• Skip to primary navigation
  • Skip to content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • Business Directory
    • Buyers | Licensees
    • Sellers | Ancillary Businesses
    • Submit Product & Service Press Release
  • CBE Exchange
  • CBE Jobs Exchange
  • Events
  • Featured Videos
  • Product & Service Press Releases
  • Sponsored Polls
  • Webinars
    • Upcoming Webinars
    • Archived Webinars
  • Whitepapers

Cannabis Business Executive - Cannabis and Marijuana industry news

Recreational, Medical, Marijuana, Cannabis, And Hemp News for Cannabis Businesses

  • Follow on Facebook
  • Follow on Twitter
  • Follow on Google+
  • Follow on LinkedIn
  • Subscribe to our RSS feed
Newsletter 2
  • Home
  • Policy & Legal
    • Hemp Business Executive
    • International
      • Canada
      • Mexico
      • Israel
    • US A to F
      • Alabama
      • Alaska
      • Arizona
      • Arkansas
      • California
      • Colorado
      • Connecticut
      • Delaware
      • District of Columbia
      • Florida
    • US G to M
      • Georgia
      • Hawaii
      • Illinois
      • Indiana
      • Idaho
      • Iowa
      • Kansas
      • Kentucky
      • Louisiana
      • Maine
      • Maryland
      • Massachusetts
    • US M to N
      • Michigan
      • Minnesota
      • Mississippi
      • Missouri
      • Montana
      • Nebraska
      • Nevada
      • New Hampshire
      • New Jersey
      • New Mexico
      • New York
      • North Carolina
      • North Dakota
    • US O to V
      • Ohio
      • Oklahoma
      • Oregon
      • Pennsylvania
      • Rhode Island
      • South Carolina
      • South Dakota
      • Tennessee
      • Texas
      • Utah
      • Vermont
    • US V to W
      • Virginia
      • Washington
      • Wisconsin
      • Wyoming
      • Guam
      • Puerto Rico
  • Industry News
    • Advertising, Marketing, PR & Research
    • Banking, Finance & Real Estate
    • Compliance and Regulations
    • Corporate Social Responsibility
    • Retailers
    • Hemp Business Executive
    • HR and Staffing
    • North Of The Border
    • Industry People/On the Move
    • Packaging and Supplies
    • Press Releases
    • Processors
    • Producers
    • Security Solutions
    • Science and Technology
    • South Of The Border
  • CBE Lists
    • Ancillary Businesses
      • 2019 CBE Ancillary Business Survey CLICK HERE
      • 2018 CBE 155 A/B
      • 2017 CBE 150 A/B
      • 2016 CBE 100 A/B
    • Producers, Processors, Retailers
      • 2017 CBE 200 PPRs
      • 2015 CBE 100 PPRs
    • Industry Women
      • Glass Ceiling Wreckers: 2019 CBE Power Women of Cannabis
      • 2017 CBE 75 Most Important Women
      • 2016 CBE Top 50 Women
      • 2014 CBE Most Influential Women
    • Most Important Companies
      • 2016 CBE 10 Most Important Companies
      • 2014 CBE 10 Most Important Companies
    • Political 100
      • 2017 CBE Political 100
      • 2016 CBE 100 Political
      • 2014 CBE Political 50
    • 2014 CBE 100 Most Important People
    • CBE RFP Hotlists
      • 2014 CBE Lab Testing Services HotList
      • 2016 BHO Extraction Equipment
      • 2016 CBE Supercritical CO2 Extraction Equipment
      • 2016 CBE Security Solutions
      • 2016 Edibles & Infused Products
  • Company Stories
    • Up and Comers
  • Hemp Business Executive
    • Hemp Policy & Legal
    • Hemp Industry News
  • Newsletters
    • CBE Week
    • CBE Human Capital Management
    • CBE Technology & Solutions
    • CBE Policy and Legal Update
    • CBE Product and Service Announcements
  • Op-Ed
    • Cartoons
    • The Buck Stops Here
    • Opinions
    • Comments
  • Associations
  • State Regulatory Agencies
  • Contact
  • Last Chance to Submit for the 2019 CBE Ancillary Business List CLICK HERE
You are here: Home / Hemp Business Executive / Removing Roadblocks in the Hemp Industry Six Months after the 2018 Farm Bill
tincture

Removing Roadblocks in the Hemp Industry Six Months after the 2018 Farm Bill

June 5, 2019 by Susan Gunelius Leave a Comment

Nearly six months have passed since the 2018 Farm Bill was enacted on December 20, 2018, but the road to developing a successful business in the hemp industry is still filled with roadblocks.

Some of these obstacles are becoming easier to navigate, but we’re still a long way from a free and open hemp market, particularly as it relates to CBD products.

The Biggest Roadblocks Impede Sales and Business Growth

The reality of the hemp market nearly six months after the 2018 Farm Bill was enacted is there are states, government agencies, banks, and law enforcement groups that are either intentionally or unintentionally stopping hemp and hemp-related businesses from operating and growing freely.

1. Food and Drug Administration (FDA)

The 2018 Farm Bill allows the FDA to make its own rules related to hemp used in food and drug products. At this point, the FDA does not allow CBD products to be promoted using any type of health claim. In addition, the FDA says CBD products are not dietary supplements but rather, they are drugs that require approval under the U.S. Food, Drugs and Cosmetic Act (FDCA).

Bottom-line, the FDA is enforcing its hemp rules, which say any hemp/CBD products that claim to deliver therapeutic effects are drugs that must be approved by the FDA. Furthermore, the FDA says food and dietary supplements containing hemp/CBD cannot be introduced into interstate commerce.

Either way you look at it – food/dietary supplement or drug – the FDA makes it nearly impossible for CBD companies to legally sell their products today.

2. U.S. Department of Agriculture (USDA)

This month, the USDA released a legal opinion related to hemp production in order to clear up confusion about interstate transportation of hemp and who can get a hemp production license based on the 2018 Farm Bill.

The legal opinion from the USDA’s Office of the General Counsel (OGC) concluded:

  • Hemp was removed from the list of Schedule 1 drugs and is no longer a controlled substance.
  • The USDA is responsible for creating regulations related to hemp production.
  • States and Indian tribes are not allowed to prohibit interstate transportation or shipment of hemp lawfully produced by a hemp license holder whose license was issued under the USDA plan.
  • States and Indian tribes are not allowed to prohibit interstate transportation or shipment of hemp lawfully produced under the 2014 Farm Bill.
  • States and Indian tribes are allowed to enact regulations and rules that are stricter than federal laws.
  • The FDA and the U.S. Department of Health and Human Services (HHS) can regulate hemp under applicable FDA laws.

While the USDA has clarified its stance on some issues related to the hemp industry, it hasn’t removed all of the roadblocks, nor does it have the authority to do so. However, it does appear that the USDA is trying to make it easier for hemp companies to do business.

3. Facebook, Google and More

Facebook, Instagram (owned by Facebook), Google, other social media sites, and digital ad networks make it extremely difficult, if not impossible, for hemp and hemp-related businesses to advertise on their platforms.

Considering that Facebook, Instagram, and Google offer some of the most affordable advertising options for businesses of all sizes, these policies negatively affect the hemp industry and business growth.

Specifically, Facebook (including Instagram) prohibits the marketing and promotion of industrial hemp – a policy that Colleen Keahey Lanier, Executive Director of the Hemp Industries Association says is, “restricted to outdated policies that continue to conflate hemp with marijuana. Not all of Cannabis is considered a drug, and Facebook’s new AI technology if it continues to recognize images of Cannabis as a controlled substance generally.”

4. State Governments and Law Enforcement

Just because hemp is legal at the federal level doesn’t mean it’s legal in every state. In fact, each state can create its own regulations, which creates a fractured (and confusing) marketplace for both businesses and consumers.

That’s a lesson a 69-year old great grandmother learned the hard way in April when she was arrested for carrying CBD oil into Walt Disney World.

On the other hand, the Transportation Security Administration (TSA) changed its policy in May and now allows people to bring some hemp-derived CBD products on planes.

5. Banks

Despite the passing of the 2018 Farm Bill, many banks are still not willing to work with hemp businesses. In April, Senate Majority Leader Mitch McConnell (R-KY) and Sen. Ron Wyden (D-OR) sent letters to four key financial regulators asking them to clarify banking rules for hemp businesses.

The letters were sent to the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Federal Reserve System, and the Farm Credit Administration (FCA) asking for better access to bank accounts, loans, credit, capital, and more, so more people can start and grow their hemp businesses.  

How the Hemp Industry is Fighting Back

This month, the Hemp Industries Association (in partnership with Bluebird Botanicals, Hoban Law Group, and Bish Enterprises) launched a new “Hemp is Legal” campaign nationally with a focus on changing Facebook’s advertising policy for businesses directly or indirectly involved in the hemp industry.

The Hemp Industries Association says Facebook’s policy exceeds what is required by law and is having a significant negative effect on hemp businesses that are trying to build digital footprints.

The campaign includes a digital ad in New York City’s Times Square that says “Facebook: Stop Censoring Hemp” and will run daily until August 24, 2019. The Hemp Industries Association is also asking supporters to sign a petition to stop hemp censorship.

Key Takeaways about Roadblocks in the Hemp Industry

Clearly, there are many roadblocks in the hemp industry that won’t be removed in the near future, but other obstacles could disappear if businesses, advocates, and organizations continue to put pressure on the right agencies and people.

In addition, continued scientific research that proves the benefits of CBD will help open doors. Already, research has concluded that CBD can be used to treat seizures related to pediatric epilepsy, and a more recent study found that CBD can help reduce cravings in people with opioid addictions.

However, at this point, we’re six months into the legal hemp market, and it looks like it will take another six months – and more – to remove most of the bumps that are preventing many businesses from thriving.

Contextual Link – Nexus November

Contextual Link – Cova November

Filed Under: Hemp Business Executive, Hemp Industry News Tagged With: 2018 Farm Bill, CBD, Hemp

About The Author:

Susan Gunelius

Susan Gunelius is President & CEO of KeySplash Creative, Inc. (KeySplashCreative.com), a marketing communications company offering, copywriting, content marketing, email marketing, social media marketing, and strategic branding services. She spent the first half of her 25-year career directing marketing programs for AT&T and HSBC. Today, her clients include household brands like Citigroup, Cox Communications, Intuit, and more as well as small businesses around the world. Susan is a marketing and branding keynote speaker and has written 11 marketing-related books, including the highly popular Content Marketing for Dummies, 30-Minute Social Media Marketing, Kick-ass Copywriting in 10 Easy Steps, and The Ultimate Guide to Email Marketing. She is also a Certified Career Coach and Founder and Editor in Chief of Women on Business (WomenOnBusiness.com), an award-winning blog for business women. Susan holds a B.S. in marketing and an M.B.A in management and strategy.

Connect With Me : FacebookTwitter

Primary Sidebar

Ad: Sidebar 1

Featured Video

Associations & Organizations

clearing div

Ad: Sidebar 2

Business Directory

Ad: Skyscraper 1

CBE Jobs Exchange


Featured Jobs
Go
Post a Job
More jobs
Powered by CBEJobsExchange.com

RSS Recent Jobs

  • Senior Bioinformatics Scientist - Medicinal Genomics Corp. - Beverly,
  • R&D Scientist - Medicinal Genomics - Beverly,
  • Corporate Associate - Fox Rothschild LLP - New York, NY

Product & Service Press Releases

Ad: Sidebar 3

CBE Events

Ad: Sidebar 4

State Regulatory Agencies

Ad: Skyscraper 2

Webinars

Ad: Sidebar 5

Associations & Organizations

Ad: Sidebar 6

Featured Video

Ad: Skyscraper 3

Business Directory

Ad: Sidebar 7

CBE Jobs Exchange

Ad: Sidebar 8

CBE Events

Ad: Skyscraper 4

Industry Blogs



Footer

  • Home
  • About Us
  • Advertise
  • Contact
  • CBE Press LLC Privacy Statement
  • Contribute
  • Contributors
  • Newsletters
  • Terms of Service
  • Contributor Login
  • Follow on Facebook
  • Follow on Twitter
  • Follow on Google+
  • Follow on LinkedIn
  • Subscribe to our RSS feed
Newsletter 2

© Copyright 2018 CBE PRESS LLC. - All Rights Reserved. Cannabis Business Executive Is A Trademark Of CBE PRESS LLC. · All Rights Reserved · And Our Sitemap · All Logos & Trademarks Belong To Their Respective Owners·