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How to Start CBD Oil Business

In this blog we’re going to be discussing a new research letter that just came out called Labeling Accuracy of Cannabidiol Extracts Sold Online. This is a really important podcast because while just the topic is really important because what they did here was they. Well, I’ll just read you what they actually did. It’ll give you a better idea of what we’re gonna be talking about. So this is their method of Internet searches with the keywords CBD cannabidiol oil tincture vape were performed between September 12th, 2016 and October 15th, 2016 to identify CBD products available for online retail purchase that included CBD content on packaging products were identical formulation as in products with identical formulation as another product under the same brand were excluded. And that’s not important. But they tested a total of 84 products from 31 different brands. So again, that’s 84 products from 31 different brands. And what they did was they tested them for cannabinoid content, mainly THC and CBD. This same group did a study before actually that I’ll link to for you where they tested not CBD vape oil products sold online, but cannabis products that were sold in dispensaries in California, Washington, and I believe just California, two cities in California and Washington state. And they found some inaccuracy there. So they did this checkup again the following year to test CBD products bought online. So their concern was mainly with CBD and THC, since those are the therapeutic main therapeutic cannabinoids. I wish they would have done one where they also checked. The other things that those labs that I’ve. I stress that labs are important to check for, mainly the pesticides, that there’s no pesticides or high amounts of pesticides in there, any metals or molds.

Those are the big three other than cannabinoids and herpes that are usually tested for and that I stress the importance of testing of CBD products in general for those reasons. I suspect they’ll do that in the future. But let’s get to the fun part with the results and then we’ll discuss those results a little bit. I have some notes here on how I want to organize this podcast, since it’s a little less free form than my usual topics because I wanted to really get this one out clearly. So again, what they did here was they ordered a bunch of CBD online and then they tested it using high performance liquid chromatography in. They tested for the CBD and THC content and here is what they came out with. So they found that the most inaccuracy was with vape products and almost 21 21 mislabeled vape products. So almost 90 percent of the vape products were mislabeled. As far as their CBD content or. Let’s see. Yep. Yeah, that was in regard to their CBD content. So the vape products were very off in terms of that. Now in terms of how off they were. Almost half of the CBD products were under labeled. So they had less CBD in them than what was on the label. About 30 percent I’d say. Let’s see. Yeah. It was about 30 percent. See if it was a little under, though. Just want to make sure you got that right. Yep. 30 percent were labeled correctly of all the products. So 30 percent of 84 products, I believe that’s 26 products of 84 were labeled accurately. So that’s not horrible obviously. But it would be better if it was at 100 percent and the rest were labeled were over label.

They contain more CBD than what was on the label. Now, in terms of THC and what before I talk about the THC, what’s a little confusing? As the day mentioned, they did three products. They tested three different kinds of CBD vape juice UK products from these 31 brands. The three products were, like I said, the vape liquid. They just called it vaporization liquid, a tincture, an oil. The way they seem to distinguish the oil into the tincture is that actually they accurately called the tincture ones that were suspended in alcohol and the oils ones that were suspended in. Some kind of plant pays to it like coconut oil or M.C. Tea will some. I guess that’s how they they distinguish him. So they said that the most accurate product, though, was the oil, which is good. So that’s what most people are using. So those are your CBD oils in unless they mean a concentrate, which I don’t think though. I don’t think that’s what they mean. So you’re CBD oil is just your standard CBD liquid that comes into a plant based. I set up a plant, fatty plant, oil base. So like coconut oil, olive oil. Charlotte’s Web perfect example comes in. All of oil or hemp seed oil is used a lot. Bluebird botanicals. They put it just I’m just giving you examples here, just the ones you might be familiar with. But that was the three kinds of products they tested oils, tinctures, which are kind of interchangeable words, but they they made a distinction between them and vaporization liquid. So the oils were the most accurate and the vape was the most mislabeled. Overall, the most mislabeling was with less CBD than what was on the label. So that is something noteworthy and interesting.

And all this really I’m just sharing this with you to just stress the importance of, you know, I love the CBD whole space, not just the consumers, but the companies that are involved. So I hope everybody that’s listening to this just, you know, we have to do a good job at being as careful as we can to show that even though this industry might be unregulated, as it’s called it, we can still be careful in what we’re doing and have lab results that are accurate to what’s on the labels as best as you can. Of course they do. And they they allowed for a margin of error here. So it’s not like, you know, you have to be completely on the on the T perfect. But being under labeled or over labeled is definitely not a good thing when you think of things like dosing, of course, and things like that with THC. Of course, if it’s under label, that could get someone stoned or high when they don’t want to or have some kind of panic attack reaction. That’s that’s really bad. With a little less of a concern, CBD, as would be mentioned here under labeling, is less concerning. I’m quoting them now, under labeling is less concerning. A CBD appears to neither have abuse liability nor serious adverse consequences at high doses. However, the THC content observed may be sufficient to produce intoxication or impairment, especially among children, not just among children. I’ll add is that if someone is really sensitive to the TTC and there’s it’s hot, which means there’s higher than what it’s supposed to have THC, that could be a problem for them. So that that is important. What they found was with pertaining to THC, the highest they found was six point four, three milligrams per milliliter, which is pretty high.

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Oh yeah yeah. There of course. And they are finicky sometimes. So you need to keep an eye on him and so on and so forth. And I think that’s a good advice if connecting with the law enforcement and making that personal connection to be transparent. And you know especially if you’re growing fields of this stuff is pretty much impossible to keep it completely hidden unless you’re in a very private location. So yeah it’s great.

Josh just to finish things off your wood products. If for the listeners who are you know they’re totally new to your both your brands to Susquehanna Mills company for the oil products that we’ll see canola oil and sunflower oil and other oils you sell there new to your hemp line as well what products do you recommend people start off with that are just listening in today.
Well sure we have you know if they’re interested in CBD products I’m very proud of our CBD tincture line. We it’s got a great flavor are hemp seed oil is a very very mild nutty delicious flavor to it which I know a lot of these CBD lines it can get a little un tasty not tasty to chew like you’re biting into hay or you’re to too much too much play. Oh man. Almost overwhelming. Yeah for sure. And so we’ve I don’t know by accident. I guess we have created a very we just did it the way we thought we should do it. We’ve produced a tincture line that is a little stronger than some of the other ones on the market and there are lots of great brands out there. There are a lot of people that are doing it the correct way that are that are actually putting the right amount of CBD in product which is good. There are some that don’t.

The FDA And CBD

I think there’s been studies. I heard some of the reports from the FDA hearings about CBD and really asking for some oversight because some of the products do not contain their advertised amount of CBD. So our products we have got our tincture line which are our standard normal bottle is a one ounce 30 milliliter Dropper Bottle of tincture that is the strength of ours is 40 milligrams per millimeter. So it’s about twelve hundred milligrams per bottle and a lot of people are like why do you make it that strong. And the reason we made that is because I feel that if CBD is going to work for you I want it to work for you. You can always take less. You can always cut your dosage back to make the economy work in your favour. So we started out with instead of a 500 milliliter bottle MG bottle or two hundred MG bottle we went right for a twelve hundred milligram bottle and I think for the most part people respond well to that. Now it is a little more money. It’s a little a little higher cost because of that inclusion of CBD but I feel that that’s the best approach that we started out with. And we are making we are working on other tincture levels like we’re doing a. A pet CBD like a dog CBD that’s going to be less inclusion is going to be about 500 milligrams per millimeter of CBD in an occlusion with a beef and chicken flavoring. We are also doing a stronger CBD these gentlemen that have these more progressive neurological disorders like Parkinson’s disease or M.S.. Gentlemen we need to be making tinctures that are much much stronger because those are progressive diseases that need additional CBD. So in the future we’re going to have other products available but today our main line product is 40 milligrams per milliliter. We have a 1 ounce bottle which retails for about one hundred dollars. We have a a 10 milliliter bottle which is a nice approachable. Like if someone has tried other brands of CBD and might be a bit apprehensive to spend that initial hundred dollars we brought this product out that’s more of a starter size sort of thing and the prices according to that we also have a two ounce bottle for those that have found the relief they need or the result they need from the inclusion of CBD in their daily program. And that gives them a little advantage by buying two ounces at a time. The price is less than two other bottles of CBD.

Ok cool cool. So you would definitely start with the tincture.

Well it depends on what they’re trying to go after.

If it’s anxiety is the goal to reduce anxiety tincture you know take in at the same time a very periodic girls sort of inclusion into your diet I think is pretty critical if there is a specific injury or a specific area like an elbow or or hands or a knee or a hip or a topical area that can help with CBD I would recommend getting a topical cream a topical application in addition to the tincture line and try to tag those two things together and put more CBD where the specific issue is. What’s interesting is a lot of these people that are suffering with the things find that that CBT really helps them sleep better. Oh yeah.

And I mean we can’t discount the fact that the value of quality rest in terms of overall health. So like for me that’s that’s the biggest reason I take CBD. I have a super overactive mind so when I lay down to sleep at night I just like my brain just keeps spinning. And for most of my life I’ve had a hard time sleep and more than four or five hours and I’ve been taking CBD vape juice UK for about three years now consistently take it at nine eight o’clock at night generally and I’m able to get a good solid or restful rejected of eight nine hours of sleep which is tremendously beneficial to my overall personal health.

So you know there’s other ways of getting sleep but I think this is a great way of doing it in a healthy format you know.
Yeah. And I think a lot of people can relate to that problem that are having trouble sleeping and I used melatonin. I use CBT too for that and I always just make sure to make it a point that I have to prioritize sleep. It’s kind of stupid that we have to do something that’s so prioritize something that should be pretty natural. But unless you prioritize it something will take it away from you so I think a lot of people are using CBT to help them stay on a good sleep schedule. Yeah yeah. We’re just on nights when they just are too wound up or too much going on or whatever reason not maybe not every night you know just using it to on nights when it’s you know they need to sleep and they’re a little bit too awake. So yeah that’s great. Josh thanks for coming on and being a guest today. And like I said I think we could do you have enough knowledge that we could do probably one of these every week just talking about your farming experience and extracting. Where do you see this whole thing going where CBD and we can get your closing thoughts now that we know what products you would recommend for people starting out but just for people listening. Where do you see this space going in the next 10 20 30 years. What do you think’s going to happen in the CBD and have space.

I think it’s going to be ever changing and that’s why from a business it’s very important for us to try to evaluate these opportunities as they present themselves and act act on those opportunities. I think it’s going to change dramatically. I think it’s going to go through the evolution of any new product or any new industry and there’ll be highs there’ll be lows there’ll be oversupply there’ll be undersupply they’ll be instability in pricing I think that it’ll take a little while for it to settle out and I think it’s important to be aware of that as you as you go ahead. A lot of people are getting excited about investing in the cannabis arena and I think that shouldn’t be. Those decisions shouldn’t be taken lightly. Really need to be look in ahead of where it is right now. Really looking down the road a little bit.

So I feel that while CBD is super exciting right now and it’s it gives a great opportunity for four farms to add profitable rotation into their deal. I do think that long term it’s it’s the entire all of the uses that are going to come into play to kind of really build this industry fiber fiber in itself like that is I believe that the fiber hemp fiber industry has got the same sort of power of the lumber industry 100 years ago. I mean I’m talking like city building strength of industry and I think that’s where it’s important to not just focus on one piece of this hemp development but focus on all of it.

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And any opportunity that’s coming to the table and there might be a time where it’s it’s all of it together we might be like the European model they typically don’t grow specific varietals like we’re doing here in Pennsylvania for CBD production they’re doing field production which happens to have a little bit of CBD in it but also they’re also getting a fiber crop in addition to the CBD.

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Yeah. It’s interesting that it’s about the term means because that was a lot of cannabis studies have been done on THC. It’s a THC CBD combo that’s made in England. That’s a pharmaceutical version of the plant oil. It’s a pharma made plant product. It’s weird it’s not common at all. It’s called sound effects but they’ve studied it for M.S. and people with M.S. can sometimes get a script for it but I think what you said to add to what you said is that it’s great that it can come from your field from your team to this person without a script without a doctor without all that insurance stuff. You know people can just have access to these products. It’s not a big obstacle anymore to access the benefits of these products for people that it can help. Sure. If and it comes from the field that’s what’s you know that’s the whole connection there of it being you growing that and extracting the whole product bottling in everything and that seems like that was your goal from the beginning was to be fully focused operation from field to table or field to a bottle or however you want to say it to be able to get people this additional supplement that they need that’s grown from their neighbors their neighbors can grow it in their fields which is is pretty exciting right. Yes I have an opportunity to pull that together and Josh’s fields are in a beautiful part of Pennsylvania some of the best hiking that in the world. That’s where I started to hike I guess the most famous trail that’s deer you is that that loyal sock trail.

Right. Yeah. Yeah. The loyal sock trail actually. Yep. It’s I think part of it crosses just above 6 6 miles north of my home actually.
Yeah. Well anywhere near the river the levels you’re near the little stock river right. Yeah. I currently live on the loyal side. Yeah yeah. That’s great. So have you ever. I’m assuming this isn’t a problem in Pennsylvania because we’re kind of shrewd people and careful is that you’ve not had any issues with people like curious hooligans trying to get into the hemp fields.

CBD Without THC

No. The first year we put signs up that said put our research permit no department of bag. This is industrial hemp. This does not contain THC. We were really kind of worried about that initially we put signs up the first year we were in a in a very very rural very dominated by Mennonites and Amish. In that realm we had zero problems. None. No one messed with it. They looked at it everybody slowed down it was right on a hard road so people were driving by it often and probably probably the signs brought more attention to it than what the plant itself would have to think.

The signs would actually bring more Well the signs advertise that there’s no THC which is good but they definitely bring attention right. Find the best CBD vape juice UK.

The CBD Production Process

And you know kids are going to. People are going to be what people are and of course they’re still going to try to steal some but we don’t really have any issue at all in that that first year in production the second year we got a little guts here. Like I on that particular farm we upped our acreage as we did about twenty five acres on that farm in 2018 and then I farmed a couple that was an organic farm is where we first started with I’m a conventional farmer so my ground hasn’t been certified as organic yet so I grew 14 acres and part of it was actually on a major traveled route route eighty seven which basically goes from Williamsport all the way up to New York and I write on the side of the road. It was we grow right there I didn’t put a sign up or anything and we really didn’t have any major issues until later on. We had a couple of teenagers kind of standing in there wide eyed thinking they they won the lottery or something but for the most part you know it’s not marijuana and people who know what marijuana looks like field hemp is not going to look like marijuana it’s not going to be produced in the same way.
So I don’t really see that as a major problem in the future. I do see a problem with CBD production and people that are involved in illegal marijuana production because it does look the same. It’s grown the same it smells the same it probably is the same.
I mean I got it out my prop it’s on the patio right now.

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So I explain that it’s not that some of it is right now this year some of our acres are are also on pretty close to main roads of our CBD production so that’s grown typically on plastic with irrigation like 6 4 5 6 foot on center in rows and it grows it actually starts looking like Christmas trees before too awful long. Some of our are some of our plants or is as big as 3 feet now. Where can you buy CBD oil?
And yeah yeah I have I have the I have 6 foot stakes in them and they’re almost the you know they’re getting to 4.5 feet. Yeah.
Wow. Wow. That’s crazy. So I do anticipate potentially some problems this year with that and I had some friends in New York last year that did have some issues. They had a couple of plants that they had just put them in a compost pile to see how big they got and I guess they got enormous like 10 12 feet high full of buds and they were going to harvest them the next day. They came in to work and they were gone. Someone had taken them and I hate.

Sometimes what people do but that’s the reality.

But the reality is like if you were in the business of selling illegal marijuana this is one way that you could double the weight of you.

Oh yeah. Oh yes people do. I don’t want to give people ideas but that is what happens.

Yeah. Yeah. So I think there needs to be some due diligence in production of where this stuff is that so. Like for instance here where my shop is that like we’ve got a local police officer over here. Well there’s two officers in this in this office it’s right across the road here. I brought them both over like right off right when we got started. I said hey here’s my permit. Here’s what we’re doing. I just want you guys to be completely aware of what’s happening in case you happen to see something a little shady happening like somebody try to break into my building or something.

Is that something you would recommend to any of the listeners who are also hemp growers to do that something like that.
Absolutely. Like just notify you know law enforcement should. Be notified through the Department of Ag but you know with it going through all the make that connection honor you have to do it yourself and your due diligence. Let people know what’s going on and just be transparent with that to a certain degree with the police. Yeah. Yeah. It just makes your life a lot better if you’re permitted and you’re doing everything right. There’s no reason whatsoever to be concerned about police so you might as well just right upfront say hey this is what’s going on. And I’ve found that they respond very very positively to that. They you know so interesting to think that through. But yeah I don’t think things need to be guarded or fenced in or anything like that. But I think some education needs to take place and what crops are what. And you know you need to keep an eye on things for sure and CBT production is. It needs attention. It’s not a crop that you just planted and come back in three months and there it is. You do need to pay attention to it it needs water to needs looked after it needs to be you know you’ve got to keep an eye out for in case a male did happen to get into your field if you have a male plant that even feminized seed has the chance of one in Brazilian being a male plant or if maybe seeds came from a not a great source like if plants came from a breeder that really doesn’t know what they’re doing yet there’s a potential of having more male seeds. I’ve heard these stories of people buying thousands of dollars of seeds and the current market for high CBD seeds is like a dollar fifty a seed it’s it’s outrageous. So imagine if you buy ten thousand dollars with the seeds and you plant them in your field and you find out like halfway down the road that 50 percent of them are males. That’s a bad situation. There’s all kinds of issues and things to be considering. So like I think when people are talking about paying attention to their crop they need to be walking these fields every day and he’d be making sure these plants are doing well. There’s enough money in CBD production right now. I think it merits that sort of that attention.

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So there’ll be a point where you have to be watching the cannabinoids in these plants where you have to keep your your plant under point three percent THC to become that really legal under the new farm bill. But you want to wait as long as you can because the longer you wait the higher the CBD content will go until that threshold is met. That’s when you need to harvest. And in other countries they have a much higher threshold of THC which enables them to get much much higher volumes of CBD in their varietals because they might could let them go to 1 percent or 5 percent of THC and you can extract the THC now and the end product. So I think that will develop as years go by here. They will raise they regulators will will raise that THC threshold to enable farmers to be able to produce because frankly that’s still not a drug. I mean no one would be taking that low THC content for medical reasons or recreational reasons that would be really really poor quality cannabis for those reasons. So I think that there is potential for that threshold changing in the near future trying to figure out what happens to the plant.
So we were discussing if the plant is a feminized version so it never goes to seed and the CBD is at its peak that’s when you want to harvest. Right. What happens if you don’t.

Would the CBD just kind of stay or would it also go away considered marijuana as soon as it became above the point three percent THC. So that’s whereas as a farmer if you have a significant investment in your crop you certainly don’t want your crop to go from a reasonable value per pound to worth nothing because no one will buy it because it’s out of spec it’s a little bit of a challenge they’re in production and that’s where a lot of these farmers this year are are going to be struggling with if they don’t have access to solid testing they could go beyond that threshold and then they could really have a really problem on their hands because if that gets below above a certain point the department that can actually have it ordered destroyed and everything. Yeah.

CBD Versus THC

So if it goes to a certain point the THC can get too hot. Right. That’s correct. Yep. Make it in time right.

If you don’t hear right they’ll actually issue you in order to destroy the crop because at that point you are no longer growing industrial hemp you’re growing in the line is so fine it is it’s very low it’s going to be very challenging and I have a fear that there are a lot of farmers that aren’t prepared for that balance of CBD to THC and are going to have some bad news at the end of the year because they’re going to have product that’s going to be out of spec it’s gonna be difficult to to merchandise that yeah.
You know central well of knowledge we could almost do one of these every week. But the thing I really want to ask you about from your experience is what do you think is going to happen with the potential extraction of THC from a whole field of hemp. Because as you know and I do it’s possible what’s going to happen with it. Well you could take. I mean look you can take. Okay do you know what Rick Simpson oil is. Yeah yeah absolutely. I use that stuff. I think it’s great. It can be a little strong but once your tolerance is up it it’s a really potent concentrated way to intake cannabinoids and you could make it from a field of hemp because you could take all that THC right that there is THC in there you can take it you could extract it. Right.

Yeah yeah. But it’s legalities is what it comes down to is this is we’re not licensed to produce that. So yeah right. So from a commercial standpoint like we do not want that. I mean yet can you possibly use it.

Sure but not in the commercial arena. That’s not a product that I can produce and sell well legally you can’t even produce it.
I think right. But I think there may be a hemp derived component that comes out it could. That could pass it as a we might see something like that. What I’m saying in the next few years.

Cannabinoids And What They Do

Hemp derived THC Well it kind of my my thought my anticipation of this industry is that regulators will increase the the level the limits of THC and then the lower. Yeah. OK. And in turn you’re going to see processors get almost more sophisticated in their extraction techniques and be able to remove the THC or be able to bring the THC below that threshold again. And you hear about this a lot of times where people that have jobs. Are you know that have random drug testing full spectrum CBD has trace amounts of THC in it. Yeah.

Well mind you amounts we just had a guy at the store who failed a drug test. I mean we told him that you know this is full spectrum stuff you could fail. He said I’m going to risk it. And he I mean this is what he told us. But you know he did fail a drug test because of it. So do we know if he was using other products. No. I mean we don’t really know this guy. But the thing is that yes full spectrum. You could. You know it’s got TCE in it you know. Yep that’s what it is. So it’s it’s a cannabinoid they they live together CBD and THC they’re roommates. So where one goes so does the other unless as you’re saying take that step to to remove it. And that stuff’s going to get more sophisticated. I agree with you.

I actually have a meeting tomorrow with a group a gentleman I’ve known for years while I’ve known his father for years here that he has an extraction facility in Oregon one in Vermont and our meeting tomorrow is to to expand our operation here in Pennsylvania.
And one of the things he has is I don’t know everyone has something proprietary but apparently he’s developed a way to more effectively remove the THC from and still kind of keep the full spectrum benefits of the CBD distill it but just remove that that one cannabinoid out of there which we hope that we will be able to have a THC free full spectrum product on the market in about a month from now. You can obviously get isolate but you know everybody has some mixed feelings about isolate isolate.
I don’t believe is as good for you as what a full spectrum tincture would be because there’s that entourage effect of all of the minor cannabinoids of the term beans. We’ve actually seen this as some of the people that we’ve been working with with it told me you told me it was the guy with the term penis right.

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So we’ve got I read an article I don’t recall where it was from I think you and I talked about this where where there was a study done on people with M.S. and they found that there was two specific term beans that were more effective pain management in people with M.S. then both CBD and THC which was just phenomenal to me. So we have this one gentleman that’s actually incidentally one of my growers as well and interested in investing in further development of this industry. He’ll be at the meeting tomorrow as well. We made him a specific tincture that had an elevated amount of CBD and four times the inclusion of term beans and the last test that we had done I really wanted to isolate which Turpin is really really helping him. And we’ve kind of we’ve got him to a point now where we have custom designed a tincture that helps him manage 100 percent of the conditions that he’s affected with from M.S.. And he he still works a full week you know 50 hours a week. He said M.S. for about twenty six years I think he said he takes a zero pharmaceuticals to manage the pain and the condition of M.S. and he is 100 percent using CBD to manage that which is really amazing actually that we can grow something here in Pennsylvania that can help such a debilitating sort of disorder that be a lot so many people need to deal with.

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