Growing CBD Industry Still in Murky Regulatory Environment

Image by Julia Teichmann from Pixabay

When the 2018 Farm Bill legalized the production of hemp as an agricultural commodity, it opened up a new world for companies that extract cannabinoids from the plants. Entrepreneurs across the United States have since built businesses that focus on manufacturing products that are infused with the extracts.

These companies are infusing everything from gummy edibles and vaporizers to topical creams and lotions and even beauty products with cannabidiol (CBD), a nonpsychoactive compound found in the cannabis plant.

Hemp is a cannabis plant, but it’s different from marijuana in that it cannot contain more than 0.3% of THC — the compound in the plant that’s associated with getting people who use it high.

Even though the Farm Bill legalized the cultivation of hemp, it did not legalize CBD, and it still requires those who grow hemp to be licensed.

Because CBD is still in a gray area, it’s kept many consumer packaged goods companies from entering the market, but some are starting to explore the possibility.

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