As legal hemp is entering the U.S. market, many things are going to change.
Historically, hemp was illegal to grow or sell in the United States, but it was legal to buy from foreign sources. In December 2018, Congress legalized non-intoxicating forms of cannabis, although they didn’t legalize marijuana for recreational use.
However, a few states have already legalized recreational-purpose cannabis, and over 30 states legalized cannabis for medical uses.
U.S. Senate Majority Leader shared an interesting tweet for the occasion: “At a time when farm income is down and growers are struggling, industrial hemp is a bright spot of agriculture’s future. My provision in the Farm Bill will not only legalize domestic help, but it will also allow state departments of agriculture to be responsible for its oversight.”
This matter was so popular that many students turned to BestEssay.com for research projects on the history of hemp regulations in the United States.
What Does Industrial Hemp Legalization Mean for the USA?
This is another issue suitable for students to explore in their research papers. In fact, it’s so interesting that they won’t turn to assignment help out of boredom.
Industrial hemp is not what we usually imagine when we hear the term hemp. It’s used in thousands of products, including construction supplies, drinks, food, textile, furniture, automotive parts, and beauty products. You’ve probably seen “drug rugs;” those colorful pullovers that are commonly associated with hippies. You’ve also seen rugs from the same material - it’s hemp!
It seems strange that such a widely used ingredient was in a category with controlled substances for almost five decades, accompanying marijuana, LSD, and heroin.
With the final legalization, we’re demystifying hemp as a plant that people have been relying on for millennia.
Due to the fact that various industries will use the plant over the years to come, American farmers have a lot to benefit from.
What About CBD?
CBD is a substance extracted from hemp. The new legislation allows extraction of CBD, which is not psychoactive. This is not the thing that gives you the high (that’s THC). However, the legal status of CBD is somewhat unclear. According to the Drug Enforcement Administration, it is not legal. However, the Administration doesn’t act against anyone who uses or possesses it. The FDA (Food and Drug Administration) classifies CBD as an illegal substance to be used in health or food products without direct approval. FDA Commissioner Scott Gottlieb clearly stated that the Administration’s stance on hemp remains the same. Any company that intends to include CBD in its products must first get the organization’s approval.
Will the Price of Hemp Drop?
If you ever worked on an economy research project (or hired a dissertation services to complete it for you), you already know how the price is formed. When the demand is high but the supply is low, the price goes up. When the supply meets and exceeds the demand of the market, the price drops.
Before the legalization of hemp, there was a lack of supply for the market’s needs. Now that U.S. farmers are getting into the business, we should expect a price drop. That’s what economic logic says, and it’s what any author from a professional writer service will state in academic papers.
But before you ditch the idea to hire GradeMiners because you think you figured this thing out, let’s get into the details. They are more complex than we initially assumed:
- Select producers will benefit from federal crop insurance. It’s only available for farmers who are part of a pilot research program. This should mitigate part of the risk, and allow the price to drop in the future as more producers get such coverage.
- Farmers from Wisconsin faced great losses in 2019, due to the fact that they surpassed allowed THC levels in their crops. They blamed the delayed testing by the Wisconsin Department of Agriculture, Trade and Consumer Protection. As industrial crops of hemp age, the levels of THC in them grow. There’s always a risk for farmers ending up with “hot” crops, which lead to loses. This means there’s no drop in the price. In fact, it might get higher.
- Not all producers will benefit from federal crop insurance. They can rely on private insurance that would cover hot crops. However, the premiums for such insurance are too high, so it will further increase the price that farmers have to set for their product.
As it turns out, students will still be looking through My Perfect Words reviews to find professional writers, since the hemp price is a complex issue to research. Many factors will impact the 2020 pricing of hemp.
Will the Price Ever Drop?
If you were looking into resume services because you want to get into the hemp production business, you should know that it’s already getting more competitive. Yes; the production is expected to grow, thanks to the strong support that U.S. lawmakers are offering in that department. Their policies will become more beneficial to farmers, who should be able to mitigate their risks in a better way.
In 2020, the price of hemp isn’t expected to drop too much. But the future is bright.