The hemp and CBD industry in Hawaiʻi finds itself at a crossroads, facing a mix of opportunity and significant regulatory hurdles. Governor Josh Green’s approval of new CBD regulations has reignited a longstanding debate over the future of hemp cultivation and processing in the state. While touted as measures to protect community health, these regulations have been widely criticized by local farmers and CBD processors for their restrictive nature, which threatens the industry’s economic viability.
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Key Regulatory Changes and Industry Concerns:
Ultra-Low THC Limits:
The Department of Health (DOH) has imposed THC thresholds for CBD products far below federal limits (0.3%), with new levels like 0.00028% for beverages.
These restrictions essentially eliminate the possibility of producing "full-spectrum" CBD products, which depend on trace THC levels to maximize therapeutic benefits.
Economic Impact:
Local hemp farmers, like Clarence and Gail Baber of Hawaiʻi Royal Hemp Co., argue that these rules will devastate their operations, which rely on higher-margin CBD tinctures to sustain overall farm productivity.
Many small farmers and processors are already exiting the market, citing prohibitive costs and regulatory uncertainty.
Competitive Disadvantage:
Mainland CBD products with looser restrictions can still enter Hawaiʻi’s market through online sales, creating an unfair playing field for local producers.
Hawaiʻi’s high production costs exacerbate the issue, making it nearly impossible for local businesses to compete.
Enforcement and Oversight:
The DOH admits to lacking the authority to impose age restrictions on CBD products, which further complicates its ability to balance public health concerns with industry growth.
Proposed Compromises:
Industry leaders advocate for aligning state regulations with federal THC thresholds, raising allowable THC in edibles and beverages, and implementing an age restriction for CBD sales.
These measures, they argue, would maintain public safety while allowing Hawaiʻi's hemp sector to thrive.
Broader Implications for Hawaiʻi’s Agricultural Landscape:
Lost Potential:
Hemp has long been promoted as a versatile crop with over 50,000 potential uses, from food and textiles to renewable energy sources.
The current regulatory environment risks sidelining Hawaiʻi from the burgeoning global hemp market.
Sustainability Goals at Risk:
As part of broader efforts to decrease dependency on imports, hemp offers opportunities for local food security and sustainable agricultural practices. The decline of hemp farming could hamper these goals.
Legislative Outlook:
State lawmakers, including Senator Tim Richards, recognize the need for a balanced approach. The upcoming legislative session will see proposals addressing the DOH’s regulations and broader industry priorities. Key areas of focus include:
Revisiting THC limits to align with federal standards.
Supporting infrastructure development to reduce processing costs.
Establishing clear, stable rules to attract investment and rebuild trust in the sector.
The Path Forward:
For the industry to recover and thrive, a compromise between public health concerns and economic realities is essential. Stakeholders agree that achieving regulatory consistency and providing support for local producers will be critical to ensuring the survival of Hawaiʻi’s hemp and CBD industry. Without swift action, the state risks losing a promising agricultural sector altogether
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