2020 Report
Report for 2020
As we welcome in the new year, predictions for what the following year arise. As the confusion of regulation and legalization of CBD and hemp in 2019 begins to settle, the industry is predicted to see clearer regulation standards from the USDA and FDA in 2020. The new regulations, following the 2018 Farm Bill, will clarify testing requirements, allow access to insurance and banking for farmers, and clarify the restrictions for hemp and CBD. Although these regulations have potential to push the industry in a more accepted direction, it draws potential to create confusion for smaller businesses. The approaching regulations, arising after massive product losses of 2019, are foreseen to increase the standard cost of product and hemp while driving the cost lower for cheap hemp in the illicit markets. The legal cannabis market is predicted to grow to $30 billion by 2025 as state markets take over demand from illicit markets. As a public acceptance grows to two-of-three people voting for the pass of legalization, states such as New Jersey and Florida are predicted to pass the legalization of adult-use in November 2020. Arizona, Connecticut, Minnesota, Missouri, Nebraska, New Mexico, North Dakota, and Oklahoma still sit on the fence for legalization, Arizona is predicted to accept legalization of medical cannabis throughout the state.
However, the medical qualifiers are adjusting to accept chronic pain and PTSD as new uses for prescription marijuana. Major collaborations of science, location, products and ingredients are predicted to push the market into new technologies and formulated products. New products, with higher cannabinoid content is foreseen to enter the market in 2020 as the investigation into genetics and harvesting technologies become pertinent in order to adhere to the USDA final rules. Driving the industry towards the utilization of whole-plant usage and expanding to domestically produced bioplastics and hemp fabrics. As new technologies arise in 2020, universities are predicted to be a key driving for researching cannabinoids and various hemp strains for medical uses. Following the 2019 scare of lung injuries from vape products, the traceability of products from farm to shelf is predicted to become a key player for the sale of new products and old products begin to see liability claims.
https://www.insurancejournal.com/news/national/2020/01/02/553432.htm