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It’s no secret that cannabis and cannabis-related products are having a moment right now. IF you’ve been thinking about starting your own hemp or cannabis-related business, you have plenty of inspiration to draw from. Depending on where you live, you’re likely to walk into your local gas station and see cannabidiol (CBD) products for sale, or find a CBD vendor in nearly every strip mall. States that have legalized cannabis for medical or recreational use have a booming dispensary industry, and many other businesses are cropping up in support of the main product. While CBD and marijuana are certainly enjoying their time in the spotlight, hemp is quietly continuing to do what it does best, which is, well, pretty much everything. Used in everything from paper to clothing, packaging material, CBD products, and more, this sister plant of cannabis differs from marijuana in that it contains very little THC. THC is the compound that produces the high associated with marijuana, but hemp doesn’t have enough of it to produce a similar effect.
The 2018 Farm Bill legalized the growth, sale, and transportation of hemp across state lines and removed its status as a Schedule I controlled substance, so if you’re interested in investing, the time is now. Although hemp is no longer a Schedule I controlled substance, many cannabis-related products still occupy a legal `grey area” as a result of the differing regulations at different levels, which makes traditional financial institutions hesitant to invest in these businesses. This means that if you’re looking to pursue a loan through traditional banks, you’re probably out of luck. However, there are lenders who specifically deal with businesses in the cannabis industry and offer a variety of financing options. There are five great reasons to obtain a hemp loan.
Reasons to Obtain a Hemp Loan
Profiting from hemp has never been easier
While it’s been legal to grow hemp since 1998, farmers were required to obtain a permit from the Drug Enforcement Agency (DEA), and it generally could not be transported over state lines. With the approval of the 2018 Farm Bill, those regulations went away, meaning states are now able to grow industrial hemp commercially and transport the plant across state lines. By reducing the risk for growers and producers, more hemp can be grown and used in a huge variety of ways. The strength of hemp is well known; more than 25,000 industrial uses are known to exist for hemp fiber, which is extremely strong and resistant to rot and abrasion. With all of these uses of hemp and removal of restrictions on growing it, there have never been more ways to profit from hemp products.The global hemp industry is expected to balloon to 10.6 billion dollars by 2025 – why not get a piece of that for yourself?
We all want to do our part to stop climate change, and growing and using hemp products can be part of that equation. With its many uses in clothing, textiles, and industrial goods, hemp can replace materials that require a larger carbon footprint to grow, such as cotton. Generally speaking, hemp is a hardier plant that requires less water and land to grow and equal amount of fiber; the carbon footprint of hemp is about half of the carbon footprint of cotton.
The CBD business is booming
You might be wondering what hemp has to do with CBD. CBD can be derived from both cannabis and hemp plants, but hemp plants are subject to less regulation at the federal level and most states. CBD products used about 23 percent of all hemp growing in 2017. The CBD market grew by 57 percent in 2018 alone, reaching sales of over 238 million dollars. Grocery stores, gas stations, and private vendors are all getting in on the action, with CBD products offered in liquid, gummy, capsule, cream, and other forms. As the CBD business grows, so too does the demand for hemp, and it shows no signs of slowing down any time soon.
Medical acceptance encourages growth
Part of the reason the CBD business is booming is because the medical community is becoming increasingly accepting of the practical applications of CBD for medical use. Enthusiasts claim that CBD can treat everything from anxiety to gastrointestinal disorders, seizures, and everything in between, and studies even show that the substance may be useful in treating opioid addiction. It’s not only doctors that are becoming interested in the medical applications of CBD therapy; vets are also getting in on the action. Pet owners concerned about treating their animals with traditional medication are turning to CBD to relieve anxiety and reduce pain, and the market is growing steadily.
It’s easy to grow
What hemp is used for influences how it’s grown, but in general, the plant is hardy and easy to grow under the right conditions. As already mentioned, hemp requires less water and land to grow than other textiles, such as cotton, making it an excellent option in drier states and areas that do not have as much available land to devote to farming. When cultivated for use in CBD products, about 1,600 hemp plants can be planted per acre, as they are tended to individually. By contrast, hemp that is planted for industrial use as a textile or other materials can be planted at a rate of about 400,000 plants per acre. With the growing demand for hemp as an industrial material, that spells big money for farmers and producers.