CBD oil is extract from the hemp and cannabis plant. There is another primary content that is deriver from these plants is THC. CBD oil is popular for use because it does not have brain effects that are present in marijuana. CBD oil instead has the reputation of being showing positive outcomes on health and provides effective pain management and also helpful in treating various diseases.
Since CBD is legalize in the US, the market of cannabis and hemp products increased in the country. In Florida, the number of medical dispensaries for cannabis has increased from 24 to 200 from the period of 2017 to 2019 and still rising. The cannabis user number rose to 400% since 2017. So the cannabis business market is exploding, and it seems that shortly it will not change its direction.
In this article, we will talk about information necessary to start a CBD business in Florida, keeping in view of the CBD laws.
Looking on the Cannabis Sales Statistics of Florida
In Florida, the sales of CBD were above $10 million in the year 2017, and by 2018, it was topped above $270 million. By the end of 2019, it was $488 million, and currently, Florida has a target to reach the sales by 2025 to $2.4 billion a year. By looking at these sales, you want to jump into the sea of the cannabis industry by starting a CBD business in Florida of your own to become part of the US fastest-growing market.
CBD Regulations of Florida
Hemp was legalized in the year 2018 bypassing Federal Farm Bill nationwide. In 2014, SB 1030 bill was approved in Florida that legalized CBD with low THC content for medical use for registered patients. In 2016 amendment 2 was introduced to this bill that expands the medical marijuana program but does not allow CBD in smoke-able forms. Then more specific CBD laws were introduced for the state of Florida with the passing of bill SB 1020 in the year 2019, which is the one regulating the legislation of CBD oil in Florida, the key features of this bill include
- SB 1020 made hemp legal, keeping with the 2018 Farm Bill
- The legal content of THC in CBD products are less 0.3%
- Products extracted from the hemp plant are legalized and are not under control substance for the ingestion use
- SB 1020 made legal hemp-derived cannabinoids and did not include them in the control substance list.
If you are planning for growing or processing the hemp plant, then you must fulfill the requirements of state license. All the CBD derived hemp products should be tested in a licensed lab and certify that the product contains no more than 0.3% of THC.
What You are Going To Sell
Before jumping into the Cannabis market, you need to have a plan of what products are beneficial for your business. CBD oil can be obtained from both cannabis and hemp plant. So you can cut off the cost by cultivating plants by yourself or dealing with an agreement to an already CBD harvesting farmer. You need to think about the CBD products as which consumer want and is selling in the market. The types of CBD products are
The hemp and cannabis industry has grown to a very vast level. There are so many products that it is easy to get lost in the CBD sea; for this, you need a plan. Choosing a specific area for the CBD business is easy to start the branding or a company image.
Understanding the Legal Requirements
Even though the federal government has legalized the CBD products derived from the hemp plant through the Farm Bill 2018, but still this Cannabis industry is facing restrictions. The safest bet to start a CBD business in Florida is first to research the state rules and pay attention to the requirements.
The legal loops you will find on your way are many, which you need to understand. CBD is currently not in the control drug list as it is not under the supervision of the FDA and Drug Enforcement Agency. Suppose you are planning for selling food products containing CBD then you must have approval from the FDA. Apart from this, you will need licenses and permit from the state and local permits.
There are three steps to get licenses
- You need to get a license for growing CBD or hemp plant
- Then you need a license for the processing of cannabis
- And then you need a license for legally selling the CBD products
It is necessary to get information about the legal requirement of the cannabis industry for starting a business in Florida. As this industry is facing heavy regulation and criticism that’s why the pioneers of the cannabis business must set examples for the others to follow.