"​Hemp Operators Are Just Cartels Growing Delta 8 & Human Trafficking"​ And Other Things Heard At The NIHC Conference

- Oregon State Representative

Amazing isn't it. 8 years into an industry and you still hear quotes like this when hemp is being discussed. Definitely a head scratcher, and shaker for that matter. I think what is most importantly taken away from this quote is the lack of education within the space.

This quote was shared last week at the NIHC Conference I attended in Salem. It was said during a phone conversation with the rules advisory board and shared by one of the presenters.

If a state representative can be so far off base with their knowledge of hemp and its capabilities as a plant, how are we to progress at a reasonable pace? It is disheartening to say the least.

This type of nonsense has effects downstream. The negativity and lack of education around the space on not only the state level, but the consumer level, has led us to a new era in the hemp space. An era where fiber and grain are taking center stage, and cannabinoids in Oregon have gone from 65,000 acres of production down to 3,200 in less than 3 years. Those are pre-2018 levels of production.

At its peak there were nearly 2,000 registrants for production of hemp. Now there are 279, 1/3 of which of said they did no plant this year. That breaks down to about 200 participants with plants in the ground.

These number would indicate that price will be impacted in the coming months. When exactly is unknown, there is certainly still glut of product from 2019 & 2020 sitting in storage. I have visited and spoken to many of these "holders," but the countdown has definitely begun.

Regulation Chatter

On a more positive front, it does seem like there is a strong push to move to 1% THC legislation for the limit currently at .3%. I was happy to hear a lot of chatter about this rule being seriously considered for a change.

Some of you may have heard of the "tier system" for cannabis. In which there are 3 "levels" or "tiers" within the cannabis industry. A tier for high potency, mid potency (1:1, 2:1, etc), and a tier for less potent "hemp" varietals that have maybe 5% or less THC.

The more I think about this idea the more I love it for the cannabis space. It just makes a lot of sense for the stakeholders and the consumers. It feels like the most harmonious way of running this industry.

Right now Big Cannabis' inability to see a reason to allow hemp stakeholders to participate in the cannabis space is holding up rule making and regulations. The #wecannabis mentality coined by a fellow hemp industry participant really needs to be the mentality we use going forth. There is a lot this space can do in a small amount of time if we were aligned.

This alignment would allow for a more robust education initiative, and ultimately lead to more cannabis users who have confidence in their products and their approach.

The NASDA voted 46-3 in favor of the change to 1% for hemp, so there is support.

Future Of The Market

Ultimately people want to know if there is money flowing here and what is that opportunity.

The biomass market has struck from a $5.5 Billion market to roughly $25 Million. This is because the volume and price have shrunk immensely over the past 3 years.

Farms are still reporting that they entered into the space without buyers, and they don't have buyers now. This has certainly been a mistake made by market participants from day 1. It isn't even that people didn't have buyers going in, it is that they didn't have a sales plan going in. This was never going to be a space where people are just showing up and buying your product, at least not long term. Markets change.

The international market is undoubtably growing. Amota has made pathways into mature hemp markets overseas as of late, and it is only getting better. However their strict rules and low potency allowance certainly makes it limited. It is an important area to watch in the coming years.

The market in my opinion is near completing a "full cycle" for the first time in its existence. I believe this is the moment where the survivors have the biggest opportunity to capitalize on their relationships, products, and brands. We've gone through the beginning, the rush, the prosperity period, the glut, the drop, the extinction, and now we are approaching recovery and stabilization.

Congrats to all of you still fighting the good fight, I think the future is bright.