2 CapitalPress.com July 8, 2016 People & Places Cashing in on ‘cannabiz’ William Simpson aims to capture Oregon’s new marijuana market Western Innovator Capital Press William Simpson Occupation: Founder and CEO of Chalice Farms, a Portland-based company that grows, processes and sells marijuana products for smoking and eating. Personal: Age 36, married, two children. Lives in West Linn, Ore. Background: Originally from Grants Pass, Ore., but lived for a time in Hawaii and Mexico before attending high school in West Linn, a suburb of Portland. Played football, wrestled, was into suring, snowboarding and mixed martial arts. A friend suggested he try cannabis to ease the aches of sports injuries. He found it worked better and was less debilitat- ing than pain pills. Eric Mortenson/Capital Press William Simpson, founder and CEO of Chalice Farms, is seen at his headquarters near Portland International Airport. “We love and believe in this business and know for it to be successful, we must be willing to track and account for our product to ensure that we don’t have diversion into the black market,” he says. son wants to give customers an experience like they might get while visiting a wine-tasting room, with clerks able to de- scribe pot like it was a Pinot. Simpson, a self-described “serial entrepreneur,” oper- ates from a 24,000-square-foot headquarters near the airport that includes a retail store, ship- ping area, lab, test kitchen and corporate ofices. He’s planning to develop a large greenhouse complex in Northwest Portland to grow more pot, hired a bota- nist to work on plant develop- ment and employed a chef to come up with edible pot prod- ucts. One of Chalice Farms’ products is cannabis infused, chocolate covered hazelnuts. Oregon is awash in small storefronts selling recreation- al and medical marijuana, but Simpson expects some or many of them to wash out over time. He’s positioning Chalice Farms for the long haul, with a verti- cally integrated operation that grows, processes and sells a wide range of cannabis prod- ucts. He said his jump start on the competition comes from $10 million in seed money pro- vided by an “angel investor” in Illinois. Business is brisk, but is hampered by federal laws that still consider marijuana a Schedule I narcotic even as more states approve it for med- ical or recreational use. Simp- son said Chalice Farms grosses nearly $750,000 a month, but Section 280E of the IRS tax code prevents cannabis compa- nies from writing off business expenses associated with drug “traficking.” “Even if we do well we’re going to lose money because of tax code 280E,” he said. Marijuana businesses are taking their lumps for now, hanging on and trusting that federal policy will eventually change. He said cannabis is “by far the most valuable crop in the state” and, due to a tax on sales, will add more tax dollars than all the traditional crops.” Simpson said when Oregon Turning point: He applied for an Oregon medical marijuana card in order to grow his own supply, and found he had a green thumb. Poured himself into learning everything he could about growing canna- bis. “I started geeking out,” he says with a laugh. Department of Agriculture of- icials came to visit his facility, they remarked, “Welcome to the family.” CHS Foundation awards $100,000 in college scholarships The CHS Foundation has award- ed $100,000 in scholarships to high school seniors pursuing an agricul- tural-related degree or STEM —Sci- ence, Technology, Engineering, Math — ields of study with an interest in agriculture. Each of the 100 recipients will re- ceive a $1,000 scholarship. The foundation is the major giving entity of CHS Inc., the nation’s lead- ing farmer-owned cooperative. “CHS and the CHS Foundation are dedicated to a variety of programs that support the next generation of leaders in agriculture,” said Linda Tank, president of the CHS Founda- tion, in a press release. “We are proud to support these young leaders as they pursue their education and ex- plore the many diverse opportunities the agriculture and energy industries have to offer.” This year’s scholarship winners represent 25 states. Following are those from Western states: California Julia Pitman, Oklahoma Panhandle State University Lexie Schultz, California State University of Fresno Kelsey Swall, California State University of Fresno Jacob Willhite, California Polytechnic State University Colorado Brittany Whiteman, Sheridan College Tabor Kalcevic, Colorado State University Tyllor Ledford, Texas Tech University Oregon Brady Linnell, Colorado State University Kaitlyan Reed, University of Wyoming Idaho Washington Associated Press ABINGDON, Va. — Kicking off a national tour on opioid addiction, Agricul- ture Secretary Tom Vilsack brought together the gover- nors of Tennessee and Vir- ginia on June 30 to talk about stemming Appalachia’s drug abuse epidemic. The town hall reinforced President Barack Obama’s call for Congress to pump $1.1 billion more into sub- Calendar Saturday, July 9 California State Fair, 1600 Ex- position Blvd., Sacramento, 916- 263-FAIR, http://www.castatefair. org/ Marion County Fair, 10 a.m.-11 p.m., Oregon State Fairgrounds, Salem. 503-585-9998, http://www. co.marion.or.us/CS/Fair Sunday, July 10 California State Fair, 1600 Ex- position Blvd., Sacramento, 916- 263-FAIR, http://www.castatefair. org/ Marion County Fair, 10 a.m.-6 p.m., Oregon State Fairgrounds, Salem. 503-585-9998, http://www. co.marion.or.us/CS/Fair California State Fair, 1600 Ex- position Blvd., Sacramento, 916- 263-FAIR, org/ Tuesday, July 26 FSPCA Preventive Controls for Human Food Course, 8 a.m.-5 p.m. Yanke Family Research Cen- ter, 220 E. Parkcenter Blvd., Boise, Idaho. The new FSMA regulation requires every processing facility to have a trained resource person or “Preventive Controls Qualiied Individual“ who has completed a specialized training course such as the one developed by the Food Safety Preventive Controls Alliance (FSPCA) that is recognized by the FDA. This person will oversee the implementation of the facility’s food safety plan and other key tasks. www.techhelp.org/events/279/fsp- caboisejuly2016/ Wednesday, July 27 Fresno Food Expo, 8 a.m.-8 p.m., Fresno, Calif., Convention & Entertainment Center. http://www. fresnofoodexpo.com Hood River County Fair, noon- 11 p.m. Hood River County Fair- grounds, 3020 Wy’east Road, Hood River, Ore. Gates open at noon each day, carnival rides be- An independent newspaper published every Friday. Capital Press (ISSN 0740-3704) is published weekly by EO Media Group, 1400 Broadway St. NE, Salem OR 97301. Periodicals postage paid at Portland, OR, and at additional mailing ofices. 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Kentucky has the fourth-high- est toll and Tennessee the 11th, according to the U.S. Centers for Disease Control and Prevention. “It’s everybody’s prob- lem,” McAuliffe said. “Of course, we need money.” Vilsack said Appalachians need more opportunities as the region’s once-dominant coal industry crumbles. He cited Obama administration plans to facilitate the transi- www.oxarc.com http://www.castatefair. Entire contents copyright © 2016 EO Media Group dba Capital Press Eric Ball, University of Idaho tion from extractive industries to more sustainable jobs in areas such as new manufac- turing, small farms and con- servation. “You’re going to see a different attitude, I believe, in smaller communities,” Vilsack said. “You’re going to see a more hopeful, more futuristic, things-are-going- to-get-better kind of atti- tude.” Many in Appalachia blame Obama’s climate-change strategy of limiting pollution from coal-ired power plants for the region’s job losses. West Virginia’s unemploy- ment rate the worst in the country. Brutal economics dictate a grim future for coal, even without the carbon rules. Declining prices for natural gas and renewable energy, thinning Appalachian seams, competition from other U.S. coal regions and dim markets both domestically and abroad are all hastening the indus- try’s decline. GASES / WELDING / SAFETY / FIRE Sponsored by: To submit an event go to the Community Events calendar on the home page of our website at www. capitalpress.com and click on “Sub- mit an Event.” Calendar items can also be mailed to Capital Press, 1400 Broadway St. NE, Salem, OR 97301. July 11-July 24 stance abuse treatment. It also was an opportunity to show that governors of opposite parties want to expand Med- icaid under the Affordable Care Act, despite Republican efforts to stop them. Democratic Virginia Gov. Terry McAuliffe and Repub- lican Tennessee Gov. Bill Haslam see solutions in a mix of treatment, prescrip- tion monitoring, drug courts, education and new economic opportunities. West Virginia leads the na- Capital Press Managers Mike O’Brien .............................Publisher Joe Beach ..................................... Editor Elizabeth Yutzie Sell .... Advertising Director Carl Sampson ................Managing Editor Barbara Nipp ......... Production Manager Samantha McLaren .... Circulation Manager Kayla Beechinor, Washington State Univer- sity Agriculture Secretary Vilsack joins ight against opioid addiction By JONATHAN MATTISE Established 1928 Board of directors Mike Forrester ..........................President Steve Forrester Kathryn Brown Sid Freeman .................. Outside director Mike Omeg .................... Outside director Corporate oficer John Perry Chief operating oficer By ERIC MORTENSON PORTLAND — Chal- ice Farms, one of Oregon’s emerging agricultural enter- prises, has its headquarters in a business park near Portland International Airport, with not a crop row, tractor or barn in sight. But make no mistake, the state’s marijuana growers consider themselves farmers, and believe the products they make to smoke, vape or eat are a form of the value-added processing many other farms undertake. William Simpson, founder and CEO of Chalice Farms, perhaps the showiest of the state’s “cannabiz” cadre, wouldn’t have it any other way. Simpson says marijuana — he prefers to call it cannabis — is a cash crop, with fertilizer, irrigation, soil, pesticide and harvest issues like any other — even when it’s grown inside metal warehouse buildings in industrial parks. But pot producers don’t have a “big ag” mentality, he said. They’re more like Ore- gon’s craft beer, wine or cider industries, with an emphasis on quality over quantity. “It’s awe- some,” he said. “Cannabis is no different.” In his four retail dispensa- ries in the Portland area, Simp- Capital Press gin at 1 p.m. General admission is $8 per adult Wednesday and Thursday, and $10 per adult on Friday and Saturday. Children ages 6-12 (inclusive) are admitted for $3 every day; children young- er than 6 are admitted free. Sea- son tickets are available ($30 for adults, $10 ages 6-12 inclusive). Fair parking is free. FSPCA Preventive Controls for Human Food Course, 8 a.m.- 5 p.m. Yanke Family Research Center, 220 E. Parkcenter Blvd., Boise, Idaho. The new FSMA reg- ulation requires every processing facility to have a trained resource person or “Preventive Controls Qualified Individual“ who has completed a specialized training course such as the one devel- oped by the Food Safety Preven- tive Controls Alliance (FSPCA) that is recognized by the FDA. This person will oversee the im- plementation of the facility’s food safety plan and other key tasks. www.techhelp.org/events/279/ fspcaboisejuly2016/ Thursday, July 28 Fresno Food Expo, 8 a.m.-8 p.m., Fresno, Calif., Convention & 20 Northwest Locations 1-800-765-9055 Entertainment Center. http://www. fresnofoodexpo.com www.techhelp.org/events/279/fsp- caboisejuly2016/ Hood River County Fair, noon- 11 p.m. Hood River County Fair- grounds, 3020 Wy’east Road, Hood River, Ore. Gates open at noon each day, carnival rides begin at 1 p.m. General admission is $8 per adult Wednesday and Thursday, and $10 per adult on Friday and Saturday. Children ages 6-12 (in- clusive) are admitted for $3 every day; children younger than 6 are admitted free. Season tickets are available ($30 for adults, $10 ages 6-12 inclusive). Fair parking is free. Friday, July 29 FSPCA Preventive Controls for Human Food Course, 8 a.m.-5 p.m. Yanke Family Research Cen- ter, 220 E. Parkcenter Blvd., Boise, Idaho. The new FSMA regulation requires every processing facility to have a trained resource person or “Preventive Controls Qualiied Individual“ who has completed a specialized training course such as the one developed by the Food Safety Preventive Controls Alliance (FSPCA) that is recognized by the FDA. This person will oversee the implementation of the facility’s food safety plan and other key tasks. Hood River County Fair, noon- 11 p.m. Hood River County Fair- grounds, 3020 Wy’east Road, Hood River, Ore. Gates open at noon each day, carnival rides begin at 1 p.m. General admission is $8 per adult Wednesday and Thursday, and $10 per adult on Friday and Saturday. Children ages 6-12 (in- clusive) are admitted for $3 every day; children younger than 6 are admitted free. Season tickets are available ($30 for adults, $10 ages 6-12 inclusive). Fair parking is free. Saturday, July 30 The Great Oregon Steam-Up, 9 a.m.-5 p.m. The Great Oregon Steam-Up is the largest event at Antique Powerland during the year and it involves all of the museums and many other participants. One of the unique aspects of the event is that most of the equipment is operating. 3995 Brooklake Road NE, Brooks, Ore. Daily admission $12 per person, 12 and under free. www.antiquepowerland.com/html/ steam-up.html drawal from bank or credit card account) 1 year Canada .................................$275 1 year other countries ......... call for quote 1 year Internet only .......................$49.99 1 year 4-H, FFA students and teachers ....$30 9 months 4-H, FFA students & teachers .....$25 Visa and Mastercard accepted To get information published Mailing address: Capital Press P.O. Box 2048 Salem, OR 97308-2048 News: Contact the main ofice or news staff member closest to you, send the in- formation to newsroom@capitalpress.com or mail it to “Newsroom,” c/o Capital Press. Include a contact telephone number. Letters to the Editor: Send your comments on agriculture-related public issues to opinions@capitalpress.com, or mail your letter to “Opinion,” c/o Capital Press. Letters should be limited to 300 words. Deadline: Noon Monday. Capital Press ag media www.capitalpress.com www.FarmSeller.com www.AgDirectoryWest.com marketplace.capitalpress.com www.facebook.com/capitalpress www.facebook.com/farmseller www.facebook.com/onlyAGdotcom twitter.com/capitalpress www.youtube.com/capitalpressvideo www.blogriculture.com Index Dairy ...................................... 9 Livestock ............................... 9 Markets ............................... 13 Opinion .................................. 6 Correction Washington state’s partners in managing newly acquired land were misidentiied in a story on page 7 of the July 1 edition. The Eastern Klickitat Conservation District and Central Klickitat Conservation District will be the Washington Department of Fish and Wildlife’s partners in man- aging 3,613 acres in the Simcoe Mountains in Klickitat County. The Fish and Wildlife Commission voted to acquire the land June 10. The Capital Press regrets the error.