When the 2018 Farm Bill was passed in December last year, reports and headlines were focused on the cannabis market opportunities opening for entrepreneurs and businesses nationwide. Corporate governance has evolved in recent years with businesses trying to be more environmental and sustainable while still staying profitable and safeguarding the interest of their stakeholders.
When the US passed the 2018 Farm Bill , reports and headlines focused on the cannabis market opportunities. They open for entrepreneurs and businesses nationwide, causing a stir. The hemp-derived CBD market in the U.S. alone was already at $1.9 billion in 2018. Currently, its now on its way to $20 billion by 2024.
The CBD legality
While the opportunity in the cannabis market is undeniable, there is still some confusion on the legality of cannabidiol (CBD). Particularly, the concern lies in its infusion in health supplements, food, and beverage products. The Food and Drug Administration currently prohibits this; the agency has not yet come up with more clarified regulations regarding the issue.
There is one aspect of the hemp market that has seemingly been neglected despite offering an equally massive opportunity. The 2018 Farm Bill opened the way for industrial hemp, which at present answers the growing demand for sustainable products.
Industrial hemp answers industries’ demand for sustainability
Corporate governance has evolved in recent years with businesses trying to be more environmental and humane. All while still staying profitable and safeguarding the interest of their stakeholders.
Many companies, regardless of size, have started working on being environmentally sustainable. One innovation in this area is the use of industrial hemp. It is utilized to develop all sorts of biodegradable materials for consumer goods. Also, to replace plastic polymers to textiles for construction, manufacturing and even automotive needs, among others/
Hemp can easily become the core component of these products since the plant is easy to grow
It can thrive in the most hostile surroundings, needing little water and space to grow and does not require pesticides to survive unlike the majority of crops. Most importantly, hemp can easily resolve the problems of cutting down trees as it produces more pulp than trees and is biodegradable.
“Industrial agriculture is one of the greatest drivers, maybe even the biggest driver of climate change,” according to Moris Beegle who is the co-founder of the We Are For Better Alternative. The group is a strong supporter of the industrial hemp.
“Hemp is a more sustainable, organic and regenerative agricultural crop, and almost everything that you can make with cotton or soy or corn can be made with hemp with way less impact on the Earth,” he explained.
The U.S. industrial hemp market
With the growing irreparable damage to the planet, the race is on for companies to adopt sustainable alternatives. As of 2018, the market for sustainable alternatives estimates to be at $12 trillion, according to the U.S. Forum for Sustainable and Responsible Investment.
The global industrial hemp market
For the longest time, however, the U.S. has been among the largest importers of hemp which means it fuels the market instead of profiting from it. The world’s largest exporters of hemp, on the other hand, are China and Canada. The US has been importing from the two countries up until the present.
If the federal government could act quickly in removing gray areas with the current laws and implementation, the US can reduce its reliance on other countries with its hemp needs.
(Featured Image by kumarfotographer)