US Farm Bill Will Make CBD Production Legal And Cheaper
The 2018 Farm Bill that overwhelmingly passed in the U.S. Senate has now become law. For hemp growers and CBD-product manufacturers the big news is hemp will no longer be equated under drug laws with its psychotropic cousin, marijuana. Industry-watchers wonder what this step could mean for future cannabis legalization.
Under the new laws, hemp will be managed by Department of Agriculture as a crop rather than by the Justice Department as an illegal substance.
Here are a few key Farm Bill points from Hoban Law Group's Senior Attorney Steve Schain:
- Banks and payment processors/credit card companies can service the hemp industry
- Investment and capital infusion is allowed in both the oil and fibrous hemp businesses
- Interstate commerce of hemp and hemp products is allowed
- Convicted felons can join the industry 10 years after the bill passes
- Hemp farmers will be allowed to buy crop insurance for the first time.
- Hemp futures can be traded for the first time, locking in prices for farmers
- Help research will be allowed for pharmaceutical uses as well as for health, wellness and general nutrition, opening the doors for much more testing