A new draft by the USDA provides some insights for where the cannabis industry might be headed as regulatory concerns are finally being addressed at the federal level. The draft focuses on the production of hemp, in general, though comments on specific products such as cannabidiol (CBD), too, as the Farm Bill of 2018 has caused doors to open for the selling of CBD across the nation.
Within the USDA’s draft, they mention, “Producer interest in hemp production is largely driven by the potential for high returns from sales of hemp flowers to be processed into CBD oil.” The CBD oil market is certainly booming in many localities in the United States and the USDA is addressing the concern as the demand has increased for the CBD Oil product comparative to other cash crops.
Interestingly, the USDA states, “If FDA does not provide clarity about their plans for future regulation of CBD, there will continue to be uncertainty and downward pressure on the CBD portion of the hemp market.” This (and other statements in the draft) might cause the pressure that the market has been seeking to place for clearer guidelines from the FDA in the coming months.
Only time will tell whether the FDA will take notice of the demand-for-answers that the USDA seems to be prompting. As the industry watches, it seems like answers to the questions concerning legality and categorization of CBD (on the federal level) may be coming soon.
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