California marijuana company teams with water developer for desert hemp venture

A Southern California marijuana company is teaming with a rural water projects developer to start growing hemp in the Mojave Desert.

Glass House Farms of Carpinteria, California, said it created a joint venture with water developer Cadiz Inc. to grow 60 acres of hemp starting next month in the town of Cadiz in rural San Bernardino County.

The joint venture will be called SoCal Hemp Co.

Cadiz and Glass House Farms said the venture will be a 50-50 split but offered no other financial details.

The companies said the Cadiz hemp farm could expand to 9,600 acres.

California’s hemp industry has struggled to take off amid production bans and an ongoing state ban on selling hemp-derived CBD foods and dietary supplements.

A bill to authorize California CBD sales beyond marijuana dispensaries is pending in the state Legislature.

Glass House Farms currently grows marijuana in Santa Barbara County, where it is also planning an extraction lab and retail store.

Cadiz Inc., which owns 70 square miles of land, works with public water agencies.

The company trades on the Nasdaq as CDZI.