New Emergency Regulation for Cannabis Distributors and Retailers Requires California Cannabis Track-and-Trace

New Emergency Regulation for Cannabis Distributors and Retailers Requires California Cannabis Track-and-Trace

The California Department of Tax and Fee Administration (CDTFA) recently adopted emergency Regulation 3702, California Cannabis Track‑and‑Trace, which requires distributors and retailers to enter the wholesale cost and the retail selling price of cannabis or cannabis products into the California Cannabis Track-and-Trace (CCTT) system. The emergency Regulation 3702 is now in effect.

The Medicinal and Adult-Use Cannabis Regulations and Safety Act and regulations adopted by the Bureau of Cannabis Control (BCC) require all commercial cannabis activity be recorded in the CCTT system. Distributors and retailers that obtain an annual license with the BCC must begin recording commercial cannabis activity in the CCTT system. In addition to the existing requirements, each licensee must now enter the following information related to the cannabis excise tax.

Cannabis Distributors
A distributor is required to enter into the CCTT system the retailer’s wholesale cost of the cannabis or cannabis products that is sold or transferred to a retailer in an arm’s length transaction.

In an arm’s length transaction, the distributor is required to calculate the average market price of the cannabis or cannabis products, which is the retailer’s wholesale cost plus a mark-up established by the CDTFA. The wholesale cost used to calculate the average market price is the amount entered into the CCTT system.

Cannabis Retailers
A cannabis retailer is required to enter into the CCTT system:

The wholesale cost of the cannabis or cannabis products. The wholesale cost is the amount paid by the retailer for the cannabis or cannabis products in an arm’s length transaction and is the amount used to calculate the average market price.
The retail selling price of the cannabis or cannabis products when the product is sold at retail.

For More Information
This Special Notice is intended to give you an overview of some of the requirements for cannabis distributors and retailers and does not address all requirements for the Cannabis Industry. We encourage you to read our online Tax Guide for Cannabis Businesses at www.cdtfa.ca.gov/industry/cannabis.htm.

CalCannabis Cultivation Licensing (CalCannabis), a division of the California Department of Food and Agriculture administers the CCTT system. For more information visit CalCannabis at www.cdfa.ca.gov/is/mccp/ or call 1‑833‑CALGROW (1‑833‑225‑4769) with your specific questions regarding the CCTT system.

If you have additional questions regarding the excise or sales tax requirements, please call our Customer Service Center at 1‑800‑400‑7115 (TTY:711) Monday through Friday, 8:00 a.m. to 5:00 p.m. (Pacific time), except state holidays.

Legalized Hemp & CBD Oil

While President Donald Trump marked the Agriculture Improvement Act of 2018 legitimizing hemp out of the blue since 1970, the enactment doesn’t sanction all types of cannabidiol (CBD), a non-inebriating part of both hemp and pot.

The Farm Bill, which was marked Dec. 20, 2018, and produces results Jan. 1, 2019, will open a conduit of new research and generation of hemp-based items, hemp industry specialists anticipated.

The law expels hemp from its prior status as a controlled substance. Rather than oversight by the U.S. Equity Department and its Drug Enforcement Agency (DEA), the U.S. Nourishment and Drug Administration (FDA) will manage the plant.

For reasonable purposes, hemp will be dealt with like some other horticultural item. The law permits the exchange of hemp-inferred items crosswise over state lines for business and different purposes and allows the deal, transport, assembling and ownership of hemp-determined items — with a few limitations.

Be that as it may, the FDA keeps on directing items containing cannabis-inferred mixes. Under the new law, the cannabis plant characterized as hemp can’t contain more than 0.3 percent THC, which implies it won’t get purchasers high.

FDA will Scrutinize Health Claims

Soon after the bill was marked, FDA Commissioner Dr. Scott Gottlieb issued an announcement affirming the office’s oversight of hemp and aim to look for pathways to legitimize the closeout of CBD in nourishments and different items. Gottlieb likewise pledged to nearly examine items that could present wellbeing dangers to buyers and guaranteed to issue alerts and take requirement activities if vital.

Gottlieb said he is worried about unconfirmed wellbeing claims made about items including CBD and different cannabis intensifies that have not been affirmed by the FDA, for example, guaranteeing helpful advantages. He said that items that guarantee to fix, treat, or forestall infections, including malignant growth or Alzheimer’s illness, must experience broad medication endorsement forms.

Gottlieb said it’s as yet illicit to bring CBD or THC into sustenance items planned for interstate trade or to showcase CBD or THC items in dietary enhancements without FDA endorsement. Yet, he brought up that in June 2018, the FDA endorsed a medication, Epidiolex, containing CBD to treat seizures in two types of uncommon epilepsy.

Hempseed Generally Recognized as Safe

He noticed that some hemp-related items don’t contain CBD or THC, and won’t pull in the equivalent administrative investigation. Gottlieb said the organization has assessed three Generally Recognized as Safe (GRAS) sees distinguishing hulled hempseeds, hempseed protein and hempseed oil as protected. Those items can be lawfully advertised in human nourishments without further sustenance added substance endorsements, as long as makers agree to ordinary FDA necessities and don’t issue unconfirmed wellbeing or treatment claims.

Hemp can be utilized to create in excess of 25,000 unique items and to make existing items more grounded and more sustainable.The three noteworthy segments of the plant are the fiber, grain, and CBD segment. Hemp fiber preparing will offer the best assembling potential, bringing up that European vehicle makers have depended on hemp for a considerable length of time to make various vehicle parts.

Hemp is an economical yield requiring no pesticides or synthetic information sources, is dry season tolerant, and can be developed in various atmospheres.

Cannabis and hemp makers were elated by the legitimization of hemp, however perceived the lawful obstructions confronting CBD items.

For quite a long time American business people have gone to Canada to research and deliver hemp items on the grounds that the plant was adequately restricted in the U.S.

Presently there will be increasingly American institutional cash supporting American organizations that will profit by the Farm Bill opening ways to developing hemp-related organi

California Cannabis Business Information Services

Cannabis Business Information Services

Cannabizfile is the Secretary of State’s online portal for all information relevant to cannabis-related business filings with the Secretary of State. The Secretary of State’s office is the first stop for those seeking to establish a cannabis-related business. The Secretary of State supports California businesses by registering business entities, including cannabis-related entities, and processing millions of filings and records requests each year.

The Secretary of State is accepting organization documents for cannabis-related business entities. Starting January 2018, the Secretary of State will accept filings for the newly created entity type, Cannabis Cooperative Association. Please be aware that filing organizational documents with the California Secretary of State alone does not provide a business with the necessary licenses to conduct commercial cannabis-related activities.

The information provided in the links below is meant to act as a guide for cannabis-related business entity filings with the Secretary of State and as a general tool to help you broadly assess other steps that may be required with other state and local agencies. Information relating to requirements with other local or state agencies is not exhaustive. Click here to access the Cannabizfile Online Portal.

California Cannabis Licensing Authorities Publish Proposed Regulations

State Cannabis Licensing Authorities Publish Proposed Regulations

California’s three state cannabis licensing authorities today announced the publication of proposed regulations in the California Regulatory Notice Register, the first step toward adopting non-emergency regulations. This publication is the start of the formal rule making process and marks the opening of the 45-day public comment period.

Each licensing authority’s proposed non-emergency regulations and rulemaking documents have been posted to California’s Cannabis Portal and can be viewed by clicking the following link: https://cannabis.ca.gov/cannabis-regulations/

The current emergency regulations, adopted by the Bureau of Cannabis Control, California Department of Public Health and California Department of Food & Agriculture in December 2017 and readopted in June 2018, were originally issued through the emergency rulemaking process to meet the legislative mandate to open California’s regulated cannabis market on January 1, 2018. These emergency regulations will remain in effect until the non-emergency rulemaking process is complete.

“The emergency rulemaking process provided an opportunity to evaluate how the rules were working for businesses throughout the supply chain,” said Bureau of Cannabis Control Chief Lori Ajax. “The regulations we now propose include changes that make it easier for businesses to operate and strengthen public health and safety policies.”

The licensing authorities will review each timely and relevant comment received and will respond to all comments in documents filed during the final stages of the rulemaking process, regardless of the method used to submit the comments. Comments may be submitted in writing to each licensing authority or at a public comment hearing. Comments also may be submitted orally at a public comment hearing. Parties interested in attending a public comment hearing do not need to RSVP. No public comments will be accepted by phone.

On June 27, 2017, the legislature passed and Governor Brown signed into law the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) which provided one regulatory framework for both medicinal and adult-use commercial cannabis activity within the state. The state cannabis authorities adopted emergency regulations in December 2017 for initial implementation of the provisions of MAUCRSA and are now using the regular rulemaking process to adopt permanent regulations.

For additional information regarding the release of the proposed regulations, or the upcoming public comment hearings, or to subscribe to email alerts to hear about updates as they become available, please visit the Bureau’s website at http://www.bcc.ca.gov/. For information on all three state licensing authorities, please visit the state’s California Cannabis Portal at https://cannabis.ca.gov/. Follow the Bureau on Facebook, Twitter and Instagram for daily news and updates.

What does 710 mean for Cannabis users, similar to 420

710 is the stoner term used to portray and commend maryjane concentrates, like how 420 is utilized. For quite a while 420 was utilized to depict and commend all types of cannabis, however at some point reasonably as of late somebody chose that maryjane concentrates required their own particular occasion and numerical term, and 710 was picked. 710 was picked in light of the fact that in the event that you flip around the number, it spells ‘OIL’ which is a term frequently utilized when alluding to cannabis concentrates like wax, break, and so on.

What Are Dabs?

I really composed a whole article on this subject, however basically, spots are concentrated types of pot (hash). The most well-known structures are made with a dissolvable like butane or CO2, yet there are different methods for making spots. To peruse my article that is helpfully titled ‘what are spots’ snap this connection here.

Who ‘Developed 710’?

Likewise with most things in weed culture, there’s no real way to know for beyond any doubt who authored the term 710 and connected it to weed concentrates. There are no uncertainty many, numerous individuals out there that claim that they were the ones that began it, or know the individual that did. Such things are about difficult to demonstrate, so as opposed to try and attempt, we will simply say that somebody, at some point in the last bunch of years began utilizing the expression and it stuck.

At the point when Did ‘710’ Become A Stoner Holiday?

Once more, such things are difficult to demonstrate. Nonetheless, I didn’t begin finding out about 710 festivals and it being alluded to as a stoner occasion until 2013. Does that imply that that is the point at which it begun? I question it. I’m certain there are individuals that have been commending it longer than that. On the off chance that somebody has been celebrating on 7/10 before that, vibe allowed to state so in the remarks (which I’m certain there will be many!)

Trump says he is likely to support ending blanket federal ban on marijuana

President Trump said he likely will support a congressional effort to end the federal ban on marijuana, a major step that would reshape the pot industry and end the threat of a Justice Department crackdown.

Trump’s remarks put him sharply at odds with Atty. Gen. Jeff Sessions on the issue. The bill in question, pushed by a bipartisan coalition, would allow states to go forward with legalization unencumbered by threats of federal prosecution. Sessions, by contrast, has ramped up those threats and has also lobbied Congress to reduce current protections for medical marijuana.

Trump made his comments to a gaggle of reporters Friday morning just before he boarded a helicopter on his way to the G-7 summit in Canada. His remarks came the day after the bipartisan group of lawmakers proposed their measure.

One of the lead sponsors is Sen. Cory Gardner (R-Colo.), who is aligned with Trump on several issues but recently has tangled with the administration over the Justice Department’s threats to restart prosecutions in states that have legalized marijuana.

“I support Sen. Gardner,” Trump said when asked about the bill. “I know exactly what he’s doing. We’re looking at it. But I probably will end up supporting that, yes.”

The legislative proposal, which is also championed by Sen. Elizabeth Warren (D-Mass.), would reshape the legal landscape for marijuana if it becomes law.

California and eight other states, as well as Washington, D.C., have legalized all adult use of marijuana. An additional 20 states permit marijuana for medical use.

But even as states legalize, marijuana has remained a risky and unstable business because of federal law making it illegal. Concerns about federal law enforcement seizures have inhibited most lenders from working with marijuana businesses. And investors have also proceeded cautiously.

“If you are in the marijuana business … you can’t get a bank loan or set up a bank account because of concern over the conflict between state and federal law,” Gardner said at a news conference Thursday to unveil the new bill. “We need to fix this. It is time we take this industry out of the shadows, bring these dollars out of the shadows.”

He called it a “public hypocrisy” that the firms are expected to pay taxes yet are barred from participation in the financial system.

A lifting of the federal prohibition also would bolster efforts to create uniform testing and regulatory standards for marijuana, and potentially free scientists to pursue research into the medical uses of marijuana.

Trump’s support could potentially have a major impact, providing political cover for Republicans who worry about being tagged as soft on drugs. Still, the proposal faces a tough road in Congress.

Even though most lawmakers now represent areas where pot is legal for at least medical use — and public opinion polls show majorities of Democratic and Republican voters nationwide favor legalization — congressional leaders have shown little appetite for loosening restrictions. The House is blocking the District of Columbia from permitting sales of recreational pot, even after its voters chose to legalize. A 2014 budget amendment that protects medical marijuana businesses from Drug Enforcement Administration raids is perpetually under attack.

“It faces tremendous head winds,” John Hudak, a marijuana policy expert at the Brookings Institution in Washington, said, referring to the Gardner-Warren bill.

Trump said he is likely to support the federal legalization effort despite a warning against it from a coalition of narcotics officer groups.

“We urge you to see through the smoke screen and reject attempts to encourage more drug use in America,” they wrote in a letter to Trump Thursday.

The marijuana industry continues to be whipsawed by mixed messages from the administration.

In January, the Justice Department sent pot businesses into a panic by rescinding an Obama-era policy that restricted prosecutors from targeting sellers who operate legally under state laws. Sessions warned at the time that any pot business could find itself in the crosshairs of prosecutors — regardless of whether marijuana was legal in their state.

The move enraged Gardner, who said the administration had earlier given him assurances that there would be no such raids, at least in his state. At Gardner’s behest, Trump in April ordered an abrupt retreat from the announced crackdown. Trump made the order without even consulting Sessions, a sign of their tense relationship.

But prosecutors did back off. During this administration, there have apparently been no federal raids or seizures of pot companies for sales that are legal under state law.

“Remarkably little, if anything, has changed,” said John Vardaman, a former Justice Department attorney who helped draft the Obama-era rules, known as the Cole memo, after former Deputy Atty. Gen. James M. Cole, who issued it. “Almost every U.S. attorney in states where marijuana is legal has decided to apply the same principles as the Cole memo,” said Vardaman, now an executive at Hypur, which sells banking compliance software to marijuana companies.

Banking is the area in which the Gardner bill could most help pot companies.

The Senate proposal, and a companion bipartisan measure in the House, would amend the Controlled Substances Act so that its marijuana provisions do not apply to any person or business that is in compliance with state laws. To put bankers at ease, it specifies that such marijuana sales would not be considered trafficking and do not amount to illegal financial transactions.

“The very people you want involved in this market are the ones who have been most reluctant to get involved because of the banking issue,” said Vardaman. “If you address that, you would have enormous beneficial effects for the industry.”

While Trump’s comments were welcomed by marijuana activists, they remain on edge, especially because of Trump’s spotty record at actually pushing legislation through Congress.

“We have seen this president voice his support for a lot of things related to cannabis, but he has done absolutely nothing to move legislation,” said Hudak. “This is just more empty rhetoric from a president who is vague on this issue.”

Gardner is hoping he can persuade more of his conservative colleagues to join the crusade by framing the issue as one of state’s rights. Several Republicans, including Reps. Dana Rohrabacher of Costa Mesa and Don Young of Alaska, are demanding an end to federal marijuana laws that intrude on the states. Their movement is slowly growing in Congress.

“This is a chance for us to express that federalism works,” said Gardner, who like some other Republicans was not a proponent of marijuana but took up the cause after his state’s voters endorsed legalization, “to take an idea that states have led with and provide a solution that allows them to continue to lead.”

Special Thanks to EVAN HALPER JUN 08, 2018 | 2:10 PM of the LA Times for Content Share and Sensiseeds for Media Share

Getting Your Dispensary 4/20 Ready

It’s April, which means that hundreds of dispensaries across legal states will be preparing themselves for the International Day of Cannabis Celebrations on April 20, better known as 4/20.

Historically, this date has been a day of profit for those in the cannabis industry, with sales last year exceeding $45 million across the USA, according to MJ Freeway. We can expect this number to spike with this being the first 4/20 that recreational cannabis can be purchased legally in California.

We’re just a couple weeks away from 4/20, and your dispensary is best to start preparing NOW for the big day to ensure maximum profit. Here are some tips for getting your dispensary 4/20 ready:

USE YOUR DATA

Your POS system and other cannabis trend data can help you predict and prepare for sales trends for specific holidays and times of the year; longitudinal data should be able to tell you what to expect for 4/20. When you go one step further and work with a larger cannabis data analysis firm like MJ Freeway, Headset or Baker, for instance, data will at your fingertips that will help you adequately plan for how much sales you can expect to see on 4/20.

Plug into the data available for recreationally legal cannabis states, to see how sales have been impacted by 4/20, and be sure to take detailed records this year on your sales, sales strategies, and trends you see so to be able to create your own intel for your dispensary on 4/20 to help you in future years.

CHECK YOUR SERVERS

While your POS system operator should be able to assure you of a strong uptime record, 4/20 is not the day that you want to have your servers crash. Whoever your ISP, or whatever POS system you use, do a check in about the increased traffic to servers that day and whether uptime can be guaranteed.

Where able, for days like 4/20 it’s always a good idea to have a contingency plan for if your server goes offline. Is your POS able to run in offline mode? What will be at stake in the event of a server crash, and what can you do with your technology partners to ensure 100% uptime or an offline running plan?

INCREASE INVENTORY & BUILD SALES WITH INTENT

It goes without saying, but you can’t just maintain regular inventory levels on the cannabis enthusiast holiday of the year. Looking back at the MJ Freeway data, in 2017, cannabis sales 4/20 rose an average of 13%, both with more people consuming on that day, and more money being spent each transaction. The average cost of each transaction rose $10 and exceeded the predicted $6 rise in cost per transaction.

Using this knowledge for 2018, and knowing that this year is a giant year for cannabis, what type of increase in inventory makes the most sense? If you know that people bought $10 more per transaction last April 20, how can your dispensary make that extra $10, or $20, or $40 go into someone’s basket? Your pricing strategy on that day should account for the fact that you know people will spend more, giving you the opportunity to use your displays and floor plan, and customer experience strategy to guarantee a profit.

PREPARE YOUR IN-STORE SPECIALS

Your opportunity for customer retention is huge on 4/20, especially when you build in opportunities for customer loyalty within the big day. Give them an offer they can’t refuse to sign up to your loyalty program in terms of the perks you offer for signing on that day. Offer creative pricing, items for $4.20, or any other play on words, numbers or phrases for the event.

This may be the time that you’ll want to freshen your displays to appeal to certain niche audiences who may be coming out in celebration like the fitness community, or canna-moms who appreciate diverse consumption methods, convenience, and discretion. Use a logical floor plan layout to ensure that you get as many people in and out of the space as comfortable as possible without compromising customer experience.

UP YOUR SECURITY

You will be having so many more people come through the doors on the special day. While you don’t need to completely fortify your cannabis store, think about the ways that you can ensure you have a security presence, without compromising the customer experience.

Ensure that you have fine-tuned all the parts of your security plan, from your alarms to employee theft policies, to security staff, to threat detection, to ensuring your safe against cyberhacking will ensure you’re extra safe on the day you don’t want to have any kind of security breach.

ALL HANDS ON DECK

Your budtenders should be adequately prepared and scheduled, in order to run a seamless April 20 at your cannabis dispensary. Ensure your employees are booked in advance and may even have the incentive to work on April 20.

Take the upcoming holiday of green as an opportunity to brush up on budtender training and an overview of ways to increase their professionalism so that your dispensary looks like the well-oiled cannabis retail machine it is. Also be prepared that some new customers who may be new to cannabis may be visiting you on that day, and you should be able to serve their needs adequately.

ENGAGE OUTSIDE THE STORE

Don’t just think about being outside your store – take 4/20 as an opportunity to spread awareness of your dispensary around some of the biggest 4/20 celebrations in your state. Be adequately prepared with marketing materials and swag as well as an intentional engagement strategy to get your store on the radar of some enthusiastic consumers. Be sure you’re abiding by the advertising and marketing rules of your state through these processes; just because it’s 4/20 doesn’t mean compliance isn’t still key.

BE SMART & KEEP COMPLIANCE TOP OF MIND

We leave the most important to last because compliance is the overarching principle of running a strong, stable, and completely legal cannabis business amidst the celebration. While it’s easy to get caught up in the buzz and excitement of the day, your store must be able to demonstrate compliance through every single process of the day while you experience an influx of customers.

By ensuring your POS and data servers are sound, getting your inventory management systems ready for an influx, using thoughtful sales strategies, upping your security where necessary, and being thoughtful about your marketing strategy you can ensure that your dispensary is as airtight with compliance on 4/20, and thus able to consistently demonstrate perfect compliance throughout the year.

ENJOY THE DAY

Most of all, have fun. 4/20 is a great day to just enjoy being in the presence of like-minded people who share a common interest in cannabis. While being a great opportunity for profit, 4/20 serves as a great opportunity to reflect on all the great reasons you got into the cannabis business in the first place.

Join Gay Desert Guide for our TryOUT Tuesday at Atomic Budz!

Food will be served only during the event hrs of 4-6:30 and the menu includes gourmet sandwiches (Tri-tip sandwich with horseradish cream sauce Tapanade, Grilled and sliced turkey breast sandwich with Cranberry Aioli and a French cranberry sweet and sour sauce.) Side dish will be Pasta Salad bowtie pasta, Roasted bell peppers, sundries tomatoes, parmesan, and Italian herbs and spices.

A gift bag worth $420 will be given away.

Check Gay Desert Guide’s Event Calendar for more details.

Tax Time As A Legal Marijuana Business

Many accountants do not know how to handle the disparity between state and federal law and how they impact the approach you take when filing taxes. As a business owner, you may not know what to do either. While it is advisable that you seek out the help of an accountant who specializes in assisting cannabis business owners, it is also important that you understand tax law and how it affects you.

Filing Taxes at the State Level

Because your business is legal within the state or states you are operating in, filing state taxes is pretty straightforward. In general, you are treated like any other business. The biggest concern here is whether or not there are special taxes that the state applies specifically to your industry or the products you sell. Make sure to follow the instructions of your CPA, CFO, or financial consultant as to what taxes apply to your specific location. As long as you understand the tax laws and follow them, all should be well.

Filing Taxes at the Federal Level: Section 280E

The federal government does not currently acknowledge state law regarding substances they classify as Schedule I or Schedule II drugs. This crosses over to all federal agencies, including the IRS. As marijuana is classified as a Schedule I drug, cannabusinesses are required to follow tax code written for businesses that traffic Schedule I drugs.

These businesses file under section 280E. This begins by classifying your income as illegal on your federal tax return. From there, you need to be very careful about any deductions you list.

For most businesses, taxes are paid on net income, which is revenue minus expenses. But since deductions are highly restricted for businesses that are considered to traffic Schedule I drugs, you will not be able to write off the majority of your expenses. In fact, only the cost of goods sold (COGS) can be deducted.

COGS is restricted to the expenses of the production of a product. If you are a cannabis producer, this means the seeds, soil, water, plant food, and whatever expenses are incurred when cultivating or harvesting the plants. While any deduction helps, this leaves much of your expenses ineligible for writing them off.

So, what are expenses you cannot write off? Those associated with distribution, sales administration, management, marketing, overhead, and support. These expenses are things like rent, employee expenditures, accounting, and more. This means that compared to companies in other industries, your tax burden is significant, and it can turn what would be a profitable venture into one that is operating in the red.

Best Practices in Filing Taxes

Under section 263A of the Internal Revenue Code, you can allocate certain indirect expenses to COGS under defendable allocation methodologies. However, this is tricky to do and is better done by a knowledgeable accountant. This will allow you to lower your tax burden somewhat.

You also need to be diligent about tracking expenses by category. If you make legal deductions but do not have solid records backing you up, the deductions may not be allowed. It is also recommended that you pay quarterly tax payments to reduce the risk of penalties.

Until federal law changes, legal cannabis companies will be left paying more taxes than businesses in other industries. However, if you work with a professional accountant who specializes in working with cannabusinesses, you can get the most out of filing your taxes and keep your business profitable.

Thanks to the Marijuana Retail Report for “content share”.

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5 Things To Know About Hemp

#1: Hemp needs a reputation makeover, and fast.

Hemp has been called the oldest domesticated crop. Today, we know that hemp can be very beneficial in providing relief for a long list of health conditions. It is also used in building materials, foods, fuel, rope, canvas, insulation, paper products, clothing, and more. But despite the benefits, hemp’s reputation over the past several decades has suffered hurting consumers and businesses alike.

#2: There is significant international competition for hemp.

In 2017, 19 states grew hemp in the United States for a total of 25,541 acres of crops. While that’s an impressive increase from just one year prior with only 9,770 acres of hemp grown, the U.S. is still significantly behind in the hemp industry compared to other countries.

#3: There are X additional factors crippling hemp’s growth.

While the hemp industry faces a long list of challenges in the United States, there are other critical factors crippling it to take into account. These factors are giving the international competition an opportunity to even further surpass the U.S. market.

#4: Hurdles aside, hemp may be the biggest opportunity in the cannabis market.

Americans purchased $668 million in hemp products in 2016. With over 50,000 products capable of being made from hemp, projections suggest that revenue could climb to $2 billion by 2020. Figures such as that suggest that hemp presents a sizable opportunity for businesses and investors alike.

#5: Certain tools can give you the edge in the hemp industry.

There are already over 1,200 licensed hemp operations in the United States. Developing relationships with these operations during their early stages is vital to creating lasting and profitable partnerships. But gathering leads takes time and resources that you may not have.