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The Mississippi Hemp Cultivation Task Force’s draft report released on in November that stops short of a specific policy recommendation for the legislature, but provides useful information for potential legislation.

Mississippi is one of only three states where hemp cultivation is illegal and the legislature could take up the issue in January, when it returns to Jackson for the annual regular session. 

Hemp is derived from strains of the cannabis sativa plant with low amounts (0.3 percent content or less) of the psychoactive substance in marijuana known as THC. The plant can be cultivated for its fiber, which can be used in insulation, rope, textiles, and other products. 

The seeds are also a good source of protein and are edible by humans or animals. The flowers of the plant can be used for cannabidiol, or CBD oil production with possible benefits still being studied by scientists both in Mississippi and nationwide.

The report admits that some states who began pilot hemp cultivation programs under the 2014 Farm Bill — such as Kentucky, Oregon, North Carolina and Virginia — are at “some advantage,” but would still have to reconcile their programs with draft federal regulations that came out on October 31.

These new rules govern hemp cultivation nationally after the2018 U.S. Farm Bill authorized the growing and sale of hemp. 

The report says that the state will have the advantage, as a possible late adopter of hemp cultivation, in having the benefit of other state’s experiences.

Economics

Hemp, according to the report, has some pitfalls when it comes to whether Mississippi farmers could effectively cultivate it for profit. 

Supply chains for hemp-related products are not mature, according to the report. Also, verification issues with keeping crops below the legal 0.3 percent THC threshold and what to do if a crop goes “hot” and tests over that standard.

The report also says Kentucky’s program quickly spawned 70 licensed processors. There is also a Charleston, Mississippi-based company, Kengro, which imports Kentucky hemp for processing to fiber for animal bedding products for Ecofibre, an Australian-based company that does business in both CBD oil and hemp fiber/seed markets.

Projections from the state’s two agricultural universities, Mississippi State and Alcorn State, suggest that fiber or grain production, and especially combined production, could offer an economically viable alternative to other staple Mississippi crops such as corn, cotton, and soybeans. Researchers used data from Kentucky and Missouri and adjusted it for Mississippi.

Growing hemp for grain and fiber would be the state’s most profitable crop next to cotton grown in the Delta.

The report also says that more states approving hemp production means supplies will increase while prices will drop.

Agronomy

According to the report, finding hemp strains that will grow in Mississippi’s climate will be a huge obstacle to cultivation and finding such strains could take several years.

Also, there are no approved pesticides or herbicides authorized by the U.S. Food and Drug Administration.

The report says much research still needs to be conducted on hemp, including:

Law enforcement and regulation

The report says that law enforcement personnel and canine officers are unable to discern the difference between marijuana and legal hemp except with laboratory analysis. 

Among the concerns about hemp cultivation include:

The report also says that since resources of state agencies needed for regulation are under stress, lawmakers much have a plan needed to “support the infrastructure needed to ensure public safety related to hemp cultivation and hemp products.”

The Speaker’s Commission on Public Policy held a half-day summit on the phenomena of brain drain in Mississippi.

The commission, organized by House Speaker Philip Gunn (R-Clinton) in 2018, put on the event with panelists from the state’s universities, entrepreneurs and some from the economic development realm along with legislators. 

The goal was to find ways to keep young, college-educated Mississippians in state and lure other college graduates to the Magnolia State.

Like with a previous summit on human trafficking, Gunn said his goal is for the discussion to provide a framework for legislation in the upcoming session in January.

“Brain drain is something that’s been talked about a lot and I’m don’t know if I understand all of the facets of that and that’s what this day is about,” Gunn said. “It’s for us to not only understand the issues, but come forward with solutions.”

Bill Rayburn is the CEO of mTrade, a Mississippi-based company that has built a proprietary loan acquisition system that brings together data and risk analysis in one portal for mortgage transactions. The company employs 200 workers in three locations in Oxford, Tupelo and New York.

He said the state, as evidenced by a scorecard by Economic Modeling that ranked counties by their ability to attract talented workers, is not doing a good job of not only retaining talented graduates, but luring ones from out of state.

Lafayette County was the only one of the state’s smaller counties to be ranked in the top 100 nationally in the scorecard. Only large county, Madison, was ranked in the top 200.

Rayburn said the state could focus on generating entrepreneurship in agriculture technology and that the state needs a strategic economic plan that is focused, actionable, time dependent and measurable. He also said that improving the state as an incubator of entrepreneurship in the new, knowledge-based economy could be done with private funds, but would do so faster with an infusion of taxpayer dollars.

One thing proposed during a roundtable session that the state needs to change its policies of providing generous incentives to manufacturers to bring industry to the state. 

“What we see from an economic development standpoint, the days of chasing smokestacks are coming to an abrupt end,” said Ashley Edwards, the president and CEO of the Gulf Coast Business Council. “I think most folks in our profession realize that. The numbers of those projects are few and far between. We can’t run a 1995-centric economic development strategy for an economy that no longer exists.”

There was more criticism of the top-down mentality when it comes to economic development in Mississippi. 

While these policies helped land carmakers such as Nissan and Toyoto and tiremakers Continental and Yokohama, there have been some missteps such as the KiOR biofuels plant in Columbus (now defunct and sold for scrap), a pair of defunct solar panel manufacturing plants (Twin Creeks and Stion) and an electric car builder (Greentech Automotive) where taxpayers lost money on their “investments.”

From 2012 to 2017, taxpayers have spent $678 million in just MDA grants alone from 2012 to 2017, or about $19,765 per job.

“Our problem is we don’t have the capital,” said Jeffrey Rupp, the director of outreach and corporate engagement at Mississippi State University’s College of Business. “We spend $600 million on a tire plant, which is great and we need those jobs, but we’re turning out 100 new entrepreneurs per year and with one half of one percent of that, we could really do a lot more.”

State Rep. Trey Lamar (R-Senatobia) touted his tax credit plan to keep college graduates in the state that he says he’ll bring back this year. Lamar introduced the legislation in the past two sessions, but it died in the Senate both times after passing the House.

House Bill 816— also known as the Mississippi Educational Talent Recruitment Act — would’ve provide recent graduates (within two years) from a four-year university or a post-graduate program such as medical school who live and work in Mississippi a rebate equal to all or a portion of the amount of their state income tax liability. 

The combination of professional and college football, along with a competitive seven-game World Series, helped make October a solid month for sports wagering in Mississippi. 

The total taxable revenue for the month was a little more than $12.2 million, an 18 percent increase from October of last year for the state. Those numbers varied by regions, however. The northern and central regions had minimal gains of 5 and 4 percent, while Coastal casinos posted a change of more than 24 percent. Also of note, more than half of the revenue was from baseball. 

Because of the timing of the most popular sporting events to place bets on, revenue from sports wagering has– and will – continue to fluctuate greatly by month.

And competition will only continue to increase for money from sports betting since the Supreme Court legalized the practice last year. For now, the Coast has been saved from Louisiana’s inability to pass legislation legalizing sports betting in the Pelican State. They will surely try again. 

Other states have moved faster. 

In Arkansas, sports betting became legal in July. A year ago, voters approved a ballot initiative legalizing sports betting and the Oaklawn Racing Casino Resort in Hot Springs, is the first to welcome betters. While the timeline is still to be determined, a casino closer to home, Southland Gaming & Racing in West Memphis, is expected to begin collecting wagers soon. Competition has swallowed a lot of the revenue Mississippi once experienced, and this would likely add further pains to Tunica area sports betting operations.

Tennessee could also add to those pains, but they have some work to do. The state passed an online-only sports betting bill earlier this year, but it has many issues – requiring sportsbooks to buy official league data to settle in-play wagers, a very expensive entry point and high taxes, and a ban on prop bets in NCAA games. Much work remains before the Volunteer State is taking bids. 

Legislation was introduced in Alabama this year, but it did not move and most consider sports betting a long-shot with our neighbors to the east.

While competition and the general ebb and flow of sporting events people like to place wagers on will always remain, Mississippi’s requirement that you must be in a casino to place bets greatly limits the pool of those who will legally bet. 

As we see, it can be a boon during the World Series or March Madness, but generally speaking a person in Jackson isn’t going to drive to Vicksburg to place a bet on a random baseball game in July. They will continue to bet illegally because bookies are not going to disappear overnight. 

While Mississippi made a positive first step in being ahead of the curve when it comes to sports betting, all of the data shows that states need to create an avenue for individuals to bet online to generate the most revenue. 

Last week, Americans celebrated Thanksgiving with family, turkey, football, and – more likely than not – shopping. Early reports show that Americans began the official 2019 holiday season with record retail purchases.

And while a great deal of the focus will be the continued shift away from brick-and-mortar to digital, we can also use the time to acknowledge the best news: it is easier than ever to purchase common household goods. 

Did you purchase a television on Black Friday? Today, TVs are universal, and if you don’t have one it is likely because you made the conscious decision not to have a TV in your house, not because you can’t afford it. 

That’s because TVs, like most commonly owned goods, have declined dramatically in price. A 23” color TV in 1968 cost $2,544 (in 2018 dollars). Based on the average hourly wage in the manufacturing sector, also in today’s dollars, it would take 125 hours of labor to afford that purchase. Last week, 32” smart TVs were available for $99, or less than 5 hours of labor. And this doesn’t take into account the technological advances of TVs in 2019.

When we see stories about wages being stagnant or new generations being worse off than their parents, we miss one very important item: purchasing power. Yes, government regulated items like education and healthcare have increased much faster than inflation, yet that’s not true of most consumer goods, as shown in the chart below. 

We have the ability to purchase more items, and we are likely buying items of greater than quality.

Need something else to be thankful for? The cost of your Thanksgiving dinner slightly declined from the past year, continuing a 30-year trend.

“The main course on many Thanksgiving tables, the turkey, costs slightly less than last year,” a new story from Human Progress found. “In 2019 the average nominal cost of a Thanksgiving turkey stands at $20.80 for a 16-pound bird. That’s roughly $1.30 per pound, a 4 percent decrease from last year. And that’s before adjusting for inflation!”

And if you traveled last week, you’ll also be happy to know that air travel continues to get safer.

Our well-being is improving, and it’s expanding to more and more Americans. Something we rarely hear about, or talk about. Maybe we should.

As families across the country assemble to celebrate the holidays, the nation’s largest teacher union, of which the Mississippi Association of Educators is a member, is encouraging its members to politicize the gatherings.

MAE is the state affiliate of the National Education Association, and dues from the local union support activities of the national union. Including NAE Ed Justice, which wants to see families “ring in justice this holiday season.”

How can they do that? Skip the talk about your kids, job, or the deer you killed this morning. Instead, open your meal with “conscious questions.” Such as:

And, naturally, the kids should be involved as well. Recommended questions at the kids table:

We should also bring in new symbols to our holiday gatherings. Beyond lights, candles, and other common decorations, here are how the wokest among us symbolize the holidays:

NAE is no stranger to delving into virtually every left-wing political issue, far beyond the teaching of social justice in public education. At their recent convention, NAE affirmed a new business item that reads:

“The NEA will include an assertion of our defense of a person’s right to control their own body, especially for women, youth, and sexually marginalized people. The NEA vigorously opposes all attacks on the right to choose and stands on the fundamental right to abortion under Roe v. Wade.”

This is a sharp change from prior years when they attempted to walk more of a middle ground on abotion, saying they support “reproduction freedom,” not abortion, while bragging about not spending money in regards to pro-abortion legal services.

As we have seen with the left, abortion has moved from “safe, legal, and rare,” to legal until the moment of birth and funded by taxpayers. And if you disagree with that you are evil, anti-woman, and essentially support violence against women. 

But the bigger question is, is it necessary for the NEA, or its affiliates, to take a position on abortion? NEA is certainly a left-wing organization, that has never been in doubt. But, what does abortion have to do with education or teachers? 

One might presume a rejected item that calls for a renewed emphasis on quality education would be more in line with the NEA. That read:

“The National Education Association will re-dedicate itself to the pursuit of increased student learning in every public school in America by putting a renewed emphasis on quality education. NEA will make student learning the priority of the Association. NEA will not waiver in its commitment to student learning by adopting the following lens through which we will assess every NEA program and initiative: How does the proposed action promote the development of students as lifelong reflective learners?”

But, alas, the union rejected those ideas. 

In this episode of Unlicensed, we break down the best Christmas movies of all time while diving into the important topics of the day such as Die Hard's role in Christmas movies and why the boy in a flannel shirt always gets the girl in Hallmark movies.

A well-cooked turkey, the Macy’s Day parade, the Detroit Lions losing a football game, these are Thanksgiving traditions of which many of us hold fond memories. This classic American holiday beckons in the beginning of the winter holiday season, and yet it has a history that is often largely forgotten.

It was October 3, 1863, shortly after the devastating Battle of Gettysburg, that President Abraham Lincoln declared a national day of thanksgiving. Amidst much bloodshed and division, the holiday was meant to recall how blessed we are as a nation. His words ring true as a beautiful reflection on why we celebrate all these years later.

The year that is drawing toward its close has been filled with the blessings of fruitful fields and healthful skies. To these bounties, which are so constantly enjoyed that we are prone to forget the source from which they come, others have been added, which are of so extraordinary a nature that they cannot fail to penetrate and even soften the heart which is habitually insensible to the ever-watchful providence of Almighty God.

Now, Lincoln did not start this American tradition, but he did revive it. In 1789, Congress asked President George Washington to declare a national day of thanksgiving. Washington would routinely request days of thanks following major victories in battle. It was one of his early acts as president to set the precedent of giving thanks to God as a nation, stating:

Whereas it is the duty of all Nations to acknowledge the providence of Almighty God, to obey his will, to be grateful for his benefits, and humbly to implore his protection and favor—and whereas both Houses of Congress have by their joint Committee requested me “to recommend to the People of the United States a day of public thanksgiving and prayer to be observed by acknowledging with grateful hearts the many signal favors of Almighty God especially by affording them an opportunity peaceably to establish a form of government for their safety and happiness.

Now, President Washington did not start this American tradition, but he did institutionalize it through the power of the American presidency. To find the roots of this day, one must look almost 400 years back on our history, when a group of pilgrims and Native Americans joined together to give a celebration of thanks to God for their safety and friendship. The event commonly cited as the “First Thanksgiving” was a praise of the successful harvest, made possible by instructional support from the local tribe.

There is something remarkably unique to this American holiday upon which we give thanks to God for the gifts we have. The day is a chance to not only offer thanks, but to recall that we have a responsibility to give unto others and serve our fellow man as well. America is set apart from the rest of the world by its dramatic generosity. A deep culture of philanthropy was laid at the heart of our foundation, and continues to this day.

America has consistently been found to be the most generous country in the world, donating an unprecedented amount of time and money. Americans gave $410 billion to charity in 2017, more than the GDP of the vast majority of countries. And, within that, Mississippi is one of the most charitable states in the union. We also top charts when it comes to the percentage of people that volunteer or donate.

In his preeminent book, Democracy in America, Alexandre De Tocqueville offers the insight that “Americans group together to hold fêtes, found seminaries, build inns, construct churches, distribute books, dispatch missionaries…They establish hospitals, prisons, schools by the same method.” Americans come together to solve problems and serve each other in order to build a better life. We gratefully look back on all that we have, and are ultimately made great by our ability to look ahead and question how we can best serve others.

For those to whom much is given, much is expected. America has taken this call to heart and is, for this reason, the most generous nation in the world. The holiday, perhaps more than any other, forces us to take pause and recall the gift of life that God has blessed us with, as well as the friends and family which surround us.

We live in a culture of materialism, focused on passing fads and the procurement of goods. Thanksgiving is more important now than ever as an institutional reminder of to whom we give thanks and how we are expected to display that gratitude through action.

The call to action of both thanks and service, which Lincoln offers stands the test of time, and is just as poignant as with this celebration of Thanksgiving as it was 150 years ago:

And I recommend to them that, while offering up the ascriptions justly due to Him for such singular deliverances and blessings, they do also, with humble penitence for our national perverseness and disobedience, commend to His tender care all those who have become widows, orphans, mourners, or sufferers in the lamentable civil strife in which we are unavoidably engaged, and fervently implore the interposition of the Almighty hand to heal the wounds of the nation, and to restore it, as soon as may be consistent with the Divine purposes, to the full enjoyment of peace, harmony, tranquility, and union.

The Mississippi Hemp Cultivation Task Force voted Wednesday to approve the release of their final report to the legislature on December 2.

The task force says in the executive summary that while there is both positive potential and significant risks for hemp cultivation in the state, there could be additional costs for taxpayers. 

Mississippi is one of only three states where hemp cultivation is illegal and the legislature could take up the issue in January, when it returns to Jackson for the annual regular session. The task force’s report was designed to give the legislature information on how to craft legislation on legalizing hemp cultivation.

Hemp is derived from strains of the cannabis sativa plant with low amounts (0.3 percent content or less) of the psychoactive substance in marijuana known as THC. The plant can be cultivated for its fiber, which can be used in insulation, rope, textiles and other products. 

The seeds are also a good source of protein and can be eaten by humans or used for animal feed. The flowers of the plant can be used for cannabidiol, or CBD oil production with possible benefits still being studied by scientists nationally and at the University of Mississippi Medical Center. 

One of the roadblocks for Mississippi hemp cultivation cited by the task force is nearly gone after the U.S. Department of Agriculture presented a draft of regulations on October 31. These new rules govern hemp cultivation nationally after the 2018 U.S. Farm Bill authorized the growing and sale of hemp. 

The comment period for the draft rule closes on December 30.

 In addition to legislation, Mississippi officials would also have to submit a hemp cultivation plan to the USDA for approval before hemp could be grown in the state.

The problems the task force’s report spotlighted with hemp cultivation include:

Mississippi Agriculture Commissioner Andy Gipson said licensing fees in the 47 other states that legalized it for commercial, research, or pilot programs hasn’t been enough to cover the costs related to regulation, such as hiring new personnel and testing. 

He said those type of costs have added up to $500,000 in additional spending in Kentucky, a state Gipson said is the most advanced nationally in its hemp cultivation program.

Mississippi law enforcement agencies lodged the same complaints in the draft report as they have throughout the process. These concerns include:

According to Gipson, the state’s crime lab meets federal standards for drug testing.

Kentucky could be a model for Mississippi. Since the first pilot program launched in 2014, the number of planted acres has grown from 33 to 6,700 and the number of approved growers have increased from 14 at the program’s inception to 978 in 2019.

State law requires licenses for growers and processers, which include background checks. They also have to consent to inspection by program officials and law enforcement at any location where hemp or related products are grown, handled, stored or processed. Global Positioning System (GPS) coordinates have to be provided to the Kentucky Department of Agriculture before hemp is planted.

Amazon is bringing another of its distribution hubs, known as fulfillment centers, to north Mississippi and will receive $2 million in infrastructure funding and local tax breaks to do it.

The online retail giant announced this week that’ll bring the fulfillment center to Olive Branch that will eventually employ 500 workers.

According to Mississippi Development Authority spokesperson Melissa Scallan, taxpayers will provide $2 million in road improvements for the facility. Also, Desoto county will negotiate a fee-in-lieu agreement for the project which will likely involve the fulfillment center’s property taxes. 

According to the release from the MDA, the million-square-foot warehouse will ship large customer items such as sports equipment, patio furniture, kayaks and bicycles.

“This announcement serves as a shining example to industry leaders around the globe that Mississippi plays to win,” Gov. Phil Bryant said in an MDA news release. “We offer a supportive business climate and integrated transportation network so companies with shipping needs, such as Amazon, can reach their customers in rapid time and remain a step ahead of their competition.”

Some of the other taxpayer-funded economic development projects in Desoto county include:

From 2012 to 2017, taxpayers have spent $678 million in just MDA grants alone from 2012 to 2017.

Select incentives for a few may generate headlines or photo-ops, but it does not generate sustained economic growth. 

Economic development policy really means the state picking the winners and losers by employing direct subsidies and tax breaks to attract or promote specific businesses or industries. An authentic effort to grow our economy would not focus on giving targeted companies the assistance and resources without providing those to all companies and industries. 

It is not fair to the current companies in Mississippi, who built their businesses without government help, to find themselves competing with companies subsidized by taxpayers. For too long, Mississippi has followed a policy that supposes “economic development” can be a meaningful driver of economic well-being in the state. It cannot. That policy is a losing one.

The evidence produced from analysis points convincingly to the conclusion that these targeted incentives do not produce long-term benefits in excess of their costs. In many cases, the cost-per-job is extraordinarily high. While some high-profile companies and their political allies may be better off, non-beneficiary companies may lose workers or experience wage increases, or both, and the state’s economic activity as a whole slows.

When political favor seeking is emphasized like this, it thwarts the private sector and tips the scales in favor of those companies and individuals with access to political relationships. It sends a message to the private sector that it should not focus on consumer-oriented actions, like product/service innovation or marketing, and focus resources instead on lobbying, legal representation, and elections. That’s not a recipe for sustained economic growth.

And we should also acknowledge the opportunity costs of corporate welfare. By eliminating corporate welfare, Mississippi, and every state in the nation with income taxes, could reduce their personal and corporate income taxes for everyone. Or, the money that is sent to select industries could instead be used for infrastructure, healthcare, education, law enforcement, or other basic functions of government. 

Rather than increase the hand of government in our economy, we should trust the “invisible hand” of the marketplace and the proven incentive of profit and loss for the allocation of resources. 

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