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CropLogic Limited (ASX:CLI) is an agricultural company operating on a global scale. The company provides digital agricultural technology expertise to the growers of irrigated crops. In 2017, the company launched its product in the USA. It began servicing the area and obtained a market share of around 30% in some crops. After this substantial growth in Washington State and Northern Oregon, USA, the company further expanded into Idaho market.
On 18th March 2019, the company announced that it had received a registered industrial hemp growersâ licence by the Oregon Department of Agriculture, through its wholly-owned Oregonian subsidiary LogicalCropping LLC. This licence would legally enable the company to crop industrial hemp in Oregon, for the 2019 growing season.
On 7 March 2019, CLI had notified the market that it has applied for the license to cultivate industrial hemp, to the Oregon Department of Agriculture.
About Oregon Hemp and CropLogic Trial Farm
Oregon has been an important destination for industrial hemp production. The region has supported the industrial hemp for a long time and is amongst very few of the USA states, that had been given the legal status for the production of industrial hemp for some years before the passing of the Farm Bill in late 2018. Oregon features in the top three industrial hemp producing states in the USA. Consequently, the knowledge and presence of infrastructure around Oregon regarding hemp production is good when compared to other states.
However, to take the full advantage of producing industrial hemp in Oregon, the company claims to have a well-placed agriculture team. CropLogic has a robust presence and good regional knowledge of the Pacific Northwest, with a team that has serviced this region for up to 3 decades. CropLogicâs digital applications like CropLogic aerial imagery and CropLogic realTime are also expected to directly help in optimising the yields and grade of the companyâs hemp biomass crop.
On 13th March 2019, CropLogic disseminated the news that it had signed a lease agreement for 150 acres of agricultural land in Deschutes County, Oregon, USA. However, the commencement of the production plan is underway, regarding which the company would keep its shareholders posted for any updates.
CIL is working through various major operations for harvesting of industrial hemp. It comprises of the development of farm plans and preparations around the property of Deschutes County. The similar size of land would be able to produce 180,000 lbs. to 337,500 lbs hemp biomass. Though, the price for hemp biomass are not same and varies between variety and grade. The companyâs recent study, in this industry, reported an average range of prices to be between USD35 to USD45 per pound.
The companyâs CEO James Cooper-Jones stated that the recent permit would help the company to potentially participate in the returns that have been enjoyed by other growers in Oregon. This opportunity will also enable the company to demonstrate digital Agtech technologies in optimising the yield.
On the technical front, the stock of the company shot up by 6.25% on ASX and closed the day at A$0.017 as of 18th March 2019. Today, on 19 March, the stock has soared by 29.412%, trading at A$0.022 (AS at 12:50 PM AEST). In the last six months, the stock was down by 39.29%. However, the YTD return stands positive at 30.77%.
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