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The regulatory environment has finally changed in the US: the CBD industry is about to increase in size as consumers will have more confidence in the lawful acquisition of cannabidiol products. This is the case since hemp and its CBD (cannabidiol) derivative are about to be removed from the Schedule 1 list of controlled substances. The new Farm Bill of 2018 has already been passed by congress and recently signed by President Trump, to everyone’s relief just before the government shutdown. This will allow hemp to be grown legally, like any other agricultural commodity and to be moved freely across state lines.
CBD products such as hulled hemp seeds, hemp seed protein and hemps seed oil can now be sold without fear of legal repercussions. More academic research into CBD treatments can now be undertaken without any prohibitions as there has been a severe shortage of much needed trials into the benefits and potential of hemp oil.
The most unlikely supporter for this move has been the conservative, anti-marijuana activist, Senator Mitch McConnell from Kentucky. It was due to him that the 2014 Farm Bill legalized hemp for some experimental growing and studies in agricultural and university programs. The bill made the provision that separated industrial hemp from marijuana because of their differing THC (tetrahydrocannabinol) levels. The plant that CBD oil is derived from is Industrial hemp which cannot have more than 0.3% THC and does not create a psychoactive effect when ingested.
First FDA Approval
This year has proven to be a good one for the hemp industry. In June, the FDA approved the epilepsy treatment Epidiolex, making it the first CBD medication to get such approval. The medication was approved after it was proved effective through controlled clinical studies. The medication can now be prescribed by doctors in all 50 states and treats rare forms of epilepsy. With more research we are definitely going to see more products gaining FDA approval.
The new law, farmers and sales
Licensed hemp farmers will now be able to qualify for financing, state and federal subsidies and crop insurance, something denied to them until now. Previously hemp farmers did also not qualify for irrigation for their crops. The growing of hemp will assist small farmers into having more profitable farms and who have struggled in recent years. The traditional tobacco growing states have felt the drop in demand for tobacco products greatly and hemp farming will be the perfect alternative cash crop. Farm workers will also benefit greatly and in many states there has been a rise in employment opportunities with better hourly wages.
The hemp plant is environmentally friendly as it doesn’t require fertilizers or pesticides to grow. It also requires much less water than other crops and prevents soil erosion. The importance of buying non-contaminated hemp products cannot be stressed enough as the hemp plant can absorb harmful chemicals from soils and imported plants from Asia are extremely vulnerable to such contamination.
Imports of hemp products, mainly from China (mostly fibers) and Canada, have been estimated at $600 million annually according to Congressional Research Service. By the country producing its own hemp that money will remain with the US economy.
Those selling hemp derived products have also had similar difficulties to the growers in finding start up financing. They have also not been able to freely advertise their products and have faced discrimination. We have already seen this ingredient used in mostly medicinal products and beauty products but we are about to see it added to just about everything. We will now not only be treating insomnia, pain and acne but are likely to find it in beverages and other treats.
Many of the larger beverage and food companies have been watching and waiting to tap into this lucrative market. The New Year will see many new partnerships as companies start to do research into how to include CBD into foods and beverages. At Terravidaonline they continuously research and develop new ideas.
Investors now have many opportunities to start up businesses or to buy into existing companies with potential for development. Those investors seeking to take a back seat can look trade buying through the various possibilities in the stock market.
Current sales are estimated at $591million and are expected to reach $22 billion by 2022. That is an annual increase of almost 150%.
Manufacturers of food products and supplements will have to seek FDA approval but will need to be able to prove that their products are safe and that they do not make false claims.
Other useful product developments
Known to man since the earliest of times the hemp plant was one of the first forms of cultivation.
Besides the CBD oil which is extracted from the whole hemp plant there are many other useful ideas which the industrial hemp plant can be grown for. The grain of the hemp plant is used to extract hemp oil or protein powder while the plant can also be grown to produce fiber that makes twine, paper, rope and fabric. These fibers also make useful building materials for insulation, paint and construction boards that look like plywood.
The downside for some
Vertically integrated dispensaries underwent the arduous task of obtaining retail and cultivation licensing in order to be exclusive suppliers of cannabis based products. The new Farm Bill, welcomed by so many, seems to be stripping these dispensaries of having exclusivity. This means a loss of projected revenue and clients. This is not necessarily bad though because they have a larger spending power allowing them to carry a broader spectrum of products than smaller stores. The consumer looks for safe, ethically grown products and dispensaries also have trained staff who can give the correct advice on products and dosages.
The upside for many
There is a trend among consumers to prefer shopping from the comfort and privacy of their homes so there is a huge market for reliable online suppliers of quality hemp products. Tarravidaonline has kept up to pace in this area and provides retailers with a full range of exciting products of the best quality, while also offering white labeling and drop shipping.
The re-classification of hemp as an agricultural commodity clarifies any misunderstandings towards this product. It reassures those still in doubt that it does not cause the psychoactive “high” that THC gives. Manufacturers of hemp-based products will not be allowed to make unsubstantiated claims and if they want to survive in this aggressively active market they will have to ensure that the manufacture the best quality products using ethically grown hemp.
The New Year is bringing about some interesting changes and the CBD industry seems like it will definitely be impacted in a positive way by the 2018 Farm Bill. We will be watching and reporting on this matter.
News analysis provided by Terravidaonline