A new report from the Congressional Research Service (CRS) offers an overview of challenges facing the nation’s hemp industry as lawmakers work to craft a regulatory framework for the lawful marketing of CBD products amid ongoing inaction by the Food and Drug Administration (FDA).
In the report, released Friday, CRS said FDA’s determination that it lacks the necessary authority to create cannabidiol regulations has created a situation where lawmakers must themselves step in. Researchers noted that the hemp market has taken a major economic hit since being legalized under the 2018 Farm Bill.
“Some claim that the lack of a federal regulatory framework for hemp-derived compounds has contributed, in part, to disruption of the U.S. hemp market, leading to both lower prices received by growers and subsequent production declines,” CRS said, referencing a U.S. Department of Agriculture (USDA) report that shows sizable losses in production value from 2021 to 2022.
“Losses were pronounced in the hemp flower market, which is the source of most hemp-based derivatives and compounds such as hemp-derived CBD and other cannabinoids,” the new report from congressional researchers says. “USDA reports that the farm-level value of all hemp flower production totaled $204 million in 2022, down from
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