ECONOMICS HEMP OF STEVE BEVAN - Hemp Industries Association
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1
ECONOMICS
OF
HEMP
STEVE BEVAN
President and Executive Chair
2 Steve Bevan: • Co-Founder and Executive Chair, GenCanna Global USA. • Co-Founder and Chair, U.S. Hemp Roundtable. • Founding Treasurer, U.S. Hemp Farming Alliance. • 20+ year career in finance. • 6+ years in hemp industry. • Worked with federal, state, local, and international lawmakers and regulators on hemp.
3 Thank you to our hosts, the Hemp Industries Association for 25+ years of helping hemp farmers farm
• Founded in 2017
• 80+ Members
Representing Every
Link In the Hemp
Value Chain
• Long-Term Legislative
www.hempsupporter.com Advocacy For Hemp
Industry
MEMBERS • Abacus Health Products • Esquire Bank • Prana Principle • Agtech Scientific • Eurofins Food Integrity and Innovation • QC Infusion • Alliant Insurance Services • FSOIL • Reliva • Atalo Holdings • Gotham Green Partners • Restorative Botanicals • Baron Todd • Harrod’s Creek Farm • Sagely Naturals • BMJ Group • Hemp Today • Sozo Hemp • Botanacor • Highland Laboratories • Stillwater Ingredients • CBDmd • Ignite Distribution • Sunflora, Inc. • CBD Energy • Lucky’s Market • ValidCare • CBD Snapshot • MJNA Group • VitaGenne • Cream • New West Genetics • VYBES • Criticality • Nutraceutical Corporation • Winged Nutrition • ECS Distribution • Phivida Organics • Zelios • Elemental Processing • Pinnacle CBD
BOARD OF DIRECTORS
• American Shaman • Elixinol • Lazarus Naturals • Rocky Mountain High Brands
• Ananda Hemp • Front Range • Lord Jones • Turning Point Brands
Biosciences
• Barlean’s • Medterra • U.S. Hemp Authority
• Garden of Life
• Bluebird Botanicals • Mile High Labs • U.S. Hemp Farming Alliance
• GenCanna Global USA
• CBDistillery • Pet Releaf • Veritas Farms
• HempFusion
• CBD USA Grown • Presence Marketing • Village Farms
• HempWorx
• CV Sciences • Pyxus • Williams Ranch Company
• Hemp Industries
• CW Hemp • Recess • Zilis
Association
• Koi CBD
6
ADVOCACY & THE WORK AHEAD
OUR ACCOMPLISHMENTS FOR HEMP
• Helped secure federal legalization through the 2018 Farm Bill.
• Led lobbying pushes in more than a dozen states -- Florida, Texas, &
Ohio are just a few of our big victories for hemp & CBD.
• Worked and working closely with leading FDA officials to develop a
legal regulatory path for hemp-derived CBD.
THE WORK AHEAD OF US
• Legalize hemp & CBD in all 50 states
• Finalize FDA’s pathway for the retail sale of CBD
• Help ensure access for hemp farmers and CBD companies to banking
and merchant services
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ABOUT THE U.S. HEMP AUTHORITY
The U.S. Hemp Authority™ In an effort funded by the US Hemp
Certification Program is our industry's Roundtable, and joined by organizations
initiative to provide high standards, best such as the Hemp Industries Association,
practices and self-regulation, giving industry leading firms, top-tier testing
confidence to consumers and law laboratories, and quality assessors
enforcement that hemp products are developed comprehensive guidance for
safe, and legal. growers and processors of hemp.
Meeting the stringent self-regulatory standards of the U.S. Hemp Authority™, and
passing a third-party audit, participants will be licensed to use the Certified Seal of the
U.S. Hemp Authority™ on their products.
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U.S. HEMP AUTHORITY CERTIFIED COMPANIES
• Atalo Holdings, Inc. • HempFusion
• Balanced Health Botanicals, • Hemptown USA
• Hempworx/MDC
• CBDistillery and Bota
• Hemp Depot
• Barleans
• Kannaway, Hemp Meds and Dixie Botanicals
• Bluebird Botanicals • Kentucky Crafted
• Charlotte's Web • Medterra CBD
• CV Sciences • Natures Hemp Oil
• Daddy Burt Hemp Co. • Nutrition Formulators Inc.
• Elixinol • Pet Releaf
• EVG Extracts, LLC • Puffin Hemp
• Rad Extracts, LLC
• Farmer’s Daughter Hemp
• Shell Farms
• GenCanna Global USA
• Vitagenne Inc.
• Great Lakes Cultivars • Winged Nutrition, LLC
• Zilis, LLC
U.S. HEMP AUTHORITY GUIDANCE PLAN 2.0
US Hemp Authority Guidance Plan 2.0 was just released.
Some highlights of the changes in the program that were made because of strong
public support:
• Country of origin labeling will be required for all certified products.
• GMO ingredients, as defined by the USDA, will be required on product labeling.
• Products made with synthetic cannabinoids will not be eligible for
U.S. Hemp Authority Certification.
• Tribal governments are formally recognized in the guidance.
10U.S. HEMP FARMING ALLIANCE –
BRINGING CROP INSURANCE TO AMERICAN FARMERS
▪ The USDA announced the creation of a Whole-Farm Revenue
Protection (WFRP) program for the crop year 2020.
▪ Such whole farm insurance will be beneficial to large growers
who have a long history of farming hemp and who maintain
extensive financial records over multiple insurable enterprises.
▪ The U.S. Hemp Farming Alliance has a cooperative effort
with AgriLogic, which was approved by the
Federal Crop Insurance Corporation to develop the federal
multi-peril crop insurance program for hemp.
▪ A multi-peril program would help protect all hemp farmers –
large and small – and should be in place in a significant number
of states by next year’s growing season.
1112
• GenCanna Global, USA, Inc. is a
vertically-integrated producer of hemp
WHO IS and hemp-derived CBD products with a
focus on social, economic, and
environmental wellness through seed-
to-scale agricultural production.
• GenCanna’s founders have over 20 plus
years experience working with hemp and
have assembled a world-class team that
leads the nation in high-CBD hemp
production.13 Video Imbedded (Quick add after)
14
HOW WE GOT HERE
HEMP & CBD • Hemp (or 'industrial hemp') — refers to the non-
psychoactive (less than 0.3% THC) varieties of
Cannabis Sativa L. Hemp and marijuana are
• Since 2014, we have understood genetically distinct forms of cannabis, further
that hemp should be treated like distinguished by chemical makeup, and production
any other crop. The 2018 Farm Bill and cultivation methods.
reinforced this stance and created
• CBD (Cannabidiol) – Cannabinoids are primary
a path for commercialization of in- chemical compounds produced by the cannabis plant
demand products that begins at and have been patented by the US Department of
the farm. Health and Human as “antioxidants and
neuroprotectants.” Unlike its close relative, THC
• GenCanna is permitted by the
(Tetrahydrocannabinol), CBD is completely non-
Kentucky Department of psychoactive. This allows people to benefit from the
Agriculture’s Hemp Program in many health properties of the Cannabis plant without
accordance with Sec. 7606 of the the negative side effects of “getting high.”
2014 Farm Bill (7 USC 5940).15
A NEW FRONTIER
USDA HEMP • The new IFR covers the requirements for
PRODUCTION where hemp can be grown, THC testing
standards, the disposal process for crops that
PROGRAM don’t meet federal standards and licensing
protocols.
• Released on October 31st. 2019, the
USDA’s Interim Final Rule (IFR) for hemp • It also addresses how the USDA will evaluate
the hemp production plans submitted by
production builds on the successes and
States and Tribes.
challenges of the 2014 Farm Bill
• An IFR is a regulatory tool that allows • The IFR will sunset in two years--late 2021--
for the implementation of a regulation after which point USDA will issue final
regulations.
while keeping it in draft form.
• Hemp production is still very much a • The IFR takes every possible step to support
work in progress and we now eagerly hemp farmers
await guidance from the FDA for
• Places the onus for data collection on the
downstream products including
Farm Service Agency (FSA) which will greatly
Cannabinoids.
help farmers16
GENCANNA PRODUCTION
PLATFORM T M (GPP) • Grown with our proprietary low-THC,
high-CBD hemp genetics.
• Processed and manufactured in FDA registered and
GenCanna’s hemp is produced in a state-sanctioned
inspected facilities, systems and processes.
program in accordance with the 2014 Farm Bill and
• Verified origin and chain of custody throughout the
2018 Farm Bill.
vertically-integrated supply chain.
Grown in the U.S. on accredited family farms under the Audited and accredited against:
oversight of the GenCanna Certified Farming Network • Current Good Manufacturing Practices (cGMP).
and the GenCanna Production Platform™ (GPP). • BRC Global Standard for Food Safety (BRC).
• Hazard Analysis and Critical Control Points (HAACP).
• Hazard Analysis & Risk Based Preventative
Controls (HARPC).
• Food Safety Modernization Act (FSMA).17
Committed to international food safety compliance standards that
deliverer liable, consistent products at scale.
CHAIN OF CUSTODY FROM FARM TO FINISHED PRODUCT18
CERTIFIED
FA R M I N G N E T W O R K
The GenCanna Certified Farming Network is part of a
working agreement with family farming partners to
create the largest hemp farming network in the nation.
HOW WE HELP
FARMERS FARM
• Provide farmers with proprietary genetics
• Share best practices through SOPs and
Good Agricultural Practices.
• Coordinating and automating harvest for
our farming partners.
• Positive impact on farmers and rural
communities.19
TAKING THE • Hemp = Cannabis – THC.
SCARY AWAY • Understand the disposition
of the regulators.
• Engage with local law
Supplying hemp-derived ingredients at
true industrial scale requires strict enforcement.
adherence to global compliance standards • Support local businesses.
for every facet of the value chain.20
BRIDGING THE
Similar challenges exist in both
RURAL-URBAN environments: jobs, drugs,
poverty, education.
DIVIDE
We think the hemp value chain
will help support both with real
economic, education and
wellness impact.21
ECONOMIC IMPACT
HEMP CREATES JOBS
• Delivering real economic impact to
rural agricultural communities.
• Understanding the economics
around hemp.
• Hemp creates good jobs.
• Current number of jobs created –
300+ to date.
• Fare wages.
• Ancillary jobs in the value chain.22
ECONOMIC IMPACT
THE FUTURE OF HEMP ECONOMICS
300mil+
• Hemp products are in demand.
• Linking farmers to finished
product.
• Confidence in compliance.
100mil • Quality and scale.
• Food grade certifications:
BRC, cGMP, USHA.23 BUILT ON COMPLIANCE VALUE CHAIN Evolution of the value chain from farming to best-in-class products is reliant on quality and compliance standards. ACCREDITATION Certifications and standards are critical as hemp and CBD become mainstream. CONFIDENCE Provides confidence in compliance for regulators, law enforcement, policy makers.
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BUILT ON COMPLIANCE
• Cannabinoids in demand.
THE FUTURE • Farmers need to farm.
• Shifting global attitudes.
OF HEMP • American products are the gold standard.
PRODUCTION • Ancillary products like animal feed are the
future- but more research and
Where’s it all regulations are needed.
going from here?25
2019-2020
FUTURE FOR HEMP & CBD
REGULATORY FRAMEWORK
• Food and Drug Administration (FDA)
Congressional action on FDA CBD regulations in Agricultural
Appropriations Bill.
• United States Department of Agriculture (USDA)
Released on October 31st, 60 day comment period begins
• Risk Management Agency (USDA RMA)
Crop insurance will be available for hemp farmers beginning in
2020.
• Farming Service Agency (FSA)
FSA will be the central hub for hemp farmers under the USDA
framework to allow for streamlined data collection.
• Environmental Protection Agency (EPA)
Pesticide labeling in 2020.
• Banking
Interim guidance for hemp banking by federal regulators soon
after the USDA interim final rule is issued.26
We’re committed to being stewards of
the hemp industry and leading by
example as a triple-bottom-line
organization. As the industry continues to
MOVING grow, we will remain focused on
identifying trends and pain points in the
FORWARD
marketplace to ensure customers and
people new to CBD products are
communicated to with honesty and
respect. We remain excited about the
market opportunity that cannabis
provides companies like ours.
That said, we always have and
always will place purpose over profit.You can also read
