California Licensed Cultivation & Distribution Facility

As more states legalize cannabis for medicinal and recreational use, investors have started to look for ways to earn money from the industry. In many cases, entrepreneurs and investors don’t have to start their own cannabis farms and dispensaries. Instead, they can find a cannabis business for sale, buy the company, and start making money.

The rush to invest in cannabis also applies to entrepreneurs that want to grow and sell hemp. Now that the 2018 Farm Bill has gone into effect, hemp businesses can operate in every state as long as their plants contain no more than 0.03% THC..

Small Marijuana Businesses Often Sell to Larger Corporations

Before California legalized cannabis, most of the illegal marijuana grown in the United States came from small farms in the Emerald Triangle. The Emerald Triangle is an area of Northern California that includes Humboldt, Mendocino, and Trinity Counties.

Small farms in the Emerald Triangle could grow marijuana illegally because the densely forested mountains gave them cover from the Drug Enforcement Agency (DEA). In fact, many of the early farms were started by people who wanted to live independently in an off-the-grid environment. The mountain’s cool temperatures and fertile soil also gave them the resources needed for cannabis to flourish.

Since California legalized marijuana for medicinal and recreational uses, some of the small farms have continued to operate independently. Many of those farms, however, cannot compete with larger operations that have enough funding to invest in more efficient growing practices, connect with dispensaries, and pay state taxes.

As a result, many small farmers want to sell their operations. The number of marijuana businesses for sale in the area makes it possible for new investors to enter the market and start earning money immediately.

Consolidating Cannabis Growing Farms

In Washington, another state that has legalized recreational cannabis, consolidation has made it possible for investors to reap rewards quickly.

From January to September of 2017, the 10 largest farms in Washington produced 16.79% of the state’s cannabis. The 500 smallest cannabis farms in the state produced a combined 13.12%.

Investors should keep in mind that not all cannabis farms look like traditional farms. Many of the farms grow a wide variety of strains indoors. Indoor farming gives owners more control over the amount of sunlight, water, and nutrients that plants receive. Since some customers prefer consuming cannabis flowers that were grown outdoors, taking a dual approach can help investors satisfy various demands in the recreational cannabis market.

This creates a remarkable opportunity for entrepreneurs that want to maximize their cannabis business’s potential by consolidating small farms into larger operations. Investors can earn money from small farms that grow marijuana and hemp, but consolidation makes it easier to increase a business’s market share and profits. Consolidation also makes it possible to introduce a wider variety of products consumers.

Buying Cannabis Dispensaries That Thrive

Not all entrepreneurs want to continue specific businesses in the cannabis industry. Instead, they prefer to develop the framework for dispensaries that appeal to consumers and compete well with other business.

Finding a marijuana dispensary for sale means that investors can profit from the experience of entrepreneurs that have worked in the industry for years. When evaluating opportunities, investors should consider the dispensary’s popularity, connections to cannabis farmers, past and current profits, and growth potential.

In some cases, it makes sense to purchase a marijuana dispensary in a city and state that already has plenty of legal cannabis stores. Colorado, for example, makes it relatively easy for recreational cannabis dispensaries to serve clients. The state hasn’t over-regulated the industry, so investors have more freedom to run their businesses as they see fit.

Colorado also has a growing cannabis tourism industry that makes it possible for several dispensaries to thrive in the same area. Thanks in part to cannabis tourism, marijuana sales in Colorado grew by 51% from 2014 to 2018. Other states have experienced similar growth from tourists that want to try cannabis.

Buying a Successful Marijuana Business

Despite the increasing number of states that let dispensaries sell cannabis legally, the federal government still considers the plant illegal. Hemp legalization has helped investors find new, successful ways to earn money. Federal prohibition, however, builds walls between investors and marijuana businesses.

Securing the funds needed to start a successful cannabis business remains difficult for some because many lenders don’t want to work with the industry. Some lenders worry that the federal government will target them for participating in illegal businesses. Others worry that the industry’s legal limbo makes cannabis too risky.

Investors and entrepreneurs may also find it difficult to secure insurance for their farms and dispensaries.

A marijuana business for sale that already earns steady profits, however, lowers the risk that investors must accept when entering the cannabis industry. If a dispensary already makes money, then its owners have found ways to navigate cannabis’s complicated legality. Starting a new cannabis business takes a lot of time and money because it forces investors to learn about complex regulations and find other companies willing to work with it.

Instead of starting new businesses, it makes sense for entrepreneurs to buy existing cannabis businesses for sale. As long as investors scrutinize their options, they stand to make a lot of money from this growing industry.

Search for existing marijuana and  hemp businesses for sale at 420Property.com

The 2018 Farm Bill is expected to shake things up in the hemp industry. This new legislation gives U.S. farmers the opportunity to legally cultivate the Cannabis sativa L plant for hemp production. And manufacturers and retailers can now process and sell products derived from hemp. But hemp-based goods have already made their way into the American consumer market. CBD oil, derived from agricultural hemp, is extremely popular, and the demand is growing. Many consumers may assume hemp and goods made from this plant are a new phenomenon. However, hemp production is ancient – dating back to around 8,000 BC.

A Short History of Hemp Use

The oldest example of hemp use, to date, was discovered in Asian pottery and as food, in what is now China and Taiwan. The people of those regions used hemp cords, seeds and oil. Other evidence of hemp-derived goods has been found in India, southern Russia, Germany, Greece, Britain, and again in China, dating between 2,000 BC and 100 BC.

By 900 AD, Arabs were using hemp to make paper, and in the mid 1500’s cannabis farming made its way to South American. North American settlers started growing hemp by 1616. In the 1700’s, many colonial farmers were legally mandated to cultivate hemp. Up until the late 1800’s, between 75 and 90 percent of all the paper produced around the world was derived from hemp fiber.

Making paper was the most popular use for hemp in the past. But it had many other purposes as well. Those include providing durable fiber for rope, fabric and textiles, seed for lamp fuel, and oil for medicines and hygiene products. In the Colonies, farmers were even permitted to pay their taxes with hemp.

Hemp fiber was well-suited for ship sail canvas and cordage, helping to fuel demand for the crop. But as steam ships took over in the late 1800’s, the need for the fiber began diminishing. Additionally, cotton was easier to cultivate and process. Then, in 1917, George W. Schlichten introduced a machine that could separate useful hemp fibers from the plant. This decorticator machine had the potential to make hemp harvesting much more efficient and economical, and less labor-intensive. This is perhaps why synthetic textile industrialists started a campaign to get rid of hemp farming.

In September 1937, they obtained their goal with the passage of the Marijuana Tax Act. This law made hemp cultivation too expensive for farmers to pursue. Hemp did experience a brief resurgence during World War II with the “Hemp for Victory” government effort. Farmers were given special permits and encouraged to cultivate hemp to make rope for the Navy. But once the war was over, hemp was essentially prohibited once again. But today, that’s all changing as hemp-derived products are experiencing a renaissance of usefulness.

Thousands of Current Uses for Hemp Today

Every part of the hemp plant is viable for productive use. The following products are but a sampling of the thousands of hemp goods available to consumers today.

Topical Ointments

The anti-inflammatory properties of hemp roots make them suitable for therapeutic purposes. Some popular uses include the treatment of:

• arthritis
• gout
• joint pain
• burns
• cuts
• fever

Hemp roots are also helpful in cleaning soils and stabilizing soil structure. They draw heavy-metal impurities out of contaminated soil.

Food

The seeds of this plant contain an abundance of minerals, amino acids, proteins and fats. They are used in baking and cooking, and they make a healthy addition to salads, soups and smoothies. One entrepreneurial company is even bottling hemp-infused wine.

Beauty and Hygiene

Cold pressing the seeds can produce cannabis oil to be used in food, beauty products and cosmetics. Soaps, shampoos, lip balms, lotions, and essential oils are just a few of the hundreds of beauty and body products manufacturers are producing from hemp.

Textiles

Hemp fiber is used to make numerous textile products, such as:

• Rugs/carpets
• Upholstery
• Rope
• Towels
• Bedding
• Curtains
• Tablecloths

Apparel

Because an increasing segment of the population is embracing eco-friendly products, hemp apparel has the potential to really take off in the clothing industry. Hemp is a sustainable crop and lends itself to organic farming. It also requires far less water than cotton crops but delivers almost twice as much fiber yield per acre. Hemp-derived fabric also enjoys many attractive characteristics. it’s odor-resistant, hypoallergenic, moisture wicking, and anti-microbial.

Plastics

Hemp plastic is strong and made to last. It’s used to make pens, sunglasses, furniture, musical instruments, auto door panels, and other items that were once only made of traditional plastic or fiberglass.

Paper

Sustainability, durability, efficiency and the rapid growth rate of hemp plants makes hemp paper a more attractive option than tree paper.

Vehicle Parts

Hemp fibers subjected to thermoset compression molding can create car panels and other vehicle parts.

Pet Products

Hemp seeds can be used in pet food and as a dietary supplement for animals. Hemp chew toys are strong enough to give most dogs a lot of play. Bedding, leashes, and collars are a few other hemp-derived pet products.

Cannabidiol

CBD oil is currently getting the most buzz as a hemp product. Manufacturers and retailers are adding CBD oil to everything from food and beverages to supplements, lotions and wellness products.

This list barely scratch the surface of the number and variety of hemp-derived goods available on the market today. In 2015, the U.S. hemp market size represented 599.6 million dollars. By the end of 2018, the estimate is approximately 2 billion dollars. Hemp has thousands of uses, and consumers are buying these useful hemp-derived goods.

Hemp’s Bright Future in the U.S.

There is a clear and strong demand for hemp products. Farmers understand this and they’re moving to start meeting that demand. Limited seed supply will be an initial roadblock. But this will eventually be overcome as U.S. farmers expand hemp acreage to produce their own growing supply.

More companies and investors are sure to move into this space, which will help the industry grow. Banking and insurance services will become available. And the demand for commercial real estate and land is expected to increase, as well. The need for heavy farm-equipment for hemp harvesting should increase, along with manufacturing equipment for hemp product production. Even marketing firms can expect to benefit. The hemp boom is set to impact a lot of industries.

The present state of the hemp industry around the world is tremendous. Now it’s time for U.S. entrepreneurs to take a bite out of this beautiful plant. The wave has already started, but it’s growing. Farmers, manufactures, retailers, startups, real estate professionals, lenders and various other professionals are poised to make a profit from this burgeoning industry.

The Founding Fathers

19th Century Hemp Production

Factors in Declining Hemp Production

Current Production Status

States Leading in Hemp Production

Hemp Products

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  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.

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.

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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.

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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.

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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.

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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.