Hemp
President Trump signed the Farm Bill into law on December 20th, 2018. In doing so, he changed cannabis federal classification for the first time since 1970, permanently removed the federal ban on industrial hemp and paved the way to Make America Hemp Again. It is difficult to overstate the positive impact that full-scale industrial hemp production will have on the US economy. The hemp market may well exceed the cannabis market as regulation, information and transparency work to drive greater adoption. For farmers and hemp-related businesses, the opportunities are unprecedented. For investors, this translates to significant returns in an industry that now has a legal pathway to grow at a rapid pace. A $1 Billion industry today, hemp could reasonably exceed $50 Billion by 2025.
Canada
While Canadian capital markets remain the richest and deepest in the cannabis world, expect to see a normalization of perspective as addressable market realities emerge from the clouds of optimistic exuberance. The biggest Canadian companies have large multi-national presence on their capitalization tables, a trend that will perhaps accelerate as valuations continue their justifiable correction and as big food, pharma, liquor, tobacco and agriculture companies continue their justifiable cannabis march. Additional markets will emerge to help smooth the path towards cannabis capital optimization.