed. Other agricultural states are almost certain to embrace hemp as a crop now that the crop is legal on the federal level.

Hemp Products

In addition to rope, fabric, paper and CBD oil, hemp can be used to make a number of profitable products, including food items. Hemp seeds are popular for their high nutrition level. Body lotions, oils, shoes, drinks, cleaning products and even plastic can be made by hemp, which means the potential market for hemp is enormous.
Hemp was an important crop before the United States was formed. The pilgrims brought hemp seed with them when they fled religious persecution. Hemp was widely accepted, and its production was encouraged and even mandated at times. Worry about its possible narcotic effects and the production of cheap replacement fibers led to the industry nearly dying off.
Now, new laws and new products have led to a hemp resurgence that may make it a leading crop in the United States in 2019 and beyond!
Search for hemp properties and hemp farms for sale on 420Property.com
February 11, 2019Comments Off
Demand for Land and Professional Services Surges in Newly Legalized Hemp Industry

When Congress passed the Farm Bill, the section authorizing state-regulated research pilot programs included hemp. That program provided plenty of licensed growers with considerable success, leading to over 77,000 acres of crops in 2018. The U.S. hemp market also grew to over $800 million, making hemp one of the country’s most valuable agricultural commodities.

Now, new changes to the Farm Bill are poised to revolutionize the hemp market in 2019, providing many farmers with new opportunities and creating significant demand for professional agricultural services.

Industrial Hemp as an Agricultural Commodity

Industrial hemp is a valuable agricultural commodity cultivated for the manufacture of many products on a global scale, including cosmetics, beverages, food, nutritional supplements, spun fibers and more. It is commonly grown as a seed, fiber or other crop type.

Hemp is derived from Cannabis sativa, which is the same plant that produces marijuana. Because of this association, production in the U.S. has historically been restricted, with many of the products in the U.S. imported as finished hemp products or as single ingredients for further processing.

The Farm Bill had several changes to the federal policies regulating hemp. Certain institutions and state departments of agriculture are permitted to cultivate hemp, provided that it fit the statutory definition for industrial hemp as “the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol (THC) concentration of not more than 0.3 percent on a dry weight basis.” Delta-9 tetrahydrocannabinol is the predominant psychotropic ingredient. This prevented the U.S. Drug Enforcement Administration and federal law enforcement from interfering with agricultural research and hemp farmers.

The 2018 Farm Bill changed this by signing hemp legalization into law and removing it from the Controlled Substances Act. This change also applies to extracts of hemp, such as CBD and other cannabinoids.

Federal authorities will now treat hemp like any other agricultural commodity, such as tobacco or wheat, and industrial hemp farmers will no longer face regulatory or legal burdens of growing an illegal drug. In the past, this has included crop insurance or loan barriers.

For instance, the Small Business Administration (SBA) prohibited banks from issuing SBA-backed loans to any business that grows, produces, processes, distributes or sells products purportedly made from hemp, unless the business can show that its activities and products are legal under federal and state law. This is challenging to prove, so it restricts hemp businesses from obtaining these loans.

As a result, a seismic shift in the industry will occur, creating a demand unlike anything that could’ve been predicted, as the law is implemented.

Industrial Hemp Farming Act

The Industrial Hemp Farming Act of 2018 is intended to facilitate the commercial cultivation of industrial hemp in the U.S. This would amend the exclusion of industrial hemp from the statutory definition of marijuana. Instead, industrial hemp would be defined based on its THC content and set at a threshold of 0.3 percent. This bill could grant authority to any state permitting industrial hemp production and processing to determine whether the cannabis plants met the limit on THC concentration.

The federal crop insurance program will also include hemp as eligible for research funding under the Supplemental and Alternative Crops Act and Critical Agricultural Materials Act. It has been problematic to secure crop insurance for hemp prior to the bill, which left farmers vulnerable to severe weather and natural disasters that could devastate crops or entire farms.

Another challenge addressed by this bill is the inability to legally travel across state lines. The new bill allows growers to transport crops to other states. While states can regulate hemp crops as they please, no state will be able to prohibit the transport of hemp across state lines.

The bill will also lift restrictions on farmers seeking banking services, which increases their likelihood of getting low-interest loans and investments. As a result, more operations will be able to scale their production to meet the demand.

Demand for Cultivation Land and Banking Services

Though the true impact of the legalization of hemp remains to be seen, the projections are significant. In addition to a demand for the crop itself, a surge in demand for cultivation land is likely to impact the real estate market.

Hemp requires half as much land as cotton to produce, and Future Farm estimates its value at roughly $90,000 per acre. It can also grow quickly in different soils and temperatures, so it’s a flexible resource that doesn’t require precise soil to thrive. On top of that, hemp is a drought-tolerant crop, so growers may be able to make use of farmland that’s undesirable otherwise.

Banking will also change, since hemp farmers will now be able to secure competitive crop insurance, apply for business loans and land grants, and write off their business expenses like any other farmer. Approval at the national level means that credit card processors may be getting involved as well.

Moving Forward

Regardless of what the future may bring, the legalization of agricultural hemp is set to disrupt many industries, creating significant demand for everything from cropland to insurance services.

With the Farm Bill of 2018 passed, 420 Property is ready to assist in meeting these demands. This collection of hemp properties and businesses for sale as well as “420-friendly” professionals offers services ranging from real estate to insurance quotes are all aimed at helping hemp farmers reap the benefits of this hot agricultural commodity.

February 2, 2019Comments Off
Hemp Farming and Industry Insurance

For years, hemp and marijuana have been lumped together legally and also in the minds of many individuals. The two substances are different, however, and are now being treated as such under United States law. In December, the US Congress passed legislation legalizing hemp and hemp products. While some restrictions may still be enforced by the FDA, the new law opens up the market for hemp expansion and promises an increase in the production of CBD oil, a substance that is used to treat seizures and is said to be effective for a number of health conditions. Marijuana has also been increasingly legalized across the country, greatly reducing any lingering stigma, but now hemp has an acceptance that cannabis has yet to achieve. Hemp is no longer the crop of the future but rather takes its place firmly in the present.

Hemp Basics

People sometimes confuse hemp and marijuana, but they are two distinctive plants – both with a number of varieties. Hemp does look similar to marijuana, but its leaves are narrower and the plant itself is skinnier with a lack of branches beneath its upper portion. Hemp plants are usually between 6 to 15 feet high and require little care to thrive. Depending on the soil and climate conditions, the growing cycle is somewhere between 70 to 140 days. Hemp is also an abundant crop. Just one acre of hemp may produce 700 pounds of grain. Some people still think you can get high on hemp, but that is rarely the case. Legal hemp contains much less THC than marijuana – approximately .03% compared to 15 – 40%. That means that hemp CBD oil contains little of the psychotropic qualities caused by THC. It gives patients the benefits of marijuana but without the mood-altering effects.

Hemp Products

In addition to CBD oil, hemp can be used for a number of products, including rope, clothing, soap, paper and protein powder. Many people consume food and beverages that contain hemp seed or simply snack on them alone. For years hemp production was limited by legal issues and negative public perception. The change in US law promises to remedy these problems and encourage greater hemp production and use.

Hemp Challenges

While hemp offers excellent profit opportunities for farmers, it also comes with challenges. Even with the new legislation, government regulation will still be present. For instance, hemp has to be tested to make certain that it does not contain more than the 0.3% legally allowed. Currently, there is no standard way to test crops for THC, which causes problems for some farmers. Experts also warn that differing state laws could still impose limitations on hemp production. Confusion around CBD production and sales is still being resolved. Users of the oil claim that it can cure or mitigate almost any condition, including cancer, but those claims have not been confirmed by the FDA. State policies toward CBD oil also widely vary, which means farmers have to do careful research on their particular state’s law. Like any crop, hemp fields can be damaged or even wiped out by weather events such as drought, wind storms and fires. California hemp and marijuana crops suffered huge losses in 2018 due to devastating wildfires. Hemp can also be damaged by a number of pests, including the hemp borer. The future for hemp growers looks bright, but farmers need to protect their investment with crop insurance, just as they would their corn and soybean crops.

Hemp Crop Insurance

The new legislation makes it much easier for hemp farmers to protect their crops. The legalization of hemp removes many of the difficulties that marijuana farmers still have when trying to buy crop coverage. Hemp farmers may be new to the world of crop insurance, so they need to understand the basics. Buying insurance means that their crops have a level of protection against weather and other threats. Some farmers forgo purchasing this insurance, preferring to gamble that their crops will thrive – a risky choice that can have severe financial repercussions. Crop insurance may provide coverage only for hail damage or it may be multiple peril crop insurance (MPCI) that protects against weather, disease, drought, flooding, etc. Now that hemp is legal, farmers will have more choices for crop insurance, including both government-supported and privately-issued policies. Certainly, more companies will get into the hemp specialty insurance market since the demand is bound to explode. For years, hemp production was limited by the crop’s legal status and its association with marijuana. Now hemp has been accepted as a legitimate agricultural product and given legal status in the United States. In addition, much of the stigma of marijuana has disappeared as well. Hemp is poised to become a standard crop raised by farmers all over the country. Hemp products are already in great demand, with CBD oil being of particular interest to the healthcare industry. Since farmers can now openly grow hemp just as they would their other crops, they need to treat it like their wheat or corn, which includes buying crop insurance. No farmer can afford to invest in a crop and then lose it to pests or severe weather.

CLICK HERE TO GET A NO OBLIGATION HEMP INSURANCE QUOTE TODAY!

 

February 2, 2019Comments Off
Demand for Hemp Real Estate Expected to Grow after Passage of Farm Bill

The Passage of the federal 2018 Farm Bill is poised to change things for the better in the hemp industry. The new law removes the Cannabis sativa L plant from the Controlled Substances Act and from oversight by the U.S. Justice Department and places it under the purview of the Department of Agriculture. While still heavily regulated, hemp farming and the manufacture and sale of hemp-based products will now be lawful activities. This opens the door to massive growth and expansion in the hemp industry. It also means the demand for hemp real estate will soon be on an immense upswing.

Recent and Current Status of the Hemp Industry

Subsequent to the 2014 Farm Bill, agriculture state departments and research institutions were permitted to cultivate industrial hemp. This production owas limited to research and study purposes, though part of this research included learning about the marketing potential of this crop. Many states initiated agricultural pilot programs to move forward with this production.

In 2017, the hemp market generated $291 million. In the U.S., more than 3,500 licensed cultivators produced between 23,000 and 26,000 acres of hemp in 19 states. This represented a 163 percent boost over 2016, with 9,770 acres. By this year, the acreage had increased to 77,000 acres.

Due to the prohibition on the commercial growth of hemp in the U.S., many companies had to rely on imports from Canada, China, Romania, India, Chile, the Dominican Republic and a few scattered European countries. The bulk of U.S. hemp imports – 90 percent – were supplied by Canada. The Federation of American Scientists numbers reveal a 2015 import market of $78.1 million. By last year, that number had dropped to $67.3 million. But with the passage of the 2018 Farm Bill, the amount of hemp imports should decrease substantially. American farmers will be growing their own with the loosened commercial hemp production laws.

The U.S. hemp product retail sales market in 2017 was estimated at $553 million. This includes a wide range of goods, like personal care products, supplements and food. When clothing, textiles, building materials, auto parts and other miscellaneous products are added, the total is closer to $820 million.

Projections for the Future of the Hemp Industry

Hemp farming has great potential. It’s a hardy crop and needs less water, fertilizer, pesticides and herbicides than corn. It succeeds in most environments, making it suitable for farmers across the nation. It also lends itself to organic farming due to its minimal input requirements, fast growth, weed resistance, and endurance against diseases and pests. And with more than 25,000 recognized uses, hemp is the definition of a super crop.

There are numerous projections on the future of the hemp market. The Brightfield Group is predicting a boom upwards of 450 percent growth by 2021, surging to $6.5 billion. By 2022, the group predicts an increase 40 times over, generating a $22 billion market.

A driving factor in the projected growth of the hemp market is increased consumer demand for goods infused with Cannabidiol (CBD) oil. Consumer awareness about the potential therapeutic benefits of CBD has recently exploded, and it doesn’t appear that it will be dying down anytime soon. As part of the wellness industry — a powerhouse sector, already – the production of CBD-infused goods is expected to increase in profitability. Forbes estimates that the CBD consumer market will hit $2.1 billion in within two years. This will require the increased production of CBD-producing hemp crops.

Real Estate Demand

The full impact of the new Farm Bill on hemp cultivation, CBD-products, the real estate market and other sectors won’t be fully realized for some time. But it’s obvious that changes are coming. With the move to lawful production, there will be an increased demand for hemp and hemp-derived goods. Farmers will soon need more land to cultivate larger amounts of hemp crops.

Farmers have been noticing the profitability of hemp. For example, one Kentucky farmer explained the disparity in growing soybeans versus hemp. One acre of soybeans would yield about $500 on today’s market. In stark comparison, that same acre of hemp with CBD-rich flowers might sell for up to $30,000. It’s a lucrative cash crop and the new law makes commercial production a reality for a growing number of farmers.

This year, the top five states with the most hemp acreage are:

  1. Montana – 13,141 acres
  2. Colorado – 5,562 acres
  3. Kentucky – 4,615 acres
  4. North Carolina – 3,263 acres
  5. North Dakota – 2,669 acres

Hemp-planted land in the remaining hemp-producing states ranges from 12 acres to 726 acres. While this hemp acreage has grown since the passage of the 2014 Farm Bill, that growth will pale in comparison to the boom coming due to the new Farm Bill law. But even small family farms, of no more than 7 acres, will be able to realize a profit from hemp crops.

The demand for hemp currently exceeds the available supply in the U.S. Established farmers are eager to meet this demand. And with the money to be made in this industry, newcomers are likely to try their hand, as well. This influx of new hemp farmers is sure to have an impact on real estate – specifically, an increased demand for agricultural land.

These projected changes won’t happen overnight. But industry pros need to be prepared in order to benefit from the expected growth. Education and awareness about the possibilities in the hemp and CBD industry are key.

Search or list hemp properties on 420Property.com!

December 27, 2018Comments Off
Demand for CDB Products Having an Impact on Real Estate Industry

CDB is being added to an increasing number of goods. Some examples include lotions, pain creams, bath products, dog treats, supplements, beverages, baked goods, lip balms, candles, massage oils, olive oil, honey, candy and a broadening variety of foods. The list is virtually endless. As the popularity of these and other CBD-infused items grows, cultivators and manufacturers will need to find more space for production to meet the growing demand, impacting the real estate industry.

Popularity of CBD-infused Goods

Cannabinoidol (CBD) is derived from the Cannabis stevia plant. Though it’s related to the marijuana plant, CBD contains no tetrahydrocannabinol; popularly known as THC, this is the psychoactive component in marijuana that delivers the “high” effect. Instead, CBD’s reputed beneficial effects rely on molecular pathways and interactions that are free of the mind-altering effects associated with marijuana.

Both scientific and anecdotal evidence tout the benefits of CBD, said to have a positive impact on health, wellness, mood, sleep habits, and pain control. It’s no wonder than, that consumer demand for this “miracle” product is high and continues to grow. New Frontier projects that hemp-derived CBD sales may grow to more than $1.15 billion over the next four years. The Cannabis market data firm predicts that changes in legislation under the 2018 Farm Bill will encourage mass market retailers to join the CBD goods industry.

The Legality of CBD

The 2018 Farm Bill was signed into law on December 20, 2018. This new $867 billion law makes the commercial cultivation and sale of hemp lawful. It also allows interstate hemp commerce. The law limits the production of hemp to cannabis plants that contain no more than 0.3 percent THC. This directly impacts CBD that’s harvested from industrial hemp, removing it from the controlled substances list and protecting is as an agricultural hemp-derived product.

The Food and Drug Administration still offers a bit of roadblock. It doesn’t differentiate between marijuana-derived and hemp-derived CBD. Instead it prohibits the addition of CBD to any foods. The FDA also claims that CBD isn’t a dietary supplement, but a drug, and requires FDA approval for use in food, drinks and supplements. This stance is one that bears watching. But, thus far, the FDA hasn’t been aggressive in enforcement of this CBD prohibition. It typically acts only when interstate commerce and online health claims are involved.

Production of CBD Items

With the passage of the new farm bill, CBD advocates are predicting a monumental shift in how CBD-infused products are marketed and sold. The legality of making CBD-infused products means large retailers will be eager to add these items to their shelves. This change in the law is likely to impact the entire supply chain, from cultivation and packaging to sales and marketing. Mainstream manufacturers, suppliers and distributors won’t want to miss out on a market as lucrative as CBD products.

Real Estate Needs for Hemp Cultivation and CBD Goods Production

To meet demand for CDB products, farmers need to grow more hemp crops. This means a need for more acreage. Once the hemp is grown and sold, manufacturing companies take over production of the CBD oil and CBD-derived products. An increased need for space and manufacturing facilities is anticipated.

This new law will encourage financial institutions to provide services to professionals in the hemp industry and offer loans to farmers and small businesses involved in the production of hemp and hemp-derived products. This will free up more operating capital and give these businesses and entrepreneurs the funds to lease and purchase necessary land and other real property.

Consumers are demanding CBD products. Smart business owners are eager to meet that demand and realize the profits associated with this booming market. Real estate needs are poised to increase in this industry in order to support this growth. It’s a fast-developing industry that will gradually impact a number of other sectors.

Search or hemp properties for sale or lease and hemp/ CBD businesses for sale on 420Property.com

December 27, 2018Comments Off
DEMAND FOR HEMP REAL ESTATE EXPECTED TO SURGE 10,000%

Just one week after the 2018 Farm Bill passed through the U.S. Senate and House of Representatives, President Trump signed the landmark bill into law on December 20, 2018. The Farm Bill is the first piece of federal legislation which unambiguously removes hemp-derived cannabinoids including Cannabidiol (CBD) and tetrahydrocannabinol (THC), the active ingredient that produces the psychoactive effect from Cannabis, from the Controlled Substances Act and moreover, expressly prohibits States from the interfering with interstate sale and transport of such products.

Visit 420Property.com to search available Hemp properties for sale or lease, or existing hemp/ CBD businesses for sale. 420Propery.com is the worlds largest cannabis and hemp marketplace.

December 20, 2018Comments Off
Impact of the Farm Bill on Real Estate and Land Demand for Hemp

There’s no question that 2018 has been a landmark year for the hemp and CBD industries. With the approval of the Farm Bill presented by Senate Majority Mitch McConnell, hemp has now been taken off the list of federally controlled substances.

This isn’t a new bill, in fact it is one that has been around since 2014, when a bill was passed to distinguish hemp from marijuana based on the THC content. In 2014, the passing of that bill made it legal to grow and study hemp through various universities and agricultural programs.

Industrial hemp is defined as any part of a cannabis plant that has no more than 0.3 percent THC based on the dry weight.

The Growing Hemp Industry

Thanks to the passing of the Farm Bill, the provision from 2014 will be repealed, which means that now it is possible to expand who and where industrial hemp is grown. In 2017, more than 25,000 acres of hemp were grown across 19 states, which represented an increase of 126 percent since 2016. It is expected that this growth is going to continue with the new legislation that is in place.

While both chemicals are derived from hemp, CBD is the element that doesn’t produce a psychoactive effect, unlike THC. This means there is no “high” sensation experienced with hemp, especially considering the many uses it has, such as for rope, fabric, paper and more.

The Growing Rate of CBD Sales

Thanks to the passing of the Farm Bill, it is expected that the CBD market will grow by more than 40 times what it is now by the year 2022. While federal legalization is great news for CBD companies, the question that many have is how do they prepare for this change, and what are they really hoping to see?

This is a question that is still being pondered by many in the industry, and for most, it is a “wait and see” situation.

The Increase in Demand for Hemp Acreage

With the original bill for limited hemp growing rights the expansion of hemp was significant. While it was still considered a minor crop in 2016, it was rapidly expanding. In fact, in 2017, there were approximately 26,000 acres of hemp being grown in the US (almost double the previous year) and was produced by approximately 1,500 farmers.

With the amendment to the 2014 bill, which was approved on December 12, 2018, the federal ban on hemp cultivation was lifted with broad and bipartisan support.

Upon passing, the American hemp industry is projected to balloon in short order and create a huge demand for farmers and land for this crop.

There are some who believe that in rural areas, the demand for more farm acreage may impact the real estate market. This is another factor that is unknown since the new bill has been passed. While the increase in demand will likely result in a surge of prices for available farmland, no significant change in this particular industry is expected.

The Establishment of Quality Standards

While this isn’t a topic that has been breached in the U.S. yet, it is something that Canada (the neighbors to the north) have already done. The fact is, with hemp now being legal, more people are going to be growing it. As a result, eventually there will have to be industry-wide standards regarding the growing process and selling requirements.

While managing the crops grown by 1,500 farmers may have be manageable, with the new Farm Bill this may not be as possible. With the increase of product that’s projected to come to the market offer the course of the next few years, the need for quality standards is high and something that will have to be considered at some point.

A Better Understanding of the Farm Bill

For many, the Farm Bill contains a lot of information that isn’t exactly clear – after all, this bill alone is more than 1,700 pages long. Within those pages, things like pesticides, the SNAP program and other factors – even tariffs – are discussed.

While the actual impact of this bill on farm land, real estate and farmers in general is yet to be seen, there are many experts and government officials who believe that the bill will be beneficial in the long run. With the increase in demand of CBD oil, hemp products and other related items, the ability to make these in states where it is legal is a huge advantage. Not only that, but hemp is considered a cash crop, which is going to lead to farmers being able to make up the deficit that some of the newly appointed tariffs have created in the recent past.

So, is it positive for the country, citizens and individual farmers? This is a question that time will answer. Currently, there are many who support what the bill offers and the ability to grow hemp, which is a commodity that is in high demand both in the United States, as well as in other countries.

Search for hemp properties for sale, hemp businesses for sale, and hemp extraction equipment on 420Property.com.

December 13, 2018Comments Off
When the Smoke Settles: Cannabis Property and Sale Issues Explained

The cannabis industry is in a strong growth phase. By 2027, worldwide spending on cannabis is expect to reach $57 billion, with recreational use making up 67% of the market and medical use making up 33%. Marijuana is gaining more acceptance in the mainstream culture and has become legal in a number of American states. As a result, many investors are interested in acquiring their own operations. The industry offers excellent profit potential, but it does present complications, including legal and property issues. Also, increased competition will eventually cause prices to drop, impacting a company’s profit margin. Those interested in cannabis production and sales need to consider all these factors before entering the industry.

Real Estate Prices

Warehouse prices and rents are rising at a rapid rate, and experts say marijuana investors are the driving force behind the increase. Marijuana farmers are willing to pay more to get the facilities they need and are paying higher than the average warehouse leases in their area of operation. Those who already own warehouses are in great shape due to this trend, but those looking to buy or lease will pay more this year than last and more next year than this year. For instance, the prices of small and medium sized warehouses in the Sacramento area have been rising around 30% to 40% each year. Since most marijuana producers prefer to grow their product in warehouses, these prices are a significant factor in an investor’s decision to enter the industry. They must assume that property prices and rents will continue to rise at a fast rate.
 
Cannabis retailers are making excellent profits from their shops, which has benefited property owners. In Seattle, which has an established marijuana industry, the average sales per square foot reached $1,513 compared to the US retailer average of $325. Cannabis is still a hot commodity.
 

Zoning Issues

Any potential investor must thoroughly research zoning ordinances in their desired area or operation. Getting a state license for production and sales is difficult enough, but once that hurdle is jumped, local towns and cities can raise other issues. Zoning ordinances in many areas have not caught up to the industry and do not specifically mention cannabis. As a result, some companies have established their operations within the city limits of a certain town and later been told they were violating local zoning laws, often after citizen complaints.
 
Some municipalities ban all cannabis business in their boundaries, while others will allow medical marijuana and not recreational marijuana. Some cities will require special permits for cannabis companies, adding substantially to operating expenses. All of these issues need to be completely resolved early in the process of establishing a company. Too many of these businesses have been derailed after they already began operation.
 
The issue is complicated by state and federal law. Some states have made recreational and medical marijuana legal. Others only allow medical marijuana, while some forbid any and all sales of cannabis. Also, federal law still makes it illegal to produce, sell and use cannabis, although the government is not currently enforcing these statutes in states that have legalized it. Still, this legal confusion makes some places reluctant to allow any cannabis company inside their city limits.

Price Pressure

Currently, marijuana prices are still relatively high, which makes production and sales profitable. As always, increased competition will lower these prices, so those entering the industry need to factor in that element. In Colorado, cannabis has been legal since 2014, so competition is greater than in most other states. In the summer of 2018, the price had dropped more than $400 since January 1, meaning marijuana was below $1000 per pound for the first time. The average price was $846 in June. At the beginning of 2015, that price was $2007 per pound. Colorado monitors cannabis production to prevent oversupply, but the price is still on a significant downward trend.
 
Supply and demand largely determines the price, so trying to establish a cannabis business in a state with an already thriving market is risky. States where the industry is relatively new should keep prices higher, at least for a while. Investors must do market research and factor in an inevitable price decline before setting up shop.
 
In Colorado and California, the cannabis industry smoke has already cleared somewhat. Businesses are well-established and community norms are set. Competition for warehouses has driven up their prices and their monthly rent. The price pressure on cannabis, or price drops due to increased market competition, also has the potential to affect real estate prices. While the industry is still highly profitable, it is not a get-rich-quick scheme.
Other states are newer to the process, which means they may offer a more profitable market. Investors will face less competition and be able to sell their cannabis for higher prices. Of course, these areas also pose more complications for investors, particular in the area of zoning.
 
As with any business endeavor, research is key to the success of a cannabis company. Investors must know their market as well as state law and local ordinances. All start-up businesses are somewhat risky, but the marijuana industry still promises significant financial rewards.
 
Search for cannabis real estate and cannabis businesses for sale on 420Property.com. 

September 30, 2018Comments Off
Budding Across America: Cannabis Property Zones

One of the oldest industries on Earth – real estate – is about to join forces with one of the newest – cannabis. The result is Cannabis Real Estate. Take a closer look at one of the most exciting new sectors for investment in the property market today.

The profile of states that have legalized marijuana and its derivatives is changing rapidly. In 2021, The majority of states fall into one of three categories:

  • Marijuana is legal for recreational and medical use;
  • Marijuana is legal for medical use only;
  • Marijuana possession in small amounts has been decriminalized.

In states like West Virginia and Louisiana, the legalization only covers businesses that sell for cannabis-infused products, such as oils or pills. In other states where it has not be legalized, like Virginia, doctors are permitted to write a recommendation, not a prescription, for cannabis-related treatments.

Cannabis-related Property Types and Their Values

While the first type of commercial real estate that comes to mind is customer-facing, either a retail storefront or a medical dispensary, there are many parts of the supply chain that have to come first.

Property types include:

  • Cultivation areas, either on a farm or within a greenhouse
  • Manufacturing plants that turn the raw materials into Cannabidiol (CBD) oil or other compounds
  • Distribution hubs that handle secure storage and manage logistics
  • Delivery companies that assure the right packages are delivered to the right destination within tight windows
  • Testing facilities that assure quality to meet regulations and the guidelines of oversight bodies
  • Micro businesses that sell and support the equipment required to operate the retail and medical locations
  • Offices for online companies such as medical staff that review marijuana prescription cases over the web

The values for these properties can run from the thousands for a pre-built medical dispensary to the multi-millions for shovel-ready development parcels.

Once the establishments are built, real estate investments follow the profile of commercial development for any other industry, such as funding for regular tenant improvements of the property and projects to make the business more energy-efficient.

Cannabis Zoning Requirements

Even though cultural views have shifted about marijuana, the Drug Enforcement Agency (DEA) still classifies it as a Schedule I drug, which impacts where marijuana-related businesses can be located. 32 states and the District of Columbia have established “drug free” zones that extent 1,000 feet in every direction from the property lines of elementary and secondary schools.

Many of those states have expanded these zoning laws to protect public parks, churches, daycare centers, and public housing. Map that out and it becomes clear there’s not a lot of options for where these businesses can be located, except far from the city center. In Missouri and West Virginia, the definition of school includes colleges and universities. In Arkansas, the zones include all of those areas plus public recreation centers, skating rinks, Boys’ and Girls’ Clubs, and substance abuse treatment facilities.

In California, the laws are a bit more relaxed. For example, in Los Angeles “blue zones” indicate where dispensaries are permitted inside areas already zoned for retail and industrial uses. The required set-back area is 800 feet in every direction from schools, public parks, libraries, and drug treatment or rehab centers. In addition, dispensaries must be separated from each other by at least 800 feet.

Similarly, in San Francisco “green zones” indicate where cannabis retail locations are permitted, which must be at least 600 feet in every direction from public or private schools, both elementary and secondary. “Purple zones” grant permits based on a conditional use authorization and “brown zones” allow these businesses to be located there only with a special microbusiness license.

Conditional Use Permits and Licensing

Every state and many municipalities within those states have special laws and procedures covering permits and licenses for specific business types. Entrepreneurs would be wise to invest in a legal/government affairs specialist to do all of the necessary research and meet all of the requirements early in the planning process.

In some states, these laws are streamlined to facilitate rapid expansion and revenue generation. In California, there are three state licensing authorities: the Bureau of Cannabis Control, the Manufactured Cannabis Safety Branch, and CalCannabis Cultivation Licensing. The type of license required (such as cultivator, retailer, testing lab, and so one) determines which agency will issue the license.

September 30, 2018Comments Off
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