News from our recently consolidated division - Greenmark Corporation ("GC").
Located in Egg Harbor City, New Jersey, GC acquired four acres of industrial property to grow and harvest hybrid hemp seed, and is transforming 15,200 square foot of buildings and greenhouses for hemp seedling, clone production, packaging and marketing. With sufficient funding, GC plans to design and fabricate hemp extraction facilities to process up to 50,000 pounds of biomass daily. Combined with establishing hemp testing laboratories and blockchain database technology to track of hemp and marijuana crops at the farm to the retail level, the company's business model has ample flexibility for rapid growth.
Primary factor for rapid growth:
The U.S. Department of Agriculture has approved New Jersey's plan to allow farmers in the state to begin growing and producing hemp and hemp products. New Jersey, Louisiana and Ohio were the only states given clearance. State Agriculture Secretary Doug Fisher said, “industrial hemp is grown mainly for fiber production and to produce cannabidiol oil, which is extracted from resins produced largely in its flowers and used as a health supplement. Hemp comes from the same plant as marijuana, cannabis sativa, except hemp doesn't contain enough of the psychoactive tetrahydrocannabinol, and I hope processors will come to New Jersey to process hemp oil, because most of the money is in CBD oils.”
Hemp is Legal to Grow Industrial Hemp in New Jersey.
On December 27, New Jersey was among the first three states to have its Hemp Program approved by the USDA.
The links for applications to grow and process hemp in New Jersey are available at http://bit.ly/35dzAQW.
What Is Industrial Hemp?
Industrial hemp is from the plant species Cannabis sativa and is used to produce a variety of industrial and consumer products. Hemp is a source of fiber and oilseed grown in countries worldwide. Many products, including fibers, textiles, paper, construction and insulation materials, cosmetic products, animal feed, food, and beverages can be produced from hemp. By definition, industrial hemp is low (less than 0.3%) in tetrahydrocannabinol (THC), the cannabis plant's primary psychoactive chemical.
Is Industrial Hemp the Same as Marijuana?
Industrial hemp and marijuana are different varieties of the same plant species, Cannabis sativa. While both are botanically the same species, different varieties or cultivars have been developed for distinct purposes and are grown with different cultural practices. Marijuana is cultivated for production of the psychoactive plant chemical tetrahydrocannabinol. Industrial hemp is typically cultivated for fiber, seed, and cannabidiol (CBD) oil. Federal and state law requires that the concentration of THC must be less than 0.3% in industrial hemp.
What Are Some of the Uses of Industrial Hemp?
There are over 25,000 reported uses for industrial hemp products globally according to a 2018 Congressional Research Service report. Industrial hemp is grown mainly for fiber production (fabrics, yarns, paper products, construction materials, etc.) or seed production (food products, culinary oils, soaps, lotions, cosmetics). Some varieties are suitable for dual-use production. Hemp is also grown for the production of cannabidiol oil extracted from resins produced largely in its flowers. CBD is used as a health supplement with purported health benefits including pain relief, inflammation, and others.
What Happens If an Industrial Hemp Crop Tests Higher Than the 0.3% THC Regulatory Limit?
By definition, the plants are no longer considered industrial hemp. Under current regulations, the crop would not be legal to harvest and must be destroyed. New Jersey forthcoming regulations will mandate the sampling and crop destruction protocols.
Is Hemp Oil the Same as CBD Oil?
Cannabidiol oil is sometimes called "hemp oil." CBD oil should not be confused with hemp seed oil. Cannabidiol is a naturally occurring compound largely found in and extracted from the resinous flowers of cannabis. CBD is one of more than a hundred phytocannabinoids, which are unique to cannabis. Seed oil is made from pressing the hemp seed, similar to the processing of oil from sunflower or canola seed.
What Risks Might Be Encountered While Producing Industrial Hemp?
Just as producing any crop, there are risk factors associated with industrial hemp production. It is important that producers carefully evaluate the potential costs, market opportunities and technical feasibility of any production system before beginning any new crop. Factors to consider when evaluating the production of industrial hemp include:
Currently industrial hemp is not covered by crop insurance. This may change under the 2018 Farm Bill.
Presently, there are no pesticides labeled for insect, disease, or weed control.
Inputs including specialized equipment/implements, trained labor for hand-harvesting, controlled atmosphere structures (high tunnels or greenhouses), and other resources may be needed and should be considered during budgeting.
Proper variety selection is important and dependent upon whether the product end use will be fiber, seed, or CBD oil.
As the industry is just beginning to develop, hemp marketing and processing facilities are limited.
Recognize that "THC spikes" have been reported in industrial hemp crops planted in other states. A THC spike is when the THC concentration exceeds the regulatory limit of 0.3%. The crop must be destroyed if the THC level exceeds the regulatory limits established for industrial hemp. Further research is needed to determine what, if any, production practices or environmental conditions can contribute to THC spikes.
Is Industrial Hemp Production Economically Viable for New Jersey?
As is the case with any emerging agricultural product, limited data exist to quantify the economic feasibility of industrial hemp production in New Jersey. The Hemp Industries Association (HIA) reported total United States sales of hemp products at nearly $800 million in 2017, with significant increases in the sale of hemp-based products, foods, and supplements as compared to 2016 estimates. Although industrial hemp production may provide an opportunity for New Jersey, it is crucial that producers carefully examine the market and accessibility of market channels as part of a marketing plan for their operation.
Producers who want to grow hemp in 2020 but live in a state that does not currently have a program can now apply for federal licenses. The Agricultural Marketing Service of the U.S. Department of Agriculture (USDA) is accepting license applications from producers whose states or tribes do not submit plans for approval. The agency issued hemp rules in October but delayed acceptance of individual applications until now to allow time for states and tribal governments to submit their plans first. Federal licenses aren’t available in states that have laws banning commercial growing of hemp, such as Idaho, Mississippi, New Hampshire and South Dakota. Instead, federal licenses are an option for farmers in states with no plans to regulate hemp themselves. Members of American Indian tribes living in states that ban hemp are also eligible. Farmers in states or tribes with approved hemp regulations are expected to enroll in those programs.
The USDA will not accept individual license requests from farmers in those states or tribes that already have submitted a state plan or have a draft production plan pending USDA approval. The USDA accepts license applications year-round. Licenses are good for one calendar year.
License applications can be submitted electronically through the USDA Domestic Hemp Production Program website or sent by mail.
Copies of the license applications can be requested via email at