Congressional Research Service Notes Hemp Industry’s Recent Decline Amid FDA Inaction On CBD Rules

Congressional Research Service Notes Hemp Industry’s Recent Decline Amid FDA Inaction On CBD Rules

Hemp has long been a source of potential economic prosperity, particularly for small farms across America, but for the last two years, the industry has been facing numerous tribulations caused by the inability of the U.S. Food and Drug Administration to regulate cannabidiol (CBD). A recent report issued by the Congressional Research Service (CRS) notes the engrained decline of the hemp industry in the absence of necessary federal regulations. It’s time to take a closer look at hemp farming in the U.S., and the current state of the industry.

1.The Hemp Industry in Decline: A Congressional Research Service Investigation

The hemp industry has been in decline for some time now, and lawmakers have been eager to understand the source of the decline. The most recent investigation from the Congressional Research Service (CRS) sheds additional light on the state of the hemp industry.

The CRS investigation revealed the following conditions of the hemp industry:

  • Hemp production is decreasing, with hemp farmers reporting lower yields
  • The prices for hemp-derived products are increasingly unstable
  • Industry stakeholders are struggling to keep up with changing regulations and laws

It is unclear at this time what steps Congress and hemp industry stakeholders need to take to assist with the industry’s decline. Stakeholders will need to continue to research potential regulatory changes that could help the hemp industry recover its footing. Additionally, increased financial support from Congress could help hemp farmers remain resilient in the face of adversity.

2.Evaluating the FDA’s Inaction on CBD Rules: A Closer Look

It’s no surprise that the US Food and Drug Administration has yet to approve the widespread regulation of cannabidiol (CBD). Following the passage of the 2018 Farm Bill, which legalized the farming of hemp and its derivatives, the agency has been slow to take action on solidifying its stance towards the popular health and wellness supplement. Here, we take a closer look at why this inaction may be occurring.

The most obvious reason as to why the FDA is not addressing the issue of CBD rules is its popularity and the potential popularity. The agency must weigh the safety concerns of CBD against the potential benefits it could provide, and this is no mean feat. To do this effectively, the FDA would need to conduct extensive research on the effects of CBD, and this could prove a costly and lengthy undertaking.

  • The FDA must weigh the safety concerns of CBD against the potential benefits it could provide.
  • Conducting such a task is proving lengthy & costly for the agency.

3.Quantifying the Effects of CBD Regulations on the Hemp Industry

Since the passing of the Farm Bill in 2018, the hemp industry has been under the sway of strict CBD regulations. But just what are those regulations? And what effects do they have on the hemp industry?

Understanding the regulation of CBD is critical to maintaining optimal success in the hemp industry. For starters, all hemp-derived CBD products need to contain less than 0.3% THC. In addition, the sources that extract and process CBD are closely monitored. Furthermore, farmers must adhere to a carbons-per-mile (CO2/mi) limit, so that they’re not contributing too much pollution during the hemp production process.

The hemp industry must also contend with the various restrictions on marketing and selling hemp-derived CBD products. Companies must take caution when advertising these products, so as to not make unsubstantiated health claims. It is also essential for them to understand the regulations surrounding the sale of these products, which differ from state to state.

It is clear from the above that regulations concerning CBD can have a huge impact on the hemp industry. Companies will need to continue monitoring updates and changes to the regulations surrounding their sector, so they can stay competitive and in compliance.

4.What the Future Holds for the Hemp Industry and FDA Regulations

As the hemp industry continues to surge forward, experts are starting to ponder the role that the FDA will play in regulating this growing industry. The FDA can set the guidelines and regulations that hemp-derived products have to abide by if they’re to receive a stamp of approval from the US government. Here are a few key aspects of the future of the industry and FDA regulations.

  • Testing and Quality Control: The FDA will likely place high emphasis on lab testing and quality control to ensure the safety of hemp extract products entering the market.
  • Labeling Requirements: The FDA will no doubt impose stringent labeling requirements that accurately represent content and effects of the hemp extract.
  • Product Advertisements: The agency could possibly impose rules regarding the advertisement of hemp-derived products. This could include regulating the claims made by manufacturers.

It’s also important to note that the FDA has the ability to reject products deemed to be unsafe or deceptive. The agency also can set rules regarding the use of animal-testing in the production of hemp extracts. As time goes by, the rules and regulations governing the hemp industry will become increasingly clear. It’s just a matter of time before these new regulations are put into place and manufacturers become familiar with the rules of the game.

The hemp industry has seen a recent and steep decline due to lack of action from the FDA, bringing into focus an industry that often lacks the clarity needed to continue thriving. With more definitive regulation from federal entities, the hemp industry may regain its footing and reach, potentially unanticipated, heights.


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