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2018 Farm Bill Allows Hemp Production for Any Use Including CBD in the US

2018 Farm Bill Allows Hemp Production for Any Use Including CBD in the US

The highly anticipated farm bill compromise was unveiled on Monday evening, ending the long wait over whether a critical piece of legislation that provides subsidies to farmers and helps needy Americans buy groceries could pass before the end of the year. The agreement, backed by the House Republicans and President Trump, was reached after a proposal to add stricter work requirements for those who receive food stamps was taken off the table. According to the House committee staffers, the legislation will cost $867 billion over 10 years. 

With all the above being said, the bill must still pass both the House and the Senate and be signed into law by the president. 

Though much of the bill mirrors current laws, there is one major change coming for farmers: Industrial Hemp will be legalized. This is going to prove to be fruitful for the increasingly popular cannabidiol, or CBD oil, industry, which uses it for medicinal purposes. This puts an end to nearly five decades of hemp prohibition, opening the door to hemp production in all 50 states for any use, including CBD. 

On top of lifting restrictions on advertising, marketing, banking and other financial services, the measure would also do the following:

  • Allow the production of hemp in all 50 states for any use, including flower production and CBD, or any cannabinoid extraction. Each state will have their own option to submit plans to regulate the production of hemp.
  • Allow interstate commerce for both hemp and hemp-derived CBD products.
  • Give the US Department of Agriculture (USDA) the responsibility of overseeing hemp production, with the direction to come up with rules “as expeditiously as practicable”
  • Legalize the production of hemp in US territories and on Indian tribal land (a stipulation that wasn’t included under the 2014 Farm Bill)
  • Give the hemp industry access to federally backed farm support programs such as crop insurance, federal water access, and low-interest loans for new farmers.
  • Allow hemp producers to “bring foreign nationals to the US to fill “temporary agricultural jobs””
  • Allow hemp producers to seek intellectual property protection under federal law, such as patents and trademarks
  • Set a 10-year ban where state or federal drug felons cannot participate in the hemp program, except for people already growing hemp under a state pilot project
  • Require the USDA to consult with the US attorney general on the hemp rules. 
  • The bill also states that licensed hemp producers who grow cannabis plants that exceed the THC limit of 0.3% won’t be guilty of a drug crime, instead they’ll be asked to submit a plan to correct the “hot” hemp.

With CBD already becoming a hot product despite all the challenges with payment processing, financial services, advertising, and more, it’s exciting to think about where CBD is going to go when these constraints go away.

For more info:

  • December 13, 2018
  • Eco Sciences
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