If you’re still unclear on how the 2018 Farm Bill impacts the cannabis industry, you’re not alone.
Over half the country now allows citizens to buy marijuana for medical purposes. Ten states in the United States allow anyone over 21 to walk into a store and pick out the exact strain, flavor, and potency they prefer.
But, the legalization of marijuana has also caused an explosion in the popularity of hemp manufacturing, and Private Label CBD products.
These products are made from a DIFFERENT cannabis plant and contain almost no THC.
Still, many people are misinformed about how the 2018 Farm Bill applies to different products from the cannabis family. If you’re looking to start your own line of hemp, CBD or other cannabis-based products, you need to know the difference.
What Is the 2018 Farm Bill?
Since its start in 1933, the Farm Bill defines the subsidies and other resources made available to American farmers.
For the first time “industrial hemp” is legal across all 50 states. But what makes some hemp qualify as industrial?
Out of the thousands of cannabis strains, they all have different levels of tetrahydrocannabinol (THC), the psychoactive drug still listed as a schedule 1 substance under federal law.
Unfortunately, that makes CBD schedule 1 if derived from THC heavy strains.
But many strains of cannabis contain almost no THC. The farm bill draws the line at 0.3%. While that may seem restrictive, it’s great news if you’re a CBD manufacturer. But, some still don’t understand the impact of the 2018 farm bill on CBD products.
Is Hemp CBD Federally Legal Yet?
This is where a lot of people are confused. Cannabidiol (CBD) is not psychoactive. The American Cancer Society confirms its use as a legitimate treatment for cancer. Before the most recent passing of the farm bill, there was only one source of medical grade cannabis for research: Mississippi.
The Marijuana Program at the University of Mississippi School of Pharmacy’s National Center for Natural Products Research was the only place researchers are legally able to source their cannabis.
Now, with the upgraded Farm Bill, CBD companies may be able to buy from anyone growing THC-free cannabis in the U.S.
Impact on Hemp Manufacturing
The last updates to the Farm Bill in 2014 lightened the restrictions on hemp production. Before 2014, all hemp production had to go through the Drug Enforcement Agency (DEA), regardless of it’s THC levels.
Access was restricted to researchers and testing the market for demand.
This made producing hemp as cumbersome as producing THC potent marijuana. The 2014 farm bill finally started to distinguish between marijuana and hemp.
But there was a catch. Only growers registered with their state’s hemp pilot program could grow the plant. Supply was short and there is no way it could feed America’s thirst for new CBD products.
There needed to be a way to get CBD without the legal repercussions of growing marijuana. The solution is hemp with negligible THC levels.
CBD Startup – Risks and Rewards
The demand for CBD products is exploding at an astonishing 53% annual growth rate.
It wasn’t that long ago that starting any cannabis related brand took a lot of startup capital.
You’d have to spend months, possibly years cultivating relationships with growers only to have it all come grinding to a halt when a mold infestation destroys your supplier’s crop.
It was risky and time-consuming.
Creating a Hemp Manufacturing supply chain has taken us years to nail down & thousands to develop, test, refine and perfect. With a Private Label CBD manufacturer, you can focus on what you do best, sales.
Finding a Good Hemp Manufacturer
What makes a good CBD Manufacturer? In short, your hemp product supplier needs to have complete control over their supply chain. Few companies in any industry are vertically integrated.
What makes for good hemp manufacturing and production practice? There are tons of regulations and laws to follow. One bad batch of product that contains more than the legal 0.3% level of THC could wipe out your business like a tidal wave taking out a beach town.
Risks of Ametuer Hemp Manufacturers
With the growth of the cannabis industry, we’re seeing more traditional nutriceutical manufacturers jumping on the hemp bandwagon.
But even if a company has decades of experience creating top-notch pills and capsules, lotions, tinctures, and infused foods are a whole different monster.
It requires different equipment and automation procedures. The last thing you want is to invest your startup capital in a batch of low-quality product with high return rates.
Your customers will think you have thousands invested in research and production facilities. And you do! With the right manufacturer behind you, you can take advantage of all their resources for a fraction of the price they spent developing them.
Why Private Label CBD is Smart
Testing your own Private Label CBD product line isn’t hard. All you have to do is send an email and you could have high-quality legal CBD products that are ready to be marketed and sold all over the country. We can help you make this happen.
Building a hemp supply chain can take years. You’ll be competing against industry titans that have been building their business relationships for decades.
Even if you routinely test your product, what are you going to do when a test comes back positive for illegal THC levels. You’ll lose time, money, and customers just trying to break even.
If you want to be able to compete with other brands, don’t spin your wheels trying to set up relationships with farmers, labs, and distribution centers. Hire one company that does all that for you.
What About Custom CBD Formulas?
While you can build a successful brand with premade products, nothing will set you above the competition like your own Private Label CBD Products.
This is the perfect option for entrepreneurs that want a hand in the manufacturing process. You’ve probably been searching for a product that has yet to be marketed the way you envision it.
You can develop your own custom formula without the headache of sourcing and manufacturing.
Start With the Right Partnership
You’re a serious entrepreneur. You don’t want to pour a ton of money into a Private Label CBD product until you’ve tested it in the marketplace. With a strong CBD manufacturer, you could test your own signature brand, without breaking the bank.
Hemp manufacturing is serious stuff. One bad judgment call and you could be breaking the Farm Bill 2018 hemp restrictions. You can protect yourself and your customers by bringing on a respected industry leader. The 2018 farm bill won’t be the last regulation on the cannabis industry.
Why put your customers’ health at risk trying to create your own CBD supply chain? Spring Creek Labs has spent decades perfecting methods to ensure YOUR products adhere to the strictest regulations. If you’re ready to test your own Private Label CBD product line, let’s talk.