Hemp is going to get a nod from the government soon. The product, which is considered as the cousin of the cannabis plant, might soon be sold in your local supermarkets like Target and Walmart. This is all thanks to the Congress’ final approval of the 2018 Farm Bill, which no longer considers hemp as one of the federally controlled substances. Instead, it treated hemp as similar to any other agricultural crops. The hemp, which has a lower THC percentage than that of the cannabis plant, doesn’t come with any psychoactive effects that can make one feel high.
President Trump May Sign the Bill into Law
A lot of people are hoping for the president to put the bill into law come next week. When this happens, this will trigger a much greater expansion in an industry that has already been showing significant growth in the past few years because of the increasing demand for cannabidiol. The cannabidiol, or the CBD, is the non-psychoactive component of hemp, which has been proven to have numerous health benefits.
The hemp’s federal legalization is expected to increase three times the overall hemp market and might reach $2.5 billion in 2022. $1.3 billion of the sales are expected to come from CBD products derived from hemp. This was according to the data provided by a market research firm.
The Domino Effect
The approval of the Farm Bill will trigger a domino effect in the market. This will make the banks get involved and if they will take part in this growing industry, credit cards would play a part as well, and so will retail giants like Wal-Mart and Target. These big players in the industry are expected to take part in the thriving industry of hemp. Hemp has already been legal in some states and the approval of the substance in a national level will bring about plenty of opportunities that the cannabis industry is yet to see.
Farmers that cultivate hemp can now get insurance, and acquire grants and loans. When filing taxes, they can now write off their business expenses, just like the other farmers. Those who are distributing CBD-infused products that were made from hemp can now send their products to some other states without the fear of getting prosecuted, just as long as they don’t run afoul with the FDA.
To the untrained eye, hemp will look just like marijuana. However, this product only contains less than 0.3% of THC. Four years ago, the federal legislation opened the door for farming by allowing the states to be able to establish hemp pilot programs and conduct research on the cultivation of hemp.
This has resulted in 23 states issuing thousands of licenses in 2018. Around the same time, the overall market for hemp, which includes the seeds, textiles, and CBD oil, has also grown from a few million dollars to a whopping $820 million. Almost a third of this figure is attributed to hemp-derived products.