Bringing wellness to the world through ultra-concentrated terpene rich CBD oil derived from all natural, high quality industrial hemp. The couple own Green Mountain Flower Company – a premier CBD boutique located in North Austin off of 183 and Anderson Mill – and their mission is to curate a personalized experience to your journey into hemp-based healing.
Gene talks with Russell and Jesse about plans to expand the Green Mountain product line with many exciting additions on the way such as their new CBD Water which they have been working on for over a year. As well as actively expanding their wholesale market.
California’s wine industry is quite the behemoth, a staple in the American economy.
If it were its own country, the state would be the fourth largest wine producer in the world. California makes 81 percent of all U.S. wine, and three out of every five bottles sold in the country comes from the Golden State.
Just look at last year’s numbers for more proof: In 2019, 241.5 million nine-liter cases of California wine were sold within the U.S., amassing an estimated $43.6 billion in sales. Also in 2019, American wine exports totalled $1.63 billion, with 95 percent coming from California wineries.
California wine sales in the U.S. grew 6 percent in 2019, despite the state legalizing adult-use cannabis in January 2018, which some feared would eat into the state’s wine market.
But 2020 may tell a vastly different story for the industry, says Robert P. Koch, president and CEO of the San Francisco-based Wine Institute. “This year will be more challenging, especially for small- and medium-sized wineries, because of the closure of tasting rooms and restaurants,” he says in a wineinstitute.orgarticle.
These changes have emerged because of COVID-19, of course, and while it is too early in the year to predict a drop in the California’s total revenue from wine, we can surely expect a noticeable dip based on the recession alone: People with a slash in their disposable incomes are less likely to buy a $50 bottle of Cabernet Franc from the Napa Valley, perhaps opting instead for $8 bottle from Argentina.
So considering this inevitable dip, should California vineyards, each with hundreds of acres perfect for agriculture (bountiful sun and cool air from the Pacific Ocean), consider pivoting to a crop with perhaps an even more promising future? Such as hemp?
After all, according to the Brightfield Group, the market for hemp-derived CBD is expected to reach $23.7 billion by 2023, thanks in part to the passing of the 2018 Farm Bill. And this doesn’t even include the market for hemp alone, which can be grown for construction, textiles, clothing, food, paper, bioplastics, insulation and biofuel.
And so the hemp market doesn’t rely on a selective niche of consumers that use its product for recreational purposes only (such as wine drinkers and cannabis users). Just about everyone could benefit from hemp in one way or another.
Also, unlike wine grapes which take several months to grow and several months to ferment before they ever become drinkable wine, hemp plants can mature in just a few months.
But, say, a commercial vineyard in a place like the Sonoma Valley wants to reserve a few acres of its property for growing hemp. Does the growing of either crop affect the other’s final product?
A Wine Spectator article titled “Can Cannabis and Wine Coexist?” tells how the drift of fungicides (used by many California winemakers to prevent mildew) have been known to render a cannabis harvest unsaleable when the crop is tested for regulation. And one can speculate the same would apply to hemp plants, especially if they’re used for CBD products.
The opposite occurs, too. “On the flip side, cannabis can release organic compounds called terpenes,” the article’s author Aaron Romano writers, “one of which is eucalyptol, known for tainting the flavor of grapes.” It should be known that hemp plants also have terpenes.
Corey Beck, CEO of Francis Ford Coppola Winery and former president of the Sonoma County Vintners, was quoted in the article, saying, “If cannabis can co-exist with the right regulations, and not be intrusive to our neighbors, then it should be available to a farmer who needs to put food on the table for their family.” He added that the wine industry is changing because of consumers drinking less and, therefore, wineries growing few grapes.
“I’m not suggesting the trend is here to stay, but if you are a grapegrower and can’t find a buyer in the short term, your choice in agricultural crops which provide a return such as grapes are limited.”
When you tell Seattle residents you moved to Seattle from Austin, you generally get two very different follow-up questions, depending on the person: One is, “What tech company do you work for that brought you here?” (It’s a tech hub very much like Austin, with Amazon having the largest presence in the city.) The other is, “Did you move here for the legal weed?”
The latter is the most ubiquitous response, I’ll be honest, because Washington was among the first states (with Colorado) to legalize cannabis for recreational use. This was in 2012, 14 years after the state first legalized medical marijuana. And the strange thing is, after having lived here a year, going to a dispensary is no more exciting than buying a bottle of wine at the grocery store. I’ve heard some people stopping by “the weed store: while running errands after work or before their weekend grocery run.
And while legal cannabis is an everyday part of life here, one might be shocked to learn that it took the state much longer to come around to hemp. The state had no problem breaking federal laws when it legalized cannabis eight years ago; and it turned out very lucrative: In 2018 alone, the state’s total retail sales of cannabis hit $1 billion, when the state collected $362 million in cannabis excise tax in the 2018 fiscal year; then in 2019, total retail sales hit $1.1 billion, with $387.6 million in excise tax. Washington’s cannabis market was projected to hit $2.1 billion in 2020.
The Green Rush of the 21st Century boomed with WA, & CO to join CA in allowing recreational marijuana in 2012.
But yet the state waited until the 2014 farm bill to pass legislation to allow for the planting of some 180 acres of hemp in 2017, and this was all under the umbrella of the Industrial Hemp Research Pilot program, which allowed for only the licensed “research”of hemp in the state.
Finally, earlier this year, almost two full years since the 2018 farm bill was passed, which legalized the cultivation and selling of hemp at the federal level, Washington state repealed and replaced its pilot program with one that allowed for people in the state to become fully licensed to grow hemp.
Of course this approach to regulating the state’s hemp industry likely stems from the nature of the national hemp industry, the market for which is not limited to a single state and up to state laws like cannabis. In other words, a hemp producer in Washington doesn’t have to rely on consumers solely within the state; now that hemp is legal federally, and no longer a Schedule I drug, the producer can ship its product all over the country regardless of where it’s grown.
However, if the Washington state hemp growers want a piece of the hemp-derived CBD consumer products market in the U.S., which is predicted to be worth anywhere from $6 billion to $7 billion in the year 2025, then Washington state will have to catch up to the other states that are taking a bigger market share, ones like Kentucky, Montana, Colorado and North Carolina that are producing and selling much more hemp. They’ve been doing it longer and have better infrastructure and more efficient supply chains to successfully grow, market and sell this cash crop.
The state should make hemp a major priority much like it has cannabis, that is if its growers want to exploit the huge demand we’ve seen this year for smokable hemp, which Nielsen researchers say will likely total $70 to $80 million in 2020 and could likely grow five times that number by 2025.
Episode 9: Leann Hemenway I Cannabis Banking Product Manager with Herring Bank.
Leann discusses opportunities for growers in the Texas area states to bank with Herring Bank in this rough waters of finance and compliance surrounding the growing Hemp and Cannabis space in the United States. Merchant services are not always offered with Financial providers in the Hemp space so Leann tells us about how to work with them and their partnership with “KINDPAY” .
CLICK HERE TO LISTEN TO THE PODCAST
Herring Bank began banking Cannabis-Hemp related businesses in April of 2019, with the goal of building lasting relationships.
Innovative Hemp Building Operation began in Texas in 2008
Passion met opportunity for Gail Moran in early 2008 when an unlikely candidate for her project – hemp – came into play with an innovative building venture, launching the first US venture of its kind and paving the way for the future of the crop in this industry.
Born & raised in Trinidad, Gail always carried on her affinity for limewashed buildings, romanticizing the construction that stood the test of time and built its own character with it. As she built her career as a general contractor, she placed her focus on using these old world materials and architecture in her own work, falling in love in particular with Mexican inspired buildings 33 years ago when she came to Texas from upstate New York. In her quest to find materials to build an old hacienda-style structure with authentic limewash on the outside, she found a company out of Chicago called US Heritage who specialized in historic restorations and had an extensive knowledge about lime in the building process, which is unlike concrete at all. Being the right person in the right place at the right time the Chicago company proposed a project idea to Gail that they were wanting to launch and being open to their pitch and having the means she undertook the first hemp project led by them in the US.
The Chapel’s Hempcrete Structure coming together as it dries.
At that time other countries in Europe, Australia, and Canada had already embraced hemp as a building material and the US launch required a lot of training and direct help to get the project underway. A restoration company out of Massachusetts aided in guiding the team through the learning experience with all of the different building trades adapting to the new techniques of framing, production and even lack of specialized equipment available. The company out of the United Kingdom furnished the hemp, binder and lime, covering the shipping costs and support to help the project get underway. The team had to rely on the hand-mixed bucket method as their concrete sprayers and pumps couldn’t accommodate the density of this new material, dumping and tamping it into handmade plywood forms to create the 12” thick walls. Being smaller structures, they were able to successfully modify the workflow, however lacking the specialized equipment they had overseas kept them from being able on any larger scale projects and push the innovations to any larger companies. The other large factor that kept the team from gaining any momentum on the hemp project was the unfortunate timing of the market crash that year. With financial institutions not loaning money and businesses folding there was no capital in the market to push the use of hemp in the building industry and the momentum of the endeavor eventually folded to the times.
Gail Moran Pouring the Hempcrete/Lime Base into the Project circa 2008
While Gail and her team had complete confidence in hemp providing the depth and timeless look and quality she sought out, and got positive public response in the symposiums she conducted with it through her Hopewell Project, the idea ultimately had to be shelved as timing just was not on their side in the industry at the time of the project. As the personal recipient of her efforts, the hemp buildings that were constructed on her property in Montgomery, Texas by her all-woman team remain this day to be the first hemp buildings in the United States and remain educational opportunities for the material as it rises in popularity again in this region. In addition to its green properties and use of the shaft of the plant, the hemp in building provides phenomenal thermodynamic qualities, material strength, pest resistant, and eliminates drywall and insulation. Should the industry build and begin to gain the physical means to take on larger scale project, she stands by this material’s potential to bring a new façade to construction.
Gail Moran has proven to be a statement of innovation in both her field and indirectly with education and de-stigmatization in the hemp campaign, providing the means and support to use this versatile crop in yet another way as well as not standing down to seeking out other means to bring a more authentic look to construction. With the introduction to a natural product in building it begins a conversation in authenticity and more positive control over how we view and take on building the world around us, working with what we can produce in our own means beyond fabricating so much of it.
Constructed on her property in Montgomery, Texas by her all-woman team, Gail Moran and the Chapel remain to this day to be the first hemp buildings in the United States
Colman discusses the Hemp Industry nationally and some of the goals that the organization works on each week to work with Washington by fueling the growth of the Hemp Industry. Also how this year was essentially a ramp year for Texas Hemp producers and what we can anticipate for the Lone Star states first full year grow season in 2021. Also many legal challenges regarding the DEA and smokable hemp ban are also discussed. Overall, an informative episode of the Texas Hemp show with our states director.
This episode our guest is President at Texas Hemp Industries Association, Colman Hemphill. Colman is also CEO at Texagon Distribution · an Alternative & Holistic Health Service.
We have been growing ornamental landscaping plants since 1992 and started growing Hemp in April 2020.
Is hemp your primary crop? And what do you produce (pulp, CBD, textiles)?
No, hemp is not our primary crop. Riverside Hemp is currently growing hemp seedlings for indoor and outdoor farmers with a focus on CBD varieties.
Do you offer any specialty products you would like to talk about (organic body care, construction materials)?
We are not producing any specialty hemp products at this time, but we are researching all possible outlets.
Can you describe your growing/processing operation?
The growing processes at Riverside Hemp are organic methods and indoor greenhouses for the highest quality consumable CBD products.
What are your hopes or expectations for the future of hemp farming?
Our roots run deep in Texas Agriculture. We want to see additional avenues that will help our local ag families thrive.
How have the challenges you encounter every day helped you become a better farmer?
We have been growing for 28 years. You learn from your mistakes and you grow everything with a scientific and methodical approach. Look for the best varieties in your region and through trial and error you figure out what doesn’t work. The Hemp industry isn’t any different. Always set yourself up for success.
Has growing hemp presented any special challenges?
There haven’t been any unique challenges in growing our hemp seedlings, but there is always something to learn when producing a new crop.
Do you find hemp farming a more rewarding endeavor than your ornamental landscaping business?
It is not more or less rewarding than our ornamental plants for landscaping. It is definitely different. It is exciting and an honor to be making history with Texas.
What were the major steps involved in adding hemp farming to your operation?
The major step was updating greenhouses to be better suited for hemp plants, as well as additional security. We are also very strict on sanitation stations before entering to keep the most sterile environment for our plants.
Texas was not exempt from the hemp propaganda of the early 30’s and leave it to hemp historian and grower, Les Stark, to unearth the truths of one Rio Grande Valley man whose story was lost to the times, a pioneer in the crop lost too soon – the story of George Trout.
Recognizing the golden properties of the sandy loom soil of South Texas and that synergy of the Gulf current breezeway that spun into what had the potential to be the new Indus River Valley, Trout invested a great deal of his own money into a major grow operation and plans for a decortication plant outside Raymondville with campaigns to grow heavy and hard in the area once production began. While the potential of this new crop excited many farmers and citizens who shared Trout’s innovative views of the industry for the lone star state, it didn’t come without resistance.
At the foot of an agricultural and industrial revolution the naysayers – those buying into the widespread hysteria fabricated for it’s demise, born from the threats the mass potential of hemp was having on other industries – did everything in their power to put a cap on it’s growth and sweep the truths under the rug along with the individuals trailblazing it’s way and this absolutely included the endeavors of this Texas man.
The introduction of this quick-to-thrive cash crop was met by immediate demonization and media misrepresentation, pushing all of Trout’s endeavors into the flames with falsely reporting it as a mass marijuana growing operation. Mass resistance began mirroring the mass excitement Trout had worked so hard to build with not only his grow experiments but his conventions with other innovative minds in the use of this wonder crop. With the headlines quickly changing minds outside these circles, a gubernatorial-led ban on hemp immediately followed leading to Trout and other Texas growers having to destroy their crop under the new narcotics laws.
The history of 1930’s cannabis propaganda is nothing new but why do we not know George Trout by name? His identity seemed to quickly disappear with the crop itself and this is where Les Stark’s research into the life of this Texas pioneer has uncovered another plot within.
Underlying systemic issues were brought to light in the firsthand accounts Stark was able to cross reference uncovered news articles with. Alongside Trout’s $100k investment into his endeavors he also invested in educating immigrant and ethnic minority workers in the trade, an action that challenged the racism of the time and most likely aided as a catalyst in the demise of his investment. Personal accounts told much milder truths to what was reported in the media surrounding the seizure of the crop by Texas Rangers and sadly Trout died just a short time after that occurrence, on his way to plead his case to federal legislature and ironically on the same day the Marijuana Tax Act was put into effect, never having had his story truly told. His name briefly resurrected in 1942, when hemp was revisited in Texas following the Japanese invasion of the Philippines – the US’s overseas supply house – but still not to the level of recognition that his efforts deserved in Texas history.
Les Stark pieced together the past to tell George Trout’s story for the future – the future of the industry he began nurturing far before it’s time to shine and as we embark on this new generation of growth he reminds us to take this account and learn from it, embrace the truths and draw out the same visions that this pioneer brought to light nearly 100 years ago. Take the time to further honor George Trout as he planted the first seeds for this state’s hemp efforts and thank Les Stark for his in not letting this story fade into the historical misrepresentation of this crop.
Smokable Hemp Ban in Texas, Temporary Injunction Granted – Win for Texas Manufacturers, Processors & Retailers and this weeks show we featured two of the States attorneys that are leading the charge to keep smokable Hemp here in Texas for retailers, growers,processors and of course consumers. Chelsie Spenceris a cannabis and hemp attorney. She is a founding member of Ritter Spencer PLLC. Chelsie practices in the areas of medical marijuana and hemp and represents clients across those industries for their business law and compliance needs.
Lisa Pittman – Lisa is Co-chair of the Cannabis Business Law practice. A leader and authority in the cannabis industry, which includes state legal marijuana and federally legal hemp, Lisa was recently appointed to be a Nonresident Fellow at Rice University’s Baker Institute for Public Policy as a member of the Drug Policy Program. Lisa also was appointed to the Texas Department of Agriculture Industrial Hemp Advisory Council, a role that provides her insight and influence on the regulations for the Texas hemp program, with the goal of propelling Texas to be the preeminent producer of hemp in the United States.
On September 17, 2020, Travis County Judge Lora Livingston ruled on a request for temporary injunction in a lawsuit filed by manufacturers and retailers of smokable hemp products in Texas. The injunction sought to prevent the State from enforcing its new regulations banning the manufacture, processing, distribution, and retail sale of hemp for smoking. The temporary injunction was partially granted, in that smokable hemp product businesses may carry on without facing penalties or fines under the status quo as it existed prior to the August 2nd effective date of the new rule – at least until the final trial on the merits set for February 1, 2021.Grinded weed shaped as Texas and a joint.(series)
Interview of Texas Agriculture Commissioner Sid Miller
By Lisa L. Pittman, Texas Hemp Advisory Council Member
THR: What impact does the first Texas hemp harvest have on future grow operations in the Lone Star State?
SM: Well, where we start is not necessarily where we are going to finish. We’ve got a lot of producers signed up, but it’s a lot slower start than we anticipated—one, there was a drop in price, which held a lot of the farmers back, then of course, the day we launched, on March 16th, is about simultaneously when COVID-19 took place; I think a lot of people were a little trepidatious about that, but we do have a lot of farmers signed up—Samplers, all the different licenses, we’ve got good action, whether it be lot permits or producers or processers, we are doing pretty good.
THR: How has the processing of those licenses and permits gone so far?
SM: The Legislature gave us a 60 day turnaround time to process the applications. I think we averaged about 10 days. Most of them went off without a hitch. There were just a few, a handful that didn’t quite fit our template for the application, like having 12 or 15 owners that wouldn’t fit on the application, so we had to hand-walk some of those through, a few other things, but for the most part I was very pleased with how smooth it went off.
THR: Especially with your employees working from home, right?
SM: Yeah, we changed and working from home, of course, we had zero staff and zero money to get the program up and running, which was a huge challenge. The Legislature didn’t give us any appropriations or any FTEs to start the program. Now we have some funds coming in from the sale of licenses, which we can use to back up our personnel and get some of that allotted time paid, but starting with nothing and doing everything is tough, but we managed.
THR: I bet, about what percentage would you say has been recovered or recouped so far?
SM: Well, probably zero. The Legislature allows us to raise $750,000, which we may do, but the Legislature gets the first quarter million—they get the first $250,000 and keep it. So, we are still working for free. What I am having to do is borrow from other programs and use personnel in hopes that we can pay that back once we get enough of the licenses sold, which we are getting pretty close to.
THR: Where do you see the opportunity for Texas growers headed compared to other states that started earlier?
SM: Well, we are behind a little bit. We are starting about four years late—a lot of the other states are operating on the 2014 Farm Bill—they don’t have to go through all the hoops and the sampling is different and a little less stringent and a little less oversight. Everyone has to be on the same page—the 2018 Farm Bill comes at the end of October. We are sort of blazing a trail. I think we are one of the first, if not the first, to actually implement the hemp program under the 2018 Farm Bill. We didn’t have any problem getting our plan and our Rules approved. They flew right through, so we are pretty proud of that, we are rocking and rolling and it’s running pretty smooth actually.
THR: Well, maybe in the long run we will be setup for success then under the 2018 Rules.
SM: I think so. We are going to be far ahead of the other states that haven’t switched to 2018. They will still have to rewrite their Rules and adapt and change, and all that. We don’t have to do that. We are up and running, so I feel good about that.
THR: Is there anything Texas can do to improve its laws to economically benefit retailers and growers during the next Session?
SM: You know, I’m not a big government guy, but right now, we’ve got zero field personnel and zero samplers. Since we don’t have any funding, I think the Legislature should address that. If we don’t do any inspections, if we get a complaint, I guess we will have to send someone out. I don’t have any personnel to do that, so the Legislature could probably improve the lack of oversight. We could probably do a better job if the Legislature would see fit to make those allocations.
THR: Do you have any comment on the ban on the manufacture and sale of smokable hemp?
SM:You know, I disagree with that. It’s a huge market. Banning Texas producers from selling and processing smokable hemp does nothing to curtail the sale of smokable hemp. Other states are going to be selling it and our people are going to be buying smokable hemp from out of state suppliers, so it really doesn’t slow it down any at all. It just puts our growers and processors at a disadvantage.
THR: Has the TDA noticed a decline in AG Markets/Commodities since COVID-19 started affecting our economy?
SM: We had some backlog in the meat industry where the virus broke out in the packing plants, and it shut down production which backed up a lot of the animals in the feedlots, and the poultry, the pork, but beef was the one that suffered the most. We have just about worked through all of that now—we are back up to 95 to 99% capacity, but we still have a lot of cattle that are backed up to feedlots that we’ve got to process. It’s still a depressed market there.
I sent a letter to President Trump and William Barr at the DOJ demanding a full investigation. Consumers are paying record high prices for beef and the farmers are receiving low record prices on their end. A farmer was losing $500.00 on a steer, and a packer was making $2500-$3000 on that same steer. They are looking into that. There is going to be a full investigation, which doesn’t affect the hemp business other than a lot of people that are growing hemp are also in the livestock business.
THR: How have President Trump’s recent direct payments to farmers impacted Texas so far, and how much has been sent?
SM: Well, we don’t have those numbers because it’s still ongoing. There’s still money left. They just recently extended the date on the application; I think until August 31st. So there will still be more funds going out. We don’t have a total on that. But it certainly helps. Farmers, you know, we really don’t want a handout. What we’d rather have are good markets and a free market system, but we are appreciative of that because we don’t want to go out of business and lose the family farm.
THR: Right. Have any official testing results been submitted yet on hemp crops and, if so, have any tested “hot”?
SM: Well, we’ve got a few samples, we’ve had 20 requests for sample manifests, and I think a dozen for transfer to actually move it off the farm [as of July 7, 2020]. I don’t believe any of those were “hot,” which is great news, but it’s still early—we have so far 921 producers, which is good. We only have 405 lot permits, so apparently these producers haven’t registered all their fields yet, planting is still going on, not all the fields are planted. But we will get there. We should have at least, if every farmer only has one field, we should have over 900 lot permits and many of them will have two, so we could have 1,500 to 10,000 lot permits, and we don’t right now—it’s a moving target—the permits are still coming in every day. I don’t have the acreage added up on that, but we will get that in the near future. We will have an acreage count.
THR:How much longer do the farmers have this summer to plant? When will be the next opportunity?
SM:We’ve got probably more acres in greenhouse operations than we do field operations, so those plant year-round—planting never stops—there’s not a season when you control the climate and the environment. This is a 90-day crop—a 60-day crop if you are just doing fiber. So we could still have the farmers planting, especially if they use transplants, or seedlings, which a lot of them do, actually planting up through the end of July, first of August… they’d still have time to make a crop.
THR: What can industry stakeholders do to better help the industry?
SM: Well, we just need to keep educating the public. You mentioned the smokable hemp, there’s really not any harm in that, but what people thought was “dope” or “weed” or the equivalent to, which it’s not, it doesn’t have the THC in it, so I think a public education program, we’ve still got some work to do there, but there’s been so many people helped by the CBD and CBG that the word is getting out that this is a very positive crop, it’s not a bunch of pot smokers bending the rules to grow marijuana, but it’s a legitimate crop that has many legitimate purposes, besides the oil, which is great, but the fiber has a lot of applications, too.
THR: Of those legitimate products, which products do you see Texas becoming a leader in? Is it fiber, or what about some other sustainable products as well?
SM: I think we’ll be all of the above…Texas is such a big state, a diverse state, we’ve got such a good growing climate, we’ve got a variety of soils, got a lot of good farmers here, basically have plenty of farmland, we’ve got a lot of greenhouses here, so I would say in five years, we’ll be if not the leader, one of the leaders, in the CBD CBG production and the fiber production.
THR: What needs to happen for the industrial supply chain to be built out in Texas?
SM: Well, we need more processors, we need buyers for that. The farmers, if you tell them they can grow a crop profitably, they will grow the world level with it—they will produce so much of it you can’t use it all, and that’s usually what drives the commodity prices down, so we need more processors for the fiber at this point.
THR: What can we do at the State to attract those businesses to come to Texas and invest and build those facilities and manufacturing plants?
SM: Basically, there’s not a lot left to do—we are already doing everything right already, that’s why so many other types of businesses now, including the hemp processors and distributors, will be coming to Texas. We have a very favorable business climate—no state income tax, low and predictable regulation, we are not a litigious state, we don’t just let the lawyers run crazy suing everybody, we’ve got a good labor force, everything you need for a successful business—that’s why so many people have moved here.
THR: What are some companion industries in Texas that people can apply their skills and resources toward hemp such as construction, technology, refining, medical?
SM: Well, that’s yet to be seen. We don’t really know what those industries are going to be or how they are going to take off. It depends upon the people conducting in those industries. It might be fiber for concrete, it may be fiber for cloth or material or paper or construction materials. At this point, we don’t know what we don’t know. But when we get up and running, we’ll find out.
THR:The hemp industry was soaring when the Farm Bill was signed, and Texas subsequently legalized hemp. Since then, wholesale prices have plummeted, and many are still trying to sell their 2019 crop. Now, 2020 crops from more states are coming online. Apart from having a buyer before you plant a seed, what advice do you have for people getting into this industry?
SM: Well, the first thing I would recommend to somebody that’s wanting to get into this industry, is go to the Texas Department of Agriculture’s website (texasagriculture.gov), I’ve got two very informative videos there—one is about getting into the hemp business, what you need to know, how you need to do it, what are the pitfalls, what are you up against. And then there’s a second video with a little more intel that we require farmers and processors to watch before they get a license. So at least watch the first one, if you’re thinking about getting into hemp, and then if you still want to get into hemp, watch the second one. If you still don’t have your questions answered, I have about 13 pages posted of frequently asked questions about the hemp industry and I think we have just about covered everything. All that information is available at your fingertips, 24 hours a day, seven days a week, 365 days a year.
Lisa Pittman for THR: Very good, thank you, Commissioner. Do you have any other last words?
SM: This is going to be a good industry. It’s been interesting to set up a new industry that we are on the ground floor of in Texas, and we’re helping to shape and mold that, and we just try to get as much input as we can—that’s why I have my own personal (it’s not state-mandated) Hemp Advisory Council, which I’m thankful that you serve on that, and you’ve been in on those meetings and I appreciate the direction and the input from all of the members of that which represents a big cross-section of the industry—whether it be grower, processor, or a testing lab, or transportation or law enforcement, we have someone from just about all of those areas that the hemp industry touches on that Council—we’ve got every aspect of the industry represented, so that’s been very helpful.
THR: Well I sure have appreciated serving on it, and I look forward to our next meeting.
What we Know & What we’ve learned. Growing Awareness with Law Enforcement
As the legalization of cannabis continues to take shape in the state of Texas, licensed growers are slowly finding holes within the system where further educational opportunities can be implemented, and often times it comes in the package of trial and error. Grassroots initiatives are moving in to bridge the gap and bring a wider spread awareness in response and the greater independent industry is recognizing that they only way to combat these growing issues is through transparency of sharing their stories and coming together in the wake of positive change to keep this forward growth moving.
A recent case currently under litigation in North Texas has brought to light some room to educate both law enforcement and growers & transportation services to be cognizant of the laws and licensing put in place to run legal operations and avoid unnecessary conflict due to unpreparedness, especially going into the first harvest season here in the state.
Red River Management Group wants to take their recent experience and share it with the public to cultivate a conversation around both the awareness and changing the perspective of grow operations & transport as this long stigmatized crop becomes more commonplace in interstate transport. The group is a hemp farm just north of Dallas in Bell, TX that provides starts, premium biomass and flowers to Texans, partnering with a curated network of premium partners in the hemp industry to insure dependability management in mitigating any risk involved in the operation. This recent incident, however, spurred the need for their own mitigation when their transport that was in full legal parameters was illegally seized and destroyed despite presentation of their licensed permits to manifest the hemp plants and product for transportation. Ben Von Kennel, CFO of Red River, was directly involved in the incident and wanted to share his case with Texas Hemp Reporter to peacefully encourage education for law enforcement on these issues as well as growers and transportation services in their preparedness and full knowledge of their rights and laws to present to their case should further events like this arise.
One of Red River’s clients required a very specific genetic match for their order and this request could only be filled by one of their partners in Colorado. After flying into Denver, picking up the product and starting the drive back to Texas, Ben was pulled over in Dumas, TX for a minor traffic infraction just before reaching his stopping point for the night. Already a proponent for preparedness – something he advocates to all levels of the hemp operation – he had what he calls his “pull over package” on hand and presented to the officer. This contained every piece of legal documentation and license involved in both their business and this specific order – producers license, handlers license, nursery license, bill of lading, COAs, shipping manifests and invoices – in addition to a negative COVID-19 test just to cover all bases of comfort in these times. Despite this extensive package of documents and his full cooperation on all parts, his delivery of over 1,000 plants and CBD flower were confiscated as he was released to his hotel for the night awaiting his appeal to have all of the paperwork verified and reclaim his property the next day. Upon returning to the Moore City Sheriff’s office to what he expected to be a rectification of the situation, he learned that all of the seized assets were already destroyed for testing.
What was ultimately lost in that shipment was of much more value and further reason to broaden the education on the full spectrum of all the cannabis industry provides. The specific genetics those plants carried was a CBG strain methodically created for ovarian cancer research that their client was undertaking and what resulted in, financially, an $80k loss but obviously much more in what the potential this plant has for the greater evolution. In addition to seeking financial reimbursement, Ben von Kennel just wants to “move forward hand in hand, arm in arm with law enforcement so this doesn’t happen to anybody else, “ and raise awareness that even though we are making strides in bringing this crop and it’s benefits to Texas, we still have a long way to go to educate the public as well as the industry itself.
Awareness lessens assumption and many grow operations are taking the initiative to invite local law enforcement to their farms to introduce to them firsthand what they do and how they legally do it to help aid the flow of the entire process. Adrian Garcia of Garcia Brothers Organics in Big Spring, TX took this proactive approach and sent out a letters & invitations to his local law enforcement to have them come out to their farm and see their licenses and learn about the process firsthand. While Texas battles an added level of conservationism on top of the long-standing stigma against cannabis itself, these fully transparent educational experiences still aren’t always immediately embraced, but the conversation is started and that seed is planted in the operation of widespread awareness. Garcia even experienced an additional benefit to his efforts when his local PD and sheriff’s department extended their own offer to support him with additional security measures should he need it when his crop began to flower. This extension of aid on both sides of the matter is what will change the course of the approach of how this crop is handled going forward.
Red River hopes to join forces further with the TDA to help advocate education “the more people are informed, the more you are ahead of it, the more you are out there, the less a situation like this will happen again.” In addition to the hopes that additional hemp programs will be implemented to equip law enforcement with what they need, Red River is adding in more pathways in their own day-to-day measures to ease the process of providing any and all legal documentation they can by investing in their own onsite testing machine in their greenhouse.
The goal is no division, an all-inclusive legally run operation that will build this state’s commerce and provide so much more for Texans long term. Along the way we’re reminded that we must also nurture awareness and continued education and be open about it all to move forward and use this industry to its highest benefit to all.
Herring Bank began banking Cannabis-Hemp related businesses in April of 2019, with the goal of building lasting relationships.
Herring Bank is a privately-owned Bank, based in Amarillo Texas. The Bank opened in 1899 and has been owned by the same family since its inception.
Since 1899, Herring Bank has built all of its business on the platform of developing “Relationships for a Lifetime.”
Prior to providing banking services to the cannabis-hemp industries, we spent a significant amount of time attending Cannabis related conferences, seminars and other events in order to learn as much as we could about the cannabis-hemp industry and their banking needs. We learned a lot about the challenges that businesses were facing in maintaining banking relationships and services, as well as, the costs the industry was incurring for their banking needs. Herring Bank realized that this industry was in desperate need for basic banking services.
One of the most important things we do at Herring Bank and in banking the Cannabis-Hemp Industry is to know our customer. During the initial on-boarding of a Cannabis-Hemp related business we follow regulatory guidance by collecting information related to the business, business owners, and identify how they are related to the cannabis industry.
Starbuds Dispensary owner, Sher Joudeh, has been banking with Herring Bank since the bank started banking cannabis-hemp related businesses. According to Sher, “Access to banking with Herring Bank has been critical to the operation and expansion of our cannabis business. With the ease of online banking, bill pay, wire transfers and normal banking abilities, it has been revolutionary in our cash management and cash handling. Banking with Herring Bank has been great, their staff is helpful, and their customer service is impeccable.”
With the legalization of Cannabis-Hemp from farm to table in some fashion in more than two-thirds of the United States and minimal financial intuitions banking this industry, Herring Bank wanted to step up and help make a difference.
We identified there was a huge lack of banking opportunities and access to other financial services which poses both an economic threat and a public safety threat. Simply having a business checking account at Herring Bank helps these businesses put their cash into a bank where it is safe. These businesses can now pay their bills, taxes and employees with a check rather than cash. They also have the ability to use online banking, debit cards and originate wire transfers to pay vendors.
All in all, by opening our doors to this industry, we have helped make this industry safer for both the business and their staff.
*Herring Bank is a privately-owned Bank, based in Amarillo Texas. The Bank opened in 1899 and has been owned by the same family since its inception. Herring Bank is a community bank that with 12 branches in three states, (two in Altus Oklahoma, 1 in Colorado Springs, Colorado and 9 located in Texas.
As the state transforms into a whole new level of industry pride with the Go Texan campaign now embracing a ‘Grow Texan’ one, partnerships within the developing hemp industry are cropping up. Bayou City Hemp is one such company leading the way in Texas, becoming one of the original vertically integrated extraction companies for the crop and bringing the highest quality, most reliable cannabinoid products to consumers in the Lone Star State.
Rooted in the energy sector, Bayou City Hemp pairs its knowledge of working in a volatile industry with mirroring the strict regulation standards of oil & gas in the production of Texas’ newest commodity. Backed by a strong board diverse in their experience within that industry, coupled with a deep history in farming, co-founders and CEOs Ben Meggs & Jeromy Sherman recognized the need early on for a full scope analysis of the industry’s supply chain and used their background in the related sector to pinpoint the areas requiring attention to strengthen the cycle from farmer to consumer.
As strong proponents for the medicinal side of hemp and its derivatives, Meggs & Sherman followed the 2014 Texas hemp pilot programs very closely and entered the retail side of it with their acquisition of the Dallas-based CBD retail brand Leaf Life Wellness – a high-end, thoughtfully-formulated skin care and health & wellness line, found both online at leaflifewellness.com and at local and national retailers. The brand is evolving to feature Texas processed oil with Bayou City extracts and stands as a product of their vertically integrated system which will help accelerate the growth and awareness of all Bayou City Hemp can provide as the market rapidly expands in the state.
With their goal of seeing the placement of Texan grown & processed hemp on Texas shelves, Bayou City has formed strong relationships working with hemp farmers in other states learning the growth process and translating it to the local front preparing them for the inaugural harvest this year. As industrial hemp has not been grown on Texas soil since the 1940s, the 2020 crop serves as more of an initial research & development harvest and is not projected to be a large-scale operation for the first season. However, going forward they will be gearing up to receive harvest from farms ranging in size anywhere from 5-40 acres. While advantageous to work with farms of scale, Bayou City Hemp will work to do everything in their power to help any size Texas farmer growing a quality product in the supply chain.
Return of the purest product possible is Bayou City’s intent, striving to be the gold standard in the industry for high-quality reliable hemp product. They have implemented a full scope of services to do so, catering to the farmer from the start of the process. Their software platform allows the farmer to track the progress of the crop and once harvested & dried, the biomass is transported to their facility. Through in-house testing capabilities as well as third party testing agencies, Bayou City Hemp ensures there are no pesticides and that the hemp is within legal parameters for acceptance in the state’s production standards. With the all-natural CO2 extraction process, the farmer’s oil is turned into crude oil, distillate oil, or an isolate powder then returned to the farmer or further refined into a customized product.
As the cannabis industry is still in its infancy, little regulation lies in the production & extraction process. Conditioned in the strict regulatory environment of the oil & gas background, Bayou City Hemp strives to provide a framework and regulations that will help shape the industry and provide a consistent quality product. They are currently in the works to have the facility CGMP, organic, and kosher certified and prides itself in opting for a supercritical CO2 extraction process over the currently-favored ethanol based one. CO2 extraction produces a superior product and is projected to become the preferred industry method. This process eliminates the cross-contamination seen in ethanol-based methods and ensures the purity & consistency in the product. The waste material – raffinate – then is a clean product and has potential as animal feed or soil remediation material over the toxic alternative that ethanol produces.
Just ahead of the inaugural harvest of hemp in Texas, Bayou City Hemp is already making headway in the industry with their solid infrastructure and transparency of that process to educate farmers and other industry leaders along the way to advance the positive growth in hemp. These collaborative efforts within the trade, from other more established states to that of the intrastate supply chain, helps bridge the gap of uncertainty in this field and nurture it together as Texans.
CBD Extraction is currently illegal in Texas, however over 400 farms are licensed to grow industrial hemp and many don’t know where their crops will be processed this year. Here is our analysis of Texas draft laws to regulate Consumable Hemp Products (CHP’s) that were last month. Texas Hemp Harvesters Association (TXHHA) provides Texas’ Hemp industry with unbiased, actionable education, plus members have access to a robust network and cutting edge intel!
Department of State Health Services (DSHS) was tasked by the state legislature to develop rules that oversee the processing, manufacturing, distribution, and retail sale of CHP’s intended for human consumption. Hemp seed and hemp fiber processing are regulated by Texas Department of Agriculture (TDA) and are considered ‘non-consumable hemp products’. A few things need to happen before extraction facilities and retail stores can apply for licenses. The countdown began when DSHS published draft rules for HB1325 in the Texas Register May 8th, triggering the mandatory 30 day comment period. After all comments have been reviewed the final language will be adopted into law, releasing license and registration applications sometime mid-July.
Undoubtedly the most controversial component of the interim rules is the unilateral prohibition of smokable hemp. Many feel this is an overstep of legislative intent which prohibits manufacturing and distribution in HB1325, however DSHS has added ‘distribution and retail sales’ to their one sentence ruling on this topic. This prohibition has been loudly criticized since its inclusion in the initial draft rules last October, sparking public outcry across the state. There are potential workarounds such as removing the word ‘smoke’ from labels…thereby removing the intent. Keep in mind, the sale of raw hemp flower for other purposes remains legal.
Businesses planning to process, manufacture or distribute CHP’s are required to license each facility including storage sites. The license application requires basic business information, a fingerprint criminal background check, GPS location, and $250 fee per facility for the initial license. DSHS anticipates a 45 day review process for applications.
Although existing retailers are allowed to sell CBD and CHP’s, once these rules are finalized businesses must register with DSHS prior to possessing, transporting, distributing or selling their existing inventory. Full responsibility for compliant products falls to the retail owner, including testing products with non-compliant labeling and providing samples for random DSHS inspections. Employees and independent contractors working for registered retailers do not need to register independently. It is unclear how long CBD shops will have to register with the state after the law becomes effective.
Both licensees and registered businesses are required to keep test results for a minimum of 3 years. Testing is required for all ingredients to determine the concentration of cannabinoids, THC, and harmful residuals. Accredited labs holding ISO 17025 certification can issue a final Certificate of Analysis (COA) which must be provided to DSHS upon request. Products containing tested ingredients do not need to be retested provided the label has a URL and QR code which include all COA’s. This applies to products manufactured in Texas and those imported from out of state.
Enforcement has been left somewhat vague, noting penalties will be assessed based on compliance violation. Packaging and labeling must conform; any products that are adulterated, misbranded, or otherwise violate health and safety codes will be tagged. Violations will be written and sent via certified mail, stating the summary of alleged violations and penalty amount. Owners will have a 20 day response period and are allowed to request a hearing.
Overall “the proposed rules will positively affect the state’s economy and are anticipated to expand economic opportunities for individuals interested in the manufacture, processing, or retail sale of consumable hemp products.” states Donna Sheppard, CFO at Texas Department of State Health Services.
Texas Hemp Harvesters Association is committed to building a responsible hemp supply chain in Texas, something that does not exist today. Join Now! By becoming a member you receive insightful, actionable education and have access to the largest legal hemp network in Texas. Get connected to your regional supply chain through TXHHA today!
As the popularity of CBD (Cannabidoil) grows, so does the question of whether companies will allow their employees to use it or not. In this article we are going to look at some facts and ideas related to how companies can go about not only protecting themselves, but employees from potential pitfalls of not having policies in place pertaining to CBD use in the workplace.
One of the first questions employers ask about CBD, Is it legal? In 2018, the Agriculture Improvement Act of 2018 (aka the Farm Bill) legalized CBD that is derived from hemp and contains no more than 0.3% THC (by dry weight). Notice the key word is CBD derived from “HEMP”, not marijuana. As far as state laws, hemp derived CBD with .3% THC or less is legal in all states with the exception of South Dakota per HB 1191, and with certain exceptions for Idaho Code§ 37-2701(t), and Nebraska LB657. As always, do your due diligence and double check your state laws. But overall, as long as it meets the federal regulations you are good to go in most states.
The next question that revolves around federal guidelines is how does one know if a certain brand of CBD is in compliant with federal and state laws? Well, this is where taking the time to check out manufacturers, labels, and product websites will pay dividends in preventing headaches down the road. There are four main things to look for and should be easily found with a specific product or manufacturer that ensures the product being made is legal and of high quality. Those four benchmarks are:
Where is the hemp grown? Look for hemp that is grown in the United States. U.S. grown hemp has strict guidelines set fourth by the USDA pertaining to growing and the cultivation of hemp. If it is grown in the United States by a licensed farmer, then odds are the hemp meets federal guidelines. Whereas hemp grown in another country… well, who knows what you are getting.
Look for a Certificate of Analysis. A COA shows the results of independent lab testing that checks for things like potency and contaminants. The batch number on the COA should match the number on the product’s label or packaging. A key component to look for on a product label is a QR code. This allows the buyer to download lab results for the product being purchased.
Who and how is the testing done? When it comes to testing, it is always good to have a 3rd party independent testing facility that is doing the COA versus in house. A legitimate third party lab will not have any skin in the game and will give true unbiased results. Labs should meet ISO 17205 standards and have been validated by one of three national regulatory organizations such as the Association of Official Agricultural Chemists, the American Herbal Pharmacopoeia, or the U.S. Pharmacopeia.
Look for comprehensive labels and potency. The label should match the COA results pertaining to the amount of CBD and THC described on the product in total and by dose. One should be leery of any label that is vague in ingredients, dosage, or COA information as many CBD products are found to be mislabeled or completely false. The more information provided on the label backed by a third party COA demonstrates a manufacturer/seller is open and honest with the CBD product they are producing.
Now that we have the Federal and State laws out of the way, what does it mean for a company? As an employer, can you demand or bar your employees from taking CBD? Technically, a business can write just about any policy they want for their business if it doesn’t violate fair standards and hiring. But let me ask you this, how can one with integrity prevent someone from taking an over the counter supplement in their off time that is legal if it meets federal and state guidelines? As of today, there is no test currently on the market to test just CBD. So, you can’t test to see if anyone is on CBD. Since there is no “psycho-active” effect with CBD products no one would ever be “under the influence” of said product. Now what can happen, is someone deciding to take a CBD product that contains the legal amount of THC (which is up to .3%) and potentially test positive for THC on a drug test. Again, this puts everyone in a sticky situation as they did not break any law other than failing a drug test simply because their CBD contained the legal amounts of THC. That is why it is important for people who are prone to drug testing to ensure that their CBD is THC FREE. On a side note, as the employer, you want to ensure that any drug test is THC specific. One of the most accurate tests currently on the market is a saliva swab test rather than some urine tests. (My next article will discuss issues and solutions pertaining to drug/THC tests.)
Here is my thing on that and this is just my opinion as a safety professional for nearly three decades. Since CBD does not negatively affect ones cognitive or physical performance when it comes to doing a task or job, one cannot use the argument of being “under the influence”. I discussed in my last article the positive benefits of CBD and employee performance when CBD is allowed to be used. Can an employer with sincerity and integrity be able to give a compelling argument to not allow employees to use CBD? I can not think of any other than that one nasty word that companies fear the most… liability. Let’s brainstorm on some commonsense options that can be written into policy that could reduce liability to a minimum, yet support the workforce to show a genuine interest in their health and overall wellbeing.
First, whether you are for or against CBD use, an employer needs to have at a minimum a clear and concise policy stating such. Not having one, opens the door to all kinds of issues and confusion when an employee is considering the use of CBD. What if an employer does want to allow CBD use? Depending on the size of the company and number of employees, a policy could be put in place that addresses the issue on a case by case basis. There are several situations health wise where CBD use makes sense and could benefit both parties. Again, there is no “one size fits all” solution and simply consider doing what makes the most sense for the company at that point and time.
If a company is large and wants to put a general policy in place to allow use and dependent on the state, an employer could possibly include a “prescription” or doctor letter clause that would allow CBD use while under the supervision/direction of a doctor or medical professional. That way if one tests positive for something, then all parties are covered. Noticed I said test positive and not under the influence. This clause is common for people that must take certain medications that are classified as narcotics or other drugs that are not normally allowed when drug testing is done within a company. It essentially allows an employee to take such medications when off duty/work or in some cases while at work if needed such as Adderall or Zoloft.
What if a company is in support of CBD use, but is adamant that their employees not test positive for THC? Creating a list of approved CBD retailers and manufacturers could be a viable solution. Yes, it does require a little work and research, but if a company is willing to invest a little time into vetting legitimate and reputable CBD manufacturers, then it benefits their employees with valid and reputable CBD products which would eliminate any potential of said employee testing positive for THC. If an employer was to use the four benchmarks to find reputable CBD vendors as discussed earlier, then a company can create a list of options for their employees that are 100% THC free for them to choose from, so they do NOT test positive for THC.
These are just a couple of ideas that are currently being used now with success. With the rise and legalization of CBD we are experiencing a revolution of sorts that requires educating and adapting to new trends. Over the next few years there will even more potential issues for states depending on if marijuana is decriminalized or legalized at the federal level. We are already seeing states where marijuana is legal having to make important changes to hiring and drug testing practices due to the laws. Since CBD is now legal, you might as well address the issue sooner rather than later and having sound policies in place will save a lot of potential grief not only to the employer, but the employees as well. Whether you are against or for CBD, it is here to stay.
1. IMMEDIATE ACTION NEEDED: Texas Retailers Need Help Regarding Smokable Hemp
On May 8th the Texas Department of State Health Services (DSHS) announced their intention to prohibit the retail sale of smokable hemp products. This rulemaking goes beyond the original bill, Texas HB 1325, which states, “processing or manufacturing of a consumable hemp product for smoking is prohibited.” The state of Indiana included the prohibition of retail sales of smokable products into their hemp law. This language was blocked by the U.S. District Court for the Southern District of Indiana, due to this prohibition violating the interstate commerce clause found in the 2018 Farm Bill. We MUST make a legal challenge to the DSHS misguided rule.
Additionally, you can help by making a comment during the official comment period through June 8th. We can use all the help we can get to send notes or place calls about this issue. Contact us directly if we can help you craft your comment by 6/7/2020 deadline.
Questions about the content of this proposal may be directed to Rod Moline, Ph.D., R.S., Section Director, at (512) 231-5712 in the DSHS/CPD Policy, Standards, and Quality Assurance Unit.
Written comments on the proposal may also be submitted to Rod Moline, Ph.D., R.S., Section Director, Mail Code 1987, Texas Department of State Health Services, P.O. Box 149347, Austin, Texas 78714-9347, or by email to [email protected].
To be considered, comments must be submitted no later than 31 days after the date of this issue of the Texas Register. Comments must be: (1) postmarked or shipped before the last day of the comment period; (2) hand-delivered at 8407 Wall Street, Austin, Texas 78754 before 5:00 p.m. on the last working day of the comment period; or (3) emailed before midnight on the last day of the comment period. If last day to submit comments falls on a holiday, comments must be postmarked, shipped, or emailed before midnight on the following business day to be accepted. When emailing comments, please indicate “Comments on Proposed Rule 19R074 Hemp Program” in the subject line.
2. Thusfar, FDA and USDA have not deemed hemp grain as generally recognized as safe for animal feed (GRAS). This recognition is critical in order for hemp to become a high-volume low-cost commodity for livestock feed.
3. The FDA has neglected its statutory duty to regulate CBD and other non-intoxicating cannabinoids, delaying these products from being allowed into the larger food and beverage markets. Action against the FDA would encourage the passage of the House Agriculture Committee Chairman Collin Peterson (D-Minn.) sponsored legislation (H.R. 5587) that would require the FDA to regulate CBD and other cannabinoids as a dietary supplement.
4. The Federal Trade Commission (FTC) has allowed the illegal censorship and inability to conduct marketing for hemp business and non-profits on social media platforms like Facebook. Facebook policies put hemp business and non-profits at a distinct disadvantage compared to other entities and must be challenged.
By joining or renewing your membership with the TXHIA, you become part of a unified voice for this critical industry and will help ensure the promotion of hemp as essential business.
