CBD Laws Could Be Changing

by Travis C | May 31, 2019 | 420, 420 News, Blog, Business, Culture, Hemp

CBD has gotten too big for the FDA not to intervene. The question now is what are they going to decide?

Contrary to the hundreds of CBD products you can buy online and at your local health store that would suggest otherwise, CBD isn’t technically legal. However it isn’t technically illegal either. And that’s why there’s a problem.

CBD is a naturally occurring cannabinoid in the cannabis plant. A relative of the cannabis plant that was just legalized, hemp, also contains CBD. With hemp legal, people saw no problem in breeding hemp specifically for CBD to make products.

However, CBD was not included in the legislation that legalized hemp, and because it is also found in psychoactive cannabis cultivars, there’s some controversy over whether or not it should be legal. Now almost 6 months after legalization, the FDA is finally getting involved.

FDA CBD Laws

With economists predicting that the CBD industry could reach a market worth of $16 Billion by 2025, the FDA has no choice but to make a regulation decision. Compared to other non-FDA approved products, CBD is already much more well known and popular, and even dangerous, should the FDA decide so. Which is why their decision is so important.

During a hearing at the end of May, the FDA will be presented with remarks from manufacturers, consumers, health professionals, academics, and more on scientific data and information about CBD products that contain cannabis or cannabis-derived compounds, such as CBD.

Because of the wide range of uses for CBD, from foods and face creams to pills and oils, the FDA needs to regulate CBD more strictly compared to other ingredients that may just be used in one specific product. With now CBD laws specifically on the books, more and more pressure is being placed on the FDA to regulate.

Potential Outcomes

There are a lot of way the FDA could decide to regulate CBD laws. In the worst case scenario, they could ban CBD altogether. This is pretty unlikely, as the now ex-Commisioner of the FDA had stated in February of 2019 that the FDA would take a more “flexible” approach to CBD regulation.

What seems more likely, is the FDA regulating CBD to only be allowed to be extracted from legal, industrial hemp, while banning CBD extraction from cannabis, i.e. any other cannabis plant with a THC level over .3%. They could also permit CBD extraction from any cannabis plant as long as there is no THC included.

All we can do for now is speculate while the hearing takes place, but many CBD business owners and entrepreneurs will be anxiously awaiting the results.

The Future of the CBD Industry

It’s probably safe to say at this point that if the FDA did decide to ban CBD altogether, there would be massive, nationwide outrage. From the parents who use CBD as medicine for children with epilepsy, to the avoid CBD consumers who have made the cannabinoid an essential element of their daily nutrient routine.

While obviously the former would be most negatively affected by a full CBD ban, it would be the masses who consume CBD recreationally that would have the biggest voice in the matter. And with so many hopping on board the CBD bandwagon, we can assume CBD isn’t going anywhere.

The Hemp Industry in Oklahoma: What you need to know

by Travis C | Apr 30, 2019 | 420, 420 News, Blog, Business, Growing, Hemp

The Oklahoma Industrial Hemp Agricultural Pilot Program is taking off. There’s some important laws and rules to know so you don’t get left behind.

Oklahoma’s Industrial Hemp Pilot Program allows universities and institutes of higher education to work with Oklahoma farmers to cultivate certified hemp seed for research purposes. The state defines industrial hemp as “the plant Cannabis Sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3% on a dry weight basis.”

So already, Oklahoma has some serious restrictions on who can grow industrial hemp. But because they are still within the federal law put forward by The Farm Bill, they don’t need to change it.

Industrial Hemp in Oklahoma

Industrial hemp grown pursuant to the Oklahoma Industrial Hemp Pilot Program is excluded from the definition of “marijuana” in the state’s Uniform Controlled Dangerous Substances Act. The definition of marijuana also expressly excludes CBD derived from the mature stalks (including cannabidiol [CBD] derived from the fiber, oil, or cake of the mature stalks), of the cannabis plant.

At this time, it is not clear whether CBD produced from industrial hemp flower would qualify as “industrial hemp” and therefore be excluded from the state’s definition of marijuana, or whether CBD must be produced from the mature stalks of the cannabis plant (both marijuana and hemp) to be exempt from the definition of marijuana.

This mish-mash of laws is going to make it difficult for those trying to enter the legal hemp and CBD industries in the state. It seems to be a grey area regarding where CBD can be derived from, with no clear “yes or no” answer on deriving it from the actual hemp flower. People can get away with a lot of things in grey markets, you just need to be willing to take that risk.

Selling Hemp in Oklahoma

On February 19, 2019, the Oklahoma State Department of Health issued an announcement stating that businesses that manufacture or sell food products containing CBD are required by state law to obtain a food license. The agency indicated that it would give businesses until April 26, 2019 to comply with the law before initiating further action.

Suffice to say, if you are manufacturing or selling CBD edibles or other food products and don’t have your license already, you could be in some trouble. While commercial sales are permitted in Oklahoma, a product-specific legal analysis should be undertaken to fully understand the risks of operation in the state for your product.

More information on the rules regarding hemp sales and manufacturing can be found on the Oklahoma Agriculture, Food and Forestry website.

Be Prepared

It is important to keep in mind that Oklahoma hemp laws are different from the federal law. It doesn’t matter if you abide by federal law to the tee in Oklahoma, you can still get in trouble if you don’t go through the proper application process to join the Pilot Program.

Another aspect of cannabis industries (including hemp) is that they are mostly new. Each state establishes their own laws surrounding hemp, and those laws can change. Under those laws could be additional regulations that also change over time.

As a business owner in the hemp industry, you need to be able to adjust your business to meet these new regulations, sometimes on short, strict deadlines. However, Oklahoma is starting off on the right track. Regulations should loosen over the next year or two as more is learned about hemp’s potential, and more opportunities will be opened to the general public to enter the industry.

Ready to apply? Here’s the link to the application.

Learn more about the legal hemp industry, the laws surrounding it and the economic opportunities that are available on The Real Dirt Podcast, featuring Shawn Hauser and Andrew Livingston from Vicente Sederberg LLC. Shawn is the head of V.S.’s Hemp Division, and Andrew is the Director of Economics and Research for the firm.

Get exclusive legal advice that would costs thousands anywhere else, only on The Real Dirt.

Hemp Laws Explained with Vicente Sederberg LLC

by Travis C | Apr 23, 2019 | cannabis industry, Cannabis Law & Compliance, Commercial, Hemp, Hempisodes, Season 3, The Real Dirt Podcast Episodes

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The times, they are a changin’. So are the hemp laws.

The hemp economy is growing at a rapid rate. The Farm Bill, passed in 2018, has opened the floodgates for states to establish their own legal hemp programs. But it isn’t an easy transition.

Some states aren’t on board yet, and some still have laws on the books that criminalize hemp. People are trying to get into the CBD industry, but there is still very little regulation, and a lot of the hype around could be dangerous.

What Are The Hemp Laws?

Every state has different hemp laws for the most part. But now the federal government has legalized “industrial hemp” for commercial production, processing and interstate commerce, conflicting with a lot of states’ current laws.

Industrial hemp, as defined in the Farm Bill, is any part of the cannabis sativa plant with a THC percentage lower or equal to .3%. A lot of states already had a similar law at the state level, and similar to legal cannabis on the state level, federal government entities for the most part left them alone.

Other states had even more strict hemp laws. The states with stricter hemp laws compared to new federal law do not have to conform to the new federal law, because they are technically still within that law.

Colorado, which had a Constitutional amendment added that granted the right to grow hemp that was .3% THC, removed that amendment prior to the passing of the Farm Bill with a vote. This way, Colorado completely takes on the new federal definition of industrial hemp, with no chance of state-constitutional conflict should the regulations change on the federal level in the future.

The Hemp CBD Dilemma

In most major cities, there are more and more natural health stores popping up with CBD products. Other major chains like Whole Foods, CVS and Walgreens are adding CBD to their shelves. But what’s the actual regulation around CBD?

The FDA currently has no standing regulation surrounding CBD. While the Farm Bill changed the regulation surrounding industrial hemp, there were no changes made to food products, supplements and the like made from hemp. This has a big impact on CBD products.

Most states match the food and drug laws to the FDA’s regulations, but some states have made local changes to allow products like CBD, Kratom and others. A major conflict that has arose since the CBD market has begun to take off is the question of whether or not CBD is a medicine, or a supplement.

According to the FDA, a product that is regulated and labelled as a drug, cannot also be sold a food supplement. There have already been drugs made from CBD for epilepsy, and this is causing a stand still. This makes branding CBD products a challenge, with people coming up with new names for what really is just CBD oil.

Hemp oil, hemp seed oil, hemp extract, etc., are all product names you’ll see on the shelves at your local health store. The chances of seeing a product labelled with CBD in the name are slim right now.

This Week’s Episode

There is so much more to dive into with hemp and CBD laws in the new market of 2019, that writing it all here would be thousands and thousands of words. So why not hear it from people who have been studying hemp law for years?

Shaun Hauser and Andrew Livingston head the Hemp Division of Vicente Sederberg LLC. Vicente Sederberg is one of the most well-known and renowned cannabis law firms in the country, and they have an entire wing devoted to hemp laws.

In this week’s episode Andrew, Chip, Justin and Shaun talk about the new hemp laws, how it affects the states, the complications of the new CBD industry and more surrounding the legal hemp industry and the new laws surrounding it. Most lawyers would charge hundreds of dollars just for one hour of consultation on hemp laws.

In this week’s episode of The Real Dirt, we get it all. FOR FREE. Listen to the full episode now, and join the Real Dirt Facebook Group to share your thoughts on the episode!

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Getting Started in Legal Hemp

by Travis C | Apr 9, 2019 | cannabis business, cannabis industry, Hemp, Hempisodes, Season 3, The Real Dirt Podcast Episodes

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Since the passing of the Farm Bill in 2018, Mike Leago and the International Hemp Exchange have been getting calls non-stop.

A whole new world is opening up in the industry of legal hemp, and almost everybody is trying to get involved. However most people don’t know the next steps past the application process.

The International Hemp Exchange (iHempX) was around well before legalization. They operated only within states that had legal hemp laws on the books prior to federal legalization, like Oregon and Colorado. This gave Mike and iHempX a big head start in the industry.

Getting Started in Legal Hemp

A lot of people trying to enter the legal hemp industry are farmers already. While a good portion of them are cannabis growers, a just as large portion are your everyday, traditional farmers.

Hemp was a million dollar crop in the early 1900s, and a lot of states have had hemp initiatives enacted specifically to promote farming in the past, despite federal law placing hemp on the banned substances list up until December 2018. Now that legal hemp is becoming widespread with the ability to trade across state lines, farmers are getting back into hemp.

What iHempX does is help these farmers get started. There hasn’t been readily available information on hemp and growing practices due to its legality, which makes iHempX a go-to source for new hemp farmers.

farmers are entering the legal hemp industry

A farmer in his hemp field.

Legal Hemp’s Rising Popularity

According to national figures, there are 275,000 acres of legal hemp currently registered for production. This is compared to a total of 76,000 registered in 2018.

With over 300,000 acres set to be approved for 2019, the industry is set to open up to businesses from all sides. From oils, to fabrics, to CBD tinctures and other products, many small businesses are already getting started.

No big companies have hopped into legal hemp yet, though. As a young, semi-unstable industry, pharmaceutical companies, big health product companies and others are waiting to see how it turns out. Just like legal cannabis, it will most likely be a few years of small-scale growth until big business gets involved.

But the industry already can’t keep up with the supply and demand. There may be thousands of hemp farmers, but there aren’t as many processors or distributors. This has created a bottle neck in the industry where only a select few are growing quickly, while others may still be waiting to have their hemp processed.

Hemp is the New Cash Crop

All hemp is not grown equal, or in the same way. So while some hemp grains or fibers may return only slightly than traditional row crops, but hemp grown for CBD can bring in big money.

While a pound of traditional crop seeds may be $20 a pound, high quality, high CBD hemp can sell for $1 per seed. Now imagine a farmer putting down 2,000 seeds per acre, and producing seeds from their crop. The return compared to traditional crops is exorbitant.

While most people are doing really well with hemp on their farm, not everybody is cashing in. A lot of farmers and growers get caught up just trying to find a seed supplier or a buyer. This could in part be due to the young industry still attracting new business.

As for the businesses that were in operation prior to legalization, they are growing at a rapid rate. They are also diversifying. With so many new options for businesses due to the legality of hemp, new avenues are opening left and right.

This Week’s Episode

In this episode of The Real Dirt Podcast, Chip and Co-Host Justin Jones talk with Mike Leago from the International Hemp Exchange. The first international hemp marketplace, Mike has developed a huge business out of connecting buyers and sellers of all hemp products.

From smokable flower to seeds and biomass, iHempX helps hemp farmers big and small get a strong start in the legal hemp industry. Hear the three dive into the rising trends in the industry, the issues farmers are facing as they try to enter the industry, and where the industry is headed, only on The Real Dirt Podcast!

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Why Are CBD Products Exploding?

by Travis C | Mar 28, 2019 | 420, 420 News, Blog, Culture

It’s a unique compound that has Facebook moms and media outlets mystified. But why is CBD all the sudden exploding?

There’s a few reasons CBD products are becoming more popular every day, especially in the United States. The first has already been mentioned; the media. But we’ll get to that later. Let’s start with the recent legality change of CBD.

The 2018 Farm Bill

CBD is a chemical compound found only in the cannabis plant. It is present in almost all varieties of cannabis, even if in just trace amounts. This means that CBD is also found in hemp.

Hemp has had a bumpy relationship with the U.S. government since the early 1900s. While the hemp industry was huge in the 1920s, the paper industry was quickly rising, and couldn’t compete, starting a propaganda campaign eventually leading to the criminalization of hemp and cannabis.

At least, that’s the theory.

While hemp was considered federally illegal much like cannabis (they are the same thing), states could still pass their own laws regarding hemp, much like states now that have legal cannabis laws. Colorado even added an amendment to their state constitution, giving citizens the right the grow hemp.

But in 2018, it all changed. The 2018 Farm Bill fully legalized “industrial hemp” at the federal level.

The Legalization of Industrial Hemp

What is industrial hemp? What makes it different from “regular” hemp? This is where some people get caught up.

While hemp and cannabis are the same thing, any cannabis variety that gets you “high” contains high amounts of THC, the psychoactive compound in cannabis. Most cannabis strains you can get in the legal market are bred to have as high THC levels as possible, with little focus on the other compounds.

Hemp has always been seen as the weedy, wild version of cannabis. It isn’t bred to have high THC, but through its evolution of enduring tough climates in the wild, hemp varieties naturally have higher CBD levels. However, not all hemp is legal, hence the term “industrial hemp”.

Industrial hemp is strictly cannabis that has a THC content of .3% or less. Anything above is still illegal. So even though .4 or .5% THC wouldn’t have any real affect on a person, it is considered psychoactive cannabis, still illegal and classified as a Schedule 1 narcotic under the Controlled Substances Act of 1970.

So, now industrial hemp is legal, as long as it doesn’t surpass .3% THC. However there is no regulation for CBD at the moment. This has opened up quite a lucrative opportunity for cannabis industry entrepreneurs and farmers alike.

The Rise of CBD Products

CBD started out slow. Products existed, such as hemp seed oil and other hemp derived products that contained CBD, but little was known about the actual benefits of CBD. Then came Charlotte’s Web.

Charlotte was a little girl in California suffering from intense seizures, sometimes having dozens a day to the point she was incapacitated. After a cannabis farm in Northern California developed a CBD specific strain that had extremely low THC, but high CBD, they turned it into a digestible tincture for Charlotte.

Her seizures all but stopped. This is where the snowball started rolling.

More and more people started treating their children’s epilepsy with CBD, then more studies came out showing CBD potential in aiding with chronic pain. With its growing social acceptance, plus the added boost of the Farm Bill, more CBD businesses are opening their doors.

While it is still currently unregulated, there is an entire CBD marketplace that has developed online. From Amazon to CBD wholesaler websites, anybody can buy CBD products online with a credit card. With massive availability and a growing understanding of its benefits, all CBD needed to push over the edge was some media attention.

cbd products are becoming popular in the media

The Today Show covering the extraction of CBD from cannabis in a March 2019 segment.

The Influence Machine

To say that modern media outlets in America carry a large swath of influence would be a massive understatement. And with more news outlets than ever before in history accessible with just a few clicks, people are ingesting more information and influential content than ever before.

With the passing of the Farm Bill and increased public awareness about the benefits of CBD, people started talking online. What started as a niche group of mostly middle aged women sharing their experiences of helping their arthritis pain with a little CBD ointment, spread across the web like a bushfire.

Before long, CNN was covering the rise of CBD products. Soon after that, so was The Washington post. As did NBC, CBS, and even Fox News.

With the media machine pushing it into the mainstream, and social media platforms like Facebook, Twitter and Instagram flush with CBD anecdotes and articles, its rise was inevitable.

The question now is, will it last?

The Future of CBD Products

The future for CBD is still vague. It isn’t currently regulated by the FDA, and its only claim to legality lies within the rulings of the 2018 Farm Bill. There have already been plenty of issues with CBD and industrial hemp since legalization, and most likely, there won’t be any shortage of issues throughout 2019.

That doesn’t mean the market isn’t growing. In fact, the CBD industry is growing at a rate that could put it on pace to surpass legal cannabis by 2022. With that said, regardless of new regulations or restrictions, the future of CBD products is most likely bright, and green.

Want to learn more about the rise of CBD and the legal hemp industry? Check out this episode of The Real Dirt Podcast, featuring Graham Carlson of Charlotte’s Web, Mike Leago of the International Hemp Exchange, and Hollis Carter of Lefty’s Hemp Co.