Every five years since the 1930’s, lawmakers have approved the Farm Bill in order to update its policies to match the economic necessities for farmers and ranchers. Since former president Donald Trump’s signing of the Farm Bill in 2018, the hemp industry has grown to an all time high. Now, with 2023 around the corner, there has been increasing speculation over how to better amend the bill to allow for the industry to further its heights. From increasing the THC levels in hemp, to changing the way CBD is treated by the Food and Drug Administration (FDA), hemp farmers and stakeholders are providing a grocery list of items to include in the bill coming next year. Throughout this article, we want to discuss everything hemp industry players are demanding to see in the 2023 bill, and how that will change the market to better meet the needs of our current economy.
Setbacks for Hemp Shareholders
Over the past year, the United States Department of Agriculture (USDA) reported that the estimated total value of hemp production was worth about $824 million. Despite the FDA’s disapproval for CBD and other cannabinoids from being sold in foods, beverages, and dietary supplements, the demand for hemp based products have only gone up! It is also important to note that since the 2018 Farm Bill, lesser known cannabinoids such as delta-8 THC and THC-O that produce intoxicating psychoactive effects have now generated an alternative way for people to medicate in states where marijuana is still prohibited.
How to Improve the CBD Industry
Last week, the House Agriculture Subcommittee on Biotechnology, Horticulture, and Research held a congressional panel in order to hear out lobbyists on the future of cannabis legislation and hemp production. To improve the hemp industry, stakeholders wanted to receive clarification on the FDA’s position on CBD, which is one of if not the least intoxicating cannabinoid that is found in hemp. Since the FDA has remained unclear in its position, major retailers across the country have been reluctant from stocking CBD products, creating a major halt in projected growth in demand, which has since been outpaced by the growing supply of hemp plants in 2019. Now, CBD producers from farmers to manufacturers are cutting down on their output as their anticipated growth has been met with several hurdles.
Major retailers not carrying CBD products is not the only issue hemp brands face, all hemp stakeholders also face scrutiny from banks and payment processors. It was not until the past couple years that major banking companies have implemented hemp and CBD related services as well as the ability to process transactions including hemp products. Nonetheless, there are still many improvements to be made. Many of these improvements for hemp industry banking solutions are also discussed in the panel to improve the 2023 Farm Bill.
Businesses and Consumers Seek Out CBD Alternatives
Since the CBD market is facing major setbacks in achieving its true demand, hemp companies have had to pivot their businesses to find success in marketing lesser known cannabinoids like Delta 8. These cannabinois are undoubtedly intoxicating and are currently in an unregulated gray market. Proponents of the hemp industry suggest that a wider acceptance of CBD on the federal level will not only further grow the opportunities of struggling hemp businesses, but also decrease the incentive of finding ventures in psychoactive cannabinoids. With increased regulation over hemp, many anticipate wider acceptance of CBD programs, while setting standards to better control the mismanagement of psychoactive cannabis products.
For those who enjoy psychoactive cannabinoids and reside in non-recreational states, introducing regulation over cannabinoids such as delta 8, delta 10, THC-O acetate, and HHC may feel a bit radical. However, hemp advocates insist on a solution that may create a reasonable middle ground by raising the allowable THC threshold in hemp plants and hemp products from 0.3% to 1.0% THC and also include other psychoactive cannabinoids to this limit.
Brandy E. Phipps, an assistant professor at the Department of Agricultural & Life Sciences of the Central State University, Cedarville, OH, believes that by increasing the THC limit in hemp, the potential quality of hemp plants would also be improved and evolve the industry to cultivate hemp plants with varying cannabinoid compositions specific to regions and climates.
Regulating the Standards of Hemp Products
Testing requirements and standard specifications are also of great concern for making sure the 2023 Farm Bill is fair and reasonable. In one hand, it is suggested that an FDA approval may not be necessary for the sale of CBD products, as FDA testing is historically lengthy. On the contrary, it is agreed that hemp products that are distributed between states be stamped with a USDA seal of approval and meet the department’s expectations. Overall, the debate for how to regulate hemp plants and hemp products are still on the table. In any case, it is important to know what to expect in the 2023 Farm Bill, and as a consumer or business, prepare yourself with how you want to approach the ever changing market.
We hope you were able to learn more about the state of cannabis, particularly hemp, and where it stands with the law between the 2018 Farm Bill, and its newest update in 2023. If you would like to learn more about the cannabis industry, feel free to check out our blog!
