Croplogic Limited (ASX: CLI), an international agronomy services company that provides cutting-edge technology to growers for decision support, will be utilizing its agricultural technology to optimize the yield of the trial hemp farm in Oregon.
In order to facilitate the process of hemp production, the company will be using its innovative hardware and software package, CropLogic realTime. Through its hardware technology, the company would be able to keep a track on the key crop metrics which includes the soil moisture and irrigation. Based on this, the company will be converting the observations into data 24/7. Based on the data, it will then be collating it into a concise format and provide valuable insights that can be implemented and make cost-saving decisions.
Through the CropLogic GrowerView, which is a user-friendly application, the users can view the data, and this application can be accessed through desktop, android as well as Apple iOS. The company developed this tool under the expert guidance of leading agronomists by using their 30 years of research experience.
From the information provided by the Oregonian in December 2018, after the introduction of 2018 federal Farm Bill, there was an increase in the number of licensed growers from 13 to 584. Sunny Summers from the Oregon Department of Agriculture highlighted that the hemp acreage has increased from zero to 11,000 acres.
Sources even predict that the US hemp market will get tripled by 2022.
At this juncture, CropLogic is well poised to support this growing market with agronomic and technical support along with data generated from farming industrial hemp at its trial farm this season. Further, whatever will be the revenue achieved through the proceeds for this industrial hemp crop will be used to support the company to push its products as well as the further development of CropLogics suite of agricultural technology products like CropLogic realTime.
CropLogic along with LogicalCropping continues discussions with various offtake partners and is also looking for potential contribution in the process of its Hemp Biomass beneficiation and processing into CBD products.
The announcement also covered that CropLogics wholly owned Oregonian subsidiary LogicalCropping LLC has received its first shipment of industrial hemp seed which has now been delivered to a third-party nursery, that has experience in industrial hemp, for the purpose of germination before planting in May 2019.
CropLogic has now entered into the phase where it will be working through a series of milestones for cropping of industrial hemp. This process will include the development of the farm plan as well as the preparations around this property. It will also be using its agronomy expertise and agricultural technologies via CropLogic realTime for optimizing the yield and the grade.
On 19 March 2019, Oregon Industrial Hemp Growers License was issued to CLI from Oregon Department of Agriculture.
On 13 March, CLI executed a lease for 150 acres of land for a trial farm in Oregon, USA.
Based on the predictions of industrial hemp getting tripled by 2022, there is a scope that CLI can take advantage of this lucrative and expanding market which in turn will prove to be beneficial for the company as well as its shareholders.
In the previous one-year the stock has given a negative return of 38%. However, in the last six months, the stock is seen giving progressive returns. At present, the shares of CLI is trading at A$0.032 (AEST: 2:12 pm, 27 March 2019), up by 3.226% from its previous closing price. The company has a market capitalization of A$9.19 and around 296.6 million outstanding shares.
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