Some see promise with legalized hemp, CBD oil
Ohio’s newly signed laws making it legal to grow, process, and sell hemp and hemp-derived products has many eyeing new opportunities.
“It definitely brings a lot of legitimacy to what we’ve been doing for going on six years,” said Kevin Spitler, owner of the Toledo Hemp Center retail store. “It will also help with the comfort level for the people that come here.”
Gov. Mike DeWine on Tuesday signed into law Senate Bill 57. Sen. Stephen Huffman (R-Tipp City), a bill sponsor, said it first and foremost decriminalizes nonpsychotropic hemp and the cannabidiol, or CBD, oil produced from it — essentially separating them from marijuana and marijuana-derived CBD oil. The two plants are both in the cannabis family but hemp contains only trace amounts of the psychoactive tetrahydrocannabinol, or THC.
The new law also loosens restrictions on the sale of hemp-derived CBD oil that, despite already being actively sold in a variety of forms to the general public, was technically supposed to only be legally purchased through licensed medical marijuana dispensaries under a directive from the state Board of Pharmacy.
“There was kind of a gray area and this clears that up,” Senator Huffman said. “I believe that people should have the opportunity to use it as they would with any other commodity.”
Mr. Spitler said the retail industry is poised to begin an even broader distribution of hemp products, and it won’t just be specialty businesses like his own - or convenience and party stores. He noted that the struggling Family Video chain began selling CBD products recently and he has seen milk made from hemp seeds for sale at grocery stores.
“This is going to be everywhere, and I believe that,” Mr. Spitler said. “It’s going to produce a lot of jobs.”
Beyond retail, Mr. Spitler sees major benefits for the Toledo area because of its convenient location with highways, railroads, and shipping ports. The region also has robust agriculture and manufacturing industries that can accommodate expansion with hemp, he said.
“Toledo stands to benefit from this more than probably 80% of the cities in North America,” he said.
The Ohio Farm Bureau is fully on board and has already been working to learn about best practices for cultivating hemp. Ty Higgins, director of media relations, said hemp could help farmers diversify their crops and offset declining prices for corn and soybeans.
“Add on what’s happening with our trade dispute with China and farmers really haven’t made money on the farm the last two or three years,” he said. “It’s not going to be a silver bullet or a saving grace, but it can help ease those losses in other commodities.”
The Ohio Department of Agriculture must first develop a plan to regulate, license for three years, and inspect the cultivation and processing of hemp and submit that plan to the federal government for approval. Farmers will have to go through the licensing process and pay a fee. Producers will also be charged a 0.5% tax on the value of seed, fiber, or flower at the first point of sale. Mr. Higgins noted Ohio farmers will have to figure out how to best grow hemp and keep an eye on market conditions for it. But he doesn’t think the licensing process or the learning curve will deter farmers from experimenting with hemp and using the new crop to supplement others.
“It will be a little bit more legwork in order to get started, but I really think farmers are going to see it will be worth their time and effort,” he said. “It’s not going to be right for everybody, and it’s not going to make anyone a lot of money right now, but I think they will take the time to figure it out.”
Aside from CBD oil, a wide variety of products can be made using hemp including paper, textiles, rope, biofuels, oils, food, and plastics. Senator Huffman noted manufacturers can now explore not only producing new hemp-based products, but also using hemp as a material to improve existing products or reduce costs.
“It’s a really good opportunity for manufacturing,” he said.
With Ohio’s new law, 47 states now regulate hemp. Idaho, Mississippi, and South Dakota are the only remaining states that do not have regulations in place.