Blog, Summary15 Steve Hoffman Blog, Summary15 Steve Hoffman

Is 2024 the Year Regenerative Agriculture Takes Root?

This article first appeared in Presence Marketing’s January 2024 newsletter.

By Steven Hoffman

In 1942, J.I. Rodale first popularized the term organic in the U.S. with the launch of Organic Farming and Gardening Magazine. Some 45 years later, in the 1970s, J.I.’s son Robert Rodale introduced the phrase “regenerative organic.” Robert’s goal was to describe an approach to farming that combined organic practices with a more holistic approach to land management and a focus on rebuilding soil health. Yet it’s only been in the past few years that the term has gained more widespread traction.

With the release in 2023 of two full-length feature documentary films, Common Ground and Organic Rising, along with increased adoption among farmers and producers, awareness of regenerative agriculture is set to gain ground in the coming year among large-scale food manufacturers, policymakers, researchers, the general public and more. Today, advocates of regenerative agriculture say it is the best way to produce healthier food and promote local and rural economies. And, by sequestering carbon back into soils, it can also play a significant role in mitigating climate change.

“2024 indeed will be marked as the year of regenerative agriculture. Why? We are closing in on a tipping point of awareness and collective action is being realized on a huge scale. Not only is soil and regenerative agriculture finally making its way as a leading climate, water and health solution, but we are also showing up as one of the biggest economic solutions for rural economies and businesses across the world,” said Finian Makepeace, Co-founder and Chief Strategy Officer of the nonprofit organization Kiss the Ground and Producer of the films Kiss the Ground and its sequel Common Ground.

“With the recent film Common Ground, and many other feature films and shows in this space sharing the story along with the incredible build of awareness brought on by Save Soil and others, we are seeing a dramatic increase in people comprehending the soil solution. With brands and businesses, there are huge commitments around regenerative agriculture for 2030. I believe 2024 will be a year of turning on those actions and increasing the integrity of their proposed programs. Regarding regenerative agriculture, I feel that 2024 will be the year that the world’s regen leaders find common ground and agree upon a definition that will allow for many more to work and support this space functionally,” Makepeace added.

“I do think that 2024 could be the best year yet for regenerative agriculture. While there is still disagreement over the definition, there is significant consensus that it includes a keen focus on building soil health, enhancing biodiversity, humanely integrating livestock and including worker fairness. New certification and verification programs like Regenerative Organic Certified, Certified Regenified, and Soil & Climate Health provide a lot of support and tools for farmers who want to incorporate more regenerative practices,” said Elizabeth Candelario, Director of Strategic Partnerships for MAD Agriculture, an organization that works with farmers and industry to advance regenerative practices.

In addition, Candelario said, “While their motivations may vary — from mission alignment to strengthening supply chains to mandatory ESG reporting — food companies are (finally) paying attention to the agriculture that is producing their ingredients. And food was finally on the table at the recent COP28 climate summit. The conference opened with a declaration on sustainable agriculture, signed by more than 130 countries, and ended with a final agreement that acknowledges for the first time that sustainable agriculture needs to be included in climate change solutions.”

Regenerative Products Sales Take Off
Now, the marketplace is responding. According to the Regenerative Organic Alliance Impact Report 2022 – 2023, sales of Regenerative Organic Certified (ROC®) products grew an average of 22% from EOY 2022 to EOY 2023, with sales totaling nearly $40 million in 2023. Companies including Dr. Bronner’s, Patagonia, Lundberg Family Farms, Manitoba Harvest, Bonterra and others are leading the certification efforts and serving as role models for other brands.

According to the Impact Report and based on SPINS data, revenue from sales of ROC® products in natural and multi-outlet grocers increased by one-third compared to the same period in the previous year. In addition, the number of ROC® SKUs in the market increased nearly forty-fold in 2023, “indicative of continued growth potential,” the report said. “By offering Regenerative Organic Certified products, brands are responding to the consumer desire to have their purchase make a positive impact at every level: environmentally, ethically, and socially,” the report concluded.

Globally, the market size for regenerative agriculture reached US$975.2 million in 2022, and is projected to be worth US$4.3 billion by 2032, poised to grow at a CAGR of 15.97% from 2023 to 2032, according to a June 2023 report from Precedence Research. North America generated more than 37% of the revenue share in 2022, Precedence Research reported.

While regenerative agriculture practices aren’t yet familiar to most Americans (just one in five consumers surveyed by Food Insight in 2022 said they’d heard of regenerative agriculture), 73% of consumers agreed they would be more likely to trust retailers and brands that implement regenerative agriculture programs, and 72% agreed that they would be more like to purchase from them, Supermarket Perimeter reported in October 2023.

Major retailers are taking notice. In December 2023, Whole Foods Market announced that it had implemented new standards to protect pollinator health. As such, the retailer will now require all fresh produce and floral suppliers to implement supply chain practices that help protect honeybees and other native pollinators.

Speaking to executives at Progressive Grocer’s Grocery Impact conference in November 2023, Whole Foods CEO Jason Buechle said, “Whole Foods Market invites you to help us start a ripple effect of change that will fix our broken food system. The decisions we make as a business — even the smallest ones — in how food is raised and grown today can have a profound and lasting impact on nourishing people and the planet for future generations to come. One of the biggest challenges our food system is facing now and will continue [to face] in the future is the climate crisis. If we continue farming in the large-scale, mechanized way that much of the industry currently does, our topsoil is not going to have the nutrient density it needs to grow the foods we know and love today,” Buechle said.

To address this challenge, Buechle reported that the retailer is working with farmers, ranchers, suppliers, scientists and other experts, as well as leading organizations, to leverage regenerative agriculture to evolve the practices used to grow, raise and produce the products that it sells. A focus on regenerative agriculture and responsible sourcing is an essential part of the retailer’s value proposition, which remains strong despite the mainstreaming of natural foods and the effects of inflation on consumer spending, according to Buechle.

Regenerative Food and Agriculture in 2024
In October 2023, Forbes reported that water stewardship will one of the biggest food trends in 2024. “As the tides of environmental consciousness continue to shape consumer choices, it is no wonder that water stewardship is set to become one of the top food trends for 2024,” wrote Senior Contributor Daphne Ewing-Chow.

“The global agri-food industry— valued at $6 trillion— is one of the most highly exposed to water risks, with water stress impacting many of the world’s largest food-exporting countries. Paradoxically, despite mounting perils to both food and water security stemming from water depletion, pollution, and climate-induced droughts, the food and agri-business sector is a chief contributor to the problem, accounting for a substantial 70% of all freshwater withdrawals,” she continued.

According to Ewing-Chow, “Regenerative agriculture plays a pivotal role in enhancing soil health, facilitating nutrient retention, bolstering natural resilience to environmental challenges, and mitigating erosion. This contributes to the conservation of water resources and the enhancement of ecosystem water quality, reducing the volume of water required for farming activities and decreasing harmful water and nutrient runoff from agricultural lands.”

Forbes also reported that in September 2023, SAI Platform, a network comprising 170 major food companies dedicated to sustainability, unveiled a global framework outlining the transition to regenerative agriculture for food businesses. A number of mainstream food brands such as Unilever, Nestlé, McDonald’s, Danone, and General Mills have already committed their support for regenerative agriculture, Forbes reported.

Greater technical innovation and research into regenerative agriculture will continue over the coming year, the Global Ag Tech Initiative predicted in its December 2023 report, 5 AgTech Trends to Watch in 2024. “Essentially mimicking natural process and biodiversity on agricultural land, the ultimate aim of regenerative agriculture is to improve soil health in order to boost yield. To address the challenges of climate change and feed a global population of over 8 billion, regenerative agriculture is vital. Digital tools use accurate, up-to-date data to create tailored regenerative agriculture solutions. These consider soil conditions, weather conditions, microclimates, and current crop growth or land use, as well as individual budgets and local regulations. Platforms offering site specific data will likely reign supreme in 2024. A view of sustainability that extends beyond simple carbon metrics and one-size-fits-all solutions is necessary and will enable the establishment of realistic, actionable objectives for growers, promoting sustainability and formulating strategies tailored to local environments,” the report said.

Beyond Food – Regenerative Fashion Threads the Needle
On the textile and fiber front, companies including fashion leader Mango will begin incorporating regeneratively grown cotton into its 2024 fashion collections, the Fashion Network reported in December 2023. The company has partnered with Materra, a British-Indian company specializing in regenerative cotton cultivation, and said it will be able to ensure complete traceability across the value chain of its cotton, from seed to final garment.

“As a global fashion company, our intent is clear: to contribute to creating a fairer society and reduce the fashion industry’s impact on the environment. This is why we ally ourselves with key partners like Materra, which will help us accelerate our path to ensuring that 100% of the fibers we use are sustainable by 2030,” said Andrés Fernández, Mango’s director of sustainability and sourcing.

Other fashion brands driving regenerative agriculture initiatives include J.Crew, Prana, Terra Thread and other textile and fiber companies that are members of the Regenerative Organic Alliance. “Big fashion brands and independent labels are embracing regenerative agriculture as a win-win solution that could allow them to source climate-positive materials. The challenge is that the concept doesn’t have a singular definition, and without clear standards it risks becoming a tool for greenwashing,” Business of Fashion reported in August 2023.

California Could Define Regenerative
Speaking of a definition, beginning in January 2024, the California Department of Food and Agriculture (CDFA), in collaboration with the State Board of Food and Agriculture, will host a series of public listening sessions to receive comments to help define “regenerative agriculture.”

“As interest in ‘regenerative agriculture’ continues to grow, we are seeing the introduction and evolution of the term in California policies and programs,” CDFA said. “Incorporating a definition of regenerative agriculture for state policies and programs provides a science-based criterion for the designation or recognition of the term ‘regenerative’ in agriculture-related policies of the state. By defining ‘regenerative agriculture’ and its associated practices, we are working to formalize holistic methods of farming that are designed to protect, sustain and enhance natural resources on our farms and farming communities throughout California,” the agency said.

Max Goldberg, Editor and Publisher of Organic Insider, commented, “If California codifies or legally defines ‘regenerative agriculture’ … it will certainly raise the profile of this term among consumers and farmers may end up paying more attention to the way they manage their soil, which is a real positive. However, both the opportunity for greenwashing and the consequences for organic could be severe,” he cautioned.

“At its core, the regenerative agriculture controversy stems from the question of whether a farming practice can be truly ‘regenerative’ if super-toxic chemicals, such as glyphosate or dicamba, are applied to the crops. There is no question that the regenerative movement has brought incredible attention to soil health … and that it has led to very important steps forward in farming practices around the world. But with all of the positive developments, ‘regenerative’ is ripe for abuse and greenwashing, and the multinational chemical companies, who have no intention of minimizing the importance of GMO seeds and synthetic pesticides, are eagerly embracing the term,” Goldberg added.

Elizabeth Whitlow, Executive Director of the Regenerative Organic Alliance, which manages the Regenerative Organic Certified program, told Organic Insider that she believes that California needs to act with real caution. “There are many groups and farmers advocating for ‘regenerative agriculture’ that are doing some excellent and extremely vital work. My concern, however, is that if the state defines ‘regenerative agriculture’ and it excludes organic, it could have the unintended effect of actually doing a lot more harm than good. Bad actors greenwashing the term is a real threat, and all stakeholders in California’s organic industry need to be fully engaged and on board with how the state is going to define ‘regenerative agriculture.’ The stakes are very high, for both California and our entire country, and this process cannot be rushed,” she said.

Woody Harrelson’s Regenerative Reason for Hope
Three-time Oscar nominated actor and environmental activist Woody Harrelson, in a December 2023 Op-Ed in The Wrap, expressed that, after serving as a co-narrator on the film Common Ground, he is “no longer hopeless for the future.”

Harrelson writes:

We stand at a crossroads, facing two paths. One leads to climate chaos, food shortages, deserts expanding and a biodiversity crash. The other involves rethinking our relationship with nature by choosing regenerative agriculture. The regenerative path can give us abundant, nutritious food, thriving ecosystems and a future for generations to come.

I had a surreal moment when I met King Charles and he said he loved “Kiss the Ground” so much he personally sent it to 1,000 people. I hope the same is true of “Common Ground” – I hope thousands of people send the new documentary to thousands of their friends.

I’ve never been a big believer in the political process in this country, but I believe in people. Congress is currently debating something called the Farm Bill. There are a lot of good people in America, who deserve to eat clean food, and it would be refreshing to see Washington prioritize communities over commodities.

I’m no longer hopeless. I’m actually inspired. In fact, I’m committed to using my voice and activism to make the regenerative agriculture movement spread far and wide.

We don’t just need to support soil in the Farm Bill — we need to make the effort in every way we can, from turning our lawns into food gardens and our food waste into compost, to buying food from local regenerative farmers and ranchers. We all eat and we can all support the people who are doing the hard work to feed the world with healthy regenerative food. We can vote with our dollars.

One thing is for certain, it’s time for a change. Soil is our common ground. 

Let’s make regenerative agriculture our priority. 

Learn More
Growing Life: Regenerating Farming and Ranching, by André Leu, December 2021

Food Climate and Nature FAQs, The Nature Conservancy, Sept. 1, 2023

Regeneration International, a global nonprofit organization and educational resource

44th Annual EcoFarm Conference, Pacific Grove, California, Jan. 17-20, 2024

Regenerative Business Live, United Nations, New York, NY, May 7, 2024

Steven Hoffman is Managing Director of Compass Natural, providing public relations, brand marketing, social media, and strategic business development services to natural, organic, sustainable and hemp/CBD products businesses. Compass Natural serves in PR and programming for NoCo Hemp Expo and Southern Hemp Expo, and Hoffman serves as Editor of the weekly Let’s Talk Hemp Newsletter, published by We are for Better Alternatives. Contact steve@compassnaturalmarketing.com.

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Maine Congresswoman Chellie Pingree Introduces Hemp Advancement Act of 2022 to “Unburden the Hemp Industry”

This article originally appeared on LetsTalkHemp.com

By Steven Hoffman

U.S. Representative Chellie Pingree (D-Maine) on February 8 introduced the Hemp Advancement Act of 2022 to improve the 2018 Farm Bill’s hemp provisions and provide greater clarity and flexibility to hemp growers and processors. While hemp production was federally legalized by the 2018 Farm Bill, red tape and regulatory uncertainty has hindered industry growth, the Congresswoman said in a statement. 

“The 2018 Farm Bill laid a legal pathway for hemp production but created overly complicated regulations and hardship for farmers and small businesses in the process. I am introducing the Hemp Advancement Act of 2022 to eliminate unworkable testing requirements, set reasonable THC thresholds for producers and processors while protecting consumers, and end the discriminatory policy that bans people with drug convictions from growing legal hemp,” said Rep. Pingree.

“My bill takes a commonsense, straightforward approach to correct these unintended implementation problems and works to make the hemp industry more profitable and more equitable. My bill also provides a clear path forward for this industry and will support a thriving hemp economy,” she added.

Congresswoman Pingree released a short YouTube video clip about the Hemp Advancement Act here.

According to Rep. Pingree’s office, the Hemp Advancement Act of 2022 would:

  • Raise the allowable THC threshold for hemp and in-process hemp extract to make the rules more workable for growers and processors while ensuring that final hemp products sold to consumers aren’t intoxicating

  • Remove the requirement that hemp testing occur in DEA-registered laboratories, which is a particular challenge in Maine where there currently aren’t any of these facilities

  • End the 10-year ban on people with drug-related felony convictions receiving a hemp license, which disproportionately excludes communities of color from participating in this emerging market

“We are deeply grateful to Congresswoman Chellie Pingree for her strong leadership in spearheading this legislation on behalf of hemp growers, processors, and consumers nationwide. The U.S. Hemp Roundtable is proud to have led a broad-based industry effort to propose the policies that underlie this legislation and to have worked closely with Rep. Pingree’s excellent staff throughout the drafting process to ensure our concerns were taken into consideration. Rep. Pingree’s vision and tenacity will make a significant and meaningful difference for our emerging industry,” U.S. Hemp Roundtable said in a statement.

According to Rep. Pingree’s office, the Congresswoman has long supported the nation’s hemp farmers and hemp-derived CBD businesses, which have been at the mercy of unclear federal regulations. In February 2021, Rep. Pingree joined 18 members of Congress in reintroducing the bipartisan Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act, legislation to provide a regulatory pathway for the legal sale of hemp-derived cannabidiol (CBD), as dietary supplements.

In September 2019, Rep. Pingree led a bipartisan effort urging the U.S. Food and Drug Administration (FDA) to establish a regulatory pathway for food products containing hemp-derived CBD. She also voted to pass the MORE Act in December 2020, which would decriminalize marijuana and remove federal obstacles for Maine’s burgeoning legal marijuana industry.

The Hemp Advancement Act of 2022 is supported by the American Herbal Products Association, Americans for Safe Access, Association of Western Hemp Professionals, Friends of Hemp, Hemp Alliance of Tennessee, Hemp Industries Association, iHemp Michigan, Realm of Caring Foundation, Inc., U.S. Hemp Authority, U.S. Hemp Building Association, U.S. Hemp Roundtable, Veterinary Cannabis Society, Virginia Hemp Coalition and the Wisconsin Hemp Alliance.

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Hemp Futures: Trends to Watch in 2020

Photo Montage: Compass Natural Hemp Salve Photo: Pixabay Hemp House Photo: Wikimedia Commons

Photo Montage: Compass Natural
Hemp Salve Photo: Pixabay
Hemp House Photo: Wikimedia Commons

Originally Appeared in Let’s Talk Hemp Newsletter, December 2019
By Steven Hoffman

In the year since hemp became legal in the U.S. under the 2018 Farm Bill, the hemp industry has quite literally taken off. Retail sales of CBD products in the U.S. alone are expected to surpass $1 billion in 2019, a 133% increase over 2018 sales, and Hemp Industry Daily projects retail CBD sales will increase to $10.3 billion by 2024, representing a five-year compound annual growth rate of 54%. Indeed, “2019 will forever be remembered as the year that launched America’s CBD craze,” observed Patrick McCarthy, CEO of ValidCare, a market intelligence and research platform for the hemp products industry.

While legalization has spawned a burgeoning industry, challenges for hemp operators proliferated in 2019. Retailers, vendors and other entrepreneurial businesses had difficulty finding banking and credit card companies that would work with them. FDA in November issued a consumer advisory questioning the safety of CBD along with warning letters to 15 companies, setting off late-year uncertainty among businesses that sell CBD in food, beverages and dietary supplements. For farmers, USDA’s interim hemp regulations, published in October, have generated controversy around proposed testing procedures and potential for farmers to bear an undue burden of costs if crops need to be destroyed.

They say hindsight is 2020. If so, what better year for the hemp industry to remain proactive on all fronts. On the wish list for a new decade is the opportunity to co-create an industry built on authenticity, transparency, entrepreneurship, innovation, diversity, equal opportunity and cooperation, as well as one committed to promoting local economies, social responsibility and environmental stewardship.

Here’s a sampler of some of the hemp industry’s top issues, predictions and business opportunities to consider as we enter 2020 and a new decade.

Product Safety, Transparency and Reliability
“Today’s consumer cares about where the products they put in, and on, their bodies come from. This trend will hit the hemp industry next, as consumers demand information on plant origin, farming practices, product composition and sustainability,” says Patrick McCarthy of ValidCare. In addition, “broad categorical approval of CBD by the FDA won’t move forward until [industry] leaders band together to provide the safety data FDA is requesting. Until this happens, expect more FDA and FTC letters and class actions to chip away at consumer confidence and add risk and cost to branded operations,” he cautions in his new report, Ten Predictions for the Hemp-Derived CBD Industry in 2020. McCarthy also advises that as consumer sophistication grows in 2020, “they will demand easy and reliable ways to measure amounts when consuming or applying CBD and other cannabinoids. This will be driven by consumers and regulators alike, requiring ‘metered’ calibration of applicators like droppers or pumps, and standardization of serving sizes for consumables. Milligrams matter,” he adds.

Ditching the Pharmaceuticals
As consumers adopt CBD products, they are increasingly ditching the pharmaceuticals used for anxiety, depression and other mental health and physical issues. “Today, one in five Americans report they use hemp-derived CBD for “mental health reasons” such as anxiety, says McCarthy. “In 2020, we’ll see even more people ditch Prozac prescriptions for non-impairing hemp-derived CBD to support their mental health goals. Expect brands targeting this audience to commission research on hemp-derived CBD’s functional benefits for mental health.” In addition, McCarthy notes that the “AARP crowd is one of the largest demographics using hemp-derived CBD for chronic joint pain and sleep. Expect this trend to increase as Boomers seek to replace prescription and OTC pharmaceuticals with hemp-derived products – and to lobby for coverage and/or reimbursement through FSAs, HSAs and supplemental Medicare policies,” he predicts.

Certification
Discerning consumers seeking CBD supplements produced without the use of toxic, synthetic pesticides, or synthetic nitrogen fertilizer, much of which is derived from fracking, will be looking for the USDA Certified Organic seal on products. Also, in March 2019, the U.S. Hemp Authority announced 13 companies had achieved the U.S. Hemp Authority Certified Seal, established to elevate consumer confidence in product quality and safety. Expect more demand for Kosher certification and other certification programs in the future.

Using the Whole Plant
The coming decade will see the focus move beyond CBD to the whole hemp plant, many experts predict. “I think a lot of…farmers are going to realize that the cannabis plant is not a CBD plant, Marysia Morawska, Horticulture Educator at the University of Nevada, Las Vegas, predicts in Hemp Industry Daily. “What we’re going to see is a movement toward a trifecta or even quad-usage plant – so, something that’s utilized for the hurd, for the fiber, for the flower, for the grain. And once we realize what those genetics are, we’ll end up realizing that each region specifically has growing styles that will be differentiated by the genetics of that region. And we will move into a place where processing will include not just CBD.”

Tribal Hemp
South Dakota Governor Kristi Noem may be no big fan of hemp, but Native American tribes in the state and throughout the country are embracing hemp. In South Dakota, the Flandreau Santee Sioux Tribe and Oglala Sioux Tribe have filed applications with the USDA to grow hemp, and the Rosebud Sioux Tribe plans to hold a vote on hemp before applying, reports U.S. News & World Report. Muriel YoungBear, a member of the Meskwaki Nation in Tama, Iowa, and a University of Kansas graduate student studying business, has been networking with industry leaders, visiting Colorado growing operations and working within tribal economic development circles to become an educational resource for native nations in producing hemp and added value hemp products. Oglala Lakota tribal elder Alex White Plume has become a leading hemp producer and an inspiration to others. Meanwhile, Winona LaDuke, a Water Protector, former candidate for Vice President of the United States, and founder of the Anishinaabe Agriculture Institute, is leading a hemp fiber renaissance in northern Minnesota, advocating for developing hemp textile mills and helping to drive economic opportunities in hemp production for Native Americans throughout the U.S.

Infrastructure Needed
Licensed hemp acreage quadrupled in 2019, but the industry’s infrastructure wasn’t equipped to handle rapid growth. “While there is certainly expansive demand for hemp and hemp-derived products, there is a critical lack of processors capable of keeping up with such, due primarily to a lack both of hemp processing equipment or a mature supply chain,” writes Chris Hudock in New Frontier Data. “In the coming year, the introduction of new processors and established markets will remain vital to the pace and overall health of the industry” he says.

FDA Guidance Could Take Time
With growing popularity and marketing hype surrounding CBD products, federal regulators are challenged to conduct research and establish policy, and this could take not months but years. Questions of health and public safety abound, especially as less scrupulous manufacturers and marketers make unsubstantiated health claims about the effectiveness of CBD products. Add to that the mysterious vaping crisis in 2019. “You can’t go from zero to one hundred without the government needing to feel like it’s doing its job. There are checkboxes that bureaucrats and agencies need to see, and by statutory mandate, it’s the FDA’s core job to protect consumers,” says Bob Hoban, President and Founder of the Hoban Law Group. However, with regard to FDA’s warning letters, “Stop making claims,” Hoban urges marketers of CBD products. “The FDA’s perspective in [its] consumer update assumes there are no studies. This is inaccurate. And the legality of hemp derivatives is clear. If the FDA has studies that challenge the World Health Organization’s, and indicate toxicity, those should be released immediately. But every time the FDA says the words hemp or CBD the industry shakes and the media runs wild. Unless the FDA has some steak, all this sizzle is just adding to the noise. Do we really need more of that?” he asks.

Consolidation on the Horizon
With Canadian companies acquiring U.S. hemp food, beverage and CBD businesses, along with competitor consolidation, as witnessed by the 2019 merger of RE: Botanicals and Palmetto Harmony, expect more mergers, acquisitions and consolidation as businesses and investors seek to gain efficiencies and improve the top and bottom line in a young, but highly competitive market.

Continued Growth, But Better Planning Required
“The hemp industry will surely experience explosive growth in 2020 as the USDA and FDA begin to release rules, take comments and eventually implement said regulations,” predicts Ray Mazzie, Director of Hemp Industries Association Florida, in Hemp Industry Daily. “Compliance and learning from others’ mistakes will prove to be invaluable to 2020 hemp operators, regardless of where they sit in the supply chain,” he advises. Adds Mark Case, Founder and CEO of Knoxville, TN-based International Hemp Auction and Market, “2018 was a gamble but a good year for most. 2019 was a gamble but a thin year for most. 2020 is not a year for gamblers. Rather, it will be successful only for those who are wise and prudent, fully integrated and who work with a good business plan to go the long haul.”

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Hemp Market Takes Off at Expo West

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For Presence Marketing Newsletter, April 2019
By Steven Hoffman

Anyone attending Natural Products Expo West, the world’s largest natural products trade show, held this past March, couldn’t help but notice that 2019 has emerged as “The Year of Hemp” in the natural and organic products market.

Indeed, the legalization of industrial hemp under the 2018 Farm Bill has been a boon for independent natural foods retailers, said Loren Israelsen, president of the United Natural Products Alliance. “For smaller stores, this category has been a lifeline for them as they battle to maintain foot traffic in the stores as online sales continue to grow.”  

Larger stores, too, are eyeing the hemp market: Boulder-based Lucky’s Market has taken the lead in hemp and CBD product sales in its stores nationwide, with full shelf sets in the natural living department. Ohio-based Mustard Seed Market’s supplement sales are being driven by its commitment to CBD products, says Nutrition Director Abraham Nabors. Whole Foods Market’s trend spotters identified hemp as a “top 10 food trend for 2019,” and recently, Whole Foods CEO John Mackey indicated the possibility of Whole Foods selling cannabis products should they become legal in the future.

According to Hemp Business Journal’s new report, The Global State of Hemp: 2019 Industry Outlook, U.S. sales of hemp products – from full-spectrum hemp extract and CBD products to hemp foods, textiles, building materials, bioplastics and more – estimated at $1 billion in 2018, are projected to grow 27% annually to reach $2.6 billion by 2022. Global hemp retail sales totaled $3.7 billion in 2018 and are projected to grow to $5.7 billion by 2020.

The passage of the Agriculture Improvement Act of 2018, commonly known as the Farm Bill, in late December was nothing less than historic, legalizing for the first time in more than 80 years the commercial cultivation and sale of industrial hemp. “Most importantly, noted journalist Chris Chafin in Rolling Stone, “it removes hemp and any hemp derivative from the Controlled Substances Act, legally separating it from marijuana and putting its supervision under the Department of Agriculture. In the most basic sense, these plants serve three primary uses: fiber (paper and cloth), seeds (for hemp oil and food), and cannabinoid oils. It’s this last category that’s the most profitable and has the biggest potential for growth. The [Farm Bill] defines hemp as any part or derivative of cannabis with a THC level below 0.3 percent on a dry-weight basis,” Chafin reported.

Hemp Steals the Show at Expo West
Interest in the category was so strong at 2019 Natural Products Expo West that a full-day Hemp & CBD Summit held at the show spilled out beyond a 500-person ballroom into two other rooms where a similar-sized audience watched by live video feed. Also, during a panel discussion hosted by Presence Marketing and NCG at Expo West for over 150 retailers, CBD and hemp supply chain (e.g., ensuring that the full spectrum hemp extract products you carry are sourced from certified organic producers, etc.) dominated the discussion.

Full spectrum hemp and CBD products from new and national brands alike were introduced everywhere at the trade show: carob snacks with hemp extract from Missy J’s; CBD sparkling water from Weller; hemp-infused honey from Colorado Hemp Honey; CBD wellness shooters introduced by Navitas; organic full-spectrum hemp extract from Gaia Herbs, Charlotte’s Web, CV Sciences and others; hemp supplements by Leaf Therapeutics, a new brand launched by legacy brand Solaray; hemp gummies and caramels from Boulder-based Restorative Botanicals; CBD sports nutrition, hemp balms, hemp infused body care products and more. Honestly, what didn’t have CBD hemp extract at Expo West?

And that’s not to mention hemp foods derived from hemp seed – high in plant-based protein and omega-3 essential fatty acids, but with no CBD or cannabinoid compounds. Sold for over 20 years in natural foods stores, hemp seed-derived products are now widely regarded as superfoods. Brands such as Tempt, Manitoba Harvest, Evo Hemp and others presented new hemp food offerings at Expo West, capitalizing on heightened interest in all things hemp.

CBD or Hemp Extract?
The FDA may yet come out against use of the term “CBD.” While the agency is expected to review CBD and hemp extracts in food and supplements in the near future, according to outgoing FDA Commissioner Scott Gottlieb, CBD isolate was approved as a drug by the agency after granting license for Epidiolex, the first pharmaceutical derived from cannabidiol (CBD), manufactured by the company GW Pharmaceuticals. The commissioner had recently spoken of a “pathway” to acceptance of hemp CBD as a dietary ingredient. However, with Gottlieb announcing his resignation in early March, many in the natural products industry are uncertain whether progress on FDA regulatory policy regarding hemp and CBD will be made.

However, judging from exhibit after exhibit on the trade show floor, you wouldn’t know the regulatory waters around the use of the term “CBD” are murky. For many exhibitors at Expo West, “CBD” was the go-to phrase on product packaging, literature and exhibit signage, while others more conservatively stuck to the phrase “full-spectrum hemp extract.” 

Despite FDA’s lack of a decision to date in this regard, manufacturers, retailers and consumers alike are responding positively to the use of CBD on the product label, and are not waiting for FDA to decide. This could be an issue down the road for many manufacturers, should the FDA decide to crack down on use of CBD on labels. The key, advised a number of speakers at the show, is avoid the use of CBD isolate in products and stick with full-spectrum hemp extract to avoid unwanted attention from the FDA. 

While "it’s still unclear how different federal agencies will interpret the new [Farm Bill] rules...it doesn’t matter — people in the CBD industry are calling the new legislation a game changer," observed Chafin in Rolling Stone.

Transparency and Testing Are Crucial
A major theme at Expo West’s Hemp & CBD Summit focused on manufacturers operating with safety and integrity, noted CBD Insider in a March 9, 2019, report. “To preserve integrity, businesses must always test their products, especially in these six areas: cannabinoid potency, residual solvents, heavy metals, pesticides, microbes, and terpenes. After this testing is complete and the products are verifiably ready for consumption, companies should be transparent with their testing and provide documentation of third-party lab results. Companies — and consumers — must do their homework and ask questions. If a laboratory, farmer, brand, or any other entity in the supply chain is not willing to be transparent, it’s a sign that you should do business elsewhere. Many of the speakers discussed how they personally vet businesses before working with them, such as requiring documentation or personally visiting the company’s facility,” reported CBD Insider.

In addition, and importantly, retailers and consumers should seek out hemp products that are grown in accordance with certified organic and preferably climate friendly regenerative practices, emphasized John Roulac, founder of Nutiva and RE: Botanicals, a new hemp “apothecary,” which debuted at Expo West. Beware of low-cost hemp extract products that may have been produced with industrial agriculture practices including toxic, synthetic pesticides and synthetic nitrogen fertilizers derived from natural gas and fracking – contributors to global warming – and extracted with toxic organic solvents, he cautioned.

U.S. Hemp Acreage – 80,000 Acres and Growing
Although hemp is now legal across the U.S., the message seems to be getting out slowly, and state and local authorities are still seizing hemp crops and truckers are being arrested for crossing state lines with container loads of harvested industrial hemp for processing, tying up individuals in jail and leaving valuable inventory in limbo.

Currently, nine states – Idaho, Louisiana, Mississippi, Georgia, Ohio, South Dakota, Iowa, Texas, and Connecticut – still prohibit hemp production under any circumstances. And four states – Idaho, South Dakota, Nebraska, and Kansas – still prohibit hemp-derived CBD. “For now, transporting hemp across these state lines may still be as dangerous as it’s ever been,” reported science writer Leo Bear-McGuiness in Analytical Cannabis.  

Yet, “damn the torpedoes,” U.S. farmers are saying, as they respond to soaring demand by dedicating farmland to hemp cultivation, seeing it as a potential cash crop and an alternative to growing GMO corn, soy, tobacco and other commodity crops. 

According to hemp advocacy group Vote Hemp, the U.S. hemp crop tripled in 2018 to 78,176 acres, up from 25,713 acres in hemp cultivation in 2017. That figure is expected to grow now that the Farm Bill has opened the door nationwide to hemp production, says Vote Hemp. Montana emerged as the top hemp growing state in 2018, followed by Colorado, Oregon, Kentucky, Tennessee, North Carolina and North Dakota, respectively, according to Vote Hemp.

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