The\npurpose of this Executive Summary is to outline the possibilities and Vision\nfor economic development that are available to the Weld County Communities that\nhave been created by the current status and reintroduction of Hemp into the\nagricultural arena. This Summary’s\nintent is not to detail the minutia involved in this unprecedented development\nopportunity, but to paint the Big Picture of what can be possible to those who\nembrace and collaborate in this broad Vision.<\/p>\n\n\n\n
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Since Hemp was removed from the Schedule I list by the Federal Government in December of 2018 by the Farm Bill, the interest in growing and processing hemp in Colorado and around the United States has grown exponentially. The vast majority of this growth, however, has been in the CBD sector of the industry because of the lack of whole plant processing facilities.\u00a0 The CBD segment of the industry is currently very profitable, but this profitability will not be sustainable as the exponential growth in this segment has created a situation where the supply will soon outstrip the demand and the prices for processed CBD will take a dramatic downturn.\u00a0 The CBD segment of the Hemp industry requires a high amount of initial financial input.\u00a0 The NRCS in Montrose has estimated that upfront costs there are $15,000 per acre to participate in this segment.\u00a0 Most growers in the state of Colorado do not have the resources or expertise to participate in this segment of the Hemp market. One of the drawbacks in this segment is that the cultivation of\u00a0 CBD market plants requires only female plants grown from clones or feminized seed which usually requires some type of propagation facility like a greenhouse or an artificially lighted indoor nursery.\u00a0 In addition there is a lot of hand work involved in planting and growing of seedlings, the mitigation of weeds, and labor intense planting, male plant removal, and harvesting.\u00a0 In addition,\u00a0 the final processing of the biomass usually just involves the flower of the plant with the rest of the plant going to waste.<\/p>\n\n\n\n
The\nAgriculturally Cultivated segment of Industrial Hemp involves a completely\ndifferent methodology for growing and processing. This segment is grown as nature intended from\nseed to seed, is fully mechanized from seed to sale, and involves whole plant\nprocessing. CBD Hemp Cultivation is more\nakin to gardening than farming, but Agriculturally Cultivated Hemp is more in\ntune with traditional farming methodologies. \nLast year there were around 90 million acres of corn grown in the USA,\nmore than 80 million acres of soy beans, more than 50 million acres of hay and\nmore than 40 million acres of wheat. In practicality, the gardening methods of\nCBD Hemp production are too expensive and labor intensive for Hemp to reach\nthese commodity levels of cultivation, whereas Agriculturally Cultivated Hemp\ncan easily be introduced into normal crop rotations and can use existing equipment\nand\/or slightly modified current equipment to ramp up the number of acres to\nthe commodity acreage levels of other major crops.<\/p>\n\n\n\n
The Colorado Hemp Processing\nCooperative is focused on whole plant processing. The four major raw materials that the\nCooperative will produce from the whole plant are the cleaned and sorted Seeds\n(grain), the residual Flower that can be obtained when harvesting the grain,\nand the two components of the Hemp stalk, namely the Bast (outer bark) and Hurd\n(inner pith). The Bast and Hurd are\nseparated from the stalk in a process called decortication using a machine\ncalled a decorticator. These four raw\nmaterials are the key components for producing a wide variety of other consumer\nproducts. It is commonly said that Hemp\ncan be the basis for over 25,000 products from these raw materials. The Seed can be used for various types of\nfood, cosmetics, and also converted into biodiesel. The Flower can be processed with extraction\nto produce CBD and other Cannabinoids\nand terpines which are becoming valuable in creating a variety of health and wellness\nproducts. The Bast can be utilized for\nbuilding materials, insulation, textiles, rope and twine, as well as utilized\nin still experimental supercapacitors as a substitute for graphene at a much\nlower cost. The Hurd can be utilized in\nhempcrete and Hemp geopolymers as building materials as well as paper production\nand also utilized in the production of ethanol with a higher octane rating than\nethanol from corn. Because Hemp is a Key\nComponent for such a wide variety of products, the future of successful Hemp\nproduction is almost assured as it will\ntake a lot of Hemp and a lot of time to fully saturate this wide range of\nproducts and markets. After crop cultivation, this is the First Step of\nthe Processing to Retail Supply Chain. <\/p>\n\n\n\n
In addition, the CHPC is also\nworking with collaborators to produce Hemp Biochar from the waste stalks of the\nCBD segment as well as the medical and recreation cannabis industry. These stalks are currently going to waste,\nbut they cannot be decorticated because they are short and bushy unlike the\nAgriculturally Cultivated Hemp stalks which are long and straight and ideal for\ndecortication. Hemp Biochar can be used\nfor a wide range of practical purposes. \nA big plus is that it can be used to expedite the remediation of soils\nthat have been depleted and damaged by the overuse of chemicals associated with\nthe cultivation of GMO crops. These\nchemicals have basically killed the microbiome in the soil which is necessary\nfor healthy plants to thrive. Hemp\nBiochar serves as a home for the aquatic microbiome in the soil and further\nsupplements its growth by retaining moisture in the soil. Hemp Biochar also makes an excellent water\nfiltration medium which is as good as if not better than activated\ncharcoal. Additionally, if it is\noxidatively modified, which adds ionization, it can filter out radioactive\nelements like Radium which is a problem in some Colorado Communities. Other\nuses for Hemp Biochar chardboard include packaging, air filters, ceiling tiles,\nfurniture, paper towels, pet products like cage liners and poop bags as well as\ncar insulation just to mention a few.<\/p>\n\n\n\n
The key element in the production of\nthese raw materials is, of course, the whole plant processing facility and enough\ncontracted Hemp to keep the facility in constant production. Current estimates are that 30-50,000 acres of\nAgriculturally Cultivated Industrial Hemp will be needed dependent on the size\nof the processing facility. The CHPC\nwill be contracting with the growers for their crops with one contract for\ntheir seed\/flower, and another contract for their stalks. As the Cooperative distributes all excess\nrevenues back to the Shareholders, growers will get a third check as\nShareholders. Because hemp can be\nutilized as a construction material, we would like to make the processing\nfacility a Showcase prototype so growers and potential Shareholders can see the\nimportance of the construction material market to the success of the\nCooperative. To provide room for\nexpansion, it is projected that CHPC will need an 80-100,000 square foot facility or a construction method\nthat provides a mechanism that allows for quick and efficient expansion. We are working with a company that has the\nexpertise to provide this and will reveal more about them as soon as their\nOfficial Construction Certifications are completed sometime in September or October.\nBy incorporating a Biochar oven into the plans we will also be able to generate\nsome of the power needed for the facility from the waste biomass as well as\nprovide less dependence on fossil fuels. \nSolar and wind power generation incorporated into the facility will also\nbe seriously considered to put the least amount of dependence on the electrical\ngrid, be as green as possible, and control\nthe Cooperative’s expenses for power in order to maximize excess revenue\ngeneration. <\/p>\n\n\n\n
As we are finalizing the exact\nspecifications for the Processing Facility, we will also be recruiting other\ncompanies who wish to utilize the raw materials we will produce for their own\nproduction facilities. This is the Second Step of the Hemp materials and goods\nsupply chain. The goal is to have a number of these collaborative companies\nlocated within a dedicated Business Park or “Hemp Cottage Industry”\ncenter to minimize the transportation costs of the raw materials produced by\nthe whole plant Processing Facility. \nTransportation costs continue to spiral upwards and the more we can\nminimize those costs, the lower our carbon footprint will be and the higher our\ngeneration of excess revenues will be. \nIn addition, by minimizing transportation costs, the Cooperative and all\nother companies involved will be able to price their raw materials and finished\ngoods at the most competitively advantageous prices possible. Having these other companies located in a\nHemp Cottage Industry Business Park will also bring more jobs and an additional\ntax base to Weld County which is one of the Primary Goals of the\nCooperative. With fully mechanized\nautomation, a good percentage of these employment positions will be on the\nhigher end of the pay scale providing financial security to those employed. The Economic Development Directors will be a\nkey in helping us to draw those 2nd Tier production facilities to the Business\nPark as well as the Local Government’s ability and willingness to work with the\nCooperative and these other companies to make the establishment and long term\nviability of their facilities attractive and cost effective.<\/p>\n\n\n\n
The Third Step of the supply chain\nin Weld County will be to provide opportunities to those innovative companies\nwho have chosen to work with us a retail environment for the sale of their\nfinished goods. An area of Weld County\nneeds to be identified that is close to the Hemp Cottage Industry Business Park\nand which is suitable for a collaborative retail environment close to major\nhighways and populations. In this Collaborative Retail Center we can provide a\nspecialty All-Hemp-Goods wholesale and retail environment that will not compete\nwith merchandise that is typically offered by the big box stores. We will need to brand and market this\nwholesale\/retail environment and make it one of the first of its kind in the\nnation. Just like the outlet stores in\nCastle Rock and Silverthorne we can create a destination for those wishing to\npurchase any type of goods made from hemp. Again, this wholesale\/retail\nenvironment will create more jobs and generate more taxes for the\ncommunity. In addition we can also make\nthis a showcase that will be one of the first of its kind to economically further\nstimulate the Weld County communities in a positive manner utilizing the\nversatile hemp plant. <\/p>\n\n\n\n
With the collaboration and\nwillingness to sacrifice short term gains with long term economic stimulus and\nprosperity, all of the Collaborators in this endeavor need to seriously define\nwhat the short and long term goals may be. \nThe CHPC’s whole plant Processing Facility is the necessary First Step\nof this entire process as is the recruitment of Hemp growers. However, the\nultimate success of this Vision will need to have all of the parties involved\nworking together toward the greatest and highest good for every entity\ninvolved. This is the true meaning of\nCollaboration! Without that All-For-One Collaboration and a Spirit of\nCollective Cooperation this Vision should not even be attempted as it will be\nquickly derailed by pettiness and a lack of creative long-term thinking. \nWe can and should make this Vision work for the overall good of Weld\nCounty. As more people get priced out of the large urban markets, Communities\nlike those in Weld County will become increasingly more attractive. With this Project, we can provide\nopportunities to all those who currently live there as well as those willing to\nrelocate there. With a successful deployment of all of the steps outlined in\nthis Summary, the local community will be able to offer all Weld County\ncitizens an even more adequate and stable employment environment and an\nincrease in the tax base so they and their families can enjoy the better\nquality of life that is found all in most areas of Colorado. <\/p>\n\n\n\n
The Colorado Hemp Processing\nCooperative is registered with the Colorado Secretary of State as a Limited\nCooperative Association (LCA). Of all\nthe business models available, this Cooperative\/Corporate hybrid stood out as\nthe most fair to all parties involved. \nLCAs are a fairly new type of Cooperative. LCAs were outlined and approved by the US\nGovernment in 2008. Because Cooperatives\nare state specific, individual states have to adapt and approve a state model\nusing the Federal Guidelines. Only a\nhandful of states have done this, but Colorado took this action in 2012. The\nmajor advantage of an LCA over more traditional cooperatives is that it\nprotects traditional Patron Shareholders, those in the business doing the work,\nbut additionally allows for Investor Shareholders. It is common knowledge that\nagricultural Patron Members are often land rich and cash poor. Cooperatives do not generate profits, but\ngenerate excess revenues over and above projected operating expenses and cash\nreserves. These excess revenues are\ndistributed back to Shareholders once a year and the Shareholders are\nresponsible for all taxes on those revenues. \nBy LCA Statute, a minimum of 50% of all excess revenue distributions\nhave to go to the Patron Shareholders. \nThe percentages to Patron Shareholders can exceed 50% but that is the\nminimum. The CHPC will initially distribute\n50% of all excess revenues to the Patron Shareholders, but will take the other\n50% of excess revenues and distribute those to the Investor Shareholders. Once the Investor Shareholders have been paid\nback their full investment, their Investment Shares will revert to Patron\nShares and they will continue to share in the Patron Shareholder’s excess\nrevenue distributions in perpetuity. \nCurrently, Patron Shares are only $100 a share and Investor shares are\n$1000 apiece. We have intentionally set\na low value on Patron Shares so no potential Patron will be unable to become a\ncollaborator in the Cooperative due to financial restraints. This business model currently equates to a\nten percent return on investment for the Investor Shareholders once their\ninitial investment has been fully remunerated. \nAs in more traditional Cooperatives, all Shareholders receive one vote\nper Shareholder regardless of how many shares they own. This gives the smaller\ninvestors the assurance that their voices matter just as much as the larger\ninvestors which results in a true collaboration for all Shareholders. Thank for\nyour interest in this Vision, and we hope you will join us in this\nunprecedented opportunity to revive the 80 year dormant Hemp Industry utilizing\nthe latest in Business Models and 21st Century technology. <\/p>\n","protected":false},"excerpt":{"rendered":"
The purpose of this Executive Summary is to outline the possibilities and Vision for economic development that are available to the Weld County Communities that have been created by the current status and reintroduction of Hemp into the agricultural arena. This Summary’s intent is not to detail the minutia involved in this unprecedented development opportunity, but to paint the Big Picture of what can be possible to those who embrace and collaborate in this broad Vision. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Since Hemp was removed from the Schedule I list by the Federal Government in December of 2018 by the Farm Bill, the interest in growing and processing hemp in Colorado and around the United States has grown exponentially. The vast majority of this growth, however, has been in the CBD sector of the industry because of the lack of whole plant processing facilities.\u00a0 The CBD segment of the industry is currently very profitable, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"pmpro_default_level":0,"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/cohpc.org\/wp-json\/wp\/v2\/posts\/8095"}],"collection":[{"href":"https:\/\/cohpc.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cohpc.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cohpc.org\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cohpc.org\/wp-json\/wp\/v2\/comments?post=8095"}],"version-history":[{"count":1,"href":"https:\/\/cohpc.org\/wp-json\/wp\/v2\/posts\/8095\/revisions"}],"predecessor-version":[{"id":8096,"href":"https:\/\/cohpc.org\/wp-json\/wp\/v2\/posts\/8095\/revisions\/8096"}],"wp:attachment":[{"href":"https:\/\/cohpc.org\/wp-json\/wp\/v2\/media?parent=8095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cohpc.org\/wp-json\/wp\/v2\/categories?post=8095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cohpc.org\/wp-json\/wp\/v2\/tags?post=8095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}