The passing of the 2014 Farm Bill and the 2018 Farm Bill provides key CBD legislation paving the way for the CBD industry with business opportunities resulting in the rise in marijuana stocks.

Cannabidiol, or CBD, is a non-psychoactive cannabis compound believed to possess a wealth of wellness benefits such as relief from inflammation, pain, anxiety and more. Since it’s without THC, CBD doesn’t cause any feelings of inebriation.

There’s been a lot of buzz about CBD legislation recently, including the emergence of business opportunities.

On a related note, cannabis stocks have been telling an interesting story of their own. While they’re separate products with different laws surrounding them, both CBD and cannabis share commonalities and show tons of economic promise. As such, expert stock market analysts see big-time profits in the future.

 

The Farm Bill

Since 1933, a monumental piece of legislation known as the Farm Bill is renewed every five years, serving as the regulatory framework for the agricultural and nutritional industries.

In 2014, the Farm Bill eased the regulations on hemp production.

Considered a pilot project, the 2014 bill was revolutionary, opening untapped avenues for legalized industrial hemp. However, there was still the issues of the Controlled Substances Act (CSA). Unfortunately, there was somewhat of a grey area where hemp wasn’t yet legally separated from marijuana. The climate made for some incredibly murky legislative waters.

On December 19th, 2018, President Donald Trump signed and passed the most recent 2018 Farm Bill, clearing the way for further CBD advancements.

The bill defines hemp as a derivative of cannabis with a THC level below 0.3 percent on a dry-weight basis, therefore higher amounts are considered a controlled, illegal substance.

Now, industrial hemp and any hemp derivative – such as the plants used to produce CBD oil – are legalized and removed from the CSA. CBD oil is in high demand for wellness purposes and soothing therapeutic properties.

 

Of all hemp-derived products, CBD displays the biggest potential for growth.

Suppliers seem ready for the pending demand. The Kentucky Department of Agriculture reports 198 growers planting a record 3,281 acres in 2017. This, compared to 33 acres in 2014, is a huge shift.

Once the bill goes into law, the CBD markets are expected to surpass the 2017’s $350 million in sales.  Furthermore, cannabis market industry experts forecast $22 billion in CBD sales by 2022.

CBD will now reach mainstream distribution channels such as grocery stores and pharmacies. It can be infused into skin care, tobacco, beauty, skin care, and drink products.

Also, the Food and Drug Administration (FDA) is investigating legalization of the sale of CBD oil and other cannabis-based compounds in food and beverages. This would knock down one of the final obstacles facing businesses seeking ways to sell these products across state lines.

 

More Research for Better Results

The University of Vermont Extension recently completed a report known as the “Industrial Cannabidiol Hemp Report” where they cited the importance of agronomic research on hemp.

With hemp’s re-emergence in worldwide impact, the report explains the importance of the plant as a renewable and sustainable resource for a diverse range of consumer and industrial needs. Given the potential for growth, many industry players will seek the most state-of-the-art methods to grow and profit from crops.

Forecasts estimate a supply abundance to meet the growing demand especially as crop growth becomes more efficient and streamlined.

 

Marijuana Stocks

Marijuana stock investors had a surprisingly slow 2018 — particularly given several boons for the industry such as legalization in Canada.

More than 40% of marijuana stocks with over $200 million in market value lost at least 30% in 2018. Fortunately, the disappointing year didn’t impact all companies and appears to just be a blip in the radar.

Despite a slow 2018, projections look good for marijuana-based companies. According to Wall Street’s top cannabis analyst, marijuana sales in the US will exceed the previously estimated $80 billion by 2030. Furthermore, big time growers, like Canopy Growth and Tilray should have respectively huge 2019s.

Tilray’s stock has already jumped `19% while Canopy is up 3.5%.

The initial hiccup for marijuana stocks might have much to do with poor supply and ill-defined retail framework. Ontario has no stores, for instance. Adult-market sales estimates exceed $3.1 billion in 2019 as the retail marketplace and production methods are streamlined.

President Trump’s approval of the Farm Bill has opened up opportunities for Canopy and other Canadian growers. Canopy CEO Bruce Linton believes that the States’ new CBD legislation has given his company a chance for expansion into the US.

 

A Promising Treatment for Anxiety

The endocannabinoid system (ECS) contributes to homeostasis maintenance in physiological functions such as sleep, pain, memory, and the immune system. CBD interacts with these receptors.

Consuming CBD might affect the activity of ion channels, receptors, and enzymes within the ECS. CBD alters the serotonin signals sent throughout your body and brain, therefore it plays a crucial part in mental health. Low levels of serotonin result in depression and anxiety.

The National Institute of Drug Abuse performed a recent study where they gave CBD to animals, who displayed lower anxiety levels as a result. Further research indicates that CBD soothed social anxiety disorder and post-traumatic stress disorder in animals.

In 2011, the Journal of Psychopharmacology published a study looking at CBD’s ability to treat situational anxiety disorder. Subjects taking 400 mg of CBD experienced an overall decrease in anxiety levels when compared to those taking a placebo.

Anxiety-based CBD treatments are widely available online. However, even with the Farm Bill in the states, legalization might still vary if lawmakers specifically act to ban CBD.

 

Conclusion

The comings and goings of CBD industry have been fast and furious. With the passing of the most recent Farm Bill, the possibilities might be endless for the CBD market.

As such, an assortment of products will be available through mainstream channels. Methods of hemp production will become more innovative, effective, and far-reaching to meet the demand.

 

Other Sources

 

CBD Poised for Boom After Farm Bill. (2018, December 19) From Rolling Stone Magazine:

Top cannabis analyst on Wall Street raises sales forecast, names top 2019 picks. (2019, January 8). From CNBC:

https://www.cnbc.com/2019/01/08/top-weed-analyst-on-wall-street-raises-sales-forecast-names-top-picks.html

 

Weed Stock Tilray Jumps 19% — Making It Look Even More Overvalued. (2019, January 11). From Barron’s:

https://www.barrons.com/articles/marijuana-stock-tilray-takes-off-after-peter-thiel-stands-firm-51547233821

 

New research and studies are showing great results for the use of CBD as a sleep aid. (2019, January 8). From Axcess News:

https://axcessnews.com/national/health/new-research-and-studies-are-showing-great-results-for-the-use-of-cbd-as-a-sleep-aid_8450/

 

Is the hype about CBD, or cannabidiol, real? (2019, January 5). From Washington Post:

https://www.washingtonpost.com/national/health-science/is-the-hype-about-cbd-or-cannabidiol-real/2019/01/04/bb824280-ed09-11e8-96d4-0d23f2aaad09_story.html?utm_term=.3b365772005d

 

CBD oil: can cannabidiol treat anxiety? (2018, December 12). From netdoctor:

https://www.netdoctor.co.uk/healthy-living/mental-health/a25601198/cbd-oil-anxiety/

 

What is Canibidiol. From Project CBD:

https://www.projectcbd.org/about/what-cbd