Marijuana Business Magazine March 2019

Marijuana Business Magazine | March 2019 8 Farm Bill Sets Up Hemp Sector for Huge Growth T he passage of the 2018 Farm Bill ushers in a new era for the U.S. hemp industry. The bill removes hemp and its derivatives from the Controlled Substances Act, legalizing the production and sale of hemp and CBD products across the country after a decades-long policy of prohibition. Many details have yet to be finalized—government agencies such as the U.S. Department of Agriculture and the Food and Drug Administration will regulate the industry, meaning new regulations will need to be crafted. Still, the change has unleashed enormous business opportunities. By Eli McVey Sources: Hemp & CBD Industry Factbook, Hemp Industry Daily 2018 Farm Bill Special Report Cannabis bythe Numbers | Data Analysis 580% Estimated percentage increase in hemp- derived CBD product sales from 2019 to 2023. Hemp Industry Daily estimates the market for hemp-derived CBD products to rise from $900 million- $1.1 billion in 2019 to $6.1 billion- $7.5 billion in 2023. 75 Average number of customers per day in tobacco stores/head shops and retail outlets where CBD products gained traction before the 2018 Farm Bill. 941 Average number of customers per day in grocery stores, a type of retailer that could see significantly more CBD product penetration in the coming years. 90 million Acres of corn planted in the United States in 2017, a far cry from the 26,000 acres of hemp planted the same year. While industrial hemp is unlikely to reach the same level of domestic production, total acreage devoted to hemp has significant room for growth. = 100