Price no longer a differentiator for THCA hemp, regular cannabis

The rise of cannabis flower labeled as THCA created a new point of contention within the cannabis industry, as businesses claim these products are federally legal under the 2018 Farm Bill making them more accessible across more markets.

And another trend is also making THCA attractive competition for the regulated cannabis product: Price is no longer a barrier.

The prices for smokable hemp flower that contains THCA – a precursor to the psychoactive compound THC – are now similar to the price for regular cannabis flower, according to new wholesale data provided to Green Market Report. That’s regardless of where it’s grown indoors, outdoors, or in a greenhouse.

What is THCA?

There’s not much difference between THCA and the “real” thing, and the market is starting to notice.

THCA, or tetrahydrocannabinolic acid, is a nonintoxicating compound found in raw cannabis plants that converts into THC when heated, which then produces the high associated with marijuana use. Yet sellers contend that if the flower before heating tests below the federal 0.3% THC limit, it qualifies as legal hemp.

The legal status of the practice is a matter of ongoing debate, with many states taking action against such products, concerned that the loophole enables the widespread sale of unregulated, intoxicating cannabis.

Jonathan Rubin, who heads wholesale data firm Hemp Benchmarks, reiterated that, “the proliferation of hemp-derived psychoactive products available to consumers serve as substitutes for traditional cannabis products and markets.”

That trend is reflected in the convergence of prices for smokable THCA hemp flower and cannabis flower across all cultivation methods, he told Green Market Report.

The regulatory uncertainty surrounding THCA flower is further complicated by factors such as the timing of THC testing, as levels can increase as the plant approaches harvest. Some growers may take advantage of this by testing their crop early to obtain passing results.

Mitigating risk

Retailers who sell these products often work proactively with law enforcement to mitigate risks, but the future of the THCA flower market remains as uncertain as so many other rules in the cannabis industry.

However, most experts agree that comprehensive federal marijuana legalization is necessary to resolve the range of inconsistencies resulting from the partial legalization of hemp under the Farm Bill.

“Both the cannabis and hemp sectors are eagerly awaiting additional regulatory oversight from federal authorities,” Rubin said. “In the meantime, 280E places additional competitive pressures on cannabis operators not borne by hemp operators.”