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Introduction 2
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Boris Shcharansky Founder/CEO of Heartland Hemp Company in Des Moines, IA Entrepreneur and Hemp Advocate Eight years of direct business development experience across three start-ups Registered Lobbyist in Iowa Graduated: University of Pennsylvania Iowa Connection: 27 years Iowa resident Valley High School graduate, West Des Moines Des Moines area business owner since 2004 3
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Heartland Hemp Company Founded in December 2014 with focus on hemp-derived CBD products Developed nationwide and global network of hemp industry professionals Dedicated to the re-introduction and re-emergence of Hemp as a viable agricultural crop in Iowa Co-wrote and introduced House Bill 470 in 2015 Production, Marketing and Distribution of Industrial Hemp and Related Plant Materials Never brought to committee vote Died in first funnel Committed to working with Iowa farmers to re-introduce hemp as a commercial crop Developing relationships with farmers experienced in certified-seed growing 4
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Hemp’s History 5
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Hemp in History Originated in China Spread west through India, Middle East, Africa and Mediterranean Romans brought hemp to Britain – staple of economy Hemel Hempstead (South England) “Hemp Mill Walk” street names
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Sub-Species of Cannabis All modern cannabis plants are a cross of Sativa, Indica and Ruderalis “Cannabis” describes any of these sub- species “Hemp” refers to varieties of cannabis with very low levels of psychoactive THC < 1% THC > 2:1 CBD:THC Ratio “Hemp” can also be known as Agricultural Cannabis/Hemp Industrial Cannabis/Hemp
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In 1619 the Crown ordered the colonists at Jamestown to grow hemp to meet demands for England’s maritime ropes & cord. Hemp became more important to the colonies as New England's own shipping industry developed. Some colonies offered farmers "bounties" for growing it. Thomas Jefferson developed a device for processing hemp in 1815. Made, paper, clothing and heavy duty ropes 13 Colonies Depended on Hemp
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“Mr. Pearce, on my farming plantation(s), I want you to make the most of Hemp and plant it everywhere on my farmlands that haven’t been previously reserved for other things.” Probably George Washington’s most famous quote regarding hemp, came from one of his letters to his farm plantation field manager, William Pearce (Feb. 24, 1794)
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The word “marijuana” or “marihuana” came in the late 1890s. The Founders knew the plant as “hemp” "There are 100,000 total marijuana smokers in the U.S., and most are Negroes, Hispanics, Filipinos and entertainers. Their Satanic music, jazz and swing result from marijuana use. This marijuana causes white women to seek sexual relations with Negroes, entertainers and any others.“ -Harry J. Anslinger “Reefer makes darkies think they're as good as white men.“ -Harry J. Anslinger Impending Prohibition
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In the 1930's, Ford Motor Company operated a successful biomass fuel conversion plant using cellulose at Iron Mountain, Michigan. Ford engineers extracted methanol, charcoal fuel, tar, pitch ethyl-acetate and creosote from hemp. The same fundamental ingredients for industry were also being made from fossil fuels In 1941, Henry Ford famously, kicked the hemp bio-composite frame of a Ford car
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Cannabis or Marijuana? Introduced as “Medicinal Hemp” or “Extract of Cannabis” in US Pharmacopoeia in 1850 Never known in medical community as “marijuana” American Medical Association unaware of association between “Marijuana Menace” and medical hemp/cannabis 1918 – 60,000 pounds produced on licensed pharmaceutical farms in US!
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1937 Marihuana Tax Act
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World War II
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When Philippines fell to Japanese forces in 1942 in World War II, the Department of Agriculture and the US Army urged farmers to grow hemp fiber cultivars. Tax stamps for cultivation of fiber hemp began to be issued to farmers. Without any change in the Marijuana Tax Act, 400,000 acres (1,600 km2) were cultivated with hemp between 1942 and 1945. The last commercial hemp fields were planted in Wisconsin in 1957.
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1970 – Nixon passes Controlled Substances Act Any member of the Cannabis Sativa L. species of plants is prohibited from being grown in the United States Industrial Hemp conflated with marijuana – DEA targets both Wild hemp, or “ditch weed,” left over from WWII is treated 90% of DEA plant eradication budget is directed towards this non-psychoactive hemp Agricultural Act of 2014 made hemp legal to grow in states that pass hemp legislation Prohibition, Continued 17
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Hemp’s Present 19
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Annual Sales of Hemp Products in United States
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Farmed Hemp Acreage in Canada
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Breakdown of US Imports of Canadian Fiber Hemp
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Hemp Agronomy and Environmental 24
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Farming/Agronomy Facts 90 - 120 growing days Germination between 2 - 5 days depending on warm or cold weather 100 plants/m2 for seed 200 + plants/m2 for fiber Nutrient quality similar to canola or winter wheat Little to no pesticides/herbicides needed Resilient during drought Once established little to no field maintenance Conventional equipment used, combine harvester with a draper or rigid style header Stable rotation with soybeans, perennial grasses, legumes, barley, alfalfa, red & sweet clover
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Environmental Benefits Deep tap root and broadcast seeding helps soil aeration Bio-Accumulator – Absorbs heavy metals and other toxins in soil No pesticides nor herbicides Minimal fertilizer requirements 1/3-1/2 water requirements compared to corn
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Hemp’s Future 27
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Strain Hunting!
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BioRefining – Pulp, Lignins, Sugars…and Cannabinoids! Pulp – consumer paper products, industrial insulation and building products Lignins – bio-based raw material for industrial/consumer products including paints, sealers, coatings, plastics, composites and speciality chemicals Sugars – bio-based chemicals, plastics and fuels as well as food/beverage products (hemp vodka and chewing gum!). Cannabinoids – non-psychoactive medicinal cannabinoids Seeds – food/cosmetics and biodiesel
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Hemp – Dual, Triple and Quadruple Revenue Streams Unique quality – produce separate revenue streams from one crop Seed Fiber Pulp Sugar Cannabinoids Lignins
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Hemp – Superior to Corn in Ethanol Production Assumes 180 bushels per acre average yield (2014) Maximum height of 6-7 feet Grown in 12-30 inch rows High pesticide and herbicide requirements No guaranteed contracts Hemp stalk yields average 6-10 tons/acre Planted densely (35-50 plants per SF) Height of up to 15 feet Douple-Quadruple biomass per acre No pesticide/herbicide requirements 1/3 water use compared to corn Only single revenue stream – seeds/flowers separate! Will also compete with other markets requiring pulp…not tied just to ethanol!
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Hempseed – Multiple Possibilities Based on 50% discount to current wholesale price ($2.40 Conventional/$3.55 Organic) Profitable if processor rents land and under Co- Op model After conversion to oil, ~530 pounds of pressed seed cake will be remaining
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Hempseed – Animal Feed Cont’d
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Advantages Alternative to straw and in addition to bulk grass/corn Fiber supplement required for contraction of rumen to stimulate and improve digestion Cows that eat hemp give a little more milk and are generally healthier Life expectancy increases, which increases dairy production efficiency Opens up second source of revenue from hemp plant (fiber) Up to 4 more liters of milk per day from cows fed with hempseed
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Hemp Flowers – Medicinal Cannabinoids! Current market supplied exclusively by European hemp! Monopolized market charges nearly $9,000 per pound of CBD (pure), or ~$0.02 per milligram Retail price is ~$0.05 per milligram (2.5 X)! “Est. Wholesale” based on a per milligram price of $0.004 per milligram!!!! Still only represents one potential revenue source from the crop!
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Hempcrete Combination of hemp hurds with lime and water Hemp Hurd -- $2 - $4 per pound (Imported) Current price to build -- $130 PSF Depends on imported hemp Local cultivation would dramatically decrease costs Hempcrete homes in Texas, North Carolina, California, New York and Hawaii Coming soon – Iowa!
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Hempcrete
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Hemp & Automotive Innovation
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A team of researchers led by David Mitlin at Clarkson University in New York have found a way to produce super- capacitors from an inexpensive hemp fiber left over from textile and building material construction that could pave the way for a mainstream super- capacitor. The American Chemical Society JournalThe American Chemical Society Journal ranks the hemp based material “on par with or better than commercial graphene-based devices”. It says the hemp fiber’s properties work down to 0 C and display some of the best power-energy combinations reported in the literature for any carbon. Fully assembled, their energy density is 12 Wh/kg, which can be achieved at a charge time of less than six seconds. Hemp Is an Alternative to Graphene
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Next Steps? 40 Legislative Support Letters – We Need You! Contact your legislators, peers, neighbors, colleagues! 2016 Legislative Session Visit Our Website and Facebook Page! www.iowahemp.org www.iowahemp.org Facebook.com/FieldsofOpportunity Farmer Resource page
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Questions 41
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