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Heartland Hemp Company: Reintroducing Hemp as a Viable Agricultural Crop in Iowa

Heartland Hemp Company, founded by Boris Shcharansky, is dedicated to reintroducing hemp as a commercial crop in Iowa. With a focus on hemp-derived CBD products, the company is developing relationships with farmers experienced in certified seed growing.

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Heartland Hemp Company: Reintroducing Hemp as a Viable Agricultural Crop in Iowa

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  1. Introduction 2

  2. 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

  3. 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

  4. Hemp’s History 5

  5. 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

  6. 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

  7. 13 Colonies Depended on Hemp • 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

  8. 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) “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.”

  9. Impending Prohibition 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

  10. 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

  11. 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!

  12. 1937 Marihuana Tax Act

  13. World War II

  14. 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 Wisconsinin 1957.

  15. Prohibition, Continued • 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 17

  16. Hemp’s Present 19

  17. Annual Sales of Hemp Products in United States

  18. Farmed Hemp Acreage in Canada

  19. Breakdown of US Imports of Canadian Fiber Hemp

  20. Hemp Agronomy and Environmental 24

  21. 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

  22. 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

  23. Hemp’s Future 27

  24. Strain Hunting!

  25. 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

  26. Hemp – Dual, Triple and Quadruple Revenue Streams • Unique quality – produce separate revenue streams from one crop • Seed • Fiber • Pulp • Sugar • Cannabinoids • Lignins

  27. 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!

  28. 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

  29. 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!

  30. 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!

  31. Hempcrete

  32. Hemp & Automotive Innovation

  33. Hemp Is an Alternative to Graphene 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 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.

  34. Next Steps? • Legislative Support Letters – We Need You! • Contact your legislators, peers, neighbors, colleagues! • 2016 Legislative Session • Visit Our Website and Facebook Page! • www.iowahemp.org • Facebook.com/FieldsofOpportunity • Farmer Resource page 40

  35. Questions 41

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