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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-
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tion in drug overdose deaths,
with 35.5 per 100,000 people.
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-
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Entire contents copyright © 2016
EO Media Group
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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
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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
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9 months 4-H, FFA students & teachers .....$25
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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.