NC Hemp Industry: Massive Opportunity, Minimize Your Risk
The momentum driving the hemp industry has continuously increased in recent years, but with the passage of the Agriculture Improvement Act of 2018 effective last December, the industry’s momentum has reached an all-time high both locally here in North Carolina and nationwide.
The Agriculture Improvement Act of 2018, commonly known as the “2018 Farm Bill”, decriminalized hemp and hemp-derived compounds (or hemp-derived CBD), which initiated massive opportunity and growth in the industry both commercially and economically.
There are many reasons why this industry is thriving – consumer awareness, deregulation, availability but perhaps the dominating factor is the usefulness of all parts of the plant including the seed, stem, fiber, and flower.
The hemp plant is used across countless markets, both commercial and industrial. Uses of hemp include, but are certainly not limited to: textiles including clothing, shoes, and fabrics; industrial textiles including ropes, canvas, carpeting, and netting; paper including packaging, print, and cardboard; body care products including soap, shampoo, lotion, and cosmetics; building materials including fuel, solvents, coatings, and fiberboard; food including protein powder, seed oil, and supplements.
The opportunity for growth in this market is endless, but that does not come without a great amount of uncertainty and subsequent risk, which further increases the importance of having knowledgeable professionals in your corner.
The hemp industry occupies a very unique environment from an accounting perspective. By not having an accounting professional knowledgeable in this market, you not only risk violating compliance laws, but you also risk missing out on various deductions and credits. One of which is the valuable Research and Development tax credit.
If you are in this industry, especially in North Carolina (or really anywhere on the East Coast), you know how difficult it can be to find the professional accounting guidance that is necessary for your business to prosper in this market. The shortage of accounting professionals and CPAs servicing this industry locally is largely due to the amount of time and research that is necessary in such a unique niche.
Whether you are in involved in farming, cultivation, production, distribution, retail, processing, or any other segment of the hemp industry, we are here to help. We offer a broad spectrum of accounting and consulting services that are tailored specifically to meet each clients individual needs. Our services include providing guidance related to income tax and sales tax compliance, cultivating tax planning strategies to maximize credits and minimize tax liability, bookkeeping, advisory services, and much more.
As a proud member of the North Carolina Industrial Hemp Association, we are committed to the success of the hemp industry and are excited to partner with clients in this market.
Want to know more? Schedule a free hemp accounting consultation today.