The recent signing of the Farm Bill into law by United States President Donald Trump has opened the country up to the industrial production of weed’s much under-appreciated partner, hemp. With the passing, Canada’s largest cannabis company by market capitalization, Canopy Growth, is already well placed to expand its business south.
On December 20, the Agriculture Improvement Act 2018 was signed by the president. A large omnibus bill that covers numerous changes to regulations and funding around agriculture, it impacts the hemp industry by creating a regulated market for commercial hemp production and research, according to a report by the Congressional Research Service.
This is good news for Canopy. In October 2018, just days before legalization, the Smith Falls-based company acquired the intellectual property and assets of ebbu inc., a business that specializes in cannabis genetic research, with a focus on hemp.
“Canopy Growth commends the United States government for passing the Farm Bill, a transformative piece of legislation that will create jobs and meaningful economic impact across the United States,” said Canopy’s CEO Bruce Lindon, in a press release.
“Canopy Growth will participate in the American market now that there is a clear federally-permissible path.”
The “hemp-specific portfolio of intellectual property” acquired from ebbu Inc. and the recent investment of USD $4 billion from Constellation Brands in Canopy has them ramping up to enter the newest frontier in the American cannabis market.
Linton echoed the endorsement of President Trump for the bill, vowing to support American farmers with hemp cultivation. The announcement coincided with a quick boost in Canopy’s stock price (NYSE: CGC), though it has continued to close on a downward trend over the past four days.
Hemp has been federally illegal in the US since the introduction of the Marijuana Tax Act in 1937, though allowable for import since 1998. It is a type of cannabis sativa that contains no psychoactive compounds, is genetically different from what we think of as weed, and can be used to make ropes, textiles, paper, plastics and more. Many see hemp, including ebbu inc., as a new source for Cannabidiol (CBD).