Hemp Market Surge: How New Regulations Could Impact Growth
The hemp industry is at a crossroads as proposed changes in the 2024 Farm Bill threaten to reshape its regulatory landscape. Lawmakers are considering amendments that could ban products like delta-8 THC, a hemp-derived compound that has surged in popularity, especially in states where marijuana remains illegal.
Proposed Hemp Redefinition Could Threaten Hemp’s Growth
According to a recent report by the American Bar Association (ABA), the House Agriculture Committee’s draft of the 2024 Farm Bill includes language aimed at closing loopholes that allow the production and sale of intoxicating hemp-derived cannabinoids. If enacted, these changes would redefine hemp, excluding products containing cannabinoids not naturally produced by the cannabis plant or synthesized outside of it. This move could significantly impact hemp businesses that rely on the burgeoning market for delta-8 THC products.
Psychoactive hemp-derived products such as delta-8 THC have surged in the market. According to Cannabis Business Times figures cited by the ABA, delta-8 THC products generated $1.2 billion in sales in 2023. The compound has found a niche market due to its similar effects to delta-9 THC but with less potency. Companies like Curaleaf Holdings Inc. (OTC:CURLF) have entered the delta-8 THC market, capitalizing on consumer demand …