What do Hemp Farmers Need to Know About Seeds and Soil?
With the Agriculture Improvement Act (Farm Bill) of 2018 signed into law, hemp is now again available for cultivation. Early hemp adopters such as Oregon, Kentucky, or Colorado, which began cultivating hemp, as part of various pilot programs, are now quickly ramping up production. If in 2017, there were around […]
With the Agriculture Improvement Act (Farm Bill) of 2018 signed into law, hemp is now again available for cultivation. Early hemp adopters such as Oregon, Kentucky, or Colorado, which began cultivating hemp, as part of various pilot programs, are now quickly ramping up production.
If in 2017, there were around 25,000 acres of hemp growing, and in 2018 that surface reached 80,000 acres. By the time the Farm Bill was signed, more than 300,000 acres were registered for cultivation, reaching 500,000 by the 2019 planting season. Estimates point somewhere in between 20 to 30% of this area is to be cultivated for fiber and grain, while the rest for CBD production.
But even though the acreage has increased dramatically over the past couple of years, experts say that production will not be nearly as high. The reason for this has a lot to do with the seeds, soils, and regulations that apply to the CBD industry. And there are many horror stories already coming out from the 2019 harvest with fields rotting, pollinating to males, hail destruction and more. Some estimates say over 50% of the increase in acreage this year will never make it to market due to failed crops and poor planning from new farmers looking to cash in quick but who lack the expertise and knowledge to grow and harvest their hemp crop.
As Mike Leago, Founder of the International Hemp Exchange, and Jon Workman, VP of Hemp Development in North America for American Cannabis Company puts it“Farmers were duped into buying seeds with supposed high-CBD genetics, but ended up growing a grain variety of hemp,”
What You Need to Know About Hemp Seeds
As a hemp farmer, choosing the right seeds is of the utmost importance. Leago advises hemp farmers to pay close attention when purchasing these seeds, as there is a lot of misinformation currently circulating on the market. There are plenty of brokers and middle-men who are willing to say anything for some short-term gains. It’s for this reason why hemp farmers need to do their due diligence in finding a seed provider, with a minimum of several seasons of verified seed production.
Another factor to keep in mind here is THC. There are two derivatives of THC (delta 9 and THCA) where the former has psychoactive effects while the former doesn’t. Some jurisdictions monitor for zero THC. Cross-pollination can ensure that the seeds and plant will fall within the required parameters. In short, female hemp plants, which are secreted for CBD oil, need to be genetically correct to pass regulations imposed by the State. In some cases, these plants cannot be shipped across States due to their THC content.
What You Need to Know About the Soil
Being a bioaccumulator, hemp will absorb heavy metals and toxins found in the soil. The quality of the ground, itself, should be tested beforehand. Similarly, pulling out essential minerals creates cells which help hold water and has rich dark soil. The soil will significantly influence the outcome of the plants.
Also, some hemp seeds are specially engineered to thrive in certain climates and microclimates such as Napa Valley, or the so-called Green Triangle, for instance, while others are better suited for more arid, desert-like climates.
Some known hemp seed production farms are found in Colorado, Kentucky, and North Carolina. Root Origins sources its seeds in Oregon, where the quality of the soil is greatly enriched with nutrients and nitrogen from the Pacific Northwest region. For more information, email us at email@example.com.
The Biden Presidency Looks To Be Installing Several Pro-Cannabis People Into Key Roles In Government
After Kamala Harris was nominated to be President Elect Joe Biden’s running mate, we knew that brighter days were ahead for the cannabis industry……..and the market seemed to agree with us. After Joe Biden was projected to win the election, the cannabis sector recorded strong moves to the upside for almost two months. Although the […]
After Kamala Harris was nominated to be President Elect Joe Biden’s running mate, we knew that brighter days were ahead for the cannabis industry……..and the market seemed to agree with us.
After Joe Biden was projected to win the election, the cannabis sector recorded strong moves to the upside for almost two months. Although the sector has come off its recent highs, we believe the recent additions to President Elect Joe Biden’s cabinet send a very bullish sign to the cannabis industry.
During the last month, President Elect Joe Biden has announced several key cannabis-friendly additions to his cabinet. When you combine the democrats winning two key senate seats in Georgia (and became the majority of both the House of Representatives and the Senate) with the recent additions to the cabinet, we believe that the US cannabis industry is going to flourish.
Most recently, President elect Joe Biden selected former South Carolina Democratic Party Chair Jaime Harrison to lead the Democratic National Committee (DNC). He is a strong supporter of cannabis legalization and will be responsible for coordinating Democrats’ national political activities. Harrison still needs to be confirmed by party leaders, but we are confident that he will.
When Harrison ran for a Senate seat in South Carolina, he said that the US should legalize, regulate and tax cannabis like alcohol and tobacco. We are favorable on his appointment and believe that his views on cannabis will be reflected in the Democrats’ national political activities.
While we can hope for the legalization of cannabis the federal level, we believe the new administration (and government) will quickly pass cannabis decriminalization legislation. If we see cannabis decriminalized, we believe that companies will quickly notice significant margin appreciation. If cannabis is decriminalized, 280 E should be revoked, and this would prove to be a substantial catalyst for companies.
280E is the worst legislation we have ever seen in any industry. The rule does not allow companies to deduct basic business expenses and makes it much more challenging for operators to reach profitability. We believe the revoking of 280E is inevitable and is something that our readers should be aware of.
Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.
MustGrow Achieves 100% Control of Root-Rot Disease Infecting Key Plant-Based Protein Crops
MustGrow Biologics Corp. (CSE: MGRO) (OTC: MGROF) (FSE: 0C0) is pleased to announce successful laboratory test results of its patented mustard-derived biopesticide on Aphanomyces euteiches zoospores (“Aphanomyces“) via an independent third party facility: 100% control at economic application rates within 24 hours. MustGrow will now advance to larger scale greenhouse and field tests. Study results […]
MustGrow Biologics Corp. (CSE: MGRO) (OTC: MGROF) (FSE: 0C0) is pleased to announce successful laboratory test results of its patented mustard-derived biopesticide on Aphanomyces euteiches zoospores (“Aphanomyces“) via an independent third party facility: 100% control at economic application rates within 24 hours. MustGrow will now advance to larger scale greenhouse and field tests. Study results and applicability are patent-protected under MustGrow’s existing suite of issued patents.
MustGrow’s remarkably safe and effective organic biopesticide is plant-based – harnessing the mustard seed’s natural defense mechanism to control diseases, pests, and weeds with an organic food-grade biopesticide.
Aphanomyces is a water mould pathogen responsible for root-rot disease, infecting a variety of peas, lentils and other legumes collectively referred to as pulse crops. The disease causes severe root damage and wilting, with yield losses ranging from 10% to 100% in infected fields (1). Canada is one of the world’s largest producers (~9.2 million tons; 2019) and exporters of pulse crops (2). Industry experts conservatively estimate $20 million in annual pulse crop losses in Canada and $100 million globally caused by Aphanomyces (1). Current treatment measures cannot control Aphanomyces – they are only able to slow down the spread and reduce the incidence and severity of the disease.
“It is great to see MustGrow’s mustard plant-based biopesticide continue to perform, particularly with 100% disease control measured at exceptionally low application rates. The level of control of hard-to-kill diseases we continue to achieve combined with the beneficial properties of our product for soil health provide a great opportunity for improved yields for farmers and a more robust food supply,” remarked Colin Bletsky, COO of MustGrow. “I am very hopeful that we can potentially provide a valuable crop-protection tool for pulse crop farmers.”
Plant-Based Crop Protection for Plant-Based Protein
MustGrow feels it makes both logical and ecological sense to protect plant-based protein crops with plant-based crop protection inputs. MustGrow’s product is a pre-plant soil treatment, meaning application to the soil occurs before crops are planted. Application of MustGrow’s biopesticide returns organic plant material to the soil through this pre-plant treatment process as a potential alternative to using synthetic chemicals.
According to MarketsandMarkets and analysis by EY-Parthenon, the global plant-based protein market size is projected to grow from US$12 billion in 2019 to US$28 billion by 2025 (CAGR of 15%). This is attributed to several drivers, predominantly rising consumer health-consciousness, growing prevalence of protein-rich pulse crop food products, and technological innovations in plant-based protein extraction. To accommodate the rise of plant-based protein demand, Fior Markets estimates the global pulse crops market will grow from US$16.2 billion in 2017 to US$24.3 billion by 2025 (CAGR of 5.2%).
The interest in MustGrow’s plant-based biopesticide is increasing as farmers, consumers and investors seek ‘natural biological’ alternatives to synthetic chemical pesticides. Adverse global climate and weather events are expected to negatively impact food supply for a growing human population. Warmer temperatures are expected to increase pest infestations and with more pests there will be more damage to crops. The development of safe and effective biopesticides will be critical for future food security and environmentally sustainable agriculture.
MustGrow is a publicly traded (CSE: MGRO) (OTC: MGROF) (FSE: 0C0) agriculture biotech company focused on providing natural science-based biological solutions for high value crops, including fruits & vegetables and other industries. MustGrow has designed and owns a U.S. EPA-approved natural solution that uses the mustard seed’s natural defence mechanism to protect plants from pests and diseases. Over 110 independent tests have been completed, validating MustGrow’s safe and effective signature products. The product, in granule format, is EPA-approved across all key U.S. states and by Health Canada’s PMRA (Pest Management Regulatory Agency) as a biopesticide for high value crops such as in fruit & vegetables. MustGrow has now concentrated a liquid format, TerraMG, and with regulatory approval, could be applied through standard drip or spray equipment, improving functionality and performance features. In addition, this new mustard-derived technology could have other applications in several different industries from pre-plant soil treatment to post harvest pest and disease control.
The Company has approximately 40.7 million basic common shares issued and outstanding and 50.6 million shares fully diluted. For further details please visit www.mustgrow.ca.
Certain statements included in this press release constitute “forward-looking statements” which involve known and unknown risks, uncertainties and other factors that may affect the results, performance or achievements of MustGrow.
Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, “is expected”, “budget”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “be achieved”.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of MustGrow to differ materially from those discussed in such forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, MustGrow.
These risks are described in more detail in MustGrow’s Prospectus and other continuous disclosure documents filed by MustGrow with the applicable securities regulatory authorities and available at www.sedar.com. Readers are referred to such documents for more detailed information about MustGrow, which is subject to the qualifications, assumptions and notes set forth therein.
This release does not constitute an offer for sale of, nor a solicitation for offers to buy, any securities in the United States.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Premium Cannabis Brands Are Going All In With Celebrity Endorsements
The cannabis industry is one of the most attractive growth markets and we believe that it is still in the early innings of a major growth cycle. According to an analyst report from Cowen and Company, the overall market for cannabis and cannabinoid derivatives is expected to reach $34 billion by 2025 and we believe […]
The cannabis industry is one of the most attractive growth markets and we believe that it is still in the early innings of a major growth cycle. According to an analyst report from Cowen and Company, the overall market for cannabis and cannabinoid derivatives is expected to reach $34 billion by 2025 and we believe this is a conservative estimate.
Going, forward, the US cannabis industry is positioned to record strong growth under a democratic administration, and we are favorable on the current trend. One of the more interesting trends that we identified is related to the number of celebrities that are launching cannabis brands and are executing on a strategy to capitalize on a burgeoning industry.
From Snoop Dogg to Seth Rogan, several high-profile celebrities were early movers on the cannabis industry, and this is a trend that has become more significant over the last two years. We are favorable on how these celebrities are benefiting from the strength of their respective fan base and will monitor how these brands are able to gain traction.
Today, we want to highlight 3 premium cannabis brands that are backed by a celebrity and provide more insight on how this trend has evolved over the last few years. Although we do not expect every celebrity backed cannabis brand to perform well, we believe these brands are better positioned to be successful over the long-term.
Canopy Growth and Snoop Dogg
In 2016, Canopy Growth Corporation (WEED.TO) (CGC) became one of the first Canadian Licensed Producers (LPs) to launch a cannabis brand that was backed by a celebrity. The agreement was with Snoop Dogg and the brand did not perform as well as expected. Through this venture, we believe that Canopy Growth learned a lot about the challenges that are associated with launching a celebrity backed cannabis brand.
Prior to forming a relationship with Canopy Growth, Snoop Dogg was a well-known cannabis user and activist. Although the agreement with the Canadian LP did not perform well, Snoop Dogg was paid in stock and due to the performance of Canopy Growth, this proved to be a smart decision.
A few years after the agreement was announced, Snoop Dogg launched a cannabis venture capital firm called Casa Verde to make seed and Series A investments in ancillary companies (non-plant touching businesses). One of Casa Verde’s initial investments was LeafLink, a business-to-business marketplace that’s designed to connect cannabis brands with retailers on a single platform. LeafLink is considered to be a high-profile ancillary cannabis company and we are impressed with his ability to identify attractive investment opportunities.
In late 2020, Casa Verde Capital reported to have completed an $100 million financing for its second investment fund (according to documents filed with the SEC). Currently, Casa Verde has not announced any targets for the new venture capital fund, but we expect this to change in the near future.
Martha Stewart Launches a CBD Brand
Martha Stewart is another high-profile celebrity to enter the cannabis industry. Like Snoop Dogg, she entered into an agreement with Canopy Growth that is focused on the cannabidiol (CBD) vertical. The agreement comes several years after the Canadian LP announced the relationship with Snoop Dogg and the relationship with Martha Stewart has already proved to be a value driver for the company.
A few months ago, Canopy Growth announced an important milestone and reported to have released its Martha Stewart CBD Wellness Gummies Sampler. We are favorable on the relationship with Martha Stewart due to the size of her following and will monitor how the brand performs this year.
One of the reasons we consider Martha Stewart to be a strategic partner is related to the demographic of her fan base. We believe that she appeals to the baby boomer generation and expect Canopy Growth to benefit from having leverage to this demographic. So far, the average age of cannabis consumers is younger than Martha Stewart’s fan base and we are favorable on how this further differentiates Canopy Growth from other operators in the sector.
Gage Cannabis and Cookies is an Emerging Growth Story
Gage Cannabis a leading operator in Michigan and has formed an exclusive partnership with one of the best-known cannabis brands, Cookies. The leading cannabis brand was started by California rapper Berner and has a massive following. From the quality of the genetics to the packaging of the finished product, Cookies has been nothing short of an execution story and has a cult-like following.
Last year, Gage opened a Cookies branded flagship cannabis dispensary in the heart of Detroit and we are bullish on this opportunity. The flower that is sold by Cookies is very expensive when compared to other brands and the high price point has not impacted the amount of demand for it.
We believe that Gage Cannabis has the necessary traits to be successful in the cannabis industry and will continue to closely monitor the operation. The company is led by a management team that has a proven track record of success and we are favorable on this aspect of the story. We believe that Gage has attractive growth prospects, a favorable risk-reward profile, and is an opportunity to be aware of.
If you are interested in learning more about celebrities that are forming cannabis brands, please email firstname.lastname@example.org with the subject “Celebrity Backed Cannabis Brands” to be added to our distribution list.
Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.