Oklahoma Hemp Bust (Update)

by Travis C | Apr 18, 2019 | 420, 420 News, Blog, Business, Cannabis Law and Compliance, Hemp

Four men were arrest during an Oklahoma hemp bust back in January. Now two men are finally free, with the other two with unsure futures.

The Real Dirt reported on a story back in January that involved a company transporting hemp through Oklahoma. The hemp was poorly stored, resulting in odor that could be smelled 2 miles down the road, by police.

What happened next cause quite some controversy in the new legal Oklahoma hemp industry.

The Original Oklahoma Hemp Bust

In early January Andrew Ross from Aurora, CO was providing security for the transport of several thousand pounds of what he claimed to be industrial hemp from Oklahoma to Colorado. Ross and the semi-truck he was assisting was pulled over in Pawhuska, Oklahoma after running a red light.

The officer smelled what he claimed to be cannabis as he approached Ross’ van, at which point Ross told him that they were the security for the semi-truck transporting hemp. Ross was then instructed to open the semi-truck, revealing over 9,000 pounds of hemp or cannabis.

After conducting a field test, which tests for any amount of THC, the officer believed the plants to be cannabis and not hemp. However, legal hemp can have up to .3% THC. This led to a lengthy delay in the case as the local police had to send the plants to be lab-tested, which was additionally delayed by the government shutdown in January.

During this time, two of the four who were arrested — Ross, one other in the van and another two in the semi-truck were arrested in total — have remained in prison since they couldn’t afford bail. They most likely won’t be released until the conclusive results of the tests come back.

The Update

While four men were arrested back in January, only the two truck drivers who couldn’t afford bail have remained in prison, until about a month ago. In late March, all charges were dropped against the truck drivers Tadesse Deneke and Farah Warsame.

But for Andrew Ross and his partner that provided security for the transport, the legal battle is not over. While a local man from Tulsa actually offered to pay the bond for Deneke and Warsame to get them out of jail, setting them free, The DA is still pursuing charges aginst the security company.

Of the seized material that was tested, eight of the eleven tests conducted came back “hot”. In other words, the THC levels of the samples tested above the legal amount of .3%, with the hot samples testing between .38% and .5% THC. That is no longer considered legal hemp under federal law.

According the DA’s ongoing investigation, the security drivers for the truck may have had more knowledge about what they were transporting compared to the truck drivers. Implicating that they could have know they were transporting illegal hemp, and let the drivers, who had no experience with hemp, transport it anyway.

What Comes Next?

While the security guards are not being held in jail since they posted bail, their charges have still not been dropped. If convicted, they could face up to 20 years in prison for transportation of illegal cannabis.

And this is case is still far from over. The next court appearance for the security guards is not until August 8th, 2019. The evidence is starting to point toward foul play. If the security guards knew they were transporting illegal material, they will be held responsible, along with the company that grew the hemp to begin with.

If it really is true that almost none of the hemp on the truck was .3%, then this is a case of someone trying to skirt the law, but not getting close enough to do it. This is a weeding out process, and people will try to take advantage of a new, infantile industry with little regulation or state oversight currently.

The Real Dirt will continue coverage of this case as it develops.

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Everything You Need to Know About Growing Hemp in Alabama (Pt. 2)

by Travis C | Apr 17, 2019 | 420, Blog, Business, Cannabis Law and Compliance, Growing, Hemp

At this point you’ve already decided whether or not you’re growing hemp from seed or clones. Now it’s time to get it planted.

Over 150 farms have already been approved to start growing hemp in Alabama. A lot of them are going to fail.

Why?

Because they’re going to treat hemp like any other row crop.

Planting and Caring for Hemp

In Alabama you should plant at the end of May through the first week ofJune with 2000 to 4000 plants per acre. It is best to sew directly into the ground, however many people find success by using automated plug planters. These planters allow you to plant clones and seeds in a root plug.

Bigger is not better. It’s best to grow plants that are under 5 feet tall and spaced appropriately where they still touch. Your hemp fields should look more like a corn or wheat field than your traditional ganja plant.

To put it simply: It’s all math.

Smaller plants are easier to harvest, easier grow, and don’t require staking. Larger plants require staking, more water, and more nutrition. If you have the land, it’s much better to plant more acres out than less plants. If you choose to grow large plants you will absolutely eat up all your profits and harvesting.

It’s easy to calculate the weight of a field. A foot-tall plant at a density of 2000 plants per acre will yield 2,000 to 4,000 pounds in acre. If you plant with a greater density of 4,000 plants per acre, you will be able to use mechanical harvesting techniques for easier collection. Bean pickers are already being used to harvest hemp throughout the country. You just need more plants per acre for it to be worth your while.

Best Hemp Practices

On a very small scale of 1 to 10 acres, it’s easy enough to plant your seeds or clones by hand. Anything bigger than that and you’ll either need a lot more hands or a mechanical planter.

Hemp clones and seeds require water to grow. They grow best in irrigated fields, however I have been to dozens of hemp fields throughout the country that don’t have irrigation and just rely on God‘s grace and the the rain.

Cross your fingers and it could work out great for you.

For guaranteed success, supplemental irrigation is essential. With any irrigation technique, hemp plants will suck up the water you give them. It is important for them to be in well-draining fields so they don’t get overwatered. You’ll also need to fertilize your fields.

That’s right Hemp requires fertilization. Smart farmers test the soil prior to planting and apply the appropriate supplements. Hemp mostly needs added nitrogen and calcium. You can apply this with all the traditional means from chickenshit to gypsum, ammonium nitrate to calcium nitrate.

Harvesting Your Hemp

growing hemp and harvesting hemp in Alabama

Harvest can be a confusing component of hemp cultivation.

You can begin harvesting your hemp for extraction as soon as your plants’ CBD levels have started to reach their peak. This occurs approximately 35 days after your initial flower set.

This translates to a harvest in mid September to late October. Since we are mostly harvesting hemp for its CBD component and not its THC component, we have a wider latitude for harvesting.

Lastly, it is smart to invest in at least one or two chemical analyses of the CBD. The best time for testing is between three and six weeks into flower. This will give you a gauge of your harvest times and periods for next year as well.

While it might seem relatively simple, nobody has ever grown hemp on the scale that the US is about to begin growing. There will be a lot of problems that farmers across the country will have to combat. In different states with different climates, different problems will arise for the growers there. But now that it is a legal industry with unlimited potential, and with the help from social media platforms and podcasts like The Real Dirt, the answers to these problems will be much easier to find than they are now.

Learn more about hemp in Alabama specifically on The Real Dirt Podcast. And join our Real Dirt Alabama Facebook Group for news exclusive to Alabama, grow tips and more.

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Everything You Need to Know About Growing Alabama Hemp (Pt. 1)

by Travis C | Apr 15, 2019 | 420, 420 News, Blog, Business, Growing, Hemp, Science & Technology

Wow. Finally by the grace of God, hemp is finally legal. In Alabama, this is an exciting time and opportunity for many people.

With the passing of the 2018 Farm Bill, hemp is now considered a legitimate farm crop in the US. The problem is that hardly anyone knows how to grow hemp, and the people that have been growing hemp have only grown limited amounts, in limited environments.

Now Alabama and a number of other southern states have “legalized it.” But what does that mean?

What is hemp?

Hemp is considered any cannabis plant that has less than .3% THC. This is the only thing that defines what makes hemp legal in the US. With the new Farm Bill of 2018 comes the ability for farmers and states that have regulated the production of hemp to legally farm it.

Even though it’s called industrial hemp, there is very little industrial use of hemp today.

Out of hemp you can make everything from paper to plastics, cement to chipboard. We are on the cutting edge of this technology and we have yet to see industry spring up around it. In the future we will see the above and more utilized for industrial hemp. But until then farmers will have to settle on growing hemp for CBD extraction and potentially seed for food.

Growing hemp for grain can be lucrative. The seeds are inexpensive, however you have to be mechanically geared for the scale of this type of production. Think hundreds or thousands of acres.

CBD, or cannabidiol, is the most lucrative side of industrial hemp today. It is a medicinal component of the cannabis plant that doesn’t share any psychoactive affects with its relative, THC. CBD is used in everything from skin creams to anti-seizure medications. It truly is a wondrous natural supplement.

As of today, CBD is the only way that you’ll be able to be cash positive from any hemp farming activity. If you’re lucky enough to have applied and received an Alabama Hemp License to grow hemp, then it’s time to get started.

The Plant

CBD hemp has many growth patterns and harvest times. It can be planted from June to August in most of the US. Alabama hemp is no different.

Unlike its cousin (i.e. ganja, marijuana, herb), Alabama hemp is grown on a considerably larger scale, with very different techniques.

The first thing you need decide before starting in Alabama hemp, is whether you want to grow from clones or seeds. High-CBD hemp seeds are available for approximately one dollar a seed on the current marketplace. These are feminized seeds that only produce female plants (or at least 90% or female plants).

That’s right. You still can have some percent of males show up, but that’s a little more complex science than we want to get into now. Basically, if you buy 10,000 feminized seeds you’re mostly going to get female plants. Don’t worry if you get a little seed in your hemp either.

You can just as easily purchase traditional seeds that will randomly be male and females. On a small scale of 5 to 10 acres this could be an excellent choice. It is easy enough to cut down all the males as they show their sex, leaving only the females in your field.

However if you do this you have to plant at twice the density in order to compensate for losing half of your plants.

Clones are by far the best way to have consistent yields and performance.

In part 2 of this guide, we’ll go over tips for planting properly, keeping your Alabama hemp plants healthy and maintaining your fields.

You can also hear from somebody who’s breaking into the Alabama hemp industry right now, Brett Terry, on The Real Dirt Podcast.

Financing Your Cannabis Business

by Travis C | Apr 2, 2019 | Blog, Business

Whether it is seed money or a full blown financial injection, getting financing for a cannabis business has never been more possible.

With the legality surrounding cannabis slowly changing throughout the country, investors with big money are starting to feel more comfortable investing in the growing industry. But compared to other industries, these investors are much more hesitant to invest in just any cannabis business.

Starting a cannabis business in a new legal industry is exciting, and a lot of people are trying to get involved. But seeking the right amount of money, from the right people, isn’t easy for most.

Financing a Cannabis Business

When it comes to finding financing for a cannabis business, you need to know where to look. While there are a few investment groups that focus solely on cannabis businesses like The Arcview Group and others, most are traditional investment firms coming from other industries, looking to invest in a cannabis business.

Obviously the former group of investors is your best bet. This is because the outside firms will most likely be more financially focused (as in, more focused on your finances than the actual business), as opposed to a cannabis investment group that already knows about the industry, and most likely the product you are selling. Outside groups might need more explanation, or get lost in the jargon of the industry.

This is why it is so important to know your audience.

Get Your Pitch Together

Other than your financial records and other essentials, your pitch is probably the most important aspect of getting financing for your cannabis business. If you come out flat in your first meeting with investors, your chances aren’t great, unless your numbers speak for themselves.

Take the time to really study your audience; who the investors are, what they are experienced in, and how you can relate that to your business model or idea. Make your idea relatable and easily palatable, while still being exciting and fresh. Remember that these firms most likely hear hundreds of ideas a day, so you need to make yours stand out as much as possible.

Doesn’t sound super easy? It isn’t.

Get Ready For Competition

While there have never been more investors in the cannabis space than now, that doesn’t really say much. The industry is still relatively small, and only viable in a few states. Unless you are planning on starting a business in Canada where it is completely legal, you’ll be facing some heavy competition.

You’re not the only one who sees the potential of this industry and how fast it is growing. A lot of people are noticing, and hopping onto the cannabis industry boat that can only hold so many.

A lot of people are going to sink from the weight, while only a few will be picked up by the rescue helicopter that is financial investors. Whether you sink with the majority, or get picked up and make it in the industry all depends on your idea, your business model, your experience, and how you present it.

Inside Tips from The Arcview Group

The Arcview Group is one of a select few strictly cannabis-focused investment firms. Arcview has a large membership base of high net worth investors, looking for new cannabis businesses to invest in.

Louis Han is the Director of Deal Flow for Arcview. His job is to analyze every potential cannabis business that reaches out to Arcview, and to decide which businesses get a meeting with potential investors. And he was just on The Real Dirt Podcast.

In his interview with Chip Baker, Louis goes into the daily workings of a cannabis investment firm, how he decides which businesses get to sit down with Arcview investors, and his predictions for the future of cannabis investing. Listen to Louis right now on The Real Dirt Podcast!

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Investing in Cannabis with Louis Han

by Travis C | Apr 2, 2019 | 420, cannabis business, cannabis industry, Guest, Season 3

Podcast: Play in new window | Embed

When Louis Han started at Arcview Group in 2015, the firm had only invested about $60 million in cannabis ventures. Today, they’ve invested over $250 million.

Louis Han is the Director of Deal Flow for The Arcview Group, an investment firm with a strict focus on investing in cannabis. Financing is one of the most difficult aspects of starting a cannabis business.

Louis and The Arcview Group make it easier.

Investing in Cannabis Businesses

Cannabis is still federally illegal. Banks operate on a federal and state level. This makes most banks averse to the idea of loaning money to new cannabis businesses, even if they operate within a legal cannabis state.

The Arcview Group negates the need for cannabis entrepreneurs to go to banks at all. With its massive investor network, from small scale angel investors to big money opportunists, Arcview can invest in cannabis businesses big and small.

Rising Opportunity, Limited Investors

While the opportunity to start a business in the cannabis industry has never been more possible, investors are still limited, and competition to obtain investment is fierce. This means Arcview can’t just invest in anybody. That’s where Louis Han comes in.

As Director of Deal Flow, an aspect of Louis’ job consists of vetting businesses seeking investment. There’s a lot of people looking for financial assistance, but only the most promising will get to interview with Arcview investors. Louis has seen some of the most successful cannabis businesses go through Arcview.

With his experience running his own cannabis business in California, plus his years with Arcview, Louis has an eye for what a cannabis business needs to obtain investment in the industry.

In This Episode

Louis Han is a cannabis investment expert. In this week’s episode of The Real Dirt, Chip and Louis talk over the phone about investing in cannabis and hemp. From how to formulate your pitch to reading your audience, Louis and Chip go through the full investment process.

In the words of Louis, “Getting involved with an investor is almost like getting married. Especially if they own a large portion of your business, they can have an impact on your financial decisions, and the way your business runs.”

If you’ve been considering seeking investors for your cannabis business, this an episode you’ll want to hear. And check out Arcview Group’s Investor Meeting happening in Canada on April 23rd!

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Why Are CBD Products Exploding?

by Travis C | Mar 28, 2019 | 420, 420 News, Blog, Culture

It’s a unique compound that has Facebook moms and media outlets mystified. But why is CBD all the sudden exploding?

There’s a few reasons CBD products are becoming more popular every day, especially in the United States. The first has already been mentioned; the media. But we’ll get to that later. Let’s start with the recent legality change of CBD.

The 2018 Farm Bill

CBD is a chemical compound found only in the cannabis plant. It is present in almost all varieties of cannabis, even if in just trace amounts. This means that CBD is also found in hemp.

Hemp has had a bumpy relationship with the U.S. government since the early 1900s. While the hemp industry was huge in the 1920s, the paper industry was quickly rising, and couldn’t compete, starting a propaganda campaign eventually leading to the criminalization of hemp and cannabis.

At least, that’s the theory.

While hemp was considered federally illegal much like cannabis (they are the same thing), states could still pass their own laws regarding hemp, much like states now that have legal cannabis laws. Colorado even added an amendment to their state constitution, giving citizens the right the grow hemp.

But in 2018, it all changed. The 2018 Farm Bill fully legalized “industrial hemp” at the federal level.

The Legalization of Industrial Hemp

What is industrial hemp? What makes it different from “regular” hemp? This is where some people get caught up.

While hemp and cannabis are the same thing, any cannabis variety that gets you “high” contains high amounts of THC, the psychoactive compound in cannabis. Most cannabis strains you can get in the legal market are bred to have as high THC levels as possible, with little focus on the other compounds.

Hemp has always been seen as the weedy, wild version of cannabis. It isn’t bred to have high THC, but through its evolution of enduring tough climates in the wild, hemp varieties naturally have higher CBD levels. However, not all hemp is legal, hence the term “industrial hemp”.

Industrial hemp is strictly cannabis that has a THC content of .3% or less. Anything above is still illegal. So even though .4 or .5% THC wouldn’t have any real affect on a person, it is considered psychoactive cannabis, still illegal and classified as a Schedule 1 narcotic under the Controlled Substances Act of 1970.

So, now industrial hemp is legal, as long as it doesn’t surpass .3% THC. However there is no regulation for CBD at the moment. This has opened up quite a lucrative opportunity for cannabis industry entrepreneurs and farmers alike.

The Rise of CBD Products

CBD started out slow. Products existed, such as hemp seed oil and other hemp derived products that contained CBD, but little was known about the actual benefits of CBD. Then came Charlotte’s Web.

Charlotte was a little girl in California suffering from intense seizures, sometimes having dozens a day to the point she was incapacitated. After a cannabis farm in Northern California developed a CBD specific strain that had extremely low THC, but high CBD, they turned it into a digestible tincture for Charlotte.

Her seizures all but stopped. This is where the snowball started rolling.

More and more people started treating their children’s epilepsy with CBD, then more studies came out showing CBD potential in aiding with chronic pain. With its growing social acceptance, plus the added boost of the Farm Bill, more CBD businesses are opening their doors.

While it is still currently unregulated, there is an entire CBD marketplace that has developed online. From Amazon to CBD wholesaler websites, anybody can buy CBD products online with a credit card. With massive availability and a growing understanding of its benefits, all CBD needed to push over the edge was some media attention.

cbd products are becoming popular in the media

The Today Show covering the extraction of CBD from cannabis in a March 2019 segment.

The Influence Machine

To say that modern media outlets in America carry a large swath of influence would be a massive understatement. And with more news outlets than ever before in history accessible with just a few clicks, people are ingesting more information and influential content than ever before.

With the passing of the Farm Bill and increased public awareness about the benefits of CBD, people started talking online. What started as a niche group of mostly middle aged women sharing their experiences of helping their arthritis pain with a little CBD ointment, spread across the web like a bushfire.

Before long, CNN was covering the rise of CBD products. Soon after that, so was The Washington post. As did NBC, CBS, and even Fox News.

With the media machine pushing it into the mainstream, and social media platforms like Facebook, Twitter and Instagram flush with CBD anecdotes and articles, its rise was inevitable.

The question now is, will it last?

The Future of CBD Products

The future for CBD is still vague. It isn’t currently regulated by the FDA, and its only claim to legality lies within the rulings of the 2018 Farm Bill. There have already been plenty of issues with CBD and industrial hemp since legalization, and most likely, there won’t be any shortage of issues throughout 2019.

That doesn’t mean the market isn’t growing. In fact, the CBD industry is growing at a rate that could put it on pace to surpass legal cannabis by 2022. With that said, regardless of new regulations or restrictions, the future of CBD products is most likely bright, and green.

Want to learn more about the rise of CBD and the legal hemp industry? Check out this episode of The Real Dirt Podcast, featuring Graham Carlson of Charlotte’s Web, Mike Leago of the International Hemp Exchange, and Hollis Carter of Lefty’s Hemp Co.