I’m making this topic so maybe the community can spark a decent forum about what everyone predicts the industrial hemp market is going to look like in the next 5 years? Maybe even try to come up with a few ideas why so many farmers have plenty of product but no one to sell too. Let’s get some points going this will be a great topic to run through!
I am working in this area, hemp oil, the bottleneck is refining capacity. Many farmers have product they cannot sell due to excessive THC content.
Most projects are focused on Cannabis, the oil refining is often overlooked as a component of the value chain.
As more refining capacity comes online, you will see these markets open up.
So wholesale buyers won’t touch it until the fda raises the 0.3% thc standard? On top of a shortage on hemp oil refinement facilities?
They can’t buy it and remain under the safe harbor provision.
So it sits in warehouses, waiting for a buyer that can legally take possession, who hold a cannabis license, that can separate the THC waste product off, and then it’s legally saleable as CBD oil.
We are building these facilities now, but, we need more Canna manufacturing facilities to add refining capacity.
I live in Ecuador, since Dec. 2019 Medicinal Cannabis and hemp have just been legalized. I’ve never heard about THC-Refining installations. Could you please point me to more information? Regards,
Is there a loophole there though? How’re farmers able to “legally” get the cannabis to these refinement facilities while they’re still hot? Is there something in the farm bill allowing it?
The farmers are growing high CBD strains, they’re not supposed to be psychoactive.
However, if they do exceed the threshold of THC, it’s such a small amount it’s insignificant to any effect, it can’t be sold as legal CBD oil.
As for holding unlicensed product, I’m not hearing of raids to confiscate gallons of hemp oil, that contains trace amounts of THC.
This site is a wealth of information, look into fractional distilling.
It’s basically what oil refineries do to get gasoline, and similar to separating the sulfur from heavy crude, so to speak.
There are people on this site who know way more about it than I do.
I do the financing piece, so I know what the machines are and generally what they do.
Thanks @solairecapital, will look further here.
To follow up, the facility we are building allows farmers all the options, from crude oil refining, to handling raw product that is either dried and shipped, or it gets frozen at harvest onsite and shipped to the facility in refrigerated trailers for processing.
Sorry gas is made in the tank farms of refineries… from the crude that is fractionally distilled in the columns into feed stocks for other units… various combinations of raffinate/platformate/butane/TX etc are blended from tanks and spheres through a blender to gasoline tanks then pipe lined to metropolitan centres etc… sorry only given a lesson as I have spent 30 years working in a tank farm…lol… that is the simple version to the story…
It is super interesting for me because, in despite the fact that I have been growing and reading for 8 years, I’ve never been interested in large scale production. Thanks for the input!
I can chime in here a bit. I’d recommend reading the proposed hemp rules by the USDA and the website. Additionally, I would share to please comment. There’s only the rest of this month before the opportunity for comment expires. Every day I’m getting calls from manufacturers and growers that are trying to sell their hemp materials. I’m not sure if it’s a manufacturing issue. I have manufacturers that do have bandwidth to process material. My understanding of the new rules, is that anything that is over .5 THC will need to be destroyed. Additionally, all the testing will have to be done through DEA certified labs. Which is going to be a horrible backlog for material. I’ve heard some say that we don’t have the genetics of know that we had prior to when the feds made hemp be illegal. Certainly, there should be some opportunity for farmers and growers to repurpose any hot material. Here in California, cannabis businesses are not allowed to manufacture with CBD oil and sell it in license dispensaries. They can have a separate business in hemp but my understanding is that the businesses cannot co mingle. We are additionally contacted by international sources of hemp. Internationally the market is much more developed. I don’t anticipate prices being very high in the future because there are so many countries for the hemp much cheaper labor and manufacturing. South America, Central America, Africa, Southeast Asia and the Caribbean are all coming online. I’d be looking for opportunities in the fiber market, fiber manufacturing is deftly needed in this country. I saw a grow in the Imperial Valley in Southern California, it was a pitiful field. I think it’s important to make sure that you are matching the genetics with your climate and soil conditions to make sure you. I do get the caveat that I’m not a grower or an economist, but I did talk to a lot of people. Thank you all have a great day to be an interesting ride in the next few years for sure.
It is very interesting! I live in Ecuador, South America, and hemp is now legal up to 1%.THC. I’m writing a project proposal and will share with you the production costs of medical grade cannabis and hemp in my country.
Very interesting @paulcoyote, the world is waking up. Namaste
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