Hemp is being touted as a multi-billion industry globally and all stakeholders, whether they are farmers, researchers, suppliers, e-commerce players, are bullish about the potential positive effect of hemp. There is just one problem: the slow pace of regulatory implementations, conflicting laws, and the bias of authorities.
Though things are not as bad now, especially after the hemp was taken out of the list from Controlled Substances Act in the 2018 Farm Bill in the US.
This brought relief to hemp entrepreneurs as legal and regulatory obstacles vanished suddenly. Now IP protection, tax-deductions are all available to help entrepreneurs like any other agri-commodity crop.
So many headaches associated with doing business are gone now. There is no fear that CBD products will be taken off the shelves. Banking account can now be opened easily for hemp companies. There is no threat of the dreaded 280E tax code.
Hemp activists have finally succeeded in their goal after lobbying for decades; still, there are some bottlenecks that need to be removed.
The US department has not finalized on hemp regulation and most likely this can be completed only before the 2020 planting season.
The US Food and Drug Administration (FDA) is still not ready to allow CBD in dietary supplements. And last but not least, insurance companies are not ready to offer insurance cover to hemp crops until the average yield is better understood.
Conflicting Laws Regarding Hemp Industry in the US
Conflicting Laws and federal laws are still conflicting and it’s a big hurdle in standardizing business practices for practitioners in the hemp industry.
It has also discouraged crop insurers to participate in this market. Cannabis is still under the Controlled Substances Act (CSA) and falls under Schedule I drug.
FDA has a clear bias against CBD products. It has consistently ignored the positive health and medicinal effects of CBD and did not lift the ban on CBD products.
These contradictions are obstacles in the development of the hemp market. However, entrepreneurs are optimistic about the prospect of hemp.
Many discrepancies exist in the sale of hemp or its derivatives, marketing and sales of hemp products.
Changes first take place in the economy, regulations come later. Hemp is no exception to this rule. Though authorities are slow to react, they have, at least started moving. We can hope in the next couple of years, many such existing discrepancies and bottlenecks will be a thing of the past. Hemp is an idea that has finally arrived. It is a product of the future with great potential to curb the menace of global warming, plastic pollution, and water scarcity. The government has no option but to sit and take notice. They will have to act as a facilitator or else it will be too late for humanity.