Editor’s Note: Today’s post comes from contributing editor Nick Johnson, a historian and editor based in Fort Collins, Colorado. His book Grass Roots: A History of Cannabis in the American West (2017) is a history of cannabis agriculture that explores the environmental and social dynamics of the nation’s most controversial crop. He also blogs (and occasionally podcasts!) about all things cannabis on his website, Hempirical Evidence.
The booming market in Cannabidiol (CBD) products has gone bust. The boom was touched off by the federal re-legalization of hemp in the 2018 farm bill, which led many farmers, investors, and entrepreneurs to stake their hopes on a new crop supplying a rapidly expanding market of CBD-enhanced products—from gummies to lotion to lip balm. The benefits and risks of such products are still being substantiated by science, but consumers gobbled them up, anyway, looking for relief from ailments ranging from arthritis to insomnia.
Now, there are simply too many CBD products and companies on the market, using far too little hemp. Places like Colorado, Kentucky, and the Ohio Valley report an oversupply of hemp, and per-pound hemp prices have plummeted. The Food and Drug Administration’s (FDA) reluctance to approve CBD products has irked some in the industry, but the driving factor for the bust appears to be simple economics.
Akin to WWII Program
This is not the first time Americans have produced too much hemp for their own good. In 1942, the federal government suspended its cannabis prohibition to create a domestic hemp industry to supply cordage for the US military during World War II. After years of being told that the crop was a dangerous and addictive drug, American farmers were suddenly encouraged to grow thousands of acres of hemp. In a flash, the government built 42 hemp processing facilities across the Midwest, providing hundreds of jobs and invigorating depressed rural areas.