As part of the recent executive order declassifying marijuana at the federal level, a specific provision was included that allows CBD-based medications to be covered under Medicaid.
This is a huge deal—arguably one of the most important demand-side developments hemp has seen since legalization.
Medicaid coverage changes the game entirely. It means CBD products are no longer limited to discretionary wellness spending or niche retail markets. Instead, they move into the regulated medical system, backed by one of the largest healthcare payers in the country. This means:
· Stable, institutional demand for material· Long-term contracts and repeat purchasing, not boom-and-bust spot markets· A renewed focus on CBD rather than synthetic alternatives· Greater price support for quality biomass grown at scale
For the first time in years, demand for CBD isn’t being driven by hype—it’s being driven by policy.
Farmers who plant this season are positioning themselves ahead of pharmaceutical and medical supply chains, not chasing them after the fact. As we’ve seen in every regulated crop—early adopters with production experience tend to secure the best contracts and relationships.
The window to act is now. Once large buyers finalize sourcing programs tied to medical distribution, our high CBD seed supply will tighten quickly.
