As the United States passes the one year anniversary of the Covid-19 shutdown, several key industries have irreparably changed. Let’s take a look at how Covid-19 has impacted and affected the young and growing hemp industry. 

Pre-Covid

At the end of 2018, nearly a year before the pandemic, the hemp industry only existed in states that had legalized hemp usage. But President Trump soon signed the Farm Bill into effect. Crafted by the USDA, the Farm Bill federally legalized hemp across the country. As long as a product contained less than 0.3 percent of Delta 9 THC in it, then it could be sold and consumed by the general public.

Shortly after the Farm Bill was signed into law, many states also adopted the same definition of hemp. So, at the beginning of 2019, many growers and producers started applying for their appropriate licenses and setting up their businesses for what many called the next big industry. 

Established CBD companies also began making Delta 8 THC, a close relative to Delta 9, the main psychoactive cannabinoid in marijuana. Delta 8 is considered legal under the Farm Bill. 

During Lockdown

The WHO declared Covid 19 a global pandemic on March 11, 2020. This happened right before the first year of planting for farmers around the country. When the shutdown occurred, acreage plummeted, as these farmers couldn’t plant their crops due to the stay-at-home orders. Producers saw manufacturing equipment delayed because of factory shutdowns. Those that did have proper equipment weren’t able to sell their products because all non-essential businesses needed to remain closed. 

For states that offered marijuana sales, those retailers became “essential” in some states. Unfortunately, the same could not be said for hemp growers and producers. They remained closed. 

A market that was once saturated with companies selling CBD and Delta 8 had to create an entirely new way of selling. The industry had been fighting to get into retail stores like drug stores and gas stations. Now, with those places closed, hemp companies scrambled to create a viable online business so revenue could continue. 

Roughly half of the brands on the market in 2020 didn’t make it to the end of the year. Investors called this an “extinction event” in the hemp industry, something that hadn’t been seen since the early 20th century with the Great Depression. 

Lockdown Benefits

However, many companies inadvertently benefitted from the lockdown. The lockdown became a reset button. Companies were able to dive deep into their practices and products to figure out what worked best and what didn’t. Some product lines were stopped because there really wasn’t a demand for them. Others refined the products they had to create best practices for production, handling, and shipping. This lockdown period became a chance to breathe, assess the situation, and make things better than before. 

Future

While almost half of the CBD companies in the industry didn’t make it to the end of 2020, others flourished. With the added Delta 8 THC products and an increase in demand as people stay home, the hemp industry continues to grow. 

Many companies have said they are coming out of the pandemic stronger than before. They can’t wait to see what the future holds for them now that they have their practices in place and their products refined. 

We can only speculate on where the hemp industry will go. But the trend is on the climb and it doesn’t seem to be slowing down any time soon.

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