Compared to the acres of soybean in the U.S., the hemp industry is still meager at , but experts expect that will quickly change now that President Donald Trump has signed the 2018 farm bill.
Thatās because after nearly a century of heavy state and federal restrictions, hemp has been removed from the list of controlled substance and reclassified as an agricultural commodity ā one that a burgeoning market has its eyes on.
More than half of U.S. states already allow farmers to grow hemp, including Illinois, Indiana and Missouri. And the acreage in the U.S. increased more than 500 percent between 2015 and 2017.
In Colorado, where hemp has been legal since 2013, 36-year-old Kristen Kunau grows an acre with her husband. Come December, thereās isnāt much to see, except a mason jar of thick, dark oil that sits in the fridge.
This is CBD or cannabidiol, an oil extracted from hemp flowers. Unlike marijuana, hempās close relative, this contains very little THC ā no more than 0.3 percent according to new federal regulationsā which means ingesting hemp CBD wonāt get you high.
CBD has become increasingly popular for its purported health benefits. Kunau, a mother of two, said sheās discovered dozens of home remedies.
āI make CBD everything. CBD coconut butter, CBD sunblock, diaper rash cream, lotion. Everything!ā she said.
Hemp is often talked about for its dozens of practical applications, including car parts, livestock feed and plastics. Despite the versatility, some of the U.S. hemp crop is grown for CBD.
Hemp CBD represents a modest $600 million market, but now thatās itās legal in all 50 states, experts like Jamie Schau, a senior research analyst with Brightfield Group, expect the market will grow tenfold in 2019. She said federal approval gives the industry a big boost, but consumers were already clamoring for CBD products, drawn in by their reported healing powers.
āWhatās really interesting about this market is itās grown completely from a grassroots level. Thereās been no formal advertising,ā she said.
CBD is used in everything from lotions to sports drinks, makeup and dog treats. But because these products occupied a legal gray area (permitted under the 2014 farm bill while still banned in the eyes of the Drug Enforcement Administration), major retailers were reluctant to sell them.
Companies like are now expressing interest in CBD, and while estimates on how large the hemp-derived CBD market will grow in the next few years, Brightfield believes it will reach $22 billion by 2022.
Keeping pace with the research
A quick Google search reveals the dozens of ailments that proponents and sellers claim CBD can effectively treat ā arthritis, anxiety, chronic pain, depression and insomnia.
Esther Blessing, an assistant professor of psychiatry at New York University, admitted the medical assertions make her cringe.
āWe donāt know that. We donāt have the clinical trial evidence to support that,ā she said.
Blessing is currently involved in a study that examines if CBD can reduce alcohol use and PTSD symptoms. Recently, the that uses CBD to treat a form of epilepsy. But thatās it.
As a scientist, she calls CBD āthe most promising medication that has come along in the last 50 years,ā but she said all the hype has gotten a bit ahead of the research.
āThe reason for that enthusiasm is from other types of evidence, like animal model studies, or small clinical trials that give us a hint at how CBD works,ā she said.
She said itās possible that CBD may eventually effectively treat many conditions like substance abuse and schizophrenia. Until then, she hopes the new law will lead to increased funding for research.
The plight of small farmers
Meanwhile, hemp growers like the Kuana family are bracing for change. In Colorado, most hemp farmers run a small operation, about ; the Kunaus have just one and also have day jobs.
But with the law change, Kristen Kunau said theyāll be focusing on their business full-time. Theyāll be able to access bank accounts, write off business expenses and will be able to apply fo low-interest federal loans and crop insurance.
āWeāve been working our butt off for thisā she said. āItās really exciting that [hemp]ās come this far, and that this is happening in our lifetime.ā
Kunau knows their plot will seem small compared to other farmers, who will sow commercial-sized plots of hemp.
This summer, the price for hemp flowers was up to $75 in Colorado, but as more hemp is planted in the country thatās expected to drop. Kunau hopes that wonāt squeeze out small farms like hers.
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