CannabisNewsWire
Editorial Coverage: The surging hemp industry means exciting
benefits for Kentucky.
Hemp is big business in Kentucky. Among the companies working in
the state is Sugarmade Inc. (OTCQB: SGMD)
(SGMD
Profile), a supplier of hydroponic
equipment that is now moving into hemp through an investment in
Hempistry. In New York, a leading politician has been in contact
with Canopy Growth Corporation (TSX: WEED)
(NYSE: CGC) to ensure the survival of a hemp
project threatened by executive upheaval. Tilray Inc.
(NASDAQ: TLRY) is looking even further than North America
for growth. Cronos Group Inc. (TSX: CRON) (NASDAQ:
CRON) is focusing on innovation in the sector. New
Age Beverages Corporation (NASDAQ: NBEV) has been
expanding its distribution and marketing power to reach into an
ever-growing hemp market.
- Kentucky is now the largest producer of hemp by state in the
United States, fueled by local and national political support.
- The hemp boom promises an alternative crop to struggling
farmers.
- The burgeoning industry is drawing investment into the state
from hemp companies.
To view an infographic of this editorial, click here.
Hemp Achieves Great Growth in Kentucky
This year has seen a serious ratcheting up of hemp production
across the United States. After the 2018 Farm Bill passed late last
year legalizing national widespread hemp production, companies have
been rushing to establish a foothold in the industry. Some are
expanding test cultivation sites established under the 2014 bill,
while others are setting up new operations.
This boon is proving particularly profitable for Kentucky.
Having wholeheartedly embraced hemp cultivation under the previous
regulations, the state is benefiting from a relatively
well-developed industry that has existing strong political support.
These favorable circumstances are attracting hemp companies and
hemp investment into the state, helping to balance declines seen
elsewhere in the state’s agriculture space.
Heading for Kentucky
A wide range of businesses, including brand-development company
Sugarmade Inc.
(OTCQB: SGMD), are investing in Kentucky’s hemp
sector, funding the cultivation, processing and sale of the plant.
Whether it’s being used for grain, fiber or CBD production, hemp
crops are booming.
Hemp production in Kentucky began in 2014, when 20 approved growers planted 33 acres of the crop
under legislation that supported trials of hemp farming. By 2018,
the industry had grown 200 times in size to 6,700 acres cultivated
by 210 growers. On top of this, 14 university projects and 72
processors were invested in the crop. Only Colorado exceeded
Kentucky for hemp production within the United States.
Since the passage of the 2018 Farm Bill, the state has seen a
further staggering surge in production. Kentucky now has 60,000 acres devoted to hemp production, making it the
biggest hemp-producing state in the country. The industry has
produced nearly a thousand jobs, 250 of them in the first half of
this year. And as companies such as Sugarmade increase their
investments in the state, that growth looks set to continue.
Sugarmade entered the hemp sector through hydroponics. A
significant portion of hemp is grown indoors to provide greater
control over how the crop is grown. Growth and acquisitions have
made Sugarmade one of the hemp sector’s leading providers of
hydroponic equipment and supplies, which are vital for this indoor
growth.
Now the company is taking a more direct interest in hemp by
exercising its option to invest in Hempistry
Inc. Founded by Sugarmade’s own CEO Jimmy Chan, Hempistry is
growing hemp in Madison County, Kentucky. Sugarmade is making a
series of investments in the project that are expected to total an
estimated $1 million.
“These investments into Hempistry make sense for Sugarmade, not
only from a financial standpoint relative to probable rate of
return, but also from a business development standpoint,” said
Chan. “As Hempistry and other local cultivators grow, we believe
Sugarmade’s status as a potential supplier to cultivators will also
continue to rise. We look forward to a successful growing season
with Hempistry.”
Kentucky Politicians Back Hemp Farmers
One of the reasons for Kentucky’s hemp boom is the strong support provided by politicians across the
state. Representative James Comer and Senator Mitch McConnell have
actively backed the industry at a national level, while Kentucky
Agriculture Commissioner Ryan Quarles has been an advocate within
the state. Under Quarles’s leadership, the Kentucky Agricultural
Department has encouraged the development of the hemp industry,
putting policies in place to support it.
This political support is at the heart of what makes Kentucky so
appealing to companies such as Sugarmade as they seek opportunities
for hemp investment. Though hemp is once again legal on a federal
level, the road to this point has been rocky, and the industry is
likely to face further political hurdles. Knowing that Kentucky
will provide political support makes the state an appealing place
to invest.
McConnell has been particularly essential in establishing this
support. The senior Kentucky senator used his position as majority
leader to push hemp reform through the federal legislative process.
This summer, he publicly reinforced his support for hemp through a
tour of the industry in Kentucky with Sonny
Perdue, head of the U.S. Department of Agriculture (USDA). The tour
marked an important moment for Kentucky as a leader in that
industry, as well as the hemp industry as a whole, acknowledging
its newfound legitimacy.
Among the issues the two men talked about on the tour was
improving access to finance for hemp growers. Though December’s
farm bill legislation theoretically should have removed financial
barriers, in practice, banks need encouragement to change their
approach. With high-profile advocates such as McConnell and Perdue
taking a firm stance, this is likely to change rapidly, making life
easier for companies such as Hempistry and Sugarmade.
Hemp Provides Something We Need
In strained political times, hemp has provided something we all
need — an issue on which politicians from both major parties can
agree. The hemp provisions of the farm bill passed thanks to
cross-party support, and politicians from both sides of the aisle
have been keen to encourage the industry.
Nothing makes this clearer than the involvement of both Democrat
and Republican senate leaders in supporting and encouraging the
industry. Earlier this month, Senate Minority
Leader Chuck Schumer spoke directly to the leadership of Canopy
Growth Corp. to ensure that recent changes at the company
wouldn’t stand in the way of a building a cutting-edge hemp
facility in New York. When companies such as Sugarmade see this
type of support, they feel confident investing heavily in hemp,
knowing that both parties support industry expansion.
The reason behind this widespread support is that hemp caters to
another need — new avenues for farmers to make a living. Farm
production in the United States is at a six-year low, with many
farmers struggling to get by. Economic disruption and trade wars
threaten to further undermine their financial well-being. As a
high-value cash crop, hemp offers a lifeline to farmers, making
support of the industry more important than ever.
The money poured into the industry by Sugarmade and other savvy
companies may be the difference between success and failure for
rural communities. And it doesn’t hurt that, along the way, these
investments appear likely to be highly profitable for these
companies and their investors.
Hemp Producers Rise to Prominence
The growth of the industry has brought hemp-growing companies to
greater prominence than ever.
Schumer’s call to Canopy Growth Corporation (TSX: WEED)
(NYSE: CGC) highlights just how much influence these
companies now have, as they nurture the first shoots of what
promises to become a fruitful industry. Canopy Growth Corporation
is one of the largest Canadian companies operating in the hemp
space, a leader in the field with significant resources and
influence. The surprise removal of
CEO Bruce Linton caused alarm in some quarters as well as
uncertainty about the company’s future direction. But Schumer’s
direct intervention has brought reassurance that the company will
move ahead with its New York hemp plans.
While Canopy Growth has shed its most prominent executive,
competitor Cronos Group Inc. (TSX: CRON) (NASDAQ:
CRON) has added a new one to its team. Dr. Todd Abraham is
joining the company as chief innovation
officer. A thought leader in the field of consumer packaged
goods, Abraham has shown faith in the staying power of the hemp
industry through his move to Cronos. He’ll have plenty of tools to
innovate with, as the company recently announced that it is
establishing a brand new R&D
facility, as well as acquiring a
state-of-the-art fermentation and manufacturing facility. These
deliberate moves put Cronos Group in a strong position to create
new products using cultured cannabinoids.
The industry expansion isn’t limited to just the United States
and Canada. Tilray Inc. (NASDAQ: TLRY) has
recently arranged the export of CBD-rich
oils to Ireland and is expanding its
European leadership team. Hemp and CBD markets operate under
different rules in Europe, so local knowledge is essential for
expansion there, and Tilray is investing in that knowledge.
New Age Beverages Corporation (NASDAQ: NBEV)
has also been pushing to become a global brand, following an
announcement to this effect in April. But the
company isn’t neglecting its American markets. It recently acquired marketing, sales and distribution
company Brands within Reach to strengthen its marketing and
distribution position in North America, working to take its
relaxing drinks to an ever-wider market.
With the support of politicians and business leaders, hemp is
clearly growing in popularity. Nowhere is the economic impact of
that felt more strongly than in Kentucky.
For more information on Sugarmade, visit Sugarmade Inc.
(OTCQB: SGMD)
About CannabisNewsWire
CannabisNewsWire (CNW) is an information service that provides
(1) access to our news aggregation and syndication servers, (2)
CannabisNewsBreaks that summarize
corporate news and information, (3) enhanced press release
services, (4) social media distribution and optimization services,
and (5) a full array of corporate communication solutions. As a
multifaceted financial news and content distribution company with
an extensive team of contributing journalists and writers, CNW is
uniquely positioned to best serve private and public companies that
desire to reach a wide audience of investors, consumers,
journalists and the general public. CNW has an ever-growing
distribution network of more than 5,000 key syndication outlets
across the country. By cutting through the overload of information
in today’s market, CNW brings its clients unparalleled visibility,
recognition and brand awareness. CNW is where news, content and
information converge.
Receive Text Alerts
from CannabisNewsWire: Text "Cannabis" to
21000
For more information please visit https://www.CannabisNewsWire.com and
or https://CannabisNewsWire.News
Please see full terms of use and disclaimers on the
CannabisNewsWire website applicable to all content provided by CNW,
wherever published or re-published: http://CNW.fm/Disclaimer
CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com
DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article
and content set forth above. References to any issuer other than
the profiled issuer are intended solely to identify industry
participants and do not constitute an endorsement of any issuer and
do not constitute a comparison to the profiled issuer. The
commentary, views and opinions expressed in this release by CNW are
solely those of CNW. Readers of this Article and content agree that
they cannot and will not seek to hold liable CNW for any investment
decisions by their readers or subscribers. CNW is a news
dissemination and financial marketing solutions provider and is NOT
registered broker-dealers/analysts/investment advisers, hold no
investment licenses and may NOT sell, offer to sell or offer to buy
any security.
The Article and content related to the profiled company
represent the personal and subjective views of the Author, and are
subject to change at any time without notice. The information
provided in the Article and the content has been obtained from
sources which the Author believes to be reliable. However, the
Author has not independently verified or otherwise investigated all
such information. None of the Author, CNW, or any of their
respective affiliates, guarantee the accuracy or completeness of
any such information. This Article and content are not, and should
not be regarded as investment advice or as a recommendation
regarding any particular security or course of action; readers are
strongly urged to speak with their own investment advisor and
review all of the profiled issuer’s filings made with the
Securities and Exchange Commission before making any investment
decisions and should understand the risks associated with an
investment in the profiled issuer’s securities, including, but not
limited to, the complete loss of your investment.
CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E the Securities Exchange Act of 1934, as amended and
such forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. “Forward-looking statements” describe future expectations,
plans, results, or strategies and are generally preceded by words
such as “may”, “future”, “plan” or “planned”, “will” or “should”,
“expected,” “anticipates”, “draft”, “eventually” or “projected”.
You are cautioned that such statements are subject to a multitude
of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual results
may differ materially from those projected in the forward-looking
statements as a result of various factors, and other risks
identified in a company’s annual report on Form 10-K or 10-KSB and
other filings made by such company with the Securities and Exchange
Commission. You should consider these factors in evaluating the
forward-looking statements included herein, and not place undue
reliance on such statements. The forward-looking statements in this
release are made as of the date hereof and CNW undertakes no
obligation to update such statements.
Source:
CannabisNewsWire
Contact:
CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.net
Sugarmade (PK) (USOTC:SGMD)
Historical Stock Chart
From Apr 2024 to May 2024
Sugarmade (PK) (USOTC:SGMD)
Historical Stock Chart
From May 2023 to May 2024