Hemp And CBD Oil Industry

Expansion Challenged In Minnesota

Updated on November 27, 2022

A popular hemp based-nutritional supplement, CBD Oil lines many natural food and supplement stores as customers are increasingly turning to CBD Oil for various treatments ranging from anxiety to insomnia. As the demand for hemp continues to grow, farmers and entrepreneurs are trying to make the most of it. But though the industry brings an estimated $700 million annually, the lack of clarity over its medical approval is a constant challenge.
Why is the Hemp Industry facing Uncertainty?
According to hemp farmers like Garth who owns a hemp farm in southern Minnesota and has been farming for decades, “We’ve grown corn and soybeans in the past, but we were looking at something new and exciting,”. He wanted to grown medical marijuana with his partner, but the initial costs and legal hurdles were pretty high.

Medical marijuana is known for its negligible quantity of THC, which is a psychoactive chemical that gives people a high. That’s when Garth heard of CBD oil from his partner and together they received approval and planted their first hemp crop this year. The Food and Drug Administration has approved a drug containing CBD oil to treat epilepsy and even old-timers have now started to turn their attention towards CBD oil.

According to hemp cultivators, there are more buyers for unprocessed hemp than sellers. Garth wished to expand his farm next year but there are plenty of obstacles. Despite the fact that they are not doing anything illegal, the banks do not let them put money nor do they fund them. According to Cody Wiberg, executive director of the Minnesota Board of Pharmacy, the 2014 federal law that allows hemp farm pilot projects, however, does not allow for

Wiberg says, “The FDA [Food and Drug Administration] has further specifically stated that CBD cannot be sold as a dietary supplement.” According to Mr.Wiberg, the public should be aware of substandard practices followed by manufacturers who use unsafe methods and most medical benefits aren’t backed by research. Consumers would be put to undue health risks if they take these products especially for serious medical conditions such as seizure disorders.

Minnesota has strict marijuana law and a spokesperson said that the public should be aware of the legal situation and how there are no regulatory standards to maintain the quality for CBD oil manufacturers. This lack of clarity isn’t just restricted to Minnesota, but the industry has suffered the most here.

How can the CBD Industry in Minnesota receive a Boost?

Though there are a lot of bad actors selling CBD oil without any standardized norms, many companies are trying to set standardized practices and testing. The number of outlets selling CND is also said to be growing which has resulted in banks willing to start working with CBD farmers.

What is the future of CBD in Minnesota?

According to industry experts, the CBD Oil industry is at an uncertain stage. Regulation is in the initial stages, many are of doubt if CBD is legal to sell. Other concerns include testing, quality, and proper sales.

In the meantime, the farm bill now stalled in Congress could clarify the legal status of hemp. Leaders of the committees have said they aim to pass it by the end of the year.

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