(NEW YORK)--The Hemp Farming Act bill, which was recently introduced into Congress in January, could provide not only explosive growth for the emerging Hemp industry, but for a number of Hemp stocks as well.
On January 8, 2015, Senators Ron Wyden (D-OR), Mitch McConnell (R-KY), Jeff Merkley (D-OR), and Rand Paul (R-KY) introduced the bill S. 134, which remove federal restrictions on the cultivation of industrial hemp, the non-drug oilseed and fiber varieties of Cannabis.
The remarkable aspect of this bill is the wide bipartisan support it has been receiving from both sides of the aisle. With one of the key sponsors being the new Senate Majority leader Mitch McConnell, who represents Kentucky, and also has a rapidly successful Hemp industry emerging within the state, the prospects for this bill passing on the Federal level is looking better and better.
Not only will this light a spark in exploding industrial Hemp production, while creating thousands of new jobs and tax revenues, it will also swing a spotlight onto hemp related stocks as they could become big winners for traders looking to play this news.
Algae International Group, Inc. (OTC:ALGA), through its operating subsidiary American Seed & Oil Company, just last fall announced one of the largest legal Hemp harvests in the State of Vermont in nearly 60 years. For 2015, the Company plans to plant 1,000 acres of industrial Hemp within Vermont, and has reached an agreement with a New York landowner to plant a Hemp crop in New York for the coming year. The Company is currently developing a facility on the New York-Vermont border, as a central processing point, that will process hemp oil for distribution throughout the Northeast.
ALGA stock has seen a sharp rise since their first legal Hemp harvest in the Fall from around $0.05 per share, to a current price of around $0.50 per share.
MD Companies, Inc. (OTC:ICBU), announced in December 2014 that they had acquired Freedom Seed and Feed, LLC of Lexington, KY., the first federally permitted hemp seed and fiber farm in the United States. This could position ICBU strongly as Kentucky is becoming a major hub for industrial Hemp production, and is also the home state for Senate Majority leader Mitch McConnell, one of the key sponsors of the Hemp Farming bill. Well positioned!!
In addition to these two Hemp players there are a number of other Hemp stocks that could see their prospects grow, like Hemp, Inc. (OTC:HEMP), which is one of the more popular Hemp end product consumer goods plays, and Discovery Minerals LTD (OTC:DSCR), which through their joint venture partner AB AGRO are currently in process of making their first hemp seed sales.
Once legalized on the Federal level, the production of industrial Hemp could become a boom crop not just for farmers, but for local, state, and federal tax revenues, let alone a major job creator. Once legal, industrial Hemp could see itself shipped over state lines like any other commodity, international export, and could position the US competitively on the global Hemp production stage. These are just a small sample of stocks traders need to watch as this bill makes its way through Congress this year.
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