Cannabis investors should know the difference between marijuana and hemp

By Jessica N. Abraham

Canada, France, and China are the leading manufacturers of industrial cannabis in the United States today. Yet our nation has seen a dramatic increase in hemp cultivation across the continent.

Research and Markets estimates that the global industrial hemp market will reach $ 17.4 billion by 2027, up from $ 5.6 billion in 2020.

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A brief history of hemp

As a people, we have been using hemp for more than 10,000 years. As early as 8000 BC Traces of it were found in Asia

The ancestors of this country used hemp. The Constitution and the Declaration of Independence were written in hemp. The first 4 presidents grew their own hemp. Benjamin Franklin was a hemp farmer in Kentucky.

RELATED: Hemp: Marijuana Or Not Marijuana?

Hemp is excellent for revitalizing and improving the soil. It has always been a crop rotation of choice – even for farmers who don’t grow hemp regularly.

England considered it a high crime for one of the original US colonies to refuse to grow hemp as a staple food for the Crown. People used hemp to pay their taxes. They used it as a living currency. During WWII it was even said that growing hemp was a patriotic duty!

Every good story starts with a dilemma

In the 1930s and 40s, those with the most to lose in making hemp and marijuana launched blatant propaganda and rampant smear campaigns. Families like the DuPonts and Rockefellers feared competition with their own industrial products and refused to compete with the farmers who made their livelihoods on it.

The 1937 Marijuana Tax Act soon came and essentially blocked the right to farm it altogether. The Controlled Substances Act of 1970 designated it as a controlled substance.

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It was only with the Agricultural Act of 2014 and the Agricultural Act 2018 that the federal government’s interest in hemp cultivation was awakened and this country was offered new opportunities for health, sustainability and infrastructure.

Although marijuana is still illegal nationally, several states have allowed citizens who hold a card to get it for medical purposes, and some allow it for recreational use. Hemp, on the other hand, is federally approved by the U.S. Department of Agriculture and supported by the U.S. Department of Agriculture, which sets out future legal obligations for farmers.

Main differences between hemp and marijuana

It is a common misconception that hemp and marijuana are the same thing. While both hemp and marijuana plants are considered cannabis, hemp won’t get you high. The sister plants are related, but marijuana is known to have higher levels of tetrahydrocannabinol (THC) and more psychoactive effects on users than its hemp counterpart.

For hemp to be actually legal, it must fall below a 0.3% THC limit, which means that farmers need to understand certain strains and genetics to avoid destroying whole plants that do not meet this criterion.

RELATED: Hemp CBD Legislation: Will Congress Increase Hemp Total THC Limit To 1%?

While farmers will not be charged with criminal negligence if their crop falls below the 1% ceiling, it could be devastating, especially if it could mean the loss of an entire crop and millions of dollars.

This is why it is imperative that farmers keep track of key data:

• Seed variety and genetics
• Plant information, location and harvest dates
• Humidity, temperatures and drying times
• CBD and THC presence

Photo by BATCH of Wisconsin Hemp Scientific via Unsplash

Although CBD, one of the many cannabinoids found in both hemp and marijuana plants, is currently the focus of many consumers, it is important to understand that it is found in both marijuana and hemp plants and among them 0.3% limit must fall in order to be taken into account legally and sold without a prescription.

CBD is a derivative of the flower by-product and is used in many different food and beauty products on the market. Hemp CBD is not psychotropic and is known to help relieve pain, anxiety, and nausea in its users. It’s also found in many FDA-approved drugs for seizure and epilepsy.

The 2018 Farm Bill is the first federal law to officially remove hemp and CBD from the Drug Enforcement Administration (DEA) Schedule I Controlled Substance designation and legally reintroduce them for industrial and agricultural purposes.

What exactly did the Farm Bill 2018 do for hemp?

The 2018 Farm Bill, also known as the Agricultural Improvement Act of 2018, has reduced existing bans on the sale, transport, and possession of hemp products. Congress explicitly approved the transportation of hemp products for commercial use and lifted pre-existing restrictions put in place by previous bills criminalizing it.

RELATED: American hemp farmers will continue to struggle in 2021

The Marijuana Tax Act of 1937, for example, put a tax on all cannabis sales, including hemp, which Popular Mechanics Magazine projected into a billion dollar commodity. While the country would see this ban being lifted temporarily during World War II, it was reintroduced after the war ended.

Similarly, the Controlled Substances Act of 1970 classified hemp as an illegal List I drug. It allowed farmers who wanted to grow hemp to register, apply, and be approved by the DEA. The irony of this law was that only one farmer was ever approved under the strict rules of production and operation. Instead, most farmers faced imprisonment, large fines and other penalties.

The 2018 Farm Bill will ultimately remove the barriers that have kept an entire industry from flourishing. It empowers federal agencies to provide research funding and removes banking restrictions that many companies still face as they start their legal businesses, conduct sales, or get loans that could take their businesses to the next level.

The GenH Halcyon facilities through Halcyon Thruput LLC

It also empowers institutions to offer crop insurance to companies that grow hemp. As a result, the same companies can now make deductions that were once prohibited.

According to Generation Hemp Inc. (OTCQ: GENH), “Industrial hemp has the power to change this world.” That’s why they made it their business to do just that. Generation Hemp helps companies scale hemp processing operations, utilize excess biomass and develop products that lead to a better future.

To learn more about the hemp industry and what Generation Hemp is doing for hemp companies everywhere, visit their website.

This article originally appeared on Benzinga and was republished with permission.