The Hemp Industries Association (HIA) has more support than ever before going into its 10th annual Hemp History Week. Not only has the 2018 Farm Bill’s hemp legalization provision boosted industry interest in the crop, but consumer-facing businesses around the U.S. will be hosting more than 1,500 events and connecting product manufacturers with a growing marketplace.
The 2019 campaign theme celebrates the “Return of the Plant.” As the HIA states: “Let’s reclaim the virtues of hemp after more than 80 years of prohibition and write a new history of hemp for future generations of farmers, consumers and manufacturers—a righteous, modern narrative of regenerative agriculture, renewable resources, plant-based nutrition and healthy lifestyles.”
While educational events will see consumers learning more about the nascent hemp industry, Hemp History Week will also encourage stakeholders of all stripes to take part in the groundswell of reform. Many state departments of agriculture are working on designing regulatory programs for hemp (which must then be approved by the U.S. Department of Agriculture (USDA)), but others are not. And although the USDA will also get around to developing federal guidelines, the 2018 Farm Bill mostly passed the keys to state governments.
A lot of the state action highlighted by Hemp History Week is pointed at allowing the retail sale of hemp-derived CBD products—as in Ohio or Florida. Newly legal hemp crop production is at odds with other industry forces.
Indeed, the political significance of hemp reform also lands at a crossroads with the federal banking industry. Financial institutions have been shutting down accounts with hemp businesses, especially those that manufacture hemp-derived CBD products. While the Food and Drug Administration (FDA) kicked off a series of hearings on CBD policy May 31, the industry is still a long way from any real clarity on the matter.
The 2018 Farm Bill legalized hemp and its chemical constituents, but hemp-derived CBD has fallen into a regulatory gray area—thanks to its status as an active drug ingredient in Epidiolex. The FDA and many U.S. states have insisted that CBD may not be used as a food ingredient or dietary supplement; those uses, however, are the foundation of industry estimates that the hemp-derived CBD market growth rate will eclipse all other cannabis markets. The Brightfield Group reports that the hemp-derived CBD market will hit $22 billion by 2022.
To meet the market where it’s headed, the HIA and other industry organizations have gathered to promote a certification program for hemp businesses. The groups awarded their first 13 certification seals in early March, but the new program has earned a fair bit of scrutiny from around the U.S.
“For people who are participating in the industry, I think it’s important for them to reach out and let these officials know what they think the rules should be,” Kight Law Offices’ Rod Kight told Cannabis Business Times. “Five years from now—even a year from now—you won’t be able to do that.”
