Hemp could be the new gold after interest in it peaked over the past few weeks. One Canadian firm, Canopy Growth (CGC), is planning to invest a huge sum in the industry to meet the current and future customer needs. Earlier on, Canopy Growth had announced plans to invest $100 million in New York City for the processing and production of hemp. This came after they obtained their license from the state officials. Canopy Growth has since increased their investment in New York to $150 million, which is a show of confidence in the industry as it is.
The demand for hemp, if anything to go by, reveals a market that’s ripe for investments. Having studied the market, Canopy Growth decided to go a notch higher, investing in at least two more states in the US, bringing their total investment in hemp production and processing to $500 million. This was revealed by the Canopy Growth CEO in a recent interview with Yahoo Finance.
The plan is to invest in hemp from one state to the other. The idea behind a state by state investment is to create sufficient hemp to enable states to regulate their terms on the admissible CBD levels. The 2018 Farm Bill legalized hemp and CBD, but at the same time, conferred powers upon the individual states to set their own terms and conditions on how to regulate hemp within their confines.
Given the financial muscle behind Canopy Growth, the plan is to use the hemp debate as a means of creating more jobs for the states where they will be operating. The initial plan is to start investing in states that have the largest populations, and coupled by leadership that’s progressive and embraces change. There’s a lot of room for growth not just for the farmers in the hemp market, but also for job seekers. Hemp is one cash crop that’s bound to create lots of opportunities across the divide, hence the interest from companies like Canopy Growth.
In New York, Canopy Growth is planning a gigantic processing facility, which will be one of their biggest projects on foreign land. Canopy Growth stands tall in good company. A lot of companies have expressed interest in investing in hemp since the 2018 Farm Bill was signed into law, and Canopy Growth is one of the biggest in this venture. While hemp growth has been approved and legalized at the federal level, the oversight, especially in production, is a matter of state prerogative, and the individual states are free to set their terms and conditions as they see fit.
The preference for hemp over marijuana comes from the fact that it has a very high concentration of CBD. CBD has many health benefits, unlike THC in marijuana that gives you a high. CBD can help you overcome insomnia and anxiety, among other things. Sales of CBD have also been rising steadily, especially since there’s now a wider market for beverages, tinctures, creams, and lotions. Experts even foresee the hemp market growing to or surpassing the $22 billion mark by 2022.