The hemp boom has quickly turned into a bust, with several CBD businesses declaring bankruptcy in recent months
"[British authorities] made that conclusion based on the same science that we’re all seeing," said Miller. "While [the FDA] fails to act, there are thousands of products out in the marketplace … that might not be safe for American consumers.
"The lawmaker who was key to passing hemp legalization, some industry advocates say, seems to be missing from the debate in recent months as they clamor for regulatory clarity that could help stave off the economic downturn for the industry. "McConnell was a leader in this space. Previously, it gave me a lot of hope," said Jim Higdon, co-founder of Kentucky-based CBD brandThe lack of regulations attracted companies looking to profit off public confusion. "In addition to ignorant actors, there’s also just straight up bad actors," said Higdon, who pointed to the countless unregulated hemp products available on Amazon. Many CBD producers, especially in Kentucky, seemed to be counting on McConnell's influence and FDA regulation. "I haven’t seen him around lately. I hope it's just because he’s been swarmed with higher priorities," said Higdon, adding that he hopes access to banking and capital and fast-tracking FDA regulations remain a priority for the senator. In January, Rep. Collin Peterson introduced a bill to regulate CBD products like dietary supplements. But the chances for such legislation are close to zero in the middle of the public health crisis. Hemp advocates are focused on inserting similar language in a coronavirus package, arguing that it could help boost an industry without additional costs to the federal government. "I understand the FDA … has to balance the need for public safety with new products coming online almost every single day," Kentucky Agriculture Commissioner Ryan Quarles said. "It's just that we need action now." Hemp farmers like Strohfus say retailers are interested, but the lack of FDA rules are scaring them away from hemp products even when they don’tHis farm saw interest from large retailers that were ready to sign agreements for cold-pressed hemp seed oil — a food product that doesn't contain any CBD or THC. The retailers ultimately got cold feet. Strohfus offered to provide them with testing to show the product did not contain any CBD. "They said, 'Yeah, yeah, we understand that. But you know, our lawyers are nervous about this,'” he recounted. Mitch McConnell and Kentucky Agriculture Commissioner Ryan Quarles hold up their 'hemp pens' during the signing ceremony for the 2018 farm bill. | Chip Somodevilla/Getty Images"Everyone will blame the lack of regulations," said Bethany Gomez, managing director at Brightfield Group. "Certainly the market would be larger if there were regulations." But according to Gomez and others in the industry, the surge in interest after the farm bill passed helped contribute to the economic troubles facing the industry.Colorado is home to one of the most mature hemp programs in the nation, legalizing the crop well before the federal government. Hemp was legalized along with marijuana by voters in 2012. But state agriculture officials saw a similar rush into the industry after the 2018 farm bill. "Last year, there was a definite glut in production," said Greenberg, who saw a spike and fall in hemp prices. Longtime farmers expressed interest in hemp, along with those with no experience in agriculture, amid the promise of a new, federally legal market. "Everybody and their mom and dad ... jumped in just to grow CBD," said Oakes, the Colorado hemp farmer. “We saw it crash the market.” In 2018, there were roughly 78,000 acres of hemp cultivated in the U.S, according to cannabis market research firmWhat the future holds for hemp Hemp isn't just good for extracting CBD, though. The crop has many potential industrial uses, including textiles, building materials, plastics and more. "Last year there wasn’t a market for non-oil [crops] at scale," Greenberg said. "I have hope that [fiber] will provide a sustainable marketplace." But growing hemp for industrial uses has its own challenges, especially with the lack of infrastructure in the U.S. for processing industrial hemp., initially tried to find manufacturing partners in the U.S. But the lack of infrastructure and unfamiliarity with hemp led her to partner with a facility in Weifang, China. "There’s a lot of negative stigma on China," said Kilcullen, who credits the country for investing in hemp genetics and fiber processing capabilities. She advocates for partnering with companies in China in order to expand the U.S. market for hemp fiber. "[American] farmers aren’t going to invest unless they know there's a market," she said. "It's our job to create a market."
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