Marijuana Business Magazine - Issue 09, Oct 2017

84 • Marijuana Business Magazine • October 2017 Different state agencies regulate can- nabis and hemp. In Colorado, for exam- ple, the state’s Department of Agriculture regulates hemp while the Department of Revenue’s Marijuana Enforcement Divi- sion oversees cannabis. The laws and regulations for growing cannabis also vary greatly by state – and even municipality. Some towns, for example, may ban recreational or medi- cal cannabis in a state where the hemp plant is legal. “Follow the regulatory guidelines that have been published,” Bronstein said. “Follow the application guidelines, and get yourself familiar with the licensing process in general.” Similarly, be aware that some areas have regulations that cross over between cannabis and hemp. In Oregon, for example, hemp and marijuana can be grown on the same property as long as there are separate licenses. But in Pueblo County, in southern Colorado, a hemp crop must be at least 5 miles from a farm that grows marijuana for its THC content, S ay you’re a hemp farmer. You grow your plants outdoors, and you’re making the transition into marijuana. Here’s a question you need to consider: What cannabis products are you targeting for your future crop? If you plan to grow marijuana for sale off the shelf of a dispen- sary as a smokable product, the appearance of the buds is impor- tant. So the plants are generally cultivated in a more controlled indoor environment, like a grow or a greenhouse, versus outdoors. But if your cannabis is being grown for use in an infused prod- uct or to extract the CBD for medicinal purposes, the aesthet- ics are less important. It doesn’t matter whether it’s grown indoors or out. “I don’t need it to look beautiful,” said Chris Driessen, co-founder and president of Organa Brands, which makes infused products under the O.penVAPE, Bakked, Magic Buzz and District Edibles labels. “It comes down to yield and the terpenes and THC extract.” Organa Brands sources its cannabis extracts from Los Sue- ños Farms, the nation’s largest legal outdoor marijuana grow, in Colorado's Pueblo County. Organa Brands pays about $600 a pound for marijuana grown out- doors, compared with the up to $1,200-a-pound price that indoor product fetches. “It’s a clear advantage for folks who are able to leverage that vol- ume,” Driessen said. – Margaret Jackson given concerns that the two plants may cross-pollinate. “Hemp farms grow males,” said Michael “Caddy” Cadwell, former director of sales for Los Sueños Farms, a Pueblo County cultivator. “The pollen gets in the air and saturates the female plants. You don’t want males around females.They don’t mix very well.” Finally, be aware that finding banking services can be a bigger issue in can- nabis than it is in hemp. “Make sure you have access to capital. You’re talking about millions of dollars.There’s no access to banking, so it has to be privately raised,” Bronstein said of cannabis. Getting Started The ease of transitioning from grow- ing hemp to marijuana depends largely on what your legacy hemp crop is being produced for. If the crop is being cultivated for fiber or seed, there are few similarities between the way the two plants are cultivated. Unlike cannabis, such hemp plants don’t need fertilizer or KNOW YOUR TARGET MARKET Queen Bee Bliss' Kyle Wagner does her best to keep male hemp plants from pollinating the females. Photo courtesy of Sam Robison