As regulatory scrutiny intensifies around Delta-8 THC, industry experts are raising concerns about its impact on both the cannabis and hemp markets. Beau Whitney , founder and chief economist at Whitney Economics , who will speak at the upcoming Benzinga Cannabis Capital Conference in Chicago, sheds light on how these tightening regulations could stifle market growth and economic potential.
"The tightening of hemp-derived regulations is appropriate in some areas, like age verification, labeling, and testing," Whitney acknowledged. However, he warns that further restrictions could have far-reaching negative consequences.
"Further tightening in other areas is having a long-term suppressive effect on the overall marijuana growth trajectory. So legislators and regulators are ultimately hurting the future growth of the marijuana market through their actions." Economic Consequences for Hemp and Cannabis Markets
Whitney also emphasized the broader economic ramifications of these regulatory shifts, particularly in states like New Jersey , imposing stricter rules on Delta-8 THC and related compounds. The tightening of these regulations is creating significant uncertainty in the market, which, in turn, is dampening investor confidence and hindering infrastructure development.
"This tightening on hemp-derived products is also having a profound effect on the fiber and grain markets," Whitney pointed out, highlighting the broader implications beyond just the cannabis industry. Whitney estimated that the economic impact of these regulations resulted in a staggering $20 billion in lost potential in 2022 alone. His firm’s long-term outlook isn’t any brighter as it adjusts its forecasts in response to these developments.
"As a result of tighter regulations on hemp and the uncertainty this is causing, we are lowering our 2030 hemp grain acreage forecast by 3 million acres. The lowering of this 2030 grain forecast is, in effect, a $2.1 billion decrease in farmers’ revenue forecast based on USDA pricing and output estimates from 2022," Whitney said. Want To Learn More?
As the cannabis and hemp industries navigate these regulatory challenges, Whitney’s upcoming presentation at the Benzinga Cannabis Capital Conference will provide attendees with crucial insights. His expertise in cannabis economics and deep understanding of how policy decisions impact market dynamics will be key for those looking to […]
Delta-8 THC Regulations Could Stifle Hemp, Cannabis Markets, Warns Industry Expert
