US hemp market
The latest developments in the US, particularly the ones surrounding the Farm Bill, have been encouraging to the cannabis industry in the US. One of the most important changes that cannabis companies have been waiting for is legislation on hemp farming. On December 12, the Senate passed the Farm Bill, which will have a term of five years.
Making way for cannabis
The bill makes hemp a legal agricultural commodity, which would allow cannabis companies a legal foray into the US cannabis market. Canadian cannabis companies (HMMJ) have known this all along and have been laying the groundwork well before the hemp farming legalization in the US.
For example, take Canopy Growth (WEED), which provided some insight during its earnings call almost a month ago on November 14, well before the US Senate voted on the farm bill. Canopy Growth’s co-founder, chair, and co-CEO, Bruce Linton, believed that hemp would be legalized in the US. He further stated that the company has acquired hemp-related intellectual property as a prudent step to prepare for the hemp market in the US. As the above chart shows, Canopy Growth is expected to report 257 million Canadian dollars in sales in 2019.