The 2018 Farm Bill: How It Opened Doors for Cannabis in Merchandising and Marketing
The 2018 Farm Bill is a game-changer for the cannabis industry, particularly in the realms of merchandising and marketing. While cannabis has long been associated with prohibition, stigma, and regulation, this bill has significantly altered the landscape, offering new opportunities for businesses to legally incorporate cannabis products into their branding strategies. From creative marketing campaigns to unique product offerings, the 2018 Farm Bill has made cannabis more accessible for a wide range of industries—beyond traditional cannabis dispensaries and growers.
But what exactly did the 2018 Farm Bill change? How did it impact cannabis laws, and why does this matter for businesses looking to explore cannabis as part of their marketing and merchandising efforts? Let’s dive in.
What is the 2018 Farm Bill?
The 2018 Farm Bill, also known as the Agricultural Improvement Act of 2018, was a major piece of legislation signed into law by President Trump in December 2018. Among its provisions, the bill legalized hemp cultivation on a federal level, marking a significant shift in U.S. agricultural policy. The bill defines hemp as cannabis plants containing no more than 0.3% THC by dry weight, which means the plant won't produce intoxicating effects.
Before the Farm Bill, hemp was considered a controlled substance under the Controlled Substances Act, making it illegal to grow, process, or sell hemp-based products. This bill removed hemp from the list of controlled substances, thus opening the door to new economic opportunities in industries like agriculture, retail, and even marketing.
How the 2018 Farm Bill Affects Cannabis Products
While the 2018 Farm Bill’s primary focus was on legalizing hemp cultivation for agricultural purposes, it has had far-reaching implications, especially for businesses that want to integrate cannabis-derived products into their operations. Let’s break down a few key changes:
Legalization of Hemp-Derived Products The bill legalized the production and sale of hemp-derived products, including CBD (cannabidiol) and other non-psychoactive cannabis compounds, as long as the products contain less than 0.3% THC. This has opened the floodgates for companies to use CBD in a wide variety of products such as oils, skincare, beverages, edibles, and more.
Expansion of Cannabis-Based Merchandising With hemp-derived products now legalized at the federal level, businesses can legally incorporate cannabis into their merchandising strategies. This includes using CBD in beauty products, wellness items, food and drinks, and even branded promotional products. Companies that were previously hesitant to explore cannabis for fear of legal ramifications can now safely venture into this market.
New Marketing Opportunities for Non-Cannabis Brands The 2018 Farm Bill has also created opportunities for non-cannabis businesses to incorporate cannabis-related products into their marketing campaigns. For example, lifestyle brands, beverage companies, and even fashion brands can now use CBD-infused products as part of their promotional materials. This has allowed companies to create unique, on-brand experiences that resonate with consumers seeking wellness, relaxation, and self-care products.
Creating Custom Cannabis Products for Unique Branding The legalization of hemp has led to the creation of custom cannabis products like CBD-infused merchandise, hemp-based apparel, and even cannabis-themed promotional items like branded pre-rolls. These products offer businesses the chance to align themselves with the growing interest in cannabis culture while still remaining within legal boundaries. Creative branding can use these products to connect with cannabis enthusiasts and those seeking the benefits of hemp-derived products, expanding a company’s appeal to new, broader markets.
Why This Matters for Businesses: The Legal Loophole
Before the Farm Bill, cannabis products—especially those with higher THC content—were regulated by a complex patchwork of state and federal laws. The legalization of hemp under the 2018 Farm Bill created a legal loophole that allowed businesses to explore cannabis-based products without worrying about violating federal law. This has been especially beneficial for industries that were previously unable to tap into the cannabis market due to legal uncertainties.
By focusing on hemp-derived products with minimal THC content, businesses can legally incorporate cannabis into their merchandising and marketing strategies. Whether it’s through product collaborations, influencer campaigns, or custom-branded products, cannabis can now be a legitimate tool in building brand awareness.
For example, companies can now:
Create branded CBD wellness kits or merch bundles featuring hemp-based products.
Use hemp-derived ingredients in food, beverages, or beauty items for promotional events.
Collaborate with cannabis-friendly influencers to create sponsored content that aligns with the wellness lifestyle.
Launch limited-edition CBD products that tie into larger marketing campaigns, creating buzz and increasing visibility.
These opportunities were largely unavailable before the 2018 Farm Bill, and its passage has encouraged many businesses to explore this previously untapped market.
Risks and Considerations for Businesses
While the 2018 Farm Bill has opened many doors, it’s important to proceed with caution. The bill only legalizes hemp with less than 0.3% THC, and cannabis products with higher THC content remain regulated at the state level. It’s crucial for businesses to ensure that the products they’re marketing and merchandising comply with both federal and state regulations.
Additionally, as cannabis is still a relatively new industry, businesses should be aware of changing laws, particularly as more states legalize cannabis and THC products. Consumer education is key, as some may still be unfamiliar with the distinction between hemp-derived products and traditional cannabis, especially when it comes to the legal status of these items.
The Future of Cannabis in Marketing and Merchandising
The 2018 Farm Bill has reshaped the cannabis industry and given companies the legal freedom to explore creative ways to incorporate cannabis into their marketing and merchandising strategies. As more consumers seek out wellness products and experiences that include cannabis, we expect the popularity of hemp-derived items to continue to rise.
For businesses looking to stay ahead of the curve, incorporating cannabis-based products into marketing campaigns isn’t just a trend—it’s a chance to connect with consumers on a deeper level. Whether through a branded CBD pre-roll, a unique product collaboration, or influencer partnerships, the possibilities are endless.
With the 2018 Farm Bill, the cannabis industry has never been more accessible. And the best part? There’s no drama—just an opportunity to innovate, connect, and grow your brand in new and exciting ways.
