Skip to main content

Tag: CBG

Whitney: Economic Impact of the Texas Hemp Industry

Written by Jay Maguire on . Posted in Texas Legal & Regulatory News. No Comments on Whitney: Economic Impact of the Texas Hemp Industry

Total Market Value: The Texas hemp-derived cannabinoid industry generates $5.5 billion annually.

• Retail Sales: The retail sector alone contributes $4.3 billion in revenue.

• Overall Economic Impact: The industry supports $10.2 billion in total economic activity.

• Tax Contributions: Hemp-derived cannabinoid sales generate $267.7 million in annual state sales tax revenue.

• Job Creation: The industry employs 53,382 workers, paying out $2.1 billion in wages.

Potential Economic Loss if SB 3 Passes

• Business Closures: Approximately 6,350 businesses would be forced to shut down.

• Job Losses: An estimated 40,201 workers would lose their jobs.

• Wage Decline: Texas workers would lose $1.6 billion in wages.

• Economic Shrinkage: A $10.2 billion reduction in economic activity.

• Tax Revenue Loss: Texas would forgo $267.7 million in annual sales tax.

 

Industry Health & Growth Trends

• Profitability: 93% of hemp businesses are either profitable or breaking even.

• Retail Growth: The number of registered retail locations increased from 5,072 in 2022 to 7,550 in 2024.

• Wage Increases: Average wages in retail rose from $14.19/hour in 2023 to $17.83/hour in 2025.

• Diversification: The industry has expanded beyond CBD into Delta-8, Delta-9, THCA, CBG, CBN, and HHC products.

• Texas Supply Chain: Most Texas hemp businesses source materials from multiple states but prioritize in-state suppliers.

Regulatory Uncertainty & Business Risks

• Top Business Concern: The primary risk cited by hemp businesses is state and federal regulatory changes.

• Federal Oversight: The FDA has not identified a public safety crisis related to converted cannabinoids.

• State-Level Crackdowns: States that have enacted similar restrictions, like Oregon, saw millions in lost revenue and disrupted supply chains.

Policy Recommendations

• Avoid Prohibition: Rather than banning hemp-derived cannabinoids, regulation should focus on product safety, age restrictions, and clear labeling.

• Support Economic Stability: Restricting the industry would disrupt thousands of jobs and millions in tax revenuewithout clear public safety benefits.

• Encourage Collaboration: A balanced regulatory approach could maintain public safety while allowing Texas businesses to continue growing.

The Now and Future of Yellow Acres Farm

Written by Misty Contreras on . Posted in Cultivation.

Aran Arriaga is the Founder of Yellow Acres Farm

Texas Hemp Reporter: So how does it feel to be out in the Texas country

and farming hemp?

Adan: We’re in East Texas about 30 miles out of Louisiana. It’s pine country, hot, Jasper County. It’s great I grew up here, this is our family farm so…

Texas Hemp Reporter: What strains are you presently growing?

Adan: There are two: we have Cherry Wine and Otto II x BaOx. Both are high CBD content plants, above 6%, legal THC percentage of course.

Texas Hemp Reporter: What is your experience of the Texas Hemp Industry?

Adan:  I find Texas to work as a team. The farmers, manufacturers, samplers, they band together networking. Texas can become the lead in the country in hemp production; Matt Buchanan did some sampling for us, then follow up then there’s Greg of Sweet Sensi, he works with us on rosin press extraction. I think our farm hopes to become a disrupter especially of outside raw hemp coming from out of state. Yellow Acres Farm (YAF) is a relatively small farm 85 acres but we plan to enlarge, improve our business model through growth.

Texas Hemp Reporter: What are your opinions on the Texas laws on growing hemp?

Adan: This year our team invested in lobbying, down at the Capitol, approached the House and Senate you know there’s a split in the community as well as the laws, marijuana versus hemp. The laws are are jumbled and the legislators don’t seem to study up on the difference between those industries. The scientific nomenclature versus the legal is all off, there was a bill introduced that would bundle hemp with cannabis and marijuana, and this is bad for growers. We need to insure that our businesses, our livelihoods are safe and we need to band together to amplify our interests. We did have a positive development hemp farmers now have a window of testing extended from 15 to 30 days, but this is only the beginning.

Texas Hemp Reporter: Is the Texas soil great for growing hemp?

Adan: We do a lot of enhancement work with our soil here, it’s a bit sandy. We are all natural so we add compost, minerals, microbiology, we practice replenishment. Yet the Texas climate is super for high CBD-yielding strains, the humidity these plants thrive on. So I believe we will become the lead producer of hemp as growers in the future.

Texas Hemp Reporter: Who does your team consist of?

Adan: There’s four of us, my brother Saulo who handles kind of the Operations manager position. And there’s the “bad boys of hemp” from San Antonio. Issac is our Brand Management person, handling marketing, networking and then Joshua who is our main farmer: he’s a real cultivator, checking details like the ph of water used, soil testing micro-remediation, composting, etc.

Texas Hemp Reporter: What about your R&D aspects?

Adan: I used to work in the beverage industry. I saw a lot of issues there especially concerning cannabis-infused drinks.  Canada is a country that does a ton of research into cannabis. They have accumulated many patents. We had approached a Canadian Pharmaceutical company, in order to see if we could license one of their products. They couldn’t but I learned all about the issues of delivery of cannabinoids. Nano-emulsions, CBD, CBG, Delta-8 etc. For instance canning: the inner-lining is often lipid-resistant creating a short shelf-life. And many consumers also want a translucent beverage for themselves. Well CBD oil has color, some of the organolipids do as well. So we have been developing the quality of how these cannabinoids can be delivered as well as naturally preserved.

And these processes are not limited to drinks, tinctures and topical’s also. It’s a learning process.

 Yellow Acres has a patent-pending for “A Method of Extraction for Immediate and Extended Release of Cannabinoids.” We’re concentrating on a process of single-dose extended duration release for both products and extractions.

We also think that licensing our IP can be very beneficial to other growers and researchers as well as developers. We hope to see the YAF label on a CBD beverage soon. And we’d like to develop gummies and candies and show them on the website. Being a farm we grow lots of vegetables so we’re using a burp-less cucumber to create a Yellow Acres Farm brand of pickles too!

Profiles in Hemp Farming

Written by Misty Contreras on . Posted in Cultivation.

Eddie Velez, Oak Cliff Cultivators

Oakcliffcultivators.com

 Texas Hemp Reporter: Where are you located?

Eddie Velez: Our hemp farm is centrally located in Brady, the heart of Texas.

THR: When did you begin farming?

Eddie: I’m not your typical farmer and I had no farming experience until recently.  In my previous life, I spent 15 years responding to disasters across the country,  with over 10 of those years with the Federal Emergency Management Agency (FEMA), Region 6, in Denton, TX. 

In early spring of 2020, my wife and I quit our careers, cashed out our retirement, and dove headfirst into the Texas hemp industry.

THR: Is hemp your primary crop?  And what do you produce (pulp, CBD, textiles)?

Eddie: Hemp is our primary and only crop.  We cultivate award-winning hemp flower.  In December of 2020, we won “Best hemp flower in Texas,” at the Taste of Texas Hemp Cup.  Additionally, we won 6 out of 9 categories at the cup, to include: “highest CBD, best indoor, most pungent, most ripe, and final presentation.”

We produce premium CBD and CBG hemp flower.

The Awards Eddie and Oak Cliff took home in the first Annual Taste of Texas Hemp Awards in Wimberley last December.

THR: Do you offer any specialty products you would like to talk about (organic body care, construction materials)?

Eddie: Cultivating Cannabigerol (CBG) has been a great success for us.  CBG is still new to many people and offers a great alternative to CBD.  Unlike CBD, CBG interacts more directly with your body by binding with your CB1 and CB2 receptors and typically has no THC, which opens the door to many clients wanting to use hemp products without the THC. 

Another specialty we have but not necessarily a product, we like to educate and inform our clients about each of our products’ terpene profile and potential beneficial use.

 THR: Can you describe your growing/processing operation?

Eddie: We are a family and veteran-owned Texas hemp company.  We operate a boutique hemp farm, focusing on cultivating exceptional hemp genetic products for your wellness & culinary needs.  Our farm consists of 6,000 sq ft of greenhouse growing space and a 2,000 sq ft indoor climate controlled dry house.  We did a lot of research and visited hemp farms across the country, and we noticed that drying was essential in producing premium hemp flower.  

THR: What are your hopes or expectations for the future of hemp farming?

Eddie: We involve our children in everything we do with the hemp farm – from planting seeds to the finished product.  We hope to instill the knowledge and experience with them, so they can continue to redefine cannabis in Texas.

THR: How have the challenges you encounter every day helped you become a better farmer?

Last year was our first grow and everything was a challenge, from building the greenhouses to go-to-market strategies, to delivering our products.  We’ve asked a lot of dumb questions over the past year which has helped navigate us through those farming challenges.  Building a network and fostering positive relationships has helped us tremendously.  


Eddie Velez, Oak Cliff Cultivators