It seems that all of the attention has turned to the blossoming CBD market and the potential growth of this industry. The CBD market continues to exceed the expectations of even the industry’s biggest critics. Between mid 2017 and mid 2018, the U.S. hemp-derived market practically doubled in size. Now that President Donald Trump has signed the Farm Bill 2018 into law, expectations are that the market will dramatically increase in size over the next five years.
Why is the Farm Bill so important?
The massive $867 million Farm Bill contains a wide variety of far reaching legislative measures to include expanded farm subsidies, SNAP provisions and permanent funding for farmers markets. Most importantly, the bill legalizes production and sale of hemp at a federal level. Industrial hemp is used to manufacture cannabidiol, more commonly referred to as CBD. Until today, the legality of CBD was ambiguous at best. The passage of the Farm Bill essentially removes hemp-derived CBD from the DEA’s list of controlled substances and provides the states with the power and the authority to decide how CBD will be sold. States now have the ability to individually write legislation to include not allowing CBD sales at all.
Due to the amount of attention that surrounds the CBD market and the financial gains that each state will potentially benefit from, it is hard to imagine that a state would chose to pass on this opportunity. However, each state will now need to decide the level of regulation that will be applied to the sale of CBD or chose to prohibit sales altogether.
CBD is responsible for almost all of the current $800 million U.S. hemp market with projections suggesting that the market will sit just under $3 billion in sales by 2021. The legalization of American hemp production could result in tripling domestic cultivation in less than a year. In addition to opening up a vast new market that is expected to do wonders for the economy, CBD continues to show promise with the potential to provide millions of Americans the relief that they are so desperately looking for.