Calling All Alberta Farmers!

The XY Hemp Corporation is moving home!

We’re looking for farming partners in Central and Northern Alberta for a 5-year partnership to grow hemp for food seeds, fibre crops and CBD medicine. The new cannabis regulations are bringing tremendous opportunities to hemp farmers and we’d like to share those with new farmers.

Connect with the XY Hemp Corporation if you want to learn to grow hemp, earn extra income from marginal farmland, transition to organic agriculture, or get into the emerging hemp and cannabis industry.

We bring knowledge, community, financing and entrepreneurial energy to our farming partnerships. Reach out on our contact form or to kayleigh@thexyhempcorporation.com ❤

XY Hemp Winter Research

The XY Hemp Corporation is back in action this spring, and I’m excited to tell you about our plans for the next two growing seasons. However, we haven’t been on hiatus all winter. In fact, Chad and I spent most of our winter months diving into research projects. After getting majorly inspired at the Canadian Hemp Trade Alliance (CHTA) conference in November 2015, I worked on some of the economics behind a series of White Papers published by the CHTA this spring. Through February and March, Chad and I explored hemp processing possibilities by completing market assessments for bio-polymers, bio-composites and cannabidiol (CBD) extract products. There is always more research to do, but in this post I’ll tell you about what we’ve learned so far.

At the CHTA conference in Calgary, Chad and I learned a lot about hemp building materials, CBD extracts and made lots of industry connections. I attended the full three days and was able to attend sessions with Health Canada, and update on US regulatory changes, and several sessions on hemp fibre processing developments. JustBiofiber provided an update on their hempcrete building blocks along with price comparisons to conventional building systems and information on the pilot facility they are building outside Calgary. We also got to learn from researchers at the University of Alberta and the Albert Agriculture and Forestry Bioindustrial Research Branch. The Wednesday morning session with Paul XX of Elixinol was the most highly anticipated event of the conference. He presented the research supporting the use of CBD and hemp oil for a wide array of health issues and diseases. It was a moving and motivational presentation. Throughout the week, we connected with many amazing people in the hemp industry and I offered my support as an economics researcher for the CHTA White Papers on CBD extracts.

After January, Chad and I began working though structured market assessments of several products derived from hemp. In these markets assessments we tried to fill in the gaps in our knowledge about the market size, the value chain (how the product move from raw hemp to final product and how much are the mark-ups at each stage of production), established business models in the industry, a SWOT analysis if we were to enter the market and what our key success factors would be. This process involved understanding the basic science behind some of the more technical products and gathering and organizing information about how existing businesses operate in the market.

We decided to started with the most complex product, bio-composites, to make things easier for ourselves going forward. Based on our research, bio-composites are natural fibers combined with polymers. We are most interested in green bio-composites, which use natural fibers and polymers derived from plants rather than refined petroleum. To start our research we ordered an amazing text book written by the European Confederation of Linen and Hemp and the research organization JEC. It was well worth the investment and helped us understand the language of composite materials, the science behind how they work, how they are made, and current applications in hemp and flax fibers. The text book also included market research and comparisons between the structural properties of hemp composites and traditional composites such as carbon and glass fiber.

Following this we moved on to bio-polymers, the building blocks of plastics derived from plant sources. In this stage we were comparing processes and products derived from a wide variety of natural oils (for example: canola, waste from ethanol production, soy) to plastics derived from hemp oils. This is a new area of research and during this process we reached out to our contacts at Alberta Agriculture and Forestry and Alberta Innovates, who connected us with researchers at the U of A who are working on lipids chemistry. Chad and I have both made visits to the laboratory to see samples of the bio-composites being developed and are excited to continue our research in this field.

 

Finally, we turned our attention back to CBD extracts from hemp. CBD is a polyphenol, like THC, naturally occurring in the hemp plant. The hemp plant is a variety of cannabis sativa that has been bred to have very low concentrations of THC (<0.3%), but in doing so, it can often have much higher concentrations of CBD. There is a lot of interest in the health community about the potential therapeutic uses of CBD, and many products already available online. We reviewed some of the science behind CBD, the methods used to extract it from hemp and the potential market for these products. It is not possible at this time for hemp farmers to harvest or process the parts of the plant that are rich in CBDs. This is one of the reasons why the CHTA wrote its White Papers and has been sharing this information with decisions makers in Ottawa to help change the rules that govern hemp production.

Chad and I have a few more market assessments we would life to complete this year, for biofuels and hemp construction materials. We have started gathering resources for these pieces but have put our work on hold to get our hemp farming process organized for the next two years (more about that in the next blog post). We are also excited to observe and participate in conversations about how marijuana legalization should be structured in Canada, and we’ll be following the research on this topic closely. Bio-polymers and bio-composites are exciting new industrial markets for hemp, and we will be looking for ways to build a business model for those products which fits our desired scale. As always, we couldn’t do any of this without the amazing network we have been building in hemp and the Alberta bio-industry and we look forward to continuing to build relationships with government, researchers and other businesses.

 

 

 

Land Access for The XY Hemp Corporation

March 25, 2015 The XY Hemp Corporation completes a significant step in our business plan: signing the crop share agreement with Breadroot Farms.

The crop share agreement is a hybrid between a traditional crop share contract and a production agreement. This flexibility has allowed us to craft a truly unique partnership with our organic producers, Hélène Tremblay-Boyko and Al Boyko. We are growing 60 acres of hemp this summer and sharing input costs and profits from the sale. This structure allows The XY Hemp Corporation to share risk, costs and access mentorship from experienced organic producers.

As young professionals, C and I have limited experience with agriculture. An 8-month co-op term at the B.C. Ministry of Agriculture exposed me to different land access arrangements for young farmers. These alternative models of land access include incubator farms, land linking, co-operative farming and farmland trusts. Breadroot farms is actively searching for young agrarians to take over sustainable operations on their farm through land linking initiatives such as FARMLink. Al and Hélène have also set aside land for a farmland trust called Farmland Legacies. Our joint venture is a blend of land linking and co-operative farming.

Star Spangled (Future) Hemp Field on Breadroot Farms, SK
Star Spangled (Future) Hemp Field on Breadroot Farms, SK

In exchange for a land rental fee, a 30% share of seed sales and reimbursement for machinery operations, Breadroot Farms is providing The XY Hemp Corporation with 60 acres of pristine organic land and the mentorship of organic farmers with over 20 years of experience growing field crops in Saskatchewan. The location is perfect for hemp seed sales: close to the Manitoba border where the majority of hemp processing occurs.

Al and Hélène have grown a wide variety of field crops, but have never grown hemp. C and I were able to apply for a license to grow industrial hemp from Health Canada with permission from Breadroot farms. This application has been received and processed and we anticipate our license to be issued at the end of April, 2015. We have also accessed the support of Larry Marshall, an experience organic hemp farmer in Northern Saskatchewan. With these three incredible resources, C and I will learn so much about farming this summer.

The crop share agreement is the first contract on a series that sets our dreams into motion. Our next major milestone will be a production contract with a seed buyer. The XY Hemp Corporation and Breadroot Farms are currently reviewing several contracts and are very excited to move forward together!

-K

P.S. My pitch video is still up for votes online, please watch and give it a little “heart”

What’s in a name?

“What’s in a name? That which we call a rose

By any other name, would smell as sweet”

-W. Shakespeare Romeo and Juliet (II, ii, 1-2)

While a rose may smell as sweet by any other name, The XY Hemp Corporation sounds much sweeter to me than our previous numbered corporation. This week we are celebrating a small accomplishment: we have chosen a name for our company and made the change official!

At first, it may sound like a placeholder name but it was in fact chosen carefully to reflect our corporation culture and vision.

The XY Hemp Corporation is an ode to Canadian history. Canada was settled by corporate interests before the colonial powers of Britain and France decided to establish colonies and send settlers to the new country. Two powerful trading groups, The Hudson’s Bay Company and the North West Company, competed for domination in the fur trade in the late 18th and early 19th century. The Hudson’s Bay Company was centrally controlled from London and had very a strict hierarchy, whereas the NorthWest Company was headquartered in Montreal and consisted of partnerships between traders across the country. The NorthWest Company eventually achieved full integration when a London office was opened to market furs from the company. Many of the shareholders of the NorthWest company were voyageurs: traders who lived in Canada and spent their winters in Canadian wilderness. Although power was more decentralized in the NorthWest Company, there was disagreement between the winterers and the management in Montreal. In 1799, the western fur traders broke away from The NorthWest Company to form the New NorthWest Company, also known as the XY Company.

The XY Hemp Corporation aims to become the #1 hemp processing firm in Canada through partnerships and collaboration. We are independent thinkers and firmly rooted in western Canada. Innovation is the key to what makes us different. Our innovative partnership approach to enter the agriculture sector is just the beginning. Willing to take calculated risks and compete with bigger corporations, our competitive advantage is the flexibility to start small and grow into new markets.

Happy #HempDay

XX

-K