The recent progress on hemp regulations has more companies to invest in hemp. In June, the U.S. Senate approved a version of the Farm Bill, which includes hemp in the list of industrial crops, per CNBC. Even though the hemp industry has been here for several years already, it is just now that more regulations are being adjusted to make it work from some of the industry’s products.
The recent progress on hemp regulations has more companies to invest in hemp. In June, the U.S. Senate approved a version of the Farm Bill, which includes hemp in the list of industrial crops, per CNBC. The previous farm bill is expiring and legislators are looking into hemp as more states consider it a replacement crop.
Apart from companies offering hemp products, some in the marijuana industry are also traded companies. But why should you consider investing in hemp?
Regulations become more permissive towards several hemp products
Though the 2018 Farm Bill has not been officially approved, some regulatory bodies and other countries are moving forward with their own ruling when it comes to hemp.
This month, the bill that legalizes the recreational use of marijuana in Canada would take effect, per Time. It would be nationwide, which historic given that Canada is the second country to make such a move. The first country to legalize marijuana on a national level is Uruguay back in 2013, per Vox.
CBD based products accepted by FDA
The U.S. Food and Drug Authority (FDA) has approved Epidiolex, the first drug to have cannabidiol or CBD as an active ingredient. CBD is a chemical compound found in cannabis plants, but it does not make anyone high like tetrahydrocannabinol (THC) does. This is one of the factors why the agency considered this particular hemp product.
CBD may be sourced from either marijuana or hemp, but since most regulations require less than 0.3 percent of THC for a CBD product to be legal, hemp is the often source of this component. Marijuana usually has higher THC levels compared to hemp, but they are both types of cannabis.
Now considered low risk
In relation to the recent approval of the FDA, the Drug Enforcement Administration has rescheduled CBD medication from Schedule 1 drug to Schedule 5, per Business Insider. This means that CBD medications, with THC levels of 0.3 percent or lower, will now be considered similar to drugs that have antidiarrheal, antitussive, and analgesic purposes. These are the drugs that pose a lower risk of abuse.
Though the agency did not reschedule all CBD products, it could be the first step towards more lenient DEA regulations toward CBD or any other marijuana. This is the first time that the DEA changed its position towards marijuana.
As regulatory bodies become more tolerant when it comes to hemp, it would be an advantage to be in the front line by the time that hemp becomes completely legal.
More potential for the industry
The agriculture industry always suffers because of the changes in climate. Compared to other crops, hemp is easier to grow. It can thrive in different types of soil in different climates, per The Huffington Post. It also requires less water, making it more sustainable to grow.
Apart from being environment-friendly, there are also numerous products that can be produced using hemp—hemp milk, dietary grain, building materials, textile, pharmaceutical products, and even beauty products.
With a product branching out to multiple industries, it is evident that hemp could be the next big thing. Even agricultural states that grow tobacco would want to switch to hemp because of the decrease in demand for tobacco products.
Even though the hemp industry has been here for several years already, it is just now that more regulations are being adjusted to make it work from some of the industry’s products. So it is still early to get in the game and benefit from the bright future of the hemp industry.
(Featured Image by geralt)