CropLogic snares Oregon industrial hemp growers licence

By Trevor Hoey. Published at Mar 18, 2019, in Technology

CropLogic Ltd’s (ASX:CLI) wholly owned Oregonian subsidiary LogicalCropping LLC has been issued a registered industrial hemp growers licence by the Oregon Department of Agriculture, a development that has seen its shares soar in morning trading.

The company’s shares hit a high of 2.0 cents, up 25% on Friday’s closing price.

It isn’t surprising to see such a strong rally given that this makes the company one of the first ASX listed players in the sector with a US hemp growers license.

Management expects to be able to produce between 80,000 kilograms and 150,000 kilograms of hemp biomass from the September 2019 harvest.

As mentioned last week, the company has a distinct advantage over many of its peers, having signed a three-year lease for a 150 hectare trial farm in Oregon, a premier region for the industrial hemp industry as it is amongst a handful of US states that legalised the production of the commodity some years prior to the passing of the Farm Bill in late 2018.

CropLogic licensed to grow and sell

Not only is CropLogic now legally permitted to grow industrial hemp in Oregon for this upcoming 2019 growing season, it can now generate income from selling its crop.

Harvesting will commence September 2019, and heralding this milestone event for the group, chief executive James Cooper-Jones said, “The licence permits CropLogic to produce and sell industrial hemp this season and potentially participate in the exceptional returns CropLogic has observed from other growers in Oregon.

“CropLogic is very excited about this significant milestone in its strategy to crop 150 acres of industrial hemp this season.”

Consumer demand for products that contain the therapeutic products of CBD (cannabidiol), a derivative of industrial hemp, has seen a significant increase in demand.

This follows the 2018 US federal Farm Bill signed into law by President Trump in December 2018, which legalised production federally and further legitimising and simplifying the production and commercialisation of industrial hemp and CBD in the US.”

Agronomy and agtech technologies on display

Managing the 150 acre trial farm in the highly productive Deschutes County will also allow CropLogic to demonstrate its agronomy and digital agtech technologies, particularly CropLogic realTime, which will be used to optimise yields.

CropLogic is working through a series of milestones for cropping of industrial hemp, including developing farm plans and preparations around this property.

“However, similar acreage producing hemp biomass of between 180,000 pounds to 337,500 pounds (81,647kg to 153,087kg) has been observed.

“The price for hemp biomass varies between grade and variety, but prices of US$35 to US$45 per pound were reported in CropLogic’s recent investigations into the industry.”

Based on the midpoint of similar acreage production which is in the order of 260,000 pounds and a mid-range price of US$40 per pound, this would generate income of US$10.4 million.

With the Australian dollar hovering in the vicinity of US$0.71, this equates to A$14.6 million.

Where to invest $1,000 right now

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!