Hemp legalized in the United States with the signing of the 2018 Farm Bill paving the way for Global Hemp Group and this rapidly emerging industry
Vancouver, BC — (December 27, 2018) - Global Hemp Group Inc. (“GHG” or the “Company”) (CSE: GHG / OTC: GBHPF / FRA: GHG) is pleased to report that the 2018 Farm Bill has now been signed into law in the United States making hemp legal at both the Federal and State level. This new law removes hemp from the Controlled Substances Act (CSA) and paves the way for the development of hemp as an agricultural commodity. Hemp can be used to produce a myriad of products from super foods to cannabinoid infused cosmetics, personal care products and beverages. In addition, there are a multitude of industrial solutions including textiles, carbon negative building materials, non-toxic biocomposites and much more.
This change in the legal status of hemp will directly and positively impact the development of GHG’s 109-acre high yielding CBD hemp farm in Scio, Oregon and the Company’s plans for expansion in the region. The law removes many uncertainties for the industry that will allow businesses like GHG to obtain the most basic business services that are enjoyed by every other industry which until now have been very difficult to obtain. It is expected that this new law will allow companies in the industry to operate more freely than they have been able to up to this point.
This long-anticipated Farm Bill allows farmers nationwide to cultivate hemp for any use, including cannabidiol (CBD) and other cannabinoid production. The definition of hemp has been redefined to include any part of the plant including all derivatives, extracts, cannabinoids. This will now mean that hemp-derived cannabidiol (CBD) will no longer fall under the regulatory authority of the CSA.
One of the most important outcomes of the new law is that businesses will soon be able to secure ordinary banking services without fear of having these relationships terminated. The hemp industry has been considered a high-risk industry in the banking community until now. With the passing of the Farm Bill, hemp is well on its way to becoming an agricultural commodity that farmers can generate far greater returns per acre than any other crop. Farmers will also soon be able to obtain crop insurance to manage the risk from natural disasters that could potentially wipe out an entire crop, as well as other forms of insurance not previously available. It’s also only a matter of time before futures and options are offered on the major commodity exchanges like the Chicago Board of Trade (CBOT) or Chicago Mercantile Exchange (CME). Similarly, a major carbon credit play is on the immediate horizon because of hemp’s ability to sequester more carbon in the shortest period of time, more than almost every other plant on earth.
There is only one plant on earth that can provide food, clothing, building materials, fuel, and medicine. Hemp could potentially be the most industrially usable biomass produced over the shortest growth cycle, utilizing the least amount of water, nutrients and pesticides, while sequestering the greatest level of carbon. It is one of the few plants that can be grown commercially almost anywhere in the world.
The potential economic stimulus to the United States and Global economy is significant. The Brightfield Group projects a $22 billion hemp industry by 2022, but that only considers the direct impact from hemp, it does not include all of the ancillary industries that provide products and services to the hemp industry that will also see significant economic stimulus, such as legal services, banking, accounting, investment, real estate, processing and manufacturing equipment makers, engineering, marketing and advertising, technology developers, to name a few. The hemp industry requires many of the same products and services that every other industry needs to operate, but until now 9 out of 10 companies in any industry would not engage in business with hemp companies because of the Federal legal status.
Post Farm Bill projections for the growth of the hemp industry will likely expand significantly more than previously expected, making 2019 a banner year for the hemp industry.
About Global Hemp Group Inc.
Global Hemp Group Inc. (CSE: GHG) (OTC: GBHPF) (FRANKFURT: GHG), is focused on a multi-phased strategy to build a strong presence in the industrial hemp industry in both Canada and the United States. The Company is headquartered in Vancouver, British Columbia, with hemp cultivation operations in New Brunswick and Oregon. The first phase of this strategy is to develop hemp cultivation with the objective of extracting cannabinoids (CBD, CBG, CBN & CBC) and creating a near term revenue stream that will allow the Company to expand and develop successive phases of the strategy. The second phase of the plan will focus on the development of value-added industrial hemp products utilizing the processing of the whole hemp plant, as envisioned in the Company’s Hemp Agro-Industrial Zone (HAIZ) strategy.
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Forward Looking Statements. Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Global Hemp Group Inc., including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk, the legality of cannabis and hemp. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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