Editor’s note: This week, Hemp Industry Daily will be highlighting stories and analysis on the delta-8 THC phenomenon. Today, a look at the origins of the delta-8 THC trend. Read more in the special D-8 February issue of MJBiz Magazine.

When Harold Jarboe told his partners at Columbia River Cannabis in 2014 that he was leaving the licensed Washington state marijuana company to grow hemp in Tennessee, they thought he was crazy.

“They thought I’d lost my mind,” Jarboe recalled. And for a while, it seemed as if they were right.

Jarboe launched Tennessee Homegrown in 2016 and toiled to build it into a well-respected manufacturer of hemp-derived CBD products. He invested in premium genetics, operated leanly and, most importantly, tested his products at a third-party lab before sending them to retailers. The company was profitable but struggling to survive.

Then, in early 2020, retailers started asking for delta-8 THC.

Jarboe knew D-8 occurred naturally in cannabis in miniscule amounts. But the plant did not produce enough D-8 for an economically feasible harvest, so the requests caught him by surprise.

“No one in the industry saw this coming 2½ years ago,” Jarboe told MJBizMagazine. “Labs didn’t see it. Processors didn’t see it. Store owners didn’t see it.”

With his interest piqued by the requests, Jarboe researched and found that Israeli cannabis scientist Raphael Mechoulam had written in 2005 about converting CBD isolate and distillate into delta-8 THC. At the time, both hemp derivatives were extremely expensive, making the conversion to D-8 commercially unfeasible.

Loophole-turned-dam break

That changed dramatically with the passage of the 2018 U.S. Farm Bill, which pulled the rug from underneath CBD prices.

When Congress passed the Farm Bill, hemp cultivators and processors were sitting on loads of CBD oil that, until then, was hard to move in a marketplace limited by lack of federal clarity on CBD. The new regulations undammed that supply, with CBD distillate unleashed along with a new wave of entrepreneurs looking to enter the industry.

Jarboe said CBD prices dropped from $25,000 per kilogram to as little as $500 after the Farm Bill’s passage. Suddenly, converting CBD into delta-8 THC was economically feasible.

“One of the reasons this didn’t happen earlier is because anytime you have to do a conversion, it’s an added expense. When CBD prices went through the floor, this raw material became really cheap,” Jarboe explained. “Previously, the barrier to doing this had been cost. And now that cost barrier was gone.”

In its effort to legalize and regulate hemp-derived CBD, the 2018 Farm Bill stated that any cannabinoid derived from hemp—defined as cannabis containing less than 0.3% delta-9 THC—was a legal product.

Yet by specifying delta-9, the bill’s authors unwittingly left other cannabinoids outside the realm of regulation.

Unintended consequences

“Unfortunately, nobody that was dealing with this legislation knew what delta-8 was. We were all familiar with delta-9, and the Farm Bill was written so that hemp was defined as less than 0.3% delta-9 THC,” said Jonathan Miller, an attorney with the U.S. Hemp Roundtable who helped draft the bill. “Folks were innovative and … have been able to take advantage of a loophole because the legislation doesn’t ban delta-8; it only bans delta-9 over a certain amount.”

The news was music to the ears of hemp executives such as Jarboe, who suddenly “had huge stockpiles” of CBD with diminishing value.

Jarboe soon developed his own process for converting CBD into delta-8, did several trial runs to dial in his formulations and hired a third-party lab to test the products.

“We had store owners asking us for the product. It’s that simple. If you’ve got stores calling you saying, ‘Look, if you put this product under your label, we can sell it because people trust your brand.’ Well, that’s how we got into it,” Jarboe explained.

Now, Tennessee Homegrown is thriving, and Jarboe gives much of the credit to his D-8 pivot.

“Maybe it’s no longer the season for hemp as we knew it,” Jarboe wrote in a September 2021 blog post. “The world had changed, and we had to adapt or die.”

Other side of the coin

While D-8’s popularity is boosting the bottom lines of hemp farmers and CBD companies, it’s causing worries among traditional marijuana cultivators, manufacturers and retailers—as well as regulators and lawmakers.

“Any cannabinoid that can cause impairment should be regulated like delta-9 until we know more about it,” said Morgan Fox, a former spokesman for the National Cannabis Industry Association, who took a job with NORML after this interview.

“In the meantime, I think states as well as the federal government really need to start thinking about ways in which to bring novel and minor cannabinoids into the regulated market in a way that protects consumer safety but also respects the huge burdens that licensed cannabis producers have faced and make sure that they’re not being cut out.”

Jim Makoso, CEO of Washington state extraction company Flowe Technology, said safety is his No. 1 concern about delta-8 THC. He would like to see D-8 regulated like D-9, and that includes third-party testing.

“When it comes to consumer safety, at least some regulation should be required around the QC (quality control) standards,” Makoso said. “Pesticide testing, residual solvent testing, potency testing, mycotoxins. That would be a good place to start.”

Omar Sacirbey can be reached at omar.sacirbey@mjbizdaily.com.

Coming tomorrow: Is delta-8 THC a threat to marijuana operators, or an opportunity?

Editor’s note: This week Hemp Industry Daily is highlighting stories and analysis on the delta-8 THC phenomenon. Today, a look at delta-8 THC sales trends in marijuana dispensaries. Read more in the special D-8 February issue of MJBizMagazine.

Plant-touching companies weren’t the only businesses surprised by the sudden and explosive growth of delta-8 THC in 2020. Sales of the novel cannabinoid surprised trade associations and ancillary companies as well.

Seattle-based cannabis analytics firm Headset compiled delta-8 sales numbers for MJBizMagazine, and they show the rapid rise in popularity of products that contain “delta-8” in their names.

Cooper Ashley, senior data analyst at Headset, cautioned that the figures are based on point-of-sale data and are susceptible to errors made by retail workers at checkout.

Still, the numbers paint a picture of the rapid increase in delta-8 popularity as well as the actions taken by regulators in markets where the data was collected: Arizona, California, Colorado, Massachusetts, Michigan, Illinois, Nevada, Oregon and Washington state.

We caught up with Ashley to learn about the D-8 phenomenon’s effect on retail cannabis sales. Answers have been edited for length and clarity.

The explosion of D-8 sales in the third and fourth quarters of 2020 coincided with a dip in the total cannabis market. Do you think the two are related?

You have to remember that growth in the second and third quarters of 2020—after the initial (COVID-19) lockdown and through the summer—was some of the biggest growth we’ve seen in the cannabis market in a very long time, including in more established markets like Washington and Colorado.

Q4 2020 was a return to normal after unexpected growth in spring and summer sales.

That’s also the time when people started to hear about (delta-8 THC) as an option, especially in the world of CBD and gray-market cannabis. That’s when it exploded in name recognition and popularity.

We can see that delta-8 sales exploded in late 2020 and continued to grow through Q2 of 2021.

Have you ever seen a cannabinoid rocket to popularity like this?

The only thing I can think of is CBD itself. It is reminiscent, but I definitely don’t think it’s as widespread or common as CBD was when it was gaining popularity.

Still, that quick rate of growth and adoption was similar to when CBD really took the country by storm a few years back.

The edibles category for delta-8 products is incredibly robust. Is that the case for other lab-made cannabinoids as well?

Tinctures, capsules, edibles and topical categories seem to cater a little bit more to a wellness-type customer.

We see a lot of CBN in the edibles category as well as ingestibles like tinctures and capsules. CBN, especially, is seen as more of a wellness-type cannabinoid. Customers are potentially looking more to treat symptoms/get better sleep (with CBN), and that tends to translate to noninhalable categories.

Edibles may be more approachable for new (cannabis) users or those looking to treat insomnia or treat pain.

What do you think caused the rapid decline in D-8 sales starting in 2021?

We can see that delta-8 sales exploded in late 2020 and continued to grow through Q2 of 2021, but in Q3 (they took) a pretty significant nosedive.

There were a few quarters when (D-8) growth was quick—probably because it was gaining popularity, and also it was quite unregulated.

Since it gained popularity, state governments have been forced to try to deal with it—and some have banned it. Now that it is more regulated, I think that level of growth has been naturally curtailed.

It had a moment of explosive growth, and I think that moment appears to be passing.

How does the price of delta-8 products compare with the other items you track?

It appears that customers who are looking for delta-8 products will have to shell out a bit more cash to get them.

Over the previous 90 days, the average item price of a delta-8 edible product was about 24% higher than a non-delta-8 THC edible.

Coming tomorrow: A look at consumer confusion about delta-8 THC.

Hemp-derived CBD giant Charlotte’s Web Holdings is positioning itself to enter THC and marijuana markets.

The Boulder, Colorado, company says it has signed a five-year, $8 million purchase agreement option with a marijuana company started by its founders, Stanley Brothers USA Holdings Inc.

The deal allows Charlotte’s Web to take over the marijuana business after the U.S.  legalizes marijuana nationwide for a total price to be determined based upon revenue and EBITDA figures.

Charlotte’s Web CEO Deanie Elsner says the company made the deal because of signs that federal marijuana reform is nearing.

“Consumer attitudes, market trends and laws surrounding cannabis and its role within the wellness category continue to trend positively,” Elsner said in a statement.

Stanley Brothers founders Jared and Joel Stanley are also members of CW’s board of directors but will step away from those positions to oversee the future acquisition.

Stanley Brothers USA Holdings makes cannabis products that don’t qualify as legal hemp but are lower in THC than many formulations in adult-use cannabis markets.  The company has operations in Colorado, California and Florida.

Charlotte’s Web trades on the Toronto Stock Exchange as CWEB.

(Editor’s note: This story is part of a recurring series of commentaries from professionals connected to the hemp industry. Jackie Berg is co-founder of CBD Marketing Hub, a digital-to-door agency focused on CBD and cannabis marketing.)

Sleep is valued commodity and something many Americans are increasingly bereft of. Many health experts see sleep issues as a looming health crisis.

Forty percent or more Americans don’t get enough sleep, according to the U.S. Centers for Disease Control and Prevention. The problem is worse among people of color.

Such sleep insufficiency, which health experts classify as less than seven hours of sleep nightly, leads to long-term health issues from cardiovascular disease and diabetes to mental-health issues.

The trends have led to late-night internet searches and seismic increases in overall digital consumption, which — while good for digital commerce — are detrimental to sleep.

The word “insomnia” was Googled more in 2020 than ever before. A record 2.77 million searches were clocked in the first five months of 2020 alone, according to researcher Kirsi-Marja Zitting, an instructor and associate neuroscientist at Brigham and Women’s Hospital in Boston who studied the trend.

The American Sleep Apnea Association estimates 20 million to 30 million Americans suffer from intermittent sleep problems every year.

Opprtunities for hemp and cannabis: Meaning, not money

Although the sleep market represents a significant growth opportunity, many CBD and cannabis brand are looking beyond the category’s profit potential at something far different: a chance to make a difference.

That aim is a part of the DNA of many CBD and cannabis brands, where 6 in 10 company founders see the industry’s momentum as a part of a greater mission to do good, according to the 2019 CBD & Cannabis confidence survey conducted by the Insyght Institute, the nonprofit arm of the market research firm Target Insyght.

The continuous drive for improvement is more important than ever, said PureKana CEO Kathy Casey, who reports sleep product sales growth of 14% over the last half of 2020.

“Families are really struggling to manage additional pandemic-related stressors and are becoming more and open to non-pharmaceutical sleep aides, particularly the more natural and non-addictive alternatives,” Casey said.

Together with Gen Z consumers, stressed-out millennials accounted for 48% of the U.S. CBD market in the fourth quarter last year, according to marketing analytics firm High Yield Insights.

THC products are another alternative growing in popularity.

One California-based dispensary and delivery service, Ganja Goddess, reports a 635% increase in its cannabis sleep product sales. Nearly 70% of its customers use its cannabis products to support sleep, according to its CEO Zachary Pitts.

“The pandemic and its extended duration has taken the lid off some of the stigmas surrounding the importance of mental health and its place in our overall well-being,” Casey said.

Education is more important than ever, according to Josh Richman, CMO of Receptra Naturals, which makes gummies and a tincture for sleep.

“Consumers need education about our products,” Richman said. “We need to promote the overall importance of sleep, not just our own product lines.”

Coping conversation

The pandemic has revealed how closely tied sleep and stress are.

Stress levels among U.S. adults are higher now than the early days of the pandemic, according to the American Psychological Association’s recent Stress in America survey, which revealed that 80% report emotions with prolonged stress.People are talking about stress, anxiety and related sleep issues more openly than they ever have, according to Casey.

“These issues are front and center in the majority of conversations taking place in people’s homes, communities and workplaces,” Casey said.

“Everyone is talking about how to cope, from new exercise and meditation routines to more natural alternatives.”

That openness is a part of what’s driving up sleep-market growth, which Market Data Forecast estimates will grow 5.9% annually from $34.9 billion in 2020 to an estimated $46.5 billion by 2025.

Melatonin supplements were among category drivers that drew $825 million in consumer spending, according to market analytics firm Nielsen, representing a 42.6% increase.

Prescriptions for sleep-related issues are at an all-time high, according to a report from Express Scripts, which reports a 14.8% increase in prescription sleep medications between mid-February and mid-March of 2020.

“The pandemic has helped to elevate awareness of the importance of good sleep and has softened the momentum of ‘Sleep is for Suckers’ messaging,” adds Richman, who reports a shift in interest around better sleep, particularly among moms 40 to 50 years of age and 25-to-35-year-old millennials, Receptra Naturals’ largest growth segment.

“Consumers definitely have a preference for plant-based solutions,” says Richman, who says that interest is particularly high in ‘paired’ products like CBN (an alternative to synthetic melatonin) which shows promise for enhancing sleep.

What works

Employers’ workplace policies, practices and protocols are shifting in concert with consumer and market trends.

“Employers formerly focused almost primarily on physical health programs and benefits are seeing the need to extend their focus and are changing the way they address benefit programs and policies … understanding that it is incumbent on them to offer more and better mental health solutions,” Casey said.

With alcohol consumption up and consumers increasingly turning to addictive remedies to keep themselves together throughout this pandemic, there are new worries that many remote workers will be returning to the workplace with substance misuse disorders.

Although the cannabis industry must comply with challenging marketing restrictions, there are legal and effective ways to position sleep products. Here’s our top four:

• Content Marketing. Like many CPG companies, more CBD and cannabis brands are moving their ad budgets to content marketing buys, working directly with publishers able and willing to create custom marketing campaigns. This move allows brands to leverage user consent-driven segmentation and attribution controls and to encourage a personalized brand experience.
• Keyword Marketing. Other digital solutions utilize a legal form of keyword marketing, which allows brands to serve up ads to bottom funnel buyers in the search process. Although program capabilities vary, most allow brands to competitively blunt (including competitive product names in their targeting), leverage key consumer demos and CBD and cannabis search terms in their targeting.
• Strategic Partnerships. Foundations and nonprofit partners are also becoming more willing to partner with cannabis brands as a result of shifting consumer acceptance and legalization of cannabis.
• Educational Posts. Education is key. Brands should responsibly educate consumers about the importance of sleep, irrespective of product messaging.

“We need to support and applaud lifestyle changes beyond CBD that people are making to be and stay well,” Richman said. “If the outcome of our efforts is good, it is good for us all.”

Jackie Berg can be reached at [email protected]

To be considered for publication as a guest columnist, please submit your request to [email protected] with the subject line “Guest Column.”

A federal judge in Indiana is reversing course on a state law banning smokable hemp, handing growers and processors another defeat as they seek to find a path to market for the most profitable part of the plant.

U.S. District Judge Sarah Evans Barker told the Midwest Hemp Council and several hemp businesses challenging Indiana’s 2019 ban that she would not put the ban on hold pending their legal challenge.

Barker had earlier placed an injunction on Indiana’s smokable hemp ban.

At the time, she ruled that Indiana’s prohibition on growing, selling or possessing smokable hemp was likely unconstitutional because it violated national interstate commerce protections.

Barker’s 2019 injunction was overturned by a federal appeals court in Chicago, which said her order “sweeps too broadly” and that Indiana should be allowed to ban smokable hemp until the question is settled in court.

The appeals court sent the injunction request back to Barker for review.

The judge’s latest ruling comes days after the Indiana House of Representatives voted to change that law.

But the bill to allow “craft hemp flower” still must pass the state Senate and be signed into law by the governor in order to allow smokable-hemp flower in Indiana.

The challengers of the ban don’t yet have a court date for hashing out the dispute. But they say Indiana is trying to supersede the federal law that legalizes hemp and all its components.

Justin Swanson, president of the Midwest Hemp Council and owner of Heartland Harvest Confections, a CBD chocolate maker in Indianapolis, said the state’s 256 licensed hemp growers are wrongly being cut out of the boom in smokable flower.

“These bans do nothing to curb demand for the product,” Swanson told Hemp Industry Daily.

“Instead, it shifts (smokable-hemp buyers) to out-of-state farmers and out-of-state online retailers,” he said. “This is a federally legal product that is free to be shipped.”

Another smokable-hemp ban is on hold in Texas pending a legal challenge. California is considering a ban, too.

Analytics firm Nielsen Global Connect predicts that by 2025, the U.S. smokable-hemp market could reach $300 million to $400 million, representing roughly 5% of the potential $6 billion to $7 billion hemp-derived CBD consumer products category.

Read more about the U.S. smokable-hemp market in this free report, “Sector Snapshot: Opportunities & Challenges in Smokable Hemp.”

Kristen Nichols can be reached at [email protected].

(A version of this story appears in the February issue of Marijuana Business Magazine.)

From mom-and-pop shops to corporate chains, everyone in the retail business knows that a carefully chosen location is key to success.

The cannabis industry is no exception.

Although regulatory requirements, license availability and market demand will vary from place to place, marijuana and hemp retailers on the hunt for a killer location might benefit from:

• Understanding both immediate local markets and regional trends.
• Creative thinking to find underserved locations—particularly for smaller players.
• Carefully considering the potential benefits and drawbacks of buying versus leasing.
• Identifying future markets before local officials start writing ordinances, then engaging early.

Think local, but also regional

Prospective cannabis store operators need to get intimately familiar with the area where they want to open, advises Michael Lord, chief operating officer at Colorado cannabis firm LivWell Enlightened Health, which operates 22 dispensaries across the state.

“Google Earth does not articulate a true representation of boots on the ground,” Lord said. “I think a lot of people are siting (stores) in areas that perhaps they’ve never visited, putting locations (based on) just what looks good on a map.

“It can vary in a neighborhood from street to street. … And I think that businesses, at the end of the day, still have to have a finger on the pulse of the communities that they operate in.”

Stephanie Goodman, CEO of Michigan cannabis real estate brokerage Bricks and Mortar Group, also recommends doing regional market research in surrounding areas.

“You might think you’ve got this great spot and they’re only going to issue two licenses in the city, but immediately next door, it’s unlimited (licenses),” she said. “Knowing those types of things helps you forecast for future sales.”

That means doing your homework.

“Know your market — population, demographics, regulations, etc.,” said Franny Tacy, CEO of Franny’s Farmacy, which has eight franchises in four states.

“We have made choices to postpone development of Franny’s Farmacy CBD Dispensaries in certain states that do not allow smokable hemp flower because it is a top quantity sold product, revenue generator and driver to brick-and-mortar locations.”

Carving out your own niche

Elev8 Cannabis founder and CEO Seun Adedeji, who opened a single dispensary location in Oregon before expanding into Massachusetts, believes smaller, less-capitalized businesses can benefit from opening in smaller towns.

Adedeji focused Elev8’s Massachusetts expansion on border towns near New Hampshire, New York and Vermont, where acquiring real estate is cheaper than in bigger cities.

“The beauty is, because of the limitations of licenses, each of those small towns are only giving out two recreational licenses,” Adedeji said. “So your value still increases.”

Smaller towns might have their charms, but a border strategy such as Adedeji’s can also work within cities.

Erbn Green Cannabis Co., a small Canadian retailer that opened its first location in the competitive Toronto market in October, found a location in the uptown area of that city.

It might not be a hot address compared to the city’s downtown core, but Chief Compliance Officer Farrell Miller said the location meets demand in an underserved market near two suburbs that opted out of allowing cannabis stores. Erbn Green’s second location is in Picton, Ontario, a small community with less competition for cannabis store licenses than in big cities such as Toronto or Ottawa.

“This town is getting really known for wineries and tourism,” Miller said. “We eventually see cannabis aligning with those things.”

To buy or to lease?

Elev8’s Adedeji got burned when the landlord for his first Oregon store declined to renew the lease and he had to find a new location. As a result, Adedeji is a strong proponent of retail operators buying real estate instead of leasing.

“For anybody looking to get into a leasing option, have a 10-year lease with an option of an additional 10 years,” he said.

In Michigan, real estate broker Goodman said marijuana’s federal prohibition contributes to landlords’ hesitancy to lease to cannabis businesses.

“We’re seeing more private funding on the purchasing side, and they’ll lease back to the operator,” Goodman said.

For well-capitalized players, buying and then executing a leaseback deal can bring advantages. LivWell’s Lord said the company acquires some properties, then sells them to partners who will lease the locations back to the dispensary operator.

“That allows us to go and execute and use that capital for continued expansion rather than having it tied up in the real estate itself,” he said.

Tacy at Franny’s Farmacy, however, favors leasing.

“Keep your capital and use your money to make money,” she said. “Landlords are more willing to negotiate leases now especially with the commercial real estate climate of COVID. I strongly encourage a short-term 3-5 year lease option with the ability to extend.

“Even though hemp is federally legal, it is not business as usual for banking, advertising, credit card processing or for finding a great retail space. COVID has proven that cannabis is a more than just recession proof, it’s pandemic proof.”

Get a head start

Smaller players might score an advantage by identifying potential markets before regulators start offering licenses, then engaging local officials early, Goodman said.

“In that scenario, I’d recommend that you start working with the city before they’ve written any ordinances and then work with them to get the ordinance written for what you want to do,” she said.

“We’ve seen quite a few of those work out. They do like local businesses, but it’s a longer play. It might take six to 12 months to get that done.”

Goodman also recommends spending time engaging with the local community.

“We’ve worked in a lot of cities where the residents are completely terrified of cannabis businesses,” she said. “But once they start to get to know you, and there’s actually a face associated with the business that wants to come in, it’s different.”

Ivan Moreno contributed to this report.

Crediting the CBD company’s forthrightness, a federal judge in New York federal judge has dismissed a lawsuit against Massachusetts-based Curaleaf from investors who argued the company misled them about legality of its CBD products.

The investors sued when Curaleaf’s share price fell in 2019 after the U.S. Food and Drug Administration sent the company a warning letter for claiming its CBD products could treat a variety of diseases.

The suit was among a raft of class-action lawsuits in the past three years challenging CBD makers for allegedly misleading investors and making unfounded medical claims. The Curaleaf case was filed shortly after the FDA sent Curaleaf a warning letter.

Judge Brian M. Cogan said in his ruling Tuesday that Curaleaf “publicly and repeatedly acknowledged” in its stock listing statement that the FDA had not yet approved its CBD products for any medical purpose. Cogan said the company also noted it could be subject to enforcement action for “promotion of an unapproved drug.”

“The company clearly disclosed the risk that the FDA could act against it and that the FDA had done so to other companies selling similar products,” Cogan said.

“Describing this risk in terms of potentiality rather than certainty – when certainty of enforcement could not be known anyway – does not violate securities law.”

Law360 first reported on the decision.

After the FDA’s letter to Curaleaf on July 22, 2019, the company discontinued many of the products regulators cited, and removed some of the claims it made about its products.

Investors contended that the company did not explicitly say its products were illegal, but the judge rebuffed their argument.

“There is no requirement that a company disclose its risk in any magic words preferred by plaintiffs,” the judge said in the ruling.

An attorney for the investors told Law360 they were evaluating their next steps.

The case was filed in U.S. District Court for the Eastern District of New York.

“We look forward to focusing on the company’s growth and continuing to serve our customers and patients nationwide,” Curaleaf said in a statement after Cogan’s ruling.

Curaleaf also sells high-THC marijuana products in states where they are legal. Cogan also noted Curaleaf’s forthrightness on its THC business activities.

Caraleaf told investors in a 2018 Canadian filing that it “will derive a substantial portion of its revenues from the cannabis industry in certain states of the United States, which industry is illegal under United States federal law.”

An executive from international CBD brand Elixinol has been appointed to the board of directors at the U.S. Hemp Authority — one of the industry’s self-regulatory bodies.

“From the start, Elixinol has gone above and beyond when it comes to product efficacy and transparency,” Elixinol CEO for the Americas Tom Siciliano said about his appointment.

“Our involvement with the Authority further solidifies our commitment to quality and higher standards.”

Siciliano recently served as president of Nutritional High International Inc., a marijuana manufacturing and distribution company, and as president and CFO for Canna Security America.

Prior to his work in the cannabis industry, Siciliano worked at startup companies, private equity firms and public Fortune 500 companies.

Siciliano’s appointment is part of the Hemp Authority’s advocacy partnership with the U.S. Hemp Roundtable, where Siciliano is also a board member.

Pennsylvania is awarding $253,000 to organizations with projects designed to increase sales and exports of hemp products.

Pennsylvania’s Department of Agriculture is accepting applications for the grants until March 5, PennWatch reported. Projects aimed at promoting consumer awareness are also eligible.

“Hemp has presented a unique opportunity to build an industry from the ground up, supplying seemingly limitless environmentally sustainable construction materials, industrial fiber and food products just to name a few,” said Agriculture Secretary Russell Redding.

“These competitive grants can help cultivate the growth of the industry that once was a staple of Pennsylvania’s economy and could once again support new jobs and income for Pennsylvanians.”

The projects must have started on or after July 1, 2020, and have to be completed by June 30, 2021. The grants will cover up to half of a project’s cost.

The state’s Department of Community and Economic Development is processing the applications.