Arcadia Biosciences Inc (NASDAQ: RKDA), a developer of food ingredients and nutritional oils, with some pre-existing hemp assets and a partnership with Shane Victorino, a former MLB player and son of the mayor of Maui Mike Victorino, announced on Tuesday it's launching a new product line under the GoodHemp name.
The new brand will focus on developing “genetically superior” hemp seeds, transplants, flower and extracts. The first commercial product is a disease-resistant, ultra-low THC hemp seed.
“With GoodHemp, we have a disruptive new commercial hemp seed portfolio as well as a rich pipeline of powerful new genetics that solve a major industry problem - hot crops that test above the USDA’s stringent .3 percent THC limit," Sarah Reiter, COO of Arcadia Biosciences, told Benzinga. "This just the beginning of our ambitions for revolutionizing the commercial hemp seed market, as we’ve done with other crops such as wheat and soybeans.”
Why It Matters
This innovation comes on the heels of the USDA’s new regulations for domestic hemp, which dictate that “hot crops” containing more than 0.3% THC must be destroyed. Furthermore, these losses can't be covered by crop insurance, creating a high-risk situation for U.S. hemp farmers.
In 2019 alone, approximately 20% of U.S. hemp crops were non-compliant, representing roughly $2 billion in losses for growers. This makes a seed line that can pass the USDA’s stringent guidelines valuable for the upcoming planting season.
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