Village Farms International Inc (NASDAQ:VFF) has started converting 635,000 Sq. Ft. Growing area of the total 1.3 million Sq. Ft. Permian Basin Greenhouse to cultivate high CBD hemp and for extraction of CBD. This is on the backdrop of House of Representatives backing the House Bill 325 to become a law in Texas. It is subject to the deadline set on June 16, 2019 for the Governor to veto the bill. However, Governor vetoing the bill is unlikely.
Village Farms will put in place all the necessary systems for year-round production and processing of hemp. The company expects to ready the facility for hemp cultivation and processing in Q3 2019. It will also add the extraction to the existing facility.
Requires licenses for hemp cultivation
Village Farms will get the first mover advantage in the CBD cultivation in Texas with the passage of House Bill 325. The company needs licenses for the cultivation and processing of hemp. But, the state of Texas has set no deadline to apply for the license. Village Farms will apply for the licenses.
Federal Farm Bill 2018
Village Farms has started preparation of technical systems and site specific design and development for growing with the passage of federal farm bill 2018. It is gearing for the passage of Texas bill.
Chief Executive Officer of Village Farms, Michael DeGiglio said the company is readying a portion of the Permian Basin Greenhouse for CBD hemp cultivation and extraction with the expectation of hemp bill passage in Texas. It is taking the risk to enjoy a first mover advantage in Texas. Village Farms has applauded the supporters of this landmark bill including Rep. Tracy King, Sen, Charles Perry, and Texas Farm Bureau.
The sales of CBD are expected to reach over $16 billion by the year 2025 in the US. It is a definitive opportunity for Village Farms and can aggressively prepare for cultivation and extraction of hemp CBD.
On June 18, 2019, CFO of Future Farms, Stephen Ruffini will take part in the panel to discuss CBD trends in the 5th Annual Conference in London. Institutional customers of ROTH can attend this conference on receipt of invitation.