Dorado Puerto Rico- CannaVision, Inc. Puerto Rico ("CVI PR" or the "Company") is proud to announce that on February 27, 2020, it received its Certificate of Compliance as a Bona Fide Farmer from the Department of Agriculture, Puerto Rico. As a Bona Fide Farmer, CVI PR agricultural activities will be taxed based on the “use” value of the property versus a development value. This certification puts CVI PR in different tax categories (in most cases lower tax rates or complete exemption) in areas of commerce, trade and export, new equipment, employee benefits, and more. In addition, CVI PR now qualifies for subsidies and other incentives in the research and development of different Hemp strains that are known to thrive in a tropical climate like Puerto Rico’s. This is expected to be achieved while working in tandem with the University of Puerto Rico.
A spokesman for the company said, “For many years, the appeal of doing business in Puerto Rico has been its low taxes and incentives. It has drawn large industries, such as pharmaceuticals and electronics to the island. CVI US chose Puerto Rico for these same reasons, but its ideal climate conditions for growing Hemp is what drew the most interest. The longer we are in Puerto Rico and the more we learn from our working relationship with the Department of Agriculture and the University of Puerto Rico the more we see huge potential.” Mr. Previch smiles and adds “Now that CVI PR received its Bona Fide Farmer certification, it takes CVI PR to a whole new level. This milestone not only cemented our presence in Puerto Rico, but it also allowed us to realize tax exemptions and business incentives not available to Hemp farms in the mainland United States. These advantages, combined with the ability to produce two harvests in a growing season, put CVI in a highly-competitive position in the CBD/Hemp Industry.”
What does this mean for Puerto Rico? Currently, Puerto Rico’s agriculture accounts for only 3% of its labor force and less than 1% of GDP, concentrating primarily on crops that can be sold in the United States, such as coffee, vegetables, and sugar cane. However, when the United States passed the 2018 farm bill, it redefined Hemp as an agricultural commodity and removed Hemp from the Controlled Substances Act and the jurisdiction of the Drug Enforcement Administration. This automatically puts growing Hemp on the fast track in Puerto Rico.
In December 2019, Irving Rodríguez, director of the Office for Licensing and Inspection of Hemp of the Department of Agriculture estimated that farmers in Puerto Rico could produce 10,000 acres worth of the crop in 2020, bringing $100 to $150 million into the territory’s coffers. Noel Garcia, COO of CVI PR states “In Puerto Rico, there are many programs that encourage the creation or growth of companies like CVI PR. The tax advantages the Certification offers, more specifically Hemp growers is meant to ensure the success of our Hemp projects, as well the potential business that Hemp offers to develop future projects, i.e. Hempcrete for the construction industry.” The Bona Fide Farmer Certification lasts for 4 years and can be constantly renewed, thus providing the time necessary to bring those numbers to reality.
Mr. Garcia closes by saying “With over 25,000 products that can be derived from Hemp, it’s easy to see how Hemp could easily become one of Puerto Rico’s largest agricultural exports. I am eager to see where we end up in 2020 and what 2021 will bring. I truly believe we’re witnessing history in the making.”
To learn more about Puerto Rico tax incentive, visit https://prbusinesslink.com/category/puerto-rico-tax-incentives/