The partnership will help serve the growing demand for cannabidiol and boost the rural economy of Arkansas.
Fayetteville-based Arkansas Hemp Genetics LLC (AHG) has recently closed a partnership with the University of Arkansas, to grow, study and develop different hemp flowers for the budding cannabis oil industry.
According to Bill Morgan, COO, Hemp Genetics, the demand for cannabis products has increased in the recent years through support from businesses and politicians, as well as through the recent passage of the farm bill. He claims that hemp could be a viable crop, specifically for Arkansas as it could boost rural economies.
For the record, on December 2018, the FDA, citing the 2019 Farm Bill which effectively legalized industrial hemp, issued a warning claiming cannabidiol (CBD) to be a drug ingredient, and illegal to add to food or health products without the agency’s approval. Reportedly, CBD is being used to treat many medical issues including anxiety, epileptic seizures, sleeplessness and inflammation. Moreover, hemp is used in an array of products, including plastics, oils, ropes, foods and beverages. Online CBD products range from bath bombs and flavored vape pens to candies, fruit smoothies and eye balms.
Major beverage companies including Molson Coors Brewing and Coca-Cola are also in talks to produce drinks infused with cannabidiol. A cannabis-infused sparkling water sold by Heineken owned Lagunitas is already on store shelves in California, cite reports.
Sources close to the matter state that AHG plans to build a 17,000 sq-ft commercial hemp flower extraction factory in Hindsville, and a cultivation farm near Goshen, Fayetteville. Moreover, the company plans to pilot a dozen hemp cultivars for yield and potency during the first year of operation.
Reliable reports predict that the cannabis market, which includes CBD products extracted from marijuana or industrial hemp, will be worth nearly $2 billion by 2022, while hemp-derived products will generate more than double to $646 million in total U.S. sales between 2018 and 2022.