Four years ago, the passage of the Farm Bill changed the landscape of the hemp and CBD industry in the US. Since then, the industry has seen a meteoric rise as more and more people are recognizing the potential benefits of CBD products.
In this blog post, we will look at how the CBD industry has evolved since the passage of the Farm Bill. We will discuss the industry’s growth, the current regulations, and the potential for further expansion.
History of CBD in the United States
The history of CBD in the United States over the years has been a tumultuous one. Since the 1800s, high-quality CBD products have been used as tinctures to treat various medical conditions. With its initial acceptance as part of popular wellness practices only to be further criminalized during the early 20th century.
Regulations began to lighten in the 1970’s, and by 2018, hemp-derived products like CBD were legalized through the signing of The Farm Bill. This triggered an explosion of CBD products for consumers in the US, with forecasts declaring that this sector will become even more lucrative in years to come. Despite some areas of legal ambiguity still surrounding various aspects, such as international trading, overall progression has been definitively positive.
As well as increasingly ubiquitous consumer access to high-quality CBD products, research into the potential therapeutic uses for CBD is now becoming commonplace and exciting new insights are constantly emerging.
The Farm Bill & CBD
In 2018 United States Congress passed a significant legislative measure known as the Farm Bill. This bill contains detailed regulations and restrictions surrounding CBD products. Chief among them is a mandate outlining precise requirements for CBD products, including molecular structure and organic purity benchmarks.
Moreover, such CBD products must be derived from certified hemp plants—i.e., those containing no more than 0.3 per cent THC content by dry weight—to garner legal recognition in the United States. Finally, since the passing of this Farm Bill, CBD products now count implicitly among federally-recognized forms of agriculture intended for commercial use; that is, high-quality CBD products are now respected within US congress.
Also, because CBD is derived from the hemp plant and possesses meagre amounts of THC (the psychoactive element in marijuana), it is now a legal crop that can be grown and processed without fear of repercussion.
Consequently, carefully-crafted hemp and CBD products are flourishing in the marketplace – providing an additional cash crop opportunity for U.S-based farmers as well as offering consumers high-quality alternatives to traditional medicine.
CBD Today and the United States
1. Accelerated Growth Every Year
The CBD industry is quickly becoming a powerhouse in the global market. According to experts, sales of CBD products grew to an estimated $4.6 billion in 2020, a staggering increase from 2019 figures. Experts also predict this growth rate will continue to expand exponentially over the next five years and forecast a total market value of $20 billion by 2025.
It is no wonder many brands and retailers are getting involved in this lucrative industry as interest in CBD’s potential benefits continues to increase worldwide–a trend currently driving incredible global market expansion.
2. Increased Exposure Each Year
The Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2021 and the Hemp Access and Consumer Safety Act are two pieces of legislation that seek to provide a higher level of protection for hemp-derived CBD users.
This latest push for policy action provides unprecedented exposure to CBD products in the US. More regulation has led to improved guidance on how they are processed, produced, labelled, tracked – you name it.
Consumers will now benefit from increased safety standards regarding the use of these products in terms of cannabinoid content, contamination, manufacturing practices, dosing guidelines and more. The ultimate goal is to create a stable market full of trustworthy, high-quality CBD products that users know they can rely on.
3. Improved Supply Chains
Thanks to the 2018 Farm Bill, supply chains involving Cannabidiol (CBD) in the United States have been greatly improved. This was a significant landmark bill that legalized hemp production and removed hemp-derived CBD from the list of controlled substances within the Controlled Substances Act (CSA).
The effects of this were significant; since then, many companies have been able to pursue their goals for hemp-derived products and establish reliable supply chains more efficiently. A new structure has become available for manufacturers, suppliers, and retailers seeking to tackle the ever-growing CBD market. As such, it is without a doubt that the farm bill has positively impacted the availability and quality of CBD products across America.
4. Increased Hemp Research
The 2018 Farm Bill ensured the continuation of research into hemp, which contains compounds such as cannabidiol (CBD) that are widely sought after for their medicinal use. While most prior legislation related to hemp consisted of restrictions and regulations, this bill instead requested several analyses relevant to the growth, production, and marketing of hemp as an agricultural commodity.
The new policy provides grants and resources for states to collect data on industrial hemp crops and test their cannabinoid content while protecting these activities from federal interference.
Ultimately, this is expected to facilitate the development of practices that accelerate hemp’s recreational and commercial adoption.
5. The Future is Bright
With the recent passing of the 2018 Farm Bill, which removed hemp and its derivatives from the Controlled Substances Act, a window has opened for CBD to further integrate into mainstream American life. Its acceptance in the US has already surged due to campaigns from companies and advocates and placebo-effect studies promoting its usage for various issues.
The future of CBD still hinges on crucial developments such as federal legislation regulating hemp production, FDA approval for specific health claims related to its use, and greater public education about the substance’s pharmacological effects.
If these elements continue to fall into place, then the promise of a secure future for CBD in America is much more specific.
The CBD industry has seen significant growth in the four years since the passage of the Farm Bill. From its beginning as a niche market, CBD has now become a mainstream health supplement and industry. Although there is still much work to be done to ensure that CBD products are safe, effective, and accessible to consumers, the industry’s future looks bright.
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