New Year, New Industry

by Travis C | Jan 11, 2019 | 420 News, Blog, Business, Culture, Science & Technology

2018 was a big year for the cannabis industry. 2019 is poised to change the industry even more.

The cannabis industry grew on a global scale in 2018. Not just in the United States, but around the world. More places are starting to accept cannabis as medicine and recreation, with even more planning to get on board in 2019.

While there are plenty of small or local changes to cannabis in the US, here some of the biggest changes in the cannabis industry that came in 2018.

Canada Legalization

Canada legalization of cannabis was a major victory for the industry in 2018. The government of Canada legalized the recreational use of cannabis across the entire country, with local governments still being able to limit the law.

However compared to legalization within some states of the United States, Canada legalization is run entirely by the government instead of private businesses. All licensed grows, manufacturers and retailers are government run. This has had a split impact on the industry as a whole in Canada.

While access to cannabis has become much easier — consumers can order cannabis online, for delivery, directly from a government website — supply currently cannot meet demand, causing backorders, long delays, moldy and stale product, and other problems.

The biggest problem Canada legalization has adversely caused is an increased use of the private market. If they government can’t supply its people but says it can be the only source, people will go to the private market to get the products they want without the long delay and risk of bad product.

Farm Bill and Industrial Hemp

difference between hemp vs cannabis CBD

At the end of December 2018, Donald Trump surprisingly signed the Farm Bill of 2018, also known as the Agriculture Improvement Act of 2018. Among many other adjustments to the agricultural industries in the US, the farm bill also separated the definition of industrial hemp to be different from that of cannabis.

Before the bill was signed, hemp and cannabis were under the same definition, with a sub-definition of hemp being any part of the cannabis plant with less than .3% THC. However, as sub-definition, it was still considered a Schedule 1 narcotic under the Controlled Substances Act of 1970.

The farm bill separated industrial hemp from the traditional cannabis definition, and created a federal definition of industrial hemp, being the same definition as before, but off of the controlled substances list. This has opened up the possibility for a massive hemp and CBD industry to develop.

While it’s too soon to say where the industry is headed — it will most likely be a year before the new bill takes full effect — the Farm Bill and legalization of industrial hemp means big things for the future of the cannabis industry.

First Year of California Legalization

california legalization needs to be controlled by farmers

California has a population with over 10 million more people than the second place contender, Texas. It was expected for the legalization of cannabis in California to expand the already developed marketplace in the state to great new bounds. However the new laws in place have had almost the opposite effect.

The cannabis marketplace in California was already the biggest in the country, despite the majority of growth occurring in the private market. It was inevitable, then, that the new, legal market would work its hardest to eradicate this competition.

Extremely limited licenses available to the highest bidder resulted in hundreds of farms and private operations having to shut down, simply by not being able to afford a legal license. This was the case for a large portion of the cannabis community in California, opening up the door for larger companies with more capital interests to enter the market.

With the biggest companies buying as many licenses as possible, the OGs of the industry are left with little options. Either continue to operate in the private market and hope to get a license before getting caught, or leave the industry in California.

It’s been a tough year for a thousands of growers across California, and 2019 most likely won’t prove to be much different. Despite its flaws however, California will still be a huge legal cannabis marketplace, and most likely surpass all other states, with the end result being the eradication of the private market entirely in the state.

An Eventful Year

2018 was a year full of surprises. Colorado passing Amendment X, The Farm Bill, California’s industry revelations and more. This year had its ups and downs, it’s issues that split the community, but overall the industry is in a better place than it was a year ago.

More states have legalized both recreationally and medicinally, cannabis is more acceptable in social culture than ever before, and more people are learning about the lies they were told during the drug war movement. Some are already saying 2019 will be the year of weed, while others think the bubble is bound to burst any day now.

We’ll just wait and see what’s in store for cannabis in 2019!

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Hemp vs Canabis CBD

by Travis C | Jan 2, 2019 | 420, 420 News, Blog, Science & Technology

If you’re familiar with CBD and its medicinal benefits, you may be wondering how to get it, or even more so, where it comes from in the first place.

If you have no idea what we mean when we say CBD, check out our starter guide to CBD explaining the basics.

CBD is most commonly found in industrial hemp and cannabis plants. But is there really a difference between the two? It isn’t so much that CBD from hemp is better or worse than CBD from cannabis, but how hemp is grown compared to cannabis makes a big difference.

Hemp vs Cannabis

Traditionally, Hemp is grown on an industrial scale, hence the name industrial hemp. Plants grow closer together, forcing them to grow up instead of out.

In contrast, cannabis is grown more spaced out which allows the leaves and flowers to fan out and gain potency. While hemp is mainly used for its stalks in uses from making paper to clothing, cannabis is bred much differently.

The biggest difference between hemp and cannabis is the THC content. Hemp is grown to have minimal THC. To legally be considered hemp, that amount must be no more than .3%.

Cannabis on the other hand is usually grown to have as much THC as possible in order to provide its maximum psychotropic effects, AKA the “high”.

Hemp Legality

So, a hemp plant with a THC content of .5% would be considered psychotropic cannabis and therefore federally illegal. This is despite the fact that such a low THC content would have little to no effect on the average person.

In fact, industrial hemp was made legal in 2009 by the Industrial Hemp Farming Act. But if you couldn’t guess by the name of the bill, this only applies to industrially grown hemp.

This “legal” hemp was only permitted for use by research facilities or higher education research. So unless the hemp was being grown on an industrial scale for the sole purpose of higher education research, hemp was still illegal.

However in December of 2018 the Agricultural Act of 2018, commonly known as the Farm Bill, was passed by the House, Senate and President Donald Trump. This new farm bill changes the definitions of industrial hemp.

This means that hemp will no longer just be grown for research purposes, but an actual commercial marketplace can be established.

Hemp CBD vs Cannabis CBD

Now that hemp has been legalized, the already blurred lines separating hemp CBD and cannabis CBD from a legality standpoint have become even more blurry. However this is actually good for the consumer.

Hemp traditionally carries more CBD, whereas cannabis carries more THC. Through crossbreeding of low-THC cannabis strains with high-CBD hemp strains, new strains are being created that look, smell and taste like regular cannabis, but have .3% or less.

Soon, hemp flower will look identical to cannabis flower, and more people will start to consume high CBD flower as much as THC flower. Industrial hemp for now will still be grown mostly on large scale for mass production of CBD medications derived from the whole plant.

The reality is hemp and cannabis are the same plant, they have just been bred in different ways. Now that hemp is legal, the two will start to merge again, and we might even see some new breeds start to appear. It’s an exciting time to look into hemp.

2018 Farm Bill Explained

by Travis C | Dec 18, 2018 | 420 News, Blog, Business, Growing

The 2018 Farm Bill has passed the House and Senate. After Trump signs, Industrial Hemp will be federally legal.

UPDATE: This article was written just before Trump’s signing. The article has now been updated to reflect the new status of the 2018 Farm Bill.

The 2018 Farm Bill has been signed by Donald Trump and passed into law, making Industrial Hemp federally legal. You might be thinking that it already was legal due to the 2009 Farm Bill, but not in the way you think.

This new bill (legally titled the Agriculture Improvement Act of 2018) differs from the 2014 Farm Bill in a few ways. The biggest difference being the new definition of Industrial Hemp being added.

2014 Farm Bill

Five years ago, the 2014 Farm Bill was passed, which defined Industrial Hemp as, “the plant Cannabis Sativa L., and any part of such plant, whether growing or not, with a delta-9 THC concentration of not more than 0.3% (on a dry weight basis).”

The 2014 bill also distinguished between marijuana and hemp for the first time. The laws enacted by the 2014 Farm Bill allowed for the cultivation of industrial hemp for research purposes, as part of an agricultural program, or as permitted by state law.

Also allowed under the previous bill was the study of the “marketing of Industrial Hemp”. The vagueness of this clause allowed states to set up agricultural pilot programs that also permitted commercial sales of industrial hemp. However, interstate commercial activity is not expressly permitted under the 2014 Farm Bill.

The 2018 Farm Bill changes that too.

2018 Farm Bill

The 2018 Farm Bill drastically alters the current legal landscape governing Industrial Hemp production in the United States.

First, the 2018 Farm Bill defines “hemp”as any part of the plant, “including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not,” with a THC concentration of not more than 0.3% THC on a dry weight basis. The 2018 Farm Bill also amends the CSA (Controlled Substances Act) to exclude “hemp” from the definition of “marihuana.”

The 2018 Bill also creates a specific exemption in the CSA for THC found in hemp. These expanded definitions and corresponding exemptions from the CSA could also apply to imported hemp. Meaning the new bill will allow for the importation and exportation of industrial hemp to and from the United States.

Unfortunately those convicted of a felony involving a controlled substance are barred from participating in any hemp program established under the 2018 Farm Bill. While lawmakers were hopeful that this would be revised in the final version of the bill, it appears that it wasn’t.

Federal Regulation of Industrial Hemp

The 2018 Farm Bill also amends the Agricultural Marketing Act of 1946 (“AMA”) to allow for federally-sanctioned hemp production under the authority of the USDA. This means the USDA is now the sole federal regulatory agency overseeing hemp production in the United States.

However, states will be able to submit their own proposals to the USDA for state-regulated programs. These programs must stay within the confines of the USDA requirements, including:

a practice to maintain relevant information regarding land on which hemp is produced in the applicable jurisdiction;
a procedure for testing THC concentration levels of hemp produced in the applicable jurisdiction;
a procedure for the effective disposal of products produced in violation of the statute;
a procedure to comply with the statutory enforcement procedures;
a procedure for conducting annual inspections to verify that hemp is not produced in violation of the statute; and
other practices or procedures as the Secretary of Agriculture considers to be appropriate and consistent with the statute.

Should a state decide not to submit a plan for its own regulatory procedures, that state can simply apply for licensure directly through the USDA. In states with approved plans, all those participating in the program must adhere to the state laws that are established.

In addition, the 2018 Farm Bill explicitly states that “nothing in this title authorizes interference with the interstate commerce of hemp.” As such, the 2018 Farm Bill will open up clear legal pathways to interstate transport in the United States.

The 2018 bill also requires the USDA to conduct a study within 120-days of enactment to determine the economic viability of the domestic production and sale of hemp.

With the 2018 Farm Bill now signed and passed into law, it’s a matter of time before the hemp industry explodes. However, the 2014 Farm Bill will remain in effect until a solidified plan is established by the USDA, which will most likely take a year.

So don’t expect to see hemp products popping up at your local grocery store any time soon.

Michigan Marijuana is Legal But You Can’t Buy It Anywhere

by Travis C | Dec 13, 2018 | 420, 420 News, Blog, Business, Growing

Michigan marijuana is now legal for adults to consume and grow. But where can they buy it?

The answer is nowhere. Michigan marijuana is legal for adults to grow, consume, and even “gift” to one another now. Yet there isn’t a single dispensary plan in place yet.

This may read similar to another article I wrote regarding Massachusetts legalization. They had a similar problem establishing a legal marketplace for consumers. While Massachusetts has finally opened two dispensaries for the entire state after two years of legalization, Michigan is poised to move more quickly.

Michigan Marijuana Laws

While Michigan has legalized cannabis for adult use, I wouldn’t go packing your bag for a vacation to the Great Lakes quite yet. Adults can grow 12 of their own plants (twice as many as Colorado) and possess up to 10 ounces in their homes. There’s a line in Proposition 1 that allows adults to “purchase” recreational cannabis. But there is none to buy.

Massachusetts, Maine and Vermont all did something similar. All these states have legalized cannabis for adults, but have no market to legally purchase cannabis. Basically, because of poorly written laws, these states have given a free pass to private market businesses.

Not Getting Stuck

The Michigan marijuana market is ahead of the curve, even if just slightly. Proposition 1 included a mandatory deadline for establishing a regulated market.

A year from now, a plan should be approved and in place to begin legal sales of recreational cannabis in Michigan. An additional rider was included that allows people to apply for licensing directly through the municipality. This acts as an assurance that the local governments stay on track.

To elaborate, Massachusetts had no such deadline or rider in place to ensure a timely roll out of a regulated marketplace. Because of this, local municipalities that did not approve of the state’s decision could refuse applications simply on the basis of not wanting legal cannabis in their town.

Michigan’s rider in Proposition 1 will guarantee that local governments don’t stand in the way of legalization. So while Maine’s governor fights legalization tooth and nail, and Vermont has no plans for a legal market yet, Michigan is already planning ahead.

A Big Step For Cannabis

Michigan is the first Midwestern state to legalize cannabis for adult use. Other states in the region will certainly be watching to see how the market turns out.

For now, however, state residents craving some fresh Michigan marijuana will either have to grow it themselves or buy it on the private market. So for now — even though cannabis is legal — unless you’re growing it, you’re still breaking the law in Michigan. Hopefully that changes soon!

Amendment X Explained: Colorado’s hemp laws

by Travis C | Nov 12, 2018 | 420, 420 News, Blog, Culture

Hemp was just voted out of the Colorado constitution. What does this mean for hemp farmers in the state?

When Amendment 64 passed in 2012, Coloradans also voted to add the definition of industrial hemp to the state’s constitution. This in turn required legislators to establish regulations regarding cultivation, processing and distribution. Amendment 64 also resulted in the establishment of the Industrial Hemp Regulatory Program in the state Department of Agriculture.

Amendment X changes this completely.

Amendment X

The constitutional definition of Colorado hemp is very similar to current federal law. The original language defined hemp as, “the plant of the genus cannabis and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol (THC) concentration that does not exceed three-tenths percent (.03%) on a dry weight basis.”

The federal definition of industrial hemp is nearly identical to the Colorado hemp laws put in the constitution, but that’s not the main purpose of Amendment X. The goal is to not get left behind.

Keep in mind, the only benefit of the constitutional definition was its protection against federal government, should they change their definition of industrial hemp for the worse, such as lowering the allowable THC limit below .03%.

Keeping Colorado Hemp in the Game

There has been a lot of talk of industrial hemp getting a facelift in the federal law books soon. This could mean the federal definition completely changing, or just being updated. One of the more popular predictions is that the law will change to raise the allowable THC limit to 1% as opposed to the current definition of .03%.

If Coloradans had voted against Amendment X, Colorado hemp would have maintained its constitutional definition, meaning even if the federal government raised the allowable limit to 1%, Colorado hemp farmers would still have to abide by the constitutional law of the state, and maintain .03% or less. This makes the reasons for approving Amendment X rather justified.

What Happens Next?

The people of Colorado have voted to approve Amendment X, taking industrial hemp out of the state constitution, and putting it in line with federal definitions. Should the federal definition change, Colorado laws regarding industrial hemp will change with it. Colorado also has the option to create statutory laws regarding hemp in the state.

This means that Colorado could pass its own law (outside of the constitution) raising the allowable THC limit to 1%. However the state would risk fierce backlash from the federal government, as it would go against federal law. The constitutional definition that is now removed protected Colorado’s hemp farmers from persecution, and some worry now that this decision will open them back up to federal persecution.

What will most likely happen, is not much. Colorado is now in line with most states in the country, and is on par to adjust its definitions as federal law changes. Considering the definition in Colorado’s constitution was the same as the federal definition, there will be little difference noticed by most.

Cannabis Midterm: Here’s who won

by Travis C | Nov 7, 2018 | 420 News, Blog

The 2018 midterm elections allowed citizens to vote on more than just house and senate seats.

On Tuesday November 6, 2018, three states voted to legalize cannabis in some form. Utah and Missouri have both legalize medical marijuana, and Michigan has fully legalized cannabis.

Every state differs greatly on how they set up and run their legal cannabis programs. Some do it very well (e.g. Colorado, Washington), others don’t handle it so well (looking at you Massachusetts and Vermont). That’s why it is important to know each state’s laws, especially if you are a medical or recreational cannabis consumer, as the laws you abide in your home state may be very different across the border.

Utah medical marijuana

Proposition 2 legalizes medical marijuana for individuals with qualifying conditions. Individuals can receive a Utah medical marijuana card with a recommendation from a physician. Under the measure, an Utah medical marijuana cardholder cannot smoke marijuana or use a device to facilitate the smoking of marijuana.

During any one 14-day period, an individual would be allowed to buy either 2 ounces of unprocessed marijuana or an amount of marijuana product with no more than 10 grams of tetrahydrocannabinol (THC) or Cannabidiol (CBD). Proposition 2 was designed to exempt marijuana from local and state sales taxes. It directs the state legislature to enact business license fees for marijuana business to fund the ongoing costs of the initiative’s implementation.

From the basic spread of the proposition, Utah medical marijuana will have some hurdles up ahead. One of the largest hurdles will be that of the Church of Latter Day Saints, the primary religious sect in the state with strong connection to the state legislature.

While the LDS has already voiced their disapproval of Proposition 2, it wasn’t enough to prevent its passing. So keep an eye out for plenty of attempted roadblocks of Utah medical marijuana by the LDS in the future.

For the full outline of Proposition 2, click here.

Missouri medical marijuana

everything you need to know about missouri medical marijuana

Amendment 2, a constitutional amendment to allow medical cannabis, passed by a margin of 66 percent to 34 percent in Missouri on November 6th.

Under the new law, qualified patients who have approval from their physicians will receive identification cards from the state that will allow them and their registered caregivers to grow up to six marijuana plants and purchase at least four ounces of cannabis from dispensaries on a monthly basis.

Unique to the Missouri medical marijuana program, doctors will be able to recommend medical cannabis for any condition they see fit; there is no specific list of qualifying disorders. Additionally, the state regulators will issue licenses for medical marijuana dispensaries, as well as cultivation, testing and infused product manufacturing businesses.

There will be a four percent retail tax on medical cannabis sales, with revenue being earmarked for services for military veterans once implementation and regulations costs are covered. It would seem that Missouri is definitely on the right track with their program. If they can stick to their timeline and work to open up their market, they could be very successful in the future.

For the full outline of Amendment 2, click here.

Michigan legal marijuana

On November 6th, Michigan became the 10th state to fully legalize the sale, possession and consumption of cannabis and cannabis-infused products in the country. This marks a big step for a state that only recently also legalized medical marijuana.

Under Proposal 1, people over 21 can hold up to 2.5 ounces, and store up to 4x that amount. A household (not per person) can grow up to 12 plants for personal use. The sale of Michigan legal marijuana will be taxed at the state sales tax of 6%, plus an additional 10% marijuana tax.

These taxes when put in place are expected to bring in anywhere from $100-200 million for schools, roads and public service programs. With an infrastructure already established through the Michigan medical marijuana program, it should be a smooth transition into the legal market.

Michigan has even put safeguards in place as to avoid mistakes similar to that of Massachusetts, where cannabis has been legal for two years but there is not a single dispensary open due to government pushback. Michigan has combatted this issue preemptively by including a 12-month window in which the government is to set up their system and begin accepting applications.

Should the government drag its feet for 12 months, applicants can then begin to apply directly to their municipality, and avert the state all together. This means in 12 months, regardless of how much pushback or knuckle dragging Michigan legal marijuana may endure, applications will start coming in, and the Michigan legal marijuana industry will begin its implementation.

For the full outline of Proposal 1, click here.

There are a couple other states that voted on cannabis-related measures in the midterm as well, including Colorado and Florida. Check out the new Real Dirt Harvest Special to hear all about Amendment X in Colorado.