BREAKING NEWS: 2018 Farm Bill About to Pass – Legalization of Hemp and CBD could grow consumer market to $22 Billion
NEW YORK, Sept. 17, 2018 (GLOBE NEWSWIRE) -- Cannagreed.com News Commentary
The 2018 Farm Bill, if passed, includes the Hemp Farming Act of 2018, which will remove hemp as a designated as controlled substance, legalizing the crop under federal law, which will allow CBD to be legally sold in all 50 states. The Bill, which has the support of Senate Majority Leader Mitch McConnell, is awaiting congressional approval, which would replace the 2017 Farm Bill, which expires on September 30th.
The full legalization of hemp would open the floodgates for investment, providing the hemp industry with access to a full range of financial, market development and advisory services that were previously unavailable because of its classification as a controlled substance. These services include access to small business loans (SBA’s), federal crop insurance, access to banking & traditional capital markets, and unfettered USDA research. Institutional investors and private equity firms will be also be able to enter the space, as federal restrictions have restricted the ability of funds to participate in this sector.
The expected passage of the 2018 Farm Bill will be beneficial for publicly traded companies in the CBD space such as Sugarmade, Inc. (OTC: SGMD) and American Premium Water Corp. (OTC: HIPH). Both SGMD and HIPH recently had coverage initiated by SeeThruEquity analysts, whom placed a price target of a $0.30 price target on SGMD and $0.15 on HIPH, and. It should be noted that these reports were done before the latest iteration of the 2018 Farm Bill included the legalization of hemp, so it’s possible with the passage of the bill that those targets might be revised upwards. For the full research reports readers should visit www.seethruequity.com.
With the launch of their LALPINA Hydro CBD beverage, HIPH is looking to expand into other product categories in the CBD space. HIPH has commenced R&D with its new supplier on developing a hydro CBD beverage formulated specifically for the pets. The pet market is currently estimated to be a $26 Billion industry according to the market research firm Packaged Facts. HIPH CEO Ryan Fishoff commented, “The pet food industry is huge. Being a pet owner myself, I know what pet owners will do (and spend) for their pets. I recently learned that Chrissy Teigen tried CBD to ease her bulldog’s pain, and I think hydro-nano can be an effective CBD delivery system for pets as well. If my bulldog had the same issues, I would do and spend whatever I had to alleviate its pain.”
Cannabidiol, also known as CBD, is one of the 60 naturally occurring compounds found in Cannabis and unlike THC (tetrahydrocannabinol), CBD is non-psychoactive and does not cause any feelings of getting high if consumed. CBD is derived from Hemp, which will be legal in all 50 states upon passage of the 2018 Farm Bill. Brightfield Group recently raised its projections for the CBD industry, as they are projecting it could reach $22 billion in market size by 2022. These projections come in anticipation of the passing of the 2018 U.S. Farm Bill, which would fully and unambiguously legalize hemp and its extracts across the country.
“We believe that blowing market sizes and growth figures out of proportion would do our customers and market a great disservice,” said Brightfield’s Senior Analyst Jamie Schau, “This year’s hemp CBD forecasts might seem like a departure from that view, but I assure you they are not. These numbers reflect the substantial changes we anticipate will follow full federal legalization of hemp-derived CBD.”
SGMD is covering the other side of the CBD market, as their business is concentrated in hydroponics and indoor gardening supply stores, which have been one of the few booming retail sectors of the last five years, with nearly 8% growth per year. Revenue for the Hydroponic Growing Equipment Retail industry has grown aggressively, with no signs of slowdown anytime soon. The boom has been attributable to the growth of the Hemp and Medical Marijuana industries, which has fueled the interest in hydroponic growing methods, encouraging consumers and businesses with the proper accreditations to enter this nascent market, which is is expected to continue through 2025.
SGMD recently announced to its intention to become the largest publicly traded hydroponics supply company. SGMD has completed a master market agreement with industry leader BizRight Hydroponics, Inc., a leading marketer and manufacturer of cannabis and hydroponic growth supplies, which offers a range of hydroponics-related products including: HPS grow lights, electronic ballasts, HPS bulbs, nutrient mixes, environmental control products, pH measurement and calibration solutions and other cannabis-related grow and storage products. BizRight is expected to produce in excess of $30 million in revenues during 2017, with substantial growth expected for 2018.
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