On Monday, December 10, 2018, Sen. Mitch McConnell signed the final version of the 2018 farm bill and used a pen made from hemp to do it. Sen. McConnell was a major leader in getting legislation on hemp passed. He put himself on the conference committee for the 2018 farm bill. [Once this bill is enacted, hemp will be legal under federal law.]
Hemp has extremely low levels of THC, the compound in cannabis that gets people stoned. It’s higher in CBD, a compound that many people believe helps them with anxiety, arthritis, stress and other conditions. Now that hemp is (almost) legal, there are all kinds of implications for farmers, researchers and consumers. It’s not just CBD, hemp can be used to produce all kinds of things, including clean fuel for cars, building materials, clothes, food and beer. It’s legal to buy and sell hemp products in the United States. But because growing hemp has been so tightly regulated, the domestic market for hemp products is extremely small. The majority of the products are imported from Europe, Canada and China.
We also take a very broad approach to the industry. While it is obvious that we are investing in biotechnology companies that specialize in alternative medicines, we prefer to embrace the entire eco-system that is the cannabis industry.
There is an adage about the gold rush in the United States during the mid-1800’s. Many pioneers got rich from finding gold – but the folks that sold them the shovels and wheel barrels made the real money.
We have broadened our Hemp Fund portfolio to include cannabis service providers. Companies that make the hydroponic equipment, lighting, fertilizer, lease properties, provide banking and marketing are all part of the intricate web of potential investment opportunities that diversify our portfolio.
There are multiple potential uses for hemp, including the following:
• Long, short and technical fibers
• Paper and Plastics
• Bio-fuels, Building Materials and Composites
• Textiles and fabrics
• Animal feed and bedding, Shives and Pellets
• Hempseed, oil and cake
• Textured vegetable proteins (replacement for Soy)
• Nutritional goods, functional foods and dietary supplements
• Health and Beauty Aids
Drug Manufacturing, Pharmaceutical Research and Bio-tech
• Raw Materials (botanical raw materials, botanical drug substances and active pharmaceutical ingredients)
• Cannabinoid drug manufacturers (GW Pharmaceuticals and InSys Therapeutics)
• Medical devices (hemp-based bioplastics)
• Research and Development
Business Support Companies
• Nutrients & growing supplies
• Real Estate
• Solvents, gases and chemicals
• Security, surveillance and testing services
• Equipment and ancillary products, such as:
Environmental control systems
Point of Sales systems
Analytical, cultivation and extraction equipment
Harvesters and other commercial scale agricultural processing equipment