Once the Farm Bill passes into law, it will go further than any previous legislation in pushing the hemp industry forward. And hemp-derived CBD already outpaces marijuana-derived CBD by 7%.
For nearly 50 years, industrial hemp was lumped in with other, psychoactive forms of cannabis and was illegal to grow. More recently, conditions have eased – but it’s been nothing like what is coming in as little as a few days.
That’s because the final version of the annual Farm Bill will include provisions from the Hemp Farming Act of 2018, according to various Capitol Hill sources and media outlets. This will reduce regulatory overhang as well as allow hemp growers to obtain loans, crop insurance, and other tools a modern farm needs to be competitive.
Full votes by the House and Senate to approve this version of the Farm Bill, with all of the hemp reform provisions, will fully legitimize the industrial hemp industry.
The CBD product market has been exploding of late, with even the biggest media outlets like The New York Times and popular daytime talk shows starting to cover the trend with regularity.
With so many dollars in place, some aren’t even waiting for this to become official – they’re off and running with plans.
Here’s how some have gotten a head start to grab as big of a piece of this industry as they can…
The Fight to Become the Hemp Capital of America Is On
With the loss of industry in many states in recent years, there is an ongoing search for some kind of money-driving industry or new cash crop throughout the country.
Like cannabis, hemp is emerging as a sub-industry worth fighting to get in on.
It should be no surprise that Kentucky is already accepting applications for its 2019 Industrial Hemp Research Pilot Program. After all, Senate Majority Leader Mitch McConnell (R-KY) has backed hemp legalization since 2013. He even called in the head of the DEA for a personal meeting to challenge the agency’s opposition to the state’s pilot program.
Perhaps more surprising is interest to the north.
Pennsylvania announced last week that it would expand its hemp programs significantly even before word of the Farm Bill deal among federal lawmakers that keeps the pro-hemp measures intact.
Pennsylvania wants to waste no time in getting hemp to the market, according to Erica McBride Stark, executive director of the Pennsylvania Hemp Industry Council.
The Pennsylvania Department of Agriculture has shown strong support for the industry, as well. Its hemp program has already seen exponential growth, and the department will grant approval to twice as many projects in 2019 as it did last year.
Pennsylvania’s tradition of hemp dates back to when the state was just a colony. PAHIC contends that George Washington himself visited and inspected hemp mills in Lancaster County, at one time considered “the hemp capital of America.”
Similar programs exist in states across the country, from Virginia to Hawaii.
The investment into these programs proves how much these states don’t want to be late to this opportunity.
It’s the same thing with companies producing hemp-based CBD products. They want to strike while the iron is hot. And some, like one of the cornerstone picks in my Cannabis Investor’s Report members-only portfolio, is leading those companies that already have a head start.
Farm Bill Passage Will Push Exponential Increase in CBD Opportunities
Once the Farm Bill passes into law, it will go further than any previous legislation in pushing the hemp industry forward. The bill will actually amend the Controlled Substances Act to make it perfectly clear hemp-derived CBD is not a controlled substance subject to the oversight of the U.S. Drug Enforcement Administration (DEA).
For its part, the DEA already rescheduled one CBD-based pharmaceutical (Epidiolex), though one that isn’t hemp derived, in recent months. In essence, the DEA acknowledged that CBD has medical application – this was a major shift for a federal government that had previously kept anything related to cannabis or CBD on Schedule 1 of the Controlled Substances Act, next to things like heroin.
Moving forward, the opportunity presented by the passage of the Farm Bill is too great to ignore.
Hemp-derived CBD outpaced marijuana-derived CBD by 7%, coming to a total market valuation of $190 million, according to New Frontier Data. And that figure is from 2017 – before the impact of any of these recent events. The analytics company projects that market will grow to $450 million by 2020, continuing to top marijuana-based CBD by as much as $43 million.
The normalization of hemp will only help companies with a heavy focus on CBD shrink their costs while getting their products into more and more Americans’ hands. This is going to be one of the great storylines unfolding in cannabis today, which is why I’m so focused on it right now.
As the greatest investment opportunities arise from these developments, Cannabis Profits Daily will continue to be here to provide the expert insights and recommendations you won’t find anywhere else.
Thanks for being an important part of the National Institute for Cannabis Investors,
Executive Director, National Institute for Cannabis Investors
December 03 2018