Jan, 2019 by Cannabiz Wholesaler
Hemp is about to become legal as part of the 2018 Farm Bill. It’s a big deal. A close relative of marijuana that can be used to make textiles and other products,
hemp has long been classified as a Schedule I drug by the federal government.
“That’s set to change,” reported the Washington Post in mid-
December. “President Trump is soon expected to sign a farm
bill that includes a section that legalizes the commercial cultivation
of hemp nationwide. The bill, years in the making,
comes as public support for cannabis legalization has increased
over the years, offering a cover of sorts to politicians
who see the potential for boosting state tax revenue.”
The vote represents a monumental breakthrough for the hemp,
cannabis, and CBD industries. To say that industry executives
are excited is putting it mildly.
‘WATERSHED MOMENT’
“Opening the door for U.S.-based hemp is very exciting,” says
David Goldstein, CEO of Potbotics. “Keeping production local
allows for greater transparency, quality control, and testing
procedures as well as more clarity on minor cannabinoids
that you simply don’t get with imported hemp. I believe doctors
and their patients looking to supplement their lives with
cannabinoid-based therapy can find greater comfort and reliability
in the medicines they’re receiving.”
Cortney Smith, CEO, DaVinci Vaporizer, calls this “a landmark
decision that not only further unties the stigma of cannabis, but
also creates legislation to protect U.S. agricultural dominance.”
Bethany Gomez, Director of Research, Brightfield Group,
says it is “a watershed moment for CBD in the United States.
With hemp and all of its derivatives officially removed from
the controlled substances act, CBD moves from a legal gray
area into the light. That legal gray area has kept the industry
small and fragmented - this shift will allow for CBD to make
its way to the shelves of larger scale, mainstream distribution
channels and pave the way for the large mainstream consumer
packaged goods companies in industries like drinks,
beauty, pet, skin care and tobacco to develop CBD products
and capitalize on this emerging industry.”
Even while operating in a legal gray area with minimal marketing
budgets, limited distribution channels and only small
brands, CBD “has catapulted to the national stage this year,
growing by more than 80% to reach $590 million,” Gomez
points out. “Now that the Farm Bill has gone through, we expect
the U.S. market for CBD to hit $22 billion by 2022.”
Dylan Summers, Director of Government Affairs and Compliance
for Lazarus Naturals, sees the passage as “great news for us
as a company and an industry. The future is bright as hemp solidifies
itself as a legitimate agricultural product at long last--liberated
from the restrictions of the Controlled Substances Act.”
Although competition will become more sophisticated and
challenges will arise as FDA navigates just how to regulate hemp
products and hemp-derived cannabinoids, Summers explains,
“our endeavor will remain to pave the way for testing and quality
standards throughout the industry. If we reflect and build
upon the models we’ve had thus far in the Pacific Northwest, I
believe Lazarus Naturals can help solidify the growth of a safe,
supportive, and effective community for our health-conscious
constituency, service members, veterans, and those in most
need on long-term disability and of little means.”
“When the Farm Bill passes in its current form, we expect
hemp-based product sales (with and without CBD) to grow
faster than marijuana-based products in the U.S.,” says Khurram
Malik, CEO, Biome Grow. “This has to do with less structural
constraints associated with the marketing and distribution
in the hemp sector. This is assuming there is no change
to federal regulations regarding medical and recreational cannabis
over the same time period.”
Beyond that, Malik continues, passage “will likely allow U.S.
hemp companies to list on senior U.S. stock exchanges, where
previously, we have seen some hemp companies limiting their
listing to Canadian exchanges.”
‘BACK IN THE FOLD’
“While how long it has taken is disappointing, it is exciting
to see hemp back in the fold as a main cash crop opportunity
for American farmers,” proclaims Jeffrey M. Zucker, cofounder
and President of Green Lion Partners. “Hemp is an
environmentally friendly, sustainable resource that is incredibly
versatile. In addition to this being a win for farmers, it is
a boon for Americans as a whole to receive expanded access
to hemp products.”
Alex Wasyl, CEO of Nexien Biopharma, calls the decision “a
huge step in a direction that is much needed. Updated legislation
and regulations on Hemp and its constituents, primarily
CBD and other non-psychoactive, non-THC cannabinoids will
lead to many positive developments. Removing hemp, and potentially
some of its phyto-cannabinoids themselves, from the
controlled substance act, will provide a clearer perspective to
those currently on the sidelines of cannabinoid science.”
This current progress, says Wasyl, will presumably hasten the
timeline for the private sector and academic institutions to further
contribute to developing valuable research. “More research
will enable targeted therapeutics for additional indications beyond
existing cannabinoid pharmaceuticals to be developed
and brought to market - most importantly, to patients in need.”