Industrial Hemp: The Incredible Weed
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Industrial Hemp: The Incredible Weed

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A presentation on industrial hemp tracking the history of hemp and some of the most innovative companies in this emerging industry in the the United States.

A presentation on industrial hemp tracking the history of hemp and some of the most innovative companies in this emerging industry in the the United States.

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Industrial Hemp: The Incredible Weed Presentation Transcript

  • 1. Industrial Hemp a.k.a Cannabis Sativa sp. is not to be confused with Marijuana All Hemp Species = 10% Marijuana 90% are hemp. Hemp is low on Tetrahydrocannabinol (THC), a psycho active substance. But hemp is rich in Cannabidiol (CBD). Hemp fiber is known to be the strongest, in comparison to any other plant species and are able to be process into countless products. INDUSTRIAL HEMP Sean Murphy Managing Partner Miracle Ventures http://MiracleVentures.com Sean@MiracleVentures.com 303-225-5776
  • 2. WHAT IS HEMP? There are many different varieties of cannabis plants. Marijuana and hemp come from the same species of plant, Cannabis Sativa, but from different varieties or cultivars. However, hemp is genetically different and is distinguished by its use and chemical makeup, as well as by differing cultivation practices in its production. Hemp, also called 'industrial hemp,' refers to cannabis varieties that are primarily grown as an agricultural crop (such as seeds and fiber, and byproducts such as oil, seed cake, hurds) and is characterized by plants that are low in THC (delta-9 tetrahydrocannabinol). Hemp fiber is known to be the strongest, in comparison to any other plant species, and is able to processed into numerous products.
  • 3. THE INCREDIBLE WEED Food. Fiber. Fuel.
  • 4. HEMPVS. MARIJUANA Marijuana’s high THC content is primarily in the flowering tops and to a lesser extent in the leaves. THC levels for marijuana are much higher than for hemp, and are reported to average about 10%; some sample tests indicate THC levels reaching 20%-30%, or greater. A level of about 1% THC is considered the threshold for cannabis to have a psychotropic effect or an intoxicating potential. Current laws regulating hemp cultivation in the European Union (EU) and Canada use 0.3% THC as the dividing line between industrial and potentially drug-producing cannabis. Cultivars having less than 0.3% THC can be cultivated under license, while cultivars having more than that amount are considered to have too high a drug potential. Source: Johnson, Renée, "Hemp As An Agricultural Commodity," Congressional Research Service (Washington, DC: Library of Congress, July 24, 2013), pp. 1-2. http://www.fas.org/sgp/crs/misc/RL32725.pdf
  • 5. SO....KEEP IT UNDER .3% Hemp Blazer
  • 6. THE HISTORY OF HEMP 8000 B.C Hemp fabric provides 80% of sustainable textiles. 4800 B.C A vase decorated with hemp cords prints, proved that hemp has culture influence. 1000 B.C Hemp is the world's largest agricultural crop, providing materials to support civilization's most important industries, including fiber for fabric and rope, lamp oil for lighting, paper, medicine and food for both humans and domesticated animals. 100 A.D Chinese discover how to make paper from hemp.
  • 7. 1619 America's first hemp law is enacted at Jamestown Colony, Virginia, ordering all farmers to grow hemp. 1776 First and second drafts of the Declaration of Independence are written on hemp paper. 1790's George Washington and Thomas Jefferson grow hemp on their plantations 1837 – 1901 Queen Victoria uses cannabis resins to treat menstrual cramps, sparking enormous interest in the uses of cannabis as a medicine in the English- speaking world. First Law! HISTORY(CONT.)
  • 8. 1916 U.S.D.A. publishes Bulletin No. 404, "Hemp Hurds As Paper- Making Material," extolling and demonstrating the outstanding qualities of paper manufactured from hemp-pulp, a new process. The document was printed on hemp-pulp paper and explained the new technology. Previously most all paper was made with the hemp fiber content of 'rag' (worn out clothing). 1929 Henry Ford begins extensive research into the production of methanol (as a fuel) and the manufacture of plastics from renewable vegetable crops, including hemp. 1935 116 million pounds of hemp seed are used commercially in America to manufacture paint and varnish. HISTORY(CONT.)
  • 9. Jack Herer’s book The Emperor Wears No Clothes is the prime source for the hemp-conspiracy theory. It alleges that in the mid-1930s, when the new mechanical hemp fiber stripping machines to conserve hemp’s high-cellulose pulp finally became state of the art, available and affordable, William Randolph Hearst, with enormous holdings in timber acreage and investments in paper manufacturing, stood to lose billions of dollars and perhaps go bankrupt. Meanwhile, Lammont DuPont in 1937 had just patented nylon and a new sulfate/sulfite process for making paper from wood pulp – so if hemp had not been made illegal, 80 percent of DuPont’s business would never have materialized. It was said Hearst and DuPont had a multi-million dollar deal in the works for a joint papermaking venture. These two moguls, together with DuPont’s banker, Andrew Mellon, combined and co-ordinated their efforts to demonize “marijuana”. The sheer number of newspapers, tabloids, magazines and film reels that Hearst controlled enabled him to quickly and effectively inundate American media with his propaganda. Hearst preyed on existing prejudices by associating cannabis with Mexican workers who he said threatened to steal American jobs and also African-Americans. With no strong voice to the contrary, Hearst was persuasive in his appeal to prejudice. THE CONSPIRACY William Randolph Hearst Lammont DuPont Andrew Mellon
  • 10. 1937 The Marihuana Tax Act HR 6385 was enacted; this required a $1 tax stamp on the cultivation of marihuana and hemp.   If somebody wanted to plant hemp, they would have to buy a tax stamp from the government. The issue for those in opposition of this tax related to the underhanded manner in which this tax was enacted.  Which means the government is not giving out any tax stamps. So begins the prohibition of hemp and marijuana. 1938 The February issue of Popular Mechanics runs a story, (prepared before the 1937 legislation was enacted) titled: "New Billion Dollar Crop." Prohibition! HISTORY(CONT.)
  • 11. 1941 December issue of Popular Mechanics features a story on Henry Ford, showing a picture of the car he "grew from the soil." The automobile's "plastic panels with impact strength 10 times greater than steel were made from flax, wheat, hemp, and spruce pulp." The auto weighed 1/3 less than its 100% steel contemporaries. 1942 U.S. government overrides its own ban on hemp and distributes 400,000 pounds of hemp seed to U.S farmers who produce 42,000 tons of hemp fiber annually to support the war effort until 1946. U.S. farmers, are inundated by "Uncle Sam" with incentives to grow hemp. The U.S.D.A. makes it mandatory for farmers to attend showings of the "Hemp For Victory" film. Farmers and their sons who agree to grow hemp are exempt from military service, even though America is at war. HISTORY(CONT.) Henry Ford
  • 12. The Controlled Substances Act of 1970 (CSA, 21 U.S.C. §801 et. seq.) classifies marijuana as Schedule I controlled substance, placing it among the most harmful and dangerous drugs. Marijuana meets the criteria because of its THC content, which is a “psychoactive hallucinogenic substance with a high potential for abuse.” A key classification made by the CSA regarding marijuana was its broad definition of the drug. The CSA defines marijuana as follows: "The term ‘“marihuana” means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds or resin. This effectively placed the entire use of the hemp plant, whether for drug use or as industrial hemp, squarely under the control of the CSA. Therefore, the DEA views industrial hemp (even that containing less than 3% THC) as the same as marijuana grown for drug use (which commonly contains a 24% THC level, or eighty times more THC). CONTROLLED SUBSTANCES ACT OF 1970 Strictly speaking, the CSA does not make growing industrial hemp illegal; rather, it places strict controls on the production of hemp, making it illegal to grow the crop without a DEA permit.
  • 13. 1994 Under the CNCA, one license was granted to a Canadian company, Hempline Inc., to grow hemp experimentally in Canada under the strict supervision of the authorities. 1996 The Canadian federal government passed Bill C8 stating that mature hemp stalks are exempted from the list of controlled substances. 1998 The Canadian government legalizes the commercial growth of industrial hemp. HISTORY(CONT.) 1995 - an increasing number of state legislatures began to consider a variety of initiatives related to industrial hemp. Most of these have been resolutions calling for scientific, economic, or environmental studies, and some are laws authorizing planting experimental plots under state statutes. Nonetheless, the actual planting of hemp, even for state- authorized experimental purposes, remains regulated by the DEA under the Controlled Substances Act.
  • 14. Approximately 30 countries in Europe, Asia, and North and South America currently permit farmers to grow hemp. China is among the largest producing and exporting countries of hemp textiles and related products, as well as a major supplier of these products to the United States. The European Union has an active hemp market, with production in most member nations. Production is centered in France, the United Kingdom, Romania, and Hungary. Acreage in hemp cultivation worldwide has been mostly flat to decreasing, reported at about 200,000 acres globally in 2011. Although variable year-to-year, global production has increased overall from about 250 million pounds in 1999 to more than 380 million pounds in 2011, mostly due to increasing production of hemp seed. Upward trends in global hemp seed production roughly track similar upward trends in U.S. imports of hemp seed and oil, mostly for use in hemp-based foods, supplements, and body care products. HEMP GOES GLOBAL
  • 15. Colorado Amendment 64 was a popular initiative ballot measure to amend Colorado's constitution, outlining a statewide drug policy for cannabis. The measure passed on November 6, 2012, and along with a similar Washington measure marked "an electoral first not only for America but for the world.” Amendment 64, section 16 (d) to the Colorado Constitution defines Industrial hemp as ‘a plant of the genus Cannabis and any part of that plant, whether growing or not, containing a Delta-9 tetrahydrocannabinol (THC) concentration of no more than 0.3% on a dry weight basis.’ Under Colorado State law any Cannabis with a percentage of THC above 0.3% is considered marijuana. AMENDMENT 64
  • 16. THE INDUSTRIAL HEMP REGULATORY PROGRAM ACT The Industrial Hemp Regulatory Program Act was approved and signed by Governor Hickenlooper in May 2013. The Colorado Department of Agriculture was given authority to begin developing the Rules for registration and inspection to begin on March 1st, 2014. The Department of Agriculture established the Industrial Hemp Advisory Committee and created rules to establish registration and inspection protocols that will be conducive to the production and economic development of the Industrial Hemp Industry in Colorado. The Colorado Department of Agriculture’s regulatory role with Industrial Hemp is limited to registration of growers and inspection of crop. The State of Colorado has no jurisdiction over many other factors that producers are faced with. While Colorado legalized the production of Industrial Hemp (Cannabis spp), growing it is still considered illegal by the Federal Law.
  • 17. MAKING HISTORY, OCT. 2013 Ryan Loflin and the first american hemp harvest in over 50 years!
  • 18. THE AGRICULTURE ACT OF 2014 “THE FARM BILL” PASSES (FEB. 2014)
  • 19. THE FARM BILL The new federal law, written by U.S. Rep. Jared Polis (D-Colo.) and U.S. Sen. Mitch McConnell (R-Ken.) allows for an agricultural pilot programs for hemp “in states that permit the growth or cultivation of hemp” including Colorado. “It is a major policy shift,” said Tom Murphy, national outreach coordinator for Vote Hemp. “The new federal law exempts hemp from Controlled Substances Act and allows the state to regulate the growing of industrial hemp without risk of prosecution.” Key language in the amendment eliminates the need for a permit to grow hemp from the Drug Enforcement Agency, which was rarely issued. Other introduced legislation, such as the Industrial Hemp Farming Act of 2013 (H.R. 525; S. 359), could allow for possible commercial cultivation of industrial hemp in the United States. Those bills would amend the CSA to specify that the term “marijuana” does not include industrial hemp, which the bill would define based on its content of delta-9 tetrahydrocannabinol (THC), marijuana’s primary psychoactive chemical. Such a change could remove low-THC hemp from being covered by the CSA as a controlled substance and subject to DEA regulation. The two-page section outlines how states that have legalized hemp can set up pilot programs to grow the crop. Provisions of the federal law state: Only institutions of higher education, as defined by law, or state department of agriculture may grow or cultivate industrial hemp. Industrial hemp grown cannot have more than 0.3 percent delta-9 tetrahydroccannabinol concentration (THC). Medical and recreational grades of marijuana contain 10 to 15 percent THC. Sites used for growing or cultivating industrial hemp must be certified by and registered with the Colorado Department of Agriculture. Authorizes agricultural departments of states that have legalized hemp to create regulations for the pilot program.est from the public for hemp, and CSU could play a role. “It may be a good opportunity, and I believe the upper administration is looking into it,” Berrada said. “Before, it has always been avoided because it was a threat to our federal funding, but the Farm Bill eliminates that problem. More: http://www.nytimes.com/2014/02/08/us/politics/farm-bill.html?_r=0
  • 20. Official registration for farmers to cultivate hemp began on March 1, 2014 and will extend through May 1st. So far, about 60 farmers, researchers and businesses have registered. 1. R & D is limited to 10 acres or less and will be charged a registration fee of $100 plus $5/acre. 2. Commercial registrants are not limited in size of acreage and will be charged a registration fee of $200 plus $1.00/acre. Two Types of Registration COLORADO LEADERSHIP
  • 21. To date, 33 states and Puerto Rico have introduced pro-hemp legislation and 22 states have passed pro-hemp legislation. Thirteen states have defined industrial hemp as distinct and removed barriers to its production. These states will be able to take immediate advantage of the industrial hemp research and pilot program provision, Section 7606 of the Farm Bill: California, Colorado, Indiana, Kentucky, Maine, Montana, Nebraska, North Dakota,Oregon, Utah, Vermont, Washington, and West Virginia. Three states (Hawaii, Kentucky, and Maryland) have passed bills creating commissions or authorizing research. Nine states have passed hemp resolutions: California, Colorado, Illinois, Montana, New Hampshire, New Mexico, North Dakota, Vermont and Virginia. Eight states have passed hemp study bills: Arkansas, Illinois, Maine, Minnesota, New Mexico, North Carolina, North Dakota, and Vermont. Many other states have done studies without legislative directive. POWERTOTHE STATES
  • 22. PRIMARY CHALLENGE 1. Establish a Seed Bank to get safe, verifiable hemp seed This new legislation could (and should) remove low-THC hemp from being covered by the CSA as a controlled substance and subject to DEA regulation. Seed Procurement/Seed Quality Seed that exists in Colorado may be variable and have unknown THC levels. Sampling of hemp fields will be conducted. Plant samples testing at levels higher than 0.3% THC will be in violation of the Colorado Industrial Hemp Registration and Production Act. Importation of viable industrial hemp seed across State lines and Country boundaries is illegal under the Federal Controlled Substances Act. Ultimate Solution: National Legalization Declassify Marijuana and Industrial Hemp from Controlled Substances Act SOLUTIONS 2. Pass Industrial Hemp Farming Act of 2013
  • 23. FARM BILL
  • 24. OTHER CHALLENGES • Pesticides - There are not any pesticides (herbicides, insecticides, fungicides, etc.) currently registered for use on Cannabis spp. (Industrial Hemp and marijuana) due to the predominant federal nature of pesticide regulation. The CDA is putting together a list of pesticides that could be used on Cannabis spp. and not constitute a violation of pesticide labeling or other federal and state pesticide laws and regulations. This list will be extremely limited. • Federal farm programs such as crop insurance, farm loans and conservation reserve may be jeopardized if industrial hemp is planted; these programs are managed by USDA a Federal Agency. • Banking – banks including state-chartered banks may be reluctant to provide services to Cannabis growers for fear of being prosecuted for federal laws and regulations violations. • Processing - Industrial hemp must be processed prior to shipment out of Colorado. Colorado’s industrial hemp rules state that industrial hemp producers must provide documentation of in state processing as part of registration. It is unknown at this time how many processing facilities will be available in Colorado at time of harvest.
  • 25. HOW I GOT INTO HEMP...
  • 26. Bruce Perlowin “The King of Pot” & CEO of Hemp, Inc (HEMP)
  • 27. The Industrial Hemp and Medical Marijuana Consulting Company (IHMMCC)
  • 28. THE MANY USES OF HEMP - Food - Fiber - Soil Purifier - Water Purifier - Clothing - Paper - Construction Materials - Plastic - Weed Control - Biomass Fuel
  • 29. - Wheat and corn can produce around 8.5 tons of material per hectare, per year. Hemp produces 25 tons. - Oil palm takes 5 years before it fruits. Wood tree takes 50 – 100 years to mature. Hemp matures in 4 months, so it can be harvested 3 times a year. - Usable fibers from 1 acre of hemp equals the usable fibers from 4 acres of wood and 2 acres of cotton. - Hemp is naturally a hardy plant. Pest resistance means it needs less or no pesticide to cultivate. - Hemp is draught resistant. HEMP COMPARED Hemp Wheat Corn
  • 30. INDUSTRY SNAPSHOT - Because there is no commercial industrial hemp production in the United States, the U.S. market is largely dependent on imports. - The total U.S. retail value of hemp products in 2012 was nearly $500 million, which includes food and body products, clothing, auto parts, building materials and other products. - Of this, the value of hemp-based food, supplements, and body care sales in the United States is about $156 million to $171 million annually. - Previous reports about the size of the U.S. market for hemp clothing and textiles is estimated at about $100 million annually. Source: Hemp Industries Association (HIA)
  • 31. HEMP AS BIOFUEL Henry Ford's first Model-T was built to run on hemp gasoline and the CAR ITSELF WAS CONSTRUCTED FROM HEMP! - Hemp fuel burns cleans. Hemp has 4 times the bio mass and 8 times the methanol potential, compared to the current main bio mass fuel, corn. - If hemp was planted on just 6% of the continental America, it can sustainably supply the demand for gas and fuel, for the whole country.
  • 32. HEMP AS PAPER - Hemp paper found 200 years before Cai Lun (the inventor of paper) (50-121 AD) started standardizing the paper making process. - Hemp paper lasts longer and is more durable than conventional wood pulp papers. - Trees for paper take many years to mature. Hemp for paper takes 4 months to mature.
  • 33. HEMP AS A SOIL & WATER PURIFIER - Hemp has a natural and unique ability to detoxify the land it is planted on. - It can absorb leftover phosphorous on farm land, after the use of poultry fertilizers. - It can also absorb other harmful substances. - Currently hemp is being planted in Chernobyl, Russia. - The Japan government should consider hemp for the Fukushima incident.
  • 34. HEMP AS CONSTRUCTION MATERIAL - Hemp fibers mixed with some bonding agent will create Hempcrete. - Hemcrete is a building bricks, lighter than normal building bricks. - Hemcrete is fire retardant. - 1 cubic meter of Hemcrete wall will absorb 165kg of Co2 overtime. - Hemp fibers can also be turned into wall insulations.
  • 35. - Conventional plastics are petroleum based product (i.e. not a sustainable source) - Conventional plastics take more than 100 years to barely decompose and release harmful gasses. - Hemp plastics are bio-degradable, and do not release any harmful substance. - Hemp plastics are plant based and are sustainable. Cellulose is one of the most abundant organic compounds under the sun, and the hemp plant contains 75% cellulose. - Currently Audi, BMW, Ford, Chrysler, Honda, GM, Iveco, Lotus, Mercedes, Mitsubishi, Volkswagen, Porsche, and Volvo HEMP AS PLASTIC
  • 36. HEMP AS FOOD - Hemp seed oil contains 80% Essential Fatty Acids (EFA) e.g. Omega 3 - 6 - Hemp protein contains all 21 known amino acids, including 9 that an adult body cannot naturally produce. - Hemp protein is a complete protein, and easily absorbable
  • 37. HEMP AS FIBER - Cotton Fibers = 1 - 2 mm vs. Hemp Fibers = 4 - 5 meters - Stronger than cotton and was the original material for Levis Strauss jeans. - Softer, warmer, and more water resistant than cotton. - High insulation factor. Keeps you cool on warm days, and keeps you warm on cold nights.
  • 38. HEMP AS ANTI-MICROBIAL Twilite Linens Hemp fabric was tested against two bacteria strains, Staphylococcus Aureus (staph) and Klebsiella Pneumoniae (pneumonia). The fabric tested was a hemp blend, 60% hemp and 40% rayon. The staph test sample was already 98.5% bacteria free during the first measurement of the testing, while the pneumonia fabric sample was 65.1% bacteria free. “It is estimated that each year 2 million Americans become infected during hospital stays, and at least 90,000 of them die. MRSA (an antibiotic resistant strain of staph) is a leading cause of hospital-borne infections.” One of the most important recent discoveries is hemp’s ability to kill surface bacteria, while cotton, polyester, and polyethelene allow it to remain on surfaces for up to months at a time.
  • 39. HEMP AS MEDICINE
  • 40. MEET THE OTHER CANNABINOIDS
  • 41. MARCO MORAN, CEO - PHARMACIST OF 15YEARS -NAVY MEDIC, USVETERAN -CBD EXPERT - WALMART DISTRIBUTION - GOVERNMENT LIAISON
  • 42. HEMP AS BAKED GOODS
  • 43. THERE BE DRAGONS
  • 44. END OF LIFE CARE The Problem Opiate Abuse, Dependency and Over Sedation Morphine, Heroine, Codeine, Oxycodone, Hyrdocone The Solution Alternative and Complimentary applications of Cannabinoid based products Cannabidiol (CBD) Cannabigerol (CBG)Tetrahydrocannabinol (THC)
  • 45. CLOSINGTHOUGHTS - Hemp production in the U.S. still faces challenges and obstacles in the foreseeable future. - U.S. faces competition from global suppliers. - Nevertheless, the U.S. market for hemp-based products is highly dedicated and growing. - Numerous product and business opportunities exist. - Focused on innovative hemp consumer product applications and healthcare opportunities.
  • 46. CANNABIS CAPITAL SUMMIT Thursday  May  29th,  2014 8:00am  -­‐  7:00  PM Mile  High  Sta>on -­‐  300  Angel  Investors,  Founders   and  Industry  Leaders -­‐  $199  -­‐  Save  $30  with  coupon  code:  HempLab -­‐  12  Speakers  and  30+  Companies http://CannabisCapitalSummit/hempzone