The Hemp Farming Act, part of a sweeping piece of legislation called the 2018 Farm Bill, recently de-listed hemp as a controlled substance.
This move, authorized by President Donald Trump, reclassified hemp (defined as cannabis with less than 0.3% THC) as an agricultural commodity for commercial use, making it easier for farmers to get production licenses and obtain loans to grow.
This is naturally big news for the hemp farming industry and for hemp that is grown and manufactured into CBD products for sale to the public.
Americans import more than $500 million worth of hemp annually from places like China, and now that it has been reclassified, new opportunities abound.
Empowering the Farmer
The 2018 Farm Bill “provides support, certainty, and stability to our nation’s farmers, ranchers, and forest managers by enhancing farm support programs, improving crop insurance, maintaining disaster programs, and promoting and supporting voluntary conservation,” says the U.S. Department of Agriculture.
It is giving new power to hemp producers who can now more easily work with banks and apply for federal crop insurance, eliminating a huge risk that once came with growing it.
It also legally distances hemp from its psychoactive relative THC.
CBD Market Could Reach $20 Billion by 2024
A new study claims that by 2024, the collective market for CBD sales in the U.S. will surpass $20 billion.
CBD has proven to be highly malleable in its usage in such diverse industries as cosmetics, food and beverage, as well as pharmaceuticals. The study takes into account products sold through not only licensed dispensaries and pharmaceuticals but in general market retail. Combined with THC, it is predicted that the cannabinoid market will generate a total of $45 billion by 2024.
CBD product sales in dispensaries have grown at a faster rate than overall sales in dispensaries since 2014, and with more CBD products spanning food, candy, beverages, beauty, and skin every day, the industry will generate substantial volume across many different channels of distribution.
New Potential for the Textile Industry
It’s expected the Hemp Farming Act will stimulate the textile, farming, and retail sectors in unprecedented ways, having the potential to revive long-dead textile mills.
Hemp is a strong, rough fabric that perfectly fits into the conscious sourcing ethos of much of the fashion industry today. It does well in blends or as a fiber for more sustainable jeans.
While many textile plants sit empty across the South, many workers still have textile experience, which could reinvigorate swaths of the economy. This would help farmers, retailers, and other workers while putting power back in the hands of the people.
A Substitute for Pharmaceuticals?
The NIH is still doing research of CBD as pain and anxiety relievers, opening up a conversation about their effectiveness in the realm of self-care. As the opioid epidemic rages on, providing healthy pain relief is an attractive business model that is also immensely gratifying.
Blake Butler, Executive Director of the North Carolina Industrial Hemp Association and one who celebrated the 2018 Farm Bill and his cash crop’s newfound legality, recently said: “Hemp gives people hope, and that’s what gives me goosebumps.”
Check out what we’re all about here at HUGS and feel free to glance around our shop.
We set out with two goals in mind: to bring a new standard of honesty and transparency to the CBD industry and to deliver high-quality products to customers. Everything that is in our products are right there on the label. We source our ingredients with care, display them truthfully, and we follow through with world-class customer service.
We’re happy to be on the cutting edge of the golden age of CBD with you!
