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US: Hemp Farmers Produce 8x the Consumable CBD, Making Prices Crash

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Hemp Farmers

The hemp industry is rapidly growing—and it seems growers are moving too fast for consumers to keep up. The US is thought to consume only 22.5M pounds of 10% Hemp CBD per year, but the growth of this product has reached an estimate of 180M. that’s a whopping eight times the amount of consumable CBD, causing prices to drop massively.

The Calculations

Based on rough estimates, if 375M of US residents (that’s 50% of the population) consume CBD of up to 10mg in a day, that would amass to roughly 596,775 kilos in a year. That number is already stretched generously.

As of writing, hemp farmers have been granted access to 400,000 acres of land to grow the hemp variety of Cannabis sativa L. Assuming that around 30% of that land has been used, farmers would have planted 120,000 acres worth of hemp.

If an acre can produce 1,500 pounds of hemp, then around 180M biomass in pounds would be acquired. That’s roughly 0.026 kg isolate, given a pound of biomass at 10% with 8% of moisture. The total estimated biomass of 180M can yield up to 4.7M isolate in kilos—eight times what Americans can consume or need.

The hemp industry needs to process as much as half a million pounds of raw hemp daily to achieve those estimates. It is already legal and ongoing in the country. The problem is not whether the industry can process that number; it is that the US produces more than enough, which could lead to prices dropping and spelling trouble for farmers.

Last July, raw hemp reached $3.94 per 10% CBD according to the wholesale platform for trading, Kush.com. Buyers are expecting this priced to drop further to $2.30 before the harvest season and might worsen come October.

How It Happened

This is not the first time the movement of prices for hemp and cannabis has occurred. The same trend seems to be happening like the time in Oregon and Washington when prices have become unsteady due to these states’ cannabis regulation changes.

The trend starts when a bill passes into fruition; namely, the 2018 Farm Bill. This leads to an increase in demand but limited supply, causing prices to spike significantly. Farmers then begin to take advantage of the CBD economic opportunity by raising capital and increasing production. Once the harvest takes place, the industry realizes that a lot of raw material has been produced, leading to a price crash. This causes farms to stop production and close.

The price reduction is expected to go on for 18 months, but there is no surety. It took 36 months for prices to stabilizes only after 36 months in Washington and Oregon. This is the time farmers take to recuperate from their losses and study the market to survive.

The Next Move

The expected price crash will also cause all products like extracts and isolate to have lower prices too. The spot price for isolates of CBD currently runs around $3,500 per kilogram compared to $5,400 last May. The contract market price sits at $3,500 per kilogram as well, which forces suppliers to set the prices low enough to make a sale.

There is still no regulation regarding hemp exportation, but once the USDA provides importation guidelines, these conditions might just see hope for the hemp industry.

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Setting A Specific Diet May Boost CBD Oil Benefits Even More

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CBD or cannabidiol has elevated its popularity status in the past few years and poised to become a multi-billion enterprise due to the high number of recreational athletes claiming that this substance helps alleviate pain, grant faster recovery, improve sleep and a whole lot more.

While the general public might still be divided about the opinion on CBD, a few studies have popped up to show how CBD effects may vary depending on how an individual responds to the substance, the preparation being taken and dosage, and even genes.

The Research

A journal called Epilepsia has recently published an article that states how diet affects the way the body absorbs the compound. It also shows how food can dramatically determine the efficacy of a CBD supplement by measuring the amount of CBD supplement taken.

The small-scale study involves eight adults prescribed with the CBD-infused drug approved by the FDA to treat seizures that are related to epilepsy. Half of the volunteering subjects took the recommended dose of their CBD four hours before breakfast in the first half of the research. The remaining half had an intake of a breakfast burrito containing high-fat level, specifically 52% or 850 calories of fat in around 30 minutes of ingesting CBD oil. The two groups exchanged setup around two weeks later.

After blood works done regularly within the duration of the study, results showed that their food intake is correlated with the amount of CBD effectively absorbed by the body. The volunteers who had a breakfast burrito with their CBD increased their CBD uptake of up to 14 times on average, compared to those who ate nothing before taking CBD. The amount of cannabidiol absorbed by their system quadrupled along with eating the said high-fat breakfast.

Researcher’s conclusion

The proponents of the study concluded that cannabidiol should be introduced with food to improve the absorbing capacity of the body for CBD. They also indicated that low-fat meals do not have the same absorptive function as that of high-fat preparations, which was shown to boost the amount of CBD in the body.

According to Angela Birnbaum, Ph.D., co-author of the study and University of Minnesota professor in the College of Pharmacy, stated that while a certain food type made a huge impact on CBD absorption, it can also foster variability. This is because not every meal has the same fat content and therefore needs to be planned out to get the optimum level for greater absorption.

Another co-author of the research, Ilo Leppik, said that an increase in the amount of CBD being absorbed by the body may lead to fewer expenses on medication and treatment.

If you think that your CBD intake isn’t as effective as others despite using the same dosage and brand, it might be time to adjust your diet and let in high-fat foods to get the most out of cannabidiol.

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Colombian Law Enforcers Seize 300 Kilos of Cannabis Stored in Coffins, Hawaiian Hemp Crops Being Destroyed

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Colombian Law Enforcers Seize 300 Kilos of Cannabis Stored in Coffins

Cannabis laws are a hot topic on a global scale following back-to-back legalization passed by lawmakers in some US states and a few European countries. This turn of events, however, has not stopped the black market from becoming alive. A lot of users who don’t have access to legal dispensaries or purchase from their own state turn to smuggled goods. This is why some distributors turn to smuggle for their supplies.

BBC released a report earlier about a police operation recently in Colombia, wherein 330 kilos (660 lbs.) of cannabis, which was hidden inside a coffin, was seized by authorities.

Details about the Operation

Regional Police Commander Fabian Ospina said that two coffins transported by a hearse were caught by police officers for possessing a huge amount of the illegal substance. As of writing, only the driver was detained and questioned, but no additional information has surfaced yet regarding the incident. There is also no word about the ongoing investigation of other people suspected of involvement in the said case.

Marijuana is still very much illegal for recreational use in all of America. Anyone caught possessing such substance is subjected to fines, detainment, and criminal charges. This is because marijuana is included in the Federal Bureau of Investigation’s list of controlled substances as a schedule 1 drug.

Marijuana is known to have a psychotropic effect on a user’s mind, causing a “high” to kick in, especially if the substance has a very potent amount of tetrahydrocannabinol. THC is the cannabis component responsible for marijuana’s psychoactive property.

Hawaii’s hemp crops are being wiped out

The plight of marijuana in the face of law is still largely uncertain, but it’s also unfortunate how hemp crops grown in Hawaii are set to be destroyed. Half of the cultivated crops from 2019 are in danger of being included. This is due to the fact that reports by the Hemp Industry Daily revealed that such crops have been tested and are shown to have elevated levels of THC.

The THC in Hawaiian hemp crops may have been brought about by the shortage of cultivars that can thrive on the island’s climate, which is known to be tropical.

Eighteen hemp crops were destroyed by authorities although for four have been waived from destruction because their THC contents were only a little over 0.3%. Officials from the state’s agricultural officials are convinced that Hawaii faces multiple challenges when it comes to growing local hemp crops.

Authorities expect only four hemp crops to be produced yearly in the state. Most hemp cultivars are imported from the European Union and Canada. These crops are used to long summer days and low-temperature evenings.

Hemp is a variety of Cannabis sativa L., a plant species that is the source for marijuana, too. Hemp has been embroiled in controversy for many years because of this. However, after the 2018 Farm Bill was signed by President Donald Trump, hemp has been excluded in the federal definition of marijuana. This legalized harvesting, processing and using hemp and its derived products anywhere in the US as long as state laws also allow it.

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Feds indicate CBD, hemp not qualified as controlled substances

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Fed indicates CBD not hemp legalized

The US Justice Department recently decided to expand its marijuana research program which earned a lot of comments from the media and the general public. Along with their press release is the information that small Nebraskan businesses have been hoping to hear for a long time.

Authorities confirm that the hemp plant and extracted cannabidiol or CBD from such variety that has less than 0.3% delta-9 tetrahydrocannabinol (THC) content does not belong to the federal list of controlled substances.

Long-awaited Clarification

The Drug Enforcement Agency (DEA) and Department of Justice (DOJ) finally cleared the air just as the law enforcement from Nebraska are marred with confusing regulations about the hemp plant, a variety of the Cannabis sativa L. plant species that also produces marijuana, which is understandably included on the prohibited substances list.

Prior to the announcement from DOJ and DEA, Nebraska laws concerning hemp and its oil extract has been confusing especially for cops who are trying to uphold the law when it comes to possession, distribution, and use of the said products.

Doug Peterson, Nebraska’s Attorney General, told a news outlet during an interview at the Capitol building halls that official comments would be released but at a later date. Peterson’s office was asked about his position regarding CBD and hemp confusion.

Raids and prosecution issues

A memo from Peterson’s office authored before the state announcement from Nebraska’s lawmakers to differentiate hemp from marijuana became the basis for raiding a CBD store in Herman.

Felony drug charges were pushed by the local prosecutor thrice, but judges dismissed each attempt. However, the office of the County Attorney appealed each time a decision was made.

The biggest prosecuting office in the state says CBD is not a cause for concern because it does not cause a high unlike the related CBD extracted from marijuana.

Don Kleine, Douglas County Attorney, told the media in an interview that the people conducting the drug tests confirm that hemp CBD does not have the same impact as cannabis CBD, making it a challenge to secure a conviction regarding cases of possession. This statement was made prior to the change in statutes made by Nebraska lawmakers to align with the federal law.

The Agriculture Improvement Act

The 2018 Farm Bill is responsible for the change in state laws regarding hemp and its derived products. Signed into law by President Donald Trump in December of last year, the Agriculture Improvement Act of 2018 states that hemp is excluded from the legal definition of marijuana.

Hemp and CBD extracted from the said Cannabis sativa L. variety is legal to grow, process and use, provided that it has no more than 0.3% THC content based on the dry weight. The THC content is an important marker for differentiating hemp from marijuana, which is the substance having a psychoactive effect on users.

The federal law is the main cause for most states in the US to legalize hemp and grant growers an official license to harvest hemp and extract CBD from it. There are specific regulations concerning the process, but laws enable growers and distributors to legally sell hemp products that users can lawfully take.

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