Have a friend that is buying some acreage in the Florence area to grow hemp for medicinal/CBD oil. It would start the spring of 2020 when the laws permit.

He is tied to a company that works with farmers and landscapers. He is using his connections from that company to help form/run this one.

He is also partnering up with some guys who have grown and owned Cannabis farms and dispensaries in Colorado and California. These guys are also really good friends with the Stanley Brothers (Charlotte's Web).

What types of questions would you ask before investing? The numbers projected are on the lowest end of the averages. Even with that, the returns look phenomenal. So much so that I find it hard to believe.

I will ask about his partners who used to own farms and distilleries. Why don't they own them anymore? If they spit off that much cash per year, why get out?

I also assume competition will make the returns diminish, as would Texas regulations. I know Texas is one of the most restrictive in all walks of regulations.

Seems to me the head farmer is a big key to this. If the area isn't prime for help or it is costly to maintain, then profits diminish.

What would you folks want to know before investing?

Would be tough for me to take this risk without an established distribution network in place. I think Oregon farmers are having a tough go.

Thanks for this. I will ask about the distribution network. It could be the Stanley Brothers was brought up as the distribution network. I also know some people are friends and some are real friends and they don't always do business together.

Search the politics board. There have been some other threads with experiences there. I think one thing that was brought up is that if the hemp tests above an arbitrarily low thc threshold the crop has to be destroyed, and it's tough to control? I have no experience, just a suggestion

I will ask about that. One thing he mentioned was getting a clones from a proven mother plant. Supposedly, that controls the THC and quality. thanks for the info.

As a struggling MJ investor, I'd really dig into the margin and supply projections. How / where are the supply data numbers coming from? And why hemp in Texas? MJ has to be grown by companies as many states have a top down integration requirement ( i.e seed to sale). How's the weather for it in Texas?

MJ cultivation/ margins are starting to get put to the test as supply grows. Pricing pressures will trickle down to farmers.

Are y'all using any kind of security to protect crop?

Also might want to talk to this poster. He put his email in one reply.

https://texags.com/forums/57/topics/3028547/replies/54045123#54045123

badharambe said:

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As a struggling MJ investor, I'd really dig into the margin and supply projections. How / where are the supply data numbers coming from? And why hemp in Texas? MJ has to be grown by companies as many states have a top down integration requirement ( i.e seed to sale). How's the weather for it in Texas?

MJ cultivation/ margins are starting to get put to the test as supply grows. Pricing pressures will trickle down to farmers.

Are y'all using any kind of security to protect crop?

---

The friend that brought it to me is getting the info from growers in Colorado. I still find it hard to believe.

The concept for this place is to just grow it and clone the future crops. They will have others mess with the rest. He mentioned that in N Austin, there is a company that knows how to use the hemp while wet. That would help with the storage and drying issues, if true.

I will hammer him on buyers/distribution. He says they have some inroads.

What is being said is that if you are a TX company that wants to sell the medicinal MJ, then you have to buy from a TX grower. However, a TX grower can sell to anyone.

If the projections are in any way based on MJ in Cali or Colorado, is that realistic considering in Texas they will only be growing hemp. Can't imagine the sales price/demand for hemp will be anywhere close to that of legal MJ.

That said, the real point in establishing an operation like this is they will already be up and running and licensed if/when Texas legalizes MJ, but who knows how long that will be and how long are you willing to have your money tied up waiting for the law to change in a state that only has a few months every 2 years to change the law.

Harkrider 93 said:

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badharambe said:

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As a struggling MJ investor, I'd really dig into the margin and supply projections. How / where are the supply data numbers coming from? And why hemp in Texas? MJ has to be grown by companies as many states have a top down integration requirement ( i.e seed to sale). How's the weather for it in Texas?

MJ cultivation/ margins are starting to get put to the test as supply grows. Pricing pressures will trickle down to farmers.

Are y'all using any kind of security to protect crop?

---

The friend that brought it to me is getting the info from growers in Colorado. I still find it hard to believe.

The concept for this place is to just grow it and clone the future crops. They will have others mess with the rest. He mentioned that in N Austin, there is a company that knows how to use the hemp while wet. That would help with the storage and drying issues, if true.

I will hammer him on buyers/distribution. He says they have some inroads.

What is being said is that if you are a TX company that wants to sell the medicinal MJ, then you have to buy from a TX grower. However, a TX grower can sell to anyone.

---

I really wish everyone would quit referring to this as medical MJ. Texas law allows for CBD from hemp. While it is essentially the same plant, the levels of THC have to be much much lower. Nobody in Cali or Colorado or any other state that actually allows for MJ (medical or rec) is going to buy hemp from Texas, since it won't actually contain enough THC. Texas law requires <0.3% THC whereas typical marijuana contains closer to 10% THC.

Lol. Thanks for clarifying. I didn't understand the jump to medicinal either.

I guess if you think CBD is medicinal, (Hint: go look at CBD threads) then maybe you would call him medicinal but no thanks homie.

CBD will sell in Texas but doubtful anywhere near the volumes medicinal Marijuana sells in states with medicinal but not recreational. There won't be people faking a medical claim to get CBD without the high and it won't put a dent in the illegal marijuana market in Texas. It is possible they could sell into a national CBD oil market, but that will be much smaller than medical marijuana, let alone recreational marijuana.

I am amused at all the people trying to cash in on the idea of medicinal marijuana craze. I have recently seen a pain relief rub advertised on TV with all kinds of "Cannabis" wording, but all it contains is an oil extracted from
the cannabis seeds with no evidence it contains CBD, THC, or anything else (those are derived from buds and leaves). The actual active ingredient has nothing to do with marijuana and the oil is just a moisturizer. But I'm sure with "cannabis" in large type, some fools will be parted with their money.

One thing to consider on the farming angle is that most marijuana, regardless of actual end product, is actual organic. Like no chemicals or insecticides. Hence why a lot move indoors.

There was an article in C&EN, trade magazine for chemical engineers and chemists, about this. Some states ag groups were trying to help out, others were doing nothing. Look at getting a pipeline for agriculture help. This isn't like corn; no major chemical company out there to help. And if the bugs don't kill the crop, application of chemicals could essentially wipe you out. Including neighbors, like corn, cotton, soy, etc.

~egon

Wow.....this is about the 8th random person I've come across in the last four weeks that has told me they are starting a large CBD growing operation in Texas. Sounds like distribution side is going to be key on this play.

Is it just the farming/growing of the hemp and the crops sold to CBD oil makers? Or is this investment the full cycle from growing, harvesting, producing product (CBD oils, vapes, etc), and distribution to retailers?

If it's just farming the crop - who would it be sold to and where are they? What's their demand capacity? Where do they currently get crops from? How far away? Can you transport your crops out of state?

If making products in house such as oils, vapes, candy, etc, who is leading that entire process? When you buy recreational (or medicinal) products (flower, gummies, sprays, etc) everything sold comes with a very detailed composition breakout. X% THC, x% CBD, x% whatever. Testing is very important.

CBD has less issues than THC. I can buy a vial of cbd at the local vape store, TJ Max, etc. how is your product different than what's currently on the market?

Harkrider 93 said:

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Have a friend that is buying some acreage in the Florence area to grow hemp for medicinal/CBD oil. It would start the spring of 2020 when the laws permit.

He is tied to a company that works with farmers and landscapers. He is using his connections from that company to help form/run this one.

He is also partnering up with some guys who have grown and owned Cannabis farms and dispensaries in Colorado and California. These guys are also really good friends with the Stanley Brothers (Charlotte's Web).

What types of questions would you ask before investing? The numbers projected are on the lowest end of the averages. Even with that, the returns look phenomenal. So much so that I find it hard to believe.

I will ask about his partners who used to own farms and distilleries. Why don't they own them anymore? If they spit off that much cash per year, why get out?

I also assume competition will make the returns diminish, as would Texas regulations. I know Texas is one of the most restrictive in all walks of regulations.

Seems to me the head farmer is a big key to this. If the area isn't prime for help or it is costly to maintain, then profits diminish.

What would you folks want to know before investing?

---

If you guys are serious, you or your friend should honestly speak with my CEO. Especially regarding genetics and finding buyers after harvest.

administrative errors said:

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Harkrider 93 said:

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Have a friend that is buying some acreage in the Florence area to grow hemp for medicinal/CBD oil. It would start the spring of 2020 when the laws permit.

He is tied to a company that works with farmers and landscapers. He is using his connections from that company to help form/run this one.

He is also partnering up with some guys who have grown and owned Cannabis farms and dispensaries in Colorado and California. These guys are also really good friends with the Stanley Brothers (Charlotte's Web).

What types of questions would you ask before investing? The numbers projected are on the lowest end of the averages. Even with that, the returns look phenomenal. So much so that I find it hard to believe.

I will ask about his partners who used to own farms and distilleries. Why don't they own them anymore? If they spit off that much cash per year, why get out?

I also assume competition will make the returns diminish, as would Texas regulations. I know Texas is one of the most restrictive in all walks of regulations.

Seems to me the head farmer is a big key to this. If the area isn't prime for help or it is costly to maintain, then profits diminish.

What would you folks want to know before investing?

---

If you guys are serious, you or your friend should honestly speak with my CEO. Especially regarding genetics and finding buyers after harvest.

---

So there won't be many CBD Farms assuming the farm bill continues as is. No genetics meet the criteria for CBD that won't pop hot [or very little that would be cannabinoid rich].

That means the hot new craze is CBG genetics, and there are very few vendors out there with those genetics currently that are stable.

2020 is going to get interesting quickly.

I'd invest in the genetics side....same as I would invest in Monsanto over Farmer Joe. Farming is farming and before long this will be as common as corn and the farmer will be all the same.

Just got back from MJBIZCON in Vegas. Ended up coming back a little earlier because a client flew us back on his jet to sit with some people back in CO.

Great conference, the little I participated. Was mostly there for a few big accounts to move processes along for closing.

There are an incredible amount of super intelligent people involved with a wealth of experiences... I swear my business acumen is growing exponentially because I get to pick these guys' brains that are just superb individuals from all over, robotics, retail, IT/Programming, IP lawyers, just goes on and on.

It's a true melting pot, the American dream is happening in the cannabis/hemp industry.

I'm so happy to be a part of the game, and hope to mature this baby industry into a responsible self-sufficient adult as best I can with my own philosophies injected into at at the most basic levels.

Oooooo I love this stuff. So much action.

Texas Hemp Growers Association roundtable led by TAMUAgrilife Dr Calvin Trossel [who never returns my dern phone calls]...

CBD is bs. I used daily for a while with absolutely zero results. It's a fad and a scam imo. Other people may react differently and see results but I'm not buying the hype.

Johnny Danger said:

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CBD is bs. I used daily for a while with absolutely zero results. It's a fad and a scam imo. Other people may react differently and see results but I'm not buying the hype.

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Could you share the products you purchased, tried, dosage, and cbd content?

My mom is guilty of buying cbd from amazon, but was actually hemp oil with no cbd.

There's a lot of bull**** out there, and I like to keep track of stuff people claim don't work, and sometimes we test those products and blacklist them.

I found some articles that were talking about the chemistry/regulation sides of CBD. Interesting stuff.

Some might be a little older.

CBD in medicine for seizures

Growing CBD plants

US laws and chaos with CBD

~egon

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