Marijuana Business Magazine September 2019

But I’m afraid we could be creating the same shortsighted business hurdles that alcohol companies face. In New York state, for example, a group of hemp producers persuaded lawmakers to allow CBD-infused beverages—as long as the CBD comes from within the state. (At this writing, the bill was not yet signed into law, and at least one industry group was working to change the requirement for in-state production.) A Better Way I understand the desire to protect local farmers. Congress certainly had small producers in mind when it allowed the return of hemp cultivation, and no one wants to see deep-pocketed interests take hemp opportunities away from small entrepreneurs looking to sell CBD and other products. But I don’t think legal protectionism is the way to go. First, it won’t last forever. Tennessee’s liquor law may have lasted eight decades, but ultimately it didn’t survive. Second, hemp entrepreneurs are more than capable of competing on a national scale without the aid of antibusiness protectionism. There will be industry consolidation, sure, but that could be a good thing for small producers who’d rather grow hemp and leave it to someone else to market and sell. Finally, and most important, the hemp industry could see significant harm from well-intentioned hemp protectionism. Hemp farmers might see short-term gains if their states limit hemp imports from other states. But what happens after other states follow suit, and hemp entrepreneurs have a hard time selling their goods in other states? So, the Tennessee liquor dispute could be a solid lesson for hemp. Let’s plan now for a true national cannabis industry and avoid the headaches the alcohol industry has endured for decades. Kristen Nichols is the editor of Hemp Industry Daily. You can reach her at kristenn@hempindustrydaily.com .