The proposed regulations permit the sale of cannabinoid hemp flower; however, cannabinoid hemp flower products may not be labeled or advertised for the purposes of smoking or in the form of a joint, cigarette, cigar or pre-roll. Cannabinoid hemp flower products that are not marketed for smoking may be sold by any cannabinoid hemp retail licensee pursuant to the proposed regulations.
Cannabinoid hemp is any product processed or derived from hemp, that is used for human consumption including for topical application for its cannabinoid content, that does not contain more than 0.3% THC. Cannabidiol or “CBD” products are an example of cannabinoid hemp products and can come in a variety of different forms including but not limited to tinctures (CBD oil), pills, capsules, balms, lotions and food or beverage products. Other hemp-derived products such as hemp seeds or hemp seed oil, which do not contain cannabinoids, are regulated as foods and not under the scope of this program.
Cannabinoid Hemp Processor Licenses
Yes, each location offering cannabinoid hemp products for sale is required to obtain a license.
Cannabinoids are natural compounds found in the cannabis plant that have different effects. Tetrahydrocannabinol (THC) and cannabidiol (CBD) are the most common, but there are more than 100 cannabinoids found in the cannabis plant. THC is known for its psychoactive effects (including a feeling of being high). CBD does not produce a feeling of being high and has anecdotally been found to have a variety of wellness benefits.
Cannabinoid Hemp Distributor Permits are valid for one year from the date of issuance of the permit.
This threshold is very easy to surpass, especially when plants grow to full maturation. Therefore cultivators whose crops test above the legal limit (known as hot crops) must seek remediation to remove the THC or else they must destroy the entire harvest. THC stripping services can cost about $1/input gram, thereby driving down overall profits.
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CBD isolates are the purest CBD products available to the market, produced by extracting all of plant components including, terpenes, flavonoids, and cannabinoids. CBD isolates come in granular or powder form and have no taste or fragrance. The final product contains 0% THC and is made up of 96%+ CBD.
CBD Isolates Market Value
Carbon dioxide extraction is the safest method because it doesn’t leave behind any toxic solvents that could contaminate the final product. It’s also the slowest and most expensive extraction method, due to the steep cost of the technology. For instance a 5-liter CO2 extraction machine can cost about $100,000. By comparison, a hydrocarbon machine costs about $20,000. This higher operating cost may warrant a higher wholesale price if the market understands its value, but extraction method does not necessarily have a 1:1 relationship with wholesale price.
When harvesting hemp for smokable flower, oils or isolates, cannabinoid levels matter. For example, CBD biomass pricing is directly dependent on the percentage of CBD per pound. With regards to distillates, THC content directly affects the wholesale price. As mentioned above, when hemp oil is 100% stripped of THC, it sells for nearly double the price of full spectrum oil.
When crude hemp oil undergoes distillation to produce an even purer product, it becomes refined hemp with a much higher market value. Refined hemp further breaks down into three categories:
In these cases, hand harvesting may produce a higher quality yield because the process is more precise. Higher quality seeds and buds may also translate to higher profits. But in order to ensure the return is worth the investment, hemp cultivators must hire the right amount of labor, which can be costly. For example, if there are not enough people to hand cut the harvest in time, crops may over-mature and overproduce THC, rendering them illegal and potentially worthless.