Hemp is federally legal and cannabis is not. Is that the only difference between these related plants and the two markets they create? What should investors know about each market before jumping in?
A serious conversation led by industry experts Bret Worley, CEO of MC Nutraceuticals, Norman Birenbaum, Senior Public Health Advisor at the FDA, Pamela Epstein, chief legal & regulatory officer Terpene Belt Farms, Keith Bushfield president & CEO of Rexis Biotech. These professionals shared their expertise and advice on the stage at The Diplomat Beach Resort in Hollywood in a panel moderated by Justin Swanson, partner at Bose McKinney and Evans.
It’s been more than five years since Donald Trump signed the 2018 Farm Bill, which effectively legalized hemp and hemp-derived products. Under the bill, hemp is considered to have only 0.3% delta 9 THC. This, however, left many questions unanswered and many products without proper regulations. What about products derived from hemp, are they food or supplements?
The new Farm Bill was due in 2023, but the legislature failed to meet the deadlines, which is why the House recently extended the 2018 Farm Bill through Sept. 30, 2024.
While the industry eagerly awaits the new Farm Bill, Birenabum reminded that we shouldn’t expect too much. First things first, ” Whether things fall in or outside of the definition of hemp, there’s a huge market that is there right now. It’s going to be very, very difficult to take a prohibitionist approach, to get all that toothpaste back in the tube.”
Furthermore, Birenbaum cautions that the changes to the Farm Bill “will not provide a comprehensive regulatory structure or the type of regulatory certainty that’s needed.”
Epstein followed up by saying “It is more difficult to be a multi-state hemp cannabinoid producer than a multi-state cannabis operator, because you have more certainty within the packaging, labeling, advertising restrictions,” referring to the lack of clear regulations across the hemp space. She added that investors and raw producers are interested in long-term sustainability, which is achieved through understanding the safety data and the toxicology behind new products.
Honest Integrity As The Basis
Worley was curious to know “Where did marijuana get it wrong and where did hemp get it right?” He was alluding to the fact that hemp space grew at 3 or 4 times the rate of marijuana. Also, he asked the panelists what is the right regulatory framework.
Epstein explained that a hemp registration is so much easier than a license that burdens applicants with hundreds of thousands, if not millions of dollars before you are even able to earn a penny. In regards to a good framework, she said that the hemp operators need to be responsible to be the stewards that unlock the scheduling.
“Don’t be afraid of the word intoxicated. We are all selling intoxicants. Alcohol is an intoxicant. It’s not a scary word. It’s an honest integrity,” Epstein said.
Bushfield added that there’s gonna be “bad actors in every industry, doesn’t matter who it is,” which is why we need proper regulations.
“Our compliance department attitude is – let’s have every single warning we possibly can put on those cans, and we put it out there even if we don’t need it, even if we’re not required. So I think that has to happen across the board,” Bushfield said.
“So, if we all get together, put the right framework in place, the hemp is going to help the cannabis, the cannabis will help the hemp,” he concluded.
The panelists agreed on the importance of education and the fact that prohibition is not helping consumer safety or consumer health.
Photo by Jean Laurenceau