CBD (Cannabidiol) is one of the fastest growing industries in America. In December 2018, it got a major boost when the president signed a bill legalizing cannabis. To create CBD oil and other products, companies extract it from hemp. Despite its long history in the U.S.–with presidents like George Washington and Thomas Jefferson using it–growing hemp was illegal for nearly 100 years. CBD legalization has huge implications for the industry and will change the game for producers and consumers alike. In this article, we’ll walk you through those changes and exactly what they mean to you.
The History of CBD Legalization
It might be a little confusing to understand why, but the legalization of CBD is a huge turning point for the U.S. Prior to the legalization, manufacturers sourced hemp internationally. This was legal, as hemp doesn’t always produce the illegal substance Tetrahydrocannabinol (THC)–the element of marijuana that provides a high. However, since there have been a growing number of states legalizing recreational and medical marijuana, the Drug Enforcement Agency has essentially looked the other way on any aspect of CBD production, including the importation of hemp that does contain THC.
What is CBD?
Though they are often classified together, hemp and marijuana are not the same things. Hemp contains almost none of the psychoactive substance THC that marijuana has. This essential distinction is what sets them apart legally. If left to grow, hemp is capable of growing to produce THC and CBD oil can be extracted from hemp plants.
This distinction and the legalization of growing hemp in the U.S. will greatly benefit several industries. Over the last few years, some farmers began growing hemp on U.S. soil. Before legalization, this was illegal and posed a major risk. This choice made these farmers ineligible to apply for subsidies, insurance, water rights, and several other necessities for their business.
With legalization, farmers can now legally grow hemp on their farms without risking their business. The legalization means that they will now be given the subsidies, insurance, water rights, and everything they need for their farms to thrive. This change will cause hemp prices to decrease.
For CBD manufacturers and researchers, this opens up the market in a new way. Prior to this, researchers faced obstacles when studying the effects of CBD products. With this barrier removed, there can be a more thorough investigation of the substance. Likewise, manufacturers and distributors will also benefit from a more open and local market to source raw materials throughout the states.
What Impact Will the Legalization Have on You?
For consumers, this is revolutionary. With hemp now legally available, your favorite companies can now try using its properties to make their products better for you. Companies will be able to extract CBD oils from hemp and study their usefulness in your favorite products.
This knowledge can be passed and utilized across state lines. Researchers in New York can now legally share their findings with growers in Kentucky to create products that may benefit consumers. It makes the entire CBD manufacturing process more efficient and transparent.
CBD Legalization is good for everyone involved. It’s a new crop that is creating economic opportunities for farmers; manufacturers will have access to a greater source of raw materials and legal benefits to better their farms; and consumers may see higher-quality, cheaper products on the market. With so many benefits of this new material, you may be wondering how you can get involved. Check out Hemp Labs of America to find out everything you need to know about the growing hemp industry!