Hemp Inc (HEMP)

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Significant excerpts from NUVO article:

"We sort of foresee a future where they are going to change the law shortly," says Ron Turco, agronomy professor at Purdue University. "I hope within a year or less at the federal level, they take it out of the drug classification and put it into a boring agricultural classification."

FIBER

Hemp fibers are the most versatile because you can essentially create everything. Think of a product, and it's likely that it can be made out of hemp. Fibers can be made into over 2,000 products, from paper to concrete. Plastics, circuit boards and a multitude of other items currently made from petroleum could be made from hemp instead. Even clothing can and is made from hemp instead of nylon and polyester, which are oil-based products. When mixed with lime composites, hemp is used to make "hempcrete," a type of building material that replaces drywall and fiberglass insulation.

SEED

Hemp seed is already an annual hundred-million-dollar business. It's extremely nutritious, and contains essential fatty acids that are necessary for human health. The seed is 30 percent protein — and plant protein is more digestible than meat protein. The hemp protein doesn't require refrigeration and can be used as an ingredient in nearly everything. Like a sunflower seed, it's crunchy and desirable in flavor and is extremely versatile.

OIL

And then there's hemp oil, which is good for skin, hygiene, and beauty products. Hemp oil is obtained by pressing hemp seeds, which makes it easy to obtain. Since it's high in essential fatty acids (nearly 80 percent), hemp oil is specifically good for hair, skin, and nails.

ACCREDDITED SOURCE

Dr. Paul Mahlberg, Indiana University Professor Emeritus of Biology and cannabis researcher, has been studying hemp for over 40 years. With one of only two federal DEA research permits to grow cannabis in the U.S., Dr. Mahlberg can be considered the leading researcher in his field. When talking about the future of hemp, he is hopeful.

"We need to start moving ahead. Start using hemp, talking to friends about it, and creating goods with it," says Mahlberg. "But the most exciting part of it is the scientific aspect. We know a lot about the plant, but there is even more to learn. To continue to study hemp from a scientific standpoint, we can optimize the use of it and expand our knowledge about what it can do."

Dr. Mahlberg believes hemp is the future, and he may not be wrong....

"Hemp has a great and promising future," says Mahlberg. "We just haven't given it a fair chance yet."

ECONOMIC VIABILITY & AG-SCIENCE

The revival of the hemp industry in Indiana could cause an economic, industrial, and agricultural boom for the state.

"We are looking agronomic issues related to hemp production," says Turco. "We are looking at things like nutritional level for soil, how much fertilizer kind of questions, planting density, looking at disease issues. We're looking at planting depth as related to weed pressure. We're looking at yield for fiber, yield for seed and yield for oil. We're trying to assess the number of potential varieties that could be introduced into the state."

LEGALITY

Since it is illegal to purchase hemp seeds in the U.S.*, Purdue researchers have to import seeds from other countries to conduct their research.

*Reason why Hemp Inc hasn't sold their seed


PROCESSING/OPERATIONS

But a successful hemp industry takes more than just farmers willing to grow it. The farmers need a place to sell their crop. The "sale" of hemp is a complicated equation. First there has to be a place to process the plant fibers, harvest the seeds, and/or press the oil. There are currently no plant materials processing facilities in Indiana.

The largest company in the state that exports hemp is FlexForm Technologies in Elkhart. The company specializes in natural fiber materials used in the automotive and aircraft industries, modular housing, packaging and paneling. The company imports thousands of pounds of natural fiber each week, but only a small amount of that fiber is hemp.

"We would use hemp if the material was readily available at a competitive price," says FlexForm CEO Gregg BaumBaugh. "Unfortunately that is not the case at this time."

More industries like FlexForm in Indiana would drive the demand for hemp to be grown and processed locally to keep their costs down. But with no local supply or processing facilities, companies using plant fibers have very little, if any, incentive to locate in Indiana.

(AGAIN) LEGALITIES & ECONOMIC OUTLOOK

The biggest and most immediate obstacle involves the legal permission to grow hemp in Indiana.

Justin Swanson, a government relations attorney with Bose McKinney & Evans LLP, understands the potential hemp has for Indiana's economy....

"Industrial hemp is a sleeping billion-dollar industry for the United States," says Swanson.

If Indiana waits too long, Hoosiers could miss out on the next big thing to hit the U.S. economy and industry....

"We really need to get traction in that area really fast or this is going to die," says Turco. "Even if it was legal, if we don't start looking at this seriously as an income stream, we're going to have trouble long term."

"Now is the time to decriminalize hemp," says McKay. "With everything that we know about hemp and the world around us, it is a no-brainer to industrialize hemp as we move toward a more sustainable culture."

"This could be bigger than the automotive industry," says McKay. "And this could create 'forever' jobs. That by itself is huge."

Respectfully nice to see Indiana chiming in. Got my degree at a University in Indiana. You know, the one with the Business School.

LONG