The Impacts The 2018 Farm Bill Will Have On The Hemp Industry
The United States Congress strives to pass a Farm Bill each and every year. Sometimes, they manage to get it done. Other times they do not. When they do pass a farm bill, it tends to have a major impact on many aspects of the economy. Not only does it impact farmers across the country, but it is also going to impact numerous industries. Suffice to say, the hemp and CBD industries are usually impacted by the annual Farm Bill in one way or another. Below, you’re going to learn about the 2018 Farm Bill and the impact it will have on the hemp and CBD industries. The bill will attempt to restore the country’s industrial hemp market and revitalize nationwide legal production. This is the first time this will take place since World War II. In return, this is going to provide farmers with numerous opportunities and it will definitely bring new life to the industry as a whole.
Now, you should learn a little more about the basics of the 2018 Farm Bill. The Bill is set to lift certain bans on hemp products and sales of hemp products. The bill will remove the ban on hemp production. It will also make it much easier for consumers to buy hemp products. The Controlled Substance Act is actually amended by the 2018 Farm Bill. The bill will reclassify marijuana and CBD. It will state that marijuana is not actually hemp or CBD, which has been derived from hemp. The bill will help remove the federal ban on hemp. Nevertheless, this doesn’t mean that hemp is going to be legal throughout the country. Remember that hemp will still be illegal in many alcohol and food products in states throughout the country. This is something that consumers will still have to contest with.
Removal Of Hemp Controlled Substances Act
It should be noted that the bill is going to restructure the Controlled Substances Act of 1970. Previously, the act was very strict towards hemp. The bill is set to remove hemp from the Controlled Substances Act. This means that hemp will no longer be prohibited under federal law. In return, that is going to allow the industry to grow rapidly. It is believed that the United States hemp industry will expand at more than 18% through the first 5 years. Of all of these sectors, the CBD market is expected to grow the most. It is projected to enlarge from $390 million to $1.3 billion in just five years.
By 2022, it is estimated that the CBD market alone will be able to generate more than $430 million in sales year after year.
Another thing to note is that the Farm Bill is going to provide hemp companies with more access. In the past, it was impossible for these companies to sell their goods through major retailers like Target, Whole Foods, Costco and Walmart. That will soon change. With the arrival of the Farm Bill, hemp companies will finally gain access to the largest retailers in the United States. This will enable hemp companies to develop and expand their supply chains. This will also make it possible for them to reduce their ingredient cost.
The Farm Bill is definitely a good thing for hemp companies, growers and cultivators. New doors will be opened where previous ones were closed.
The FDA’s Stance
The Farm Bill is definitely a bright spot for the hemp industry. Still, this doesn’t mean that everything is going to be perfect from here on out. At this point in time, the FDA still maintains a harsh opinion of hemp and CBD. There is some speculation regarding the FDA and how it will react to the news. Will the agency decide to loosen their restrictions on hemp supplements? Will they agree to regulate hemp and CBD supplements? Or, will they continue to criticize hemp and claim that it is nothing more than a dangerous substance.
Will the agency receive backlash from Congress for not abiding by the new law? It is only a matter of time before the FDA makes a statement on hemp. Until that happens, hemp companies will be holding their breath eagerly awaiting the news.
Companies That Will Be Impacted
With the impending passage of the 2018 Farm Bill, several key companies will receive the most benefits. It is important for investors and hemp enthusiasts alike to take note of the companies that will benefit most. First and foremost, there is a good chance that CV Sciences will receive a big boost. During the second quarter, the company experienced 35% growth. That will undoubtedly increase even more with the passage of the Farm Bill. Other companies that will benefit include Aurora, MariMed and Canopy Growth.
These companies will also benefit from the passage of the bill. Public demand has been growing for CBD products for an extremely long period of time. That is likely going to continue in the future. The 2018 Farm Bill is designed to address this demand. With its passage, the bill will make it possible for consumers to get access to hemp without needing to jump through hoops. That will help everyone. The economy, the consumer ,and the companies will all benefit from the passage of the Farm Bill.
A Bright Spot For The Future
At the end of the day, the hemp industries are changing public opinion. They’re also forcing the federal governments to change their rules and regulations regarding the substances. This points to a bright future for hemp and the related companies. Whether you’re a CBD consumer or you are involved in the hemp industry, you can certainly see that the future is indeed bright for you, hemp and CBD.
- 2018 Farm Bill - March 21, 2023