Hemp Project in Scio, Oregon
Covered Bridge Acres, LTD.
Lower field, part of the 35 acre outdoor cultivation for 2018
Global Hemp Group and Marijuana Company of America (the Partners) have formed a joint venture to develop a high yielding CBD hemp cultivation project in Scio, Oregon. The Partners are committed to jointly invest a total of US$2.1 million into this project. The joint venture entity, Covered Bridge Acres LTD., is owned 50% by GHG and 50% by MCOA.
A cornerstone of the project is the acquisition of a 109-acre agricultural property in Scio, Oregon. The property, located 70 miles south of Portland, is situated in the fertile Willamette Valley and has a history of hemp cultivation over the past two years. The farm is ideal for cultivating hemp as it contains a high level of organic matter in the soil and has an established irrigation infrastructure with sufficient water rights.
The project will employ a dual cultivation strategy; traditional outdoor orchard style cultivation and perpetual year-round harvest in greenhouses. This will optimize revenue generation throughout the year and minimize the impact of single crop harvesting in October when most other hemp CBD farms harvest, which typically drives down prices.
The first five greenhouses have been purchased for the project, and will provide a total active greenhouse space of over 19,000 sq. ft. These greenhouses are in various stages of installation and will be completed shortly. The Partners are evaluating how best to expand the greenhouse space to achieve the goal of perpetual hemp harvest at the project.
To maximize biomass production for the current cultivation, an additional 40,000 hemp clones were purchased from outside sources. This, combined with the project’s original cloning operation will allow the farm to be planted at maximum density.
Planting the Clones
GHG and MCOA continue to develop a robust North American joint venture relationship. The partners initially joint ventured on hemp trials in New Brunswick in 2017, which has now expanded to 100+ acres of commercial production for 2018, and are now undertaking this project in Scio, Oregon, with the plan to continue to expand acreage in both the United States and Canada.