"The hemp market is growing slowly, it has been in a bit of a gray area for a while and is now set to, I would say, exploding in the US, with the expiration of the new Farm Bill that legalized the production of hemp in the US ", said Jacob Policzer (photo), director of science and strategy at Cannabis Conservancy, and a speaker at Cannabis Cover Masterclass Denver in March. "We see a lot of hemp development in traditional tobacco regions, so in the southeast of the US, for both the production of hemp fibers and CBD."
For those who are new to the cannabis room, hemp is part of the same plant as marijuana, but does not have the same harmful properties. This means that the rules for placing hemp products on the market are also different.
"The only big difference is that you do not need as many licenses and supervision as you are on the cannabis market," Policzer said. "For the hemp market, now with the new Farm Bill, it seems like you can grow hemp much more easily than just another agricultural product, but there are problems with the location of hemp farms and the possibility of cross-pollination, pollination and hemp farms with male plants possible. pollinating [and] polluting cannabis companies in the area. "
The increasing popularity of hemp, and in particular cannabidiol (CBD), in the world of cosmetics and nutraceuticals now brings unique risks, especially when it comes to product liability protection and crop protection to protect against critical crop loss. .
Now that this market has started, insurance experts should already receive the necessary information about the risks for companies active in the hemp space that they can do in the Cannabis Cover Masterclass.
"The CBD hemp market is becoming one of the fastest growing markets out there, in line with [or] Probably a larger expansion or growth than the cannabis industry at the moment, so I think an important pick-up point is that there will be many customers looking for insurance, "explained Policzer." It is certainly an area of growth for brokers and insurers, so [they have] to understand the needs of the customers. "
Go deeper into this issue during Cannabis Cover Masterclass Denver.