Why the world’s largest marijuana company is doubling its plans for US hemp

Canadian cannabis company Canopy Growth (CGC) is doubling down on plans to invest in cultivating hemp in the United States.

Shortly after the passage of the farm bill, which legalized hemp production in the U.S., Canopy Growth launched plans in January to invest up to $150 million to cultivate hemp in New York state. In February, Canopy Growth CEO Bruce Linton told Yahoo Finance the company was prepared to invest a total of $500 million across two to three other states to replicate the hemp efforts in New York.

But now, given the rise in popularity and demand for the non-psychoactive CBD that occurs in greater concentrations in hemp than marijuana plants, Linton says Canopy is preparing to double its U.S. hemp cultivation efforts to six to seven states.