Hemp’s Legal Definition Changes: The Future of the Industry in Question
Businesses and farmers within the hemp industry face uncertainty as recent legislation alters the federal definition of hemp, raising concerns about the survival of products derived from the plant. The amendment, which takes effect in November, seeks to regulate intoxicating substances linked to hemp but may have unforeseen consequences for established markets.
Why It Matters
The change in hemp’s legal definition could reshape a thriving industry. With the rise of hemp-derived products like CBD gummies and oils, advocates worry that this new regulation may stifle innovation and competitiveness, jeopardizing jobs and the livelihoods of those reliant on the plant’s diverse uses.
Key Developments
- Starting in November, the federal government will define hemp not just by the THC content by weight but will also evaluate the total THC in final consumer products.
- Senator Mitch McConnell, who previously supported hemp legalization, argues that loopholes in the 2018 legislation have allowed businesses to exploit THC levels, leading to easier access to intoxicating products for minors.
- Jim Higdon, co-founder of Cornbread Hemp, notes that the new law could threaten the viability of companies like his, which rely on both CBD and THC in their offerings.
- Unlike Higdon, some industry leaders, like Chad Rosen of Victory Hemp Foods, believe the law will not entirely eliminate hemp products. They argue it primarily affects the CBD market, while other uses of industrial hemp remain intact.
- Eighth-generation farmer Brian Furnish expressed concern about the significant financial losses he faces due to the impending changes, estimating a potential loss of up to $450,000 as the market fluctuates.
Full Report
Legislative Changes and Impact
In a move to tighten regulations surrounding hemp-derived products, federal legislation will redefine hemp by not only its THC content but also by the final concentration of THC in products. This has raised alarms within the industry, particularly among businesses that sell products with both CBD and THC.
Jim Higdon from Cornbread Hemp remarked on the precarious state of their operations, stating that the company might not survive if it can’t pivot away from THC-containing products. McConnell’s push for stricter definitions is rooted in concerns over children accessing intoxicating substances disguised as hemp-derived products.
Conversely, other voices in the industry, including Chad Rosen, stress that the reform isn’t a total ban but rather a clearer delineation. They highlight that non-intoxicating products from industrial hemp—those focused on grain and fiber—are likely to continue thriving under the new guidelines.
Farmers Feel the Pressure
Farmers, too, are feeling the impact of these changes. Brian Furnish articulated his struggles with fluctuating market prices, revealing that he is currently sitting on substantial unsold inventory. He believes that existing regulatory measures could ultimately jeopardize the industry’s budding recovery after years of prohibition.
Consumer Impact
For consumers like Charles Wempe, the new regulations are a cause for concern. Wempe noted how he relies on hemp products for pain management, and he fears that tighter restrictions might drive customers back to illicit sources for relief.
Dee Dee Taylor, owner of a hemp shop, expressed apprehensions about the new regulations complicating access to legitimate products for consumers, potentially driving them underground.
Context & Previous Events
The 2018 Farm Bill marked a pivotal moment for the hemp industry, legalizing hemp cultivation for the first time in decades due to its historical ties to marijuana. This legislation had spurred a burgeoning market for various hemp products, including CBD-based items. However, the rise in popularity also led to regulatory concerns over consumer safety and accessibility, prompting Senate support for reforms that would redefine the legal framework governing hemp and its derivatives.
