Governor Josh Green’s recent endorsement of new rules for CBD products, which was initially celebrated by some as a triumph for local hemp, is being regarded by many in the industry, including local hemp farmers and CBD manufacturers, as a significant hurdle.
The updated regulations impose strict limits on the allowable levels of delta-9 tetrahydrocannabinol, commonly referred to as THC, the primary psychoactive ingredient in cannabis. This change affects locally made hemp items such as gummies, beverages, tinctures, and oils that are sold for their non-intoxicating counterpart, cannabidiol, or CBD, which is favored for its potential to alleviate issues like pain, inflammation, stress, and insomnia.
According to federal guidelines, hemp is categorized as containing 0.3% THC or less, with products having higher THC levels classified as marijuana. Each state has its own thresholds for THC content in hemp-derived CBD products, and Hawai?i’s new rules impose limits that are significantly more stringent than federal guidelines; for instance, the new regulations permit a THC concentration of just 0.00028% in CBD beverages.
Proponents of hemp are voicing concerns that these new standards strip away the uniqueness of local hemp products, impose the need for expensive processing equipment that local businesses cannot afford, and disadvantage Hawai?i products against those from the mainland. The Department of Health (DOH) is focused on preventing THC-containing products from reaching youths but asserts that it currently does not have the authority to enforce age restrictions for CBD product purchases. This has led officials to focus on broader regulations to eliminate the chance for anyone to experience intoxicating effects from CBD products.
Despite other left-leaning states legalizing recreational marijuana, Hawai?i has not yet followed suit, maintaining a medical marijuana program since the early 2000s. The ongoing debates surrounding the hemp regulations are part of a longer conflict over state oversight that originated in 1999, when Hawai?i became the first state to legalize hemp cultivation after a national ban in 1937.
Fast forward 25 years, and the state-formed Hawai?i Hemp Task Force has released its initial report, calling for a more stable regulatory framework for hemp, which boasts a staggering 52,000 potential uses including food products, building materials, textiles, animal feed, various cannabinoids, and renewable fuel sources. This document is expected to influence upcoming legislation aimed at promoting a more supportive environment for hemp cultivation in the state.
Jared Dalgamouni, owner of Rare Cannabinoid Co., notes the challenges posed by these regulations. After initially launching his business in Hawai?i in 2017 with the goal of using exclusively local hemp, he found himself forced to exit the market two years later due to regulatory shifts that increased processing requirements and costs. Returning to the mainland for processing became the more viable option. Even though the new rules permit local CBD manufacturers to produce gummies and beverages, the accompanying restrictions render such products economically impractical, as highlighted by Gail Byrne Baber, president of the Hawai?i Hemp Farmers Association.
Dalgamouni plans to continue utilizing Maui-grown hemp in his brand, Hawaiian Choice CBD, but warns that the new regulations are overly restrictive and could cripple his enterprise. Under the new guidelines, packaged gummies can only contain five products with a maximum of 1 milligram of THC each, a stark contrast to the 30-pack items readily available from mainland suppliers. Furthermore, beverages are capped at 0.5 milligrams of THC per container, and tinctures face almost prohibitive allowances.
Byrne Baber, who grows hemp and produces tinctures to support her farm’s food crop production, emphasizes that the current regulations could prove detrimental to Hawai?i farmers. She argues that the limits set forth will force many operations to cease, as local agricultural production costs are some of the highest in the world, with troublingly low prices for food crops not facilitating sufficient margins for survival.
McRoberts, the owner of Kaua?i Hemp Co., which operates the state’s largest CBD processing plant, echoes concerns about the viability of producing CBD products under the new constraints. Currently, there are just four state-accredited processing facilities in Hawai?i, and he contends that removing most THC from CBD products will diminish their beneficial properties—those qualities that have been selectively bred by local farmers to create competitive, high-quality offerings.
The DOH did not grant an interview request, but in a statement, a representative affirmed that the new rules are aimed at striking a balance between the industry’s needs and community health, particularly regarding the safety of children. While they did adjust some regulations in favor of the industry, local producers remain skeptical about how these rules would be enforced against mainland competition.
Dalgamouni predicts that if the restrictions remain in place, a vast majority of hemp farmers may abandon their operations next year, potentially leading to the collapse of the sector. On the legislative front, state Representative Dee Morikawa has been pushing for less restrictive rules and emphasizes that the hemp industry holds substantial potential. She recently championed a related bill that initiated the task force aimed at facilitating growth in this sector.
Though previously optimistic about the future of the industry, McRoberts is now discouraged by the latest regulations, hinting at a possible pivot away from hemp towards marijuana cultivation if recreational use is approved. He argues that current conditions would not allow anyone to remain competitive.
The DOH’s review of the task force’s report acknowledged that the proposed THC limits are considered “unrealistic” and “extremely low.” Local industry players emphasize the need for higher THC allowances in compliance with federal limits. There is a consensus among stakeholders advocating for adult-only sales while permitting significantly higher THC thresholds than those prescribed under the new state law.
With the new legislative session set to commence on January 15, the Hawai?i Hemp Task Force has outlined 20 priorities to address the challenges facing the hemp industry. Among the key aims are increased THC flexibility for tinctures, relaxed limits for edibles and beverages, and establishing age restrictions for purchases, thereby enabling local producers to thrive. Legislators are discussing necessary adjustments to ensure that a balance is struck between the needs of the industry and public health.
Senator Tim Richards remarked on the importance of finding common ground, recognizing both the need for regulation and the detrimental impact of overly strict rules.
Overall, the future of Hawai?i’s hemp industry is at a critical crossroads, and stakeholders are called to engage in further dialogue to secure the potential for growth and sustainability in a market with substantial revenue, as evidenced by a $54 million valuation of CBD sales in 2020. The industry’s revival hinges on the adoption of a stable regulatory framework that fosters both innovation and safety in accordance with community health goals.