Posts Tagged “hemp”
Hemp is getting a lot of attention from growers in Florida.
The Sunshine state started issuing licenses for growing hemp in April 2020, and by February 2021 there were 35,000 acres registered, with $270 million in income projected for the coming year, according to WCJB News in Gainesville.
Within the next few years, hemp farming in Florida is projected to grow to about half the size of the state’s citrus industry,” writes Regan McCarthy on the website of Miami’s WFSU Public Media, part of Florida State University. “Much of that growth is driven by CBD production.”
McCarthy quotes Florida agricultural commissioner Nikki Fried, who said, “At this moment Florida has 22,078 licensed acres of hemp cultivation after just seven months.
This acreage is very similar to three of Florida’s key crops—tomatoes, watermelon, and snap peas—and is double of what the state has in production for strawberries. (Note that acreage rose from 22,078 to 35,000 in about a month.)
In many cases, hemp has replaced permanent crops in Florida, including citrus and blueberries.
“We’re talking about citrus groves that weren’t producing,” says Florida cannabis director Holly Bell, “so those are being dug up and the land is being repurposed to bring in revenue and create new jobs.”
Some blueberry growers who were struggling as a result of increased competition from Mexico have also turned to hemp.
Hemp has an enormous number of uses, such as for textiles and even for paper, but markets are limited by a lack of facilities for producing these products.
“Textiles and fiber can be made from the pith,” says Frederick Schilling, a partner in Klersun, LLC, a company that specializes in hemp-derived extracts.
“That will eventually increase once the infrastructure is built out to support those products.”
He foresees this occurring in three to five years.
Infrastructure will, in part, determine the future of the cannabis industry. So will legislation. The third factor is business acumen and integrity.
“As with any emergent industry, there were bad actors doing things that were giving the industry a bad name,” says Chris Bourne, Schilling’s partner. “Fortunately, a lot of those folks have been weeded out.”
Some analysts also believe the industry has lost much of its “wildcat” mentality and is now more comparable to mature packaged-goods companies.
Vegetable grower Village Farms International recently completed conversion of 1.1 million square feet of greenhouse area in a partnership with cannabis company Pure Sunfarms in Canada. It is now ready pursue hemp and Cannabidiol (CBD) oil production at its U.S. facilities.
The company has filed documents with the U.S. Securities and Exchange Commission to list common shares on the NASDAQ Capital Market under “VFF,” according to a news release.
“As a company with substantive U.S. assets and operations and, with our recently announced intention to aggressively pursue potential opportunities in the now federally legal U.S.
hemp and CBD industry, the listing of our common shares on NASDAQ is intended to provide broader exposure to, and greater liquidity for, U.S. investors,” CEO Michael DeGiglio said in the release. “A NASDAQ listing will provide Village Farms with access to the largest equity market in the world to support our intended hemp and CBD growth strategy should U.S. state laws follow the U.S. federal decision to legalize hemp, as well as, potentially, for cannabis, in the event that it is federally legalized in the U.S.”
In anticipation of the recent passage of the farm bill, which includes the Hemp Farming Act, the company has undertaken “broad and extensive foundational work to ensure Village Farms can move quickly, aggressively and profoundly,” DeGiglio said in another news release. The Hemp Farming Act federally legalizes hemp and hemp products in the U.S., including extracts, derivatives and cannabinoids.
Pure Sunfarms is waiting for Health Canada to approve 344,000 square feet for cultivation of cannabis, bringing the total to just over 1 million square feet at its Delta, B.C. facility.
The company’s January 2019 Investor Presentation almost focuses solely on cannabis/hemp/CBD opportunities.
According to the presentation, Pure Sunfarms has options on Village Farms’ Delta, British Columbia vegetable greenhouses, which total 3.7 million square feet. The Texas vegetable greenhouses (four facilities totaling 5.7 million square feet/130 acres) can be rapidly converted to hemp or cannabis (upon federal legalization), according to the presentation.
Village Farms is the sole owner of the Texas facilities, but would benefit from experience gained in the 50-50 venture with Pure Sunfarms in Canada, according to the presentation.
The company also has vegetable-growing partnerships in Mexico, and in Ontario and British Columbia.
Over one million square feet of former vegetable greenhouse production has been converted to grow cannabis in Delta, British Columbia by Village Farms International Inc. and will be traded on the NASDAQ Capital Market.
Village Farms CEO Michael DeGiglio has said the listing is a precursor to “aggressively pursue” opportunities with hemp and cannabidiol products in the U.S. The company has a total of 130 acres (5.7 million square feet) of vegetable greenhouses in Texas that can be converted to produce hemp and CBD products, a process that could be completed in eight months or sooner.
DeGiglio has said the company might also produce hemp in open fields, but plans depend on Texas legalizing hemp.
DeGiglio said in a recent Q&A with Real Money/TheStreet that recreational marijuana and CBD production potentially can bring 10 times the margins that tomatoes do.
The company will be listed under “VFF” on NASDAQ, and continues to be listed under the same symbol on the Toronto Stock Exchange, according to a Village Farms news release.
The initial trading date on NASDAQ for Village Farms common shares has not been determined.
The company plans to report fourth-quarter/year-end financials on March 13, according to the release.