The 2018 Farm Bill is a landmark piece of legislation that will shape the future of our food system that has been passed by Congress and signed into law by President Trump. This bill amends previous legislation, such as the 2014 farm bill and the 2018 omnibus spending package. The legalization of hemp by the 2018 Farm Bill will have important ramifications for both industries involving CBD.
This provision legalizes cultivation and sales at the federal level, which goes into effect on January 1st, 2019. It also has broader implications as it impacts other countries’ economies that produce or trade goods containing cannabis material such as marijuana, among others.
This article will discuss what the 2018 Farm Bill means for Hemp and CBD business owners in America today.
How Federal Law Regarding Hemp and CBD Has Evolved
Before the 2018 Farm Bill went into effect, hemp and CBD presented unique opportunities for business growth in America. Hemp is a fast-growing variety of Cannabis sativa L with many commercial uses such as textile products or food; it can also make biofuels like gasohol (fuel alcohol).
Hemp and marijuana are both varieties of the Cannabis sativa L. plant. Still, they have very different effects due to their varying THC levels. This chemical produces psychoactive side-effects like feelings of altered reality or paranoia when exposed in high doses (THC content). CBD is a safe alternative compound derived from this same species with numerous putative health benefits, including relief for chronic pain symptoms because it doesn’t engage CB1 receptors at all.
Even though neither hemp nor CBD derived from it contains significant levels of THC, until December 20th, 2018, they were both categorized as Schedule I controlled substances under federal law. This made them generally illegal at a national level to cultivate.
For decades, the Cannabis plant has been used for medicine and recreation. But when it came to CBD products, in particular, federal regulations ensured that regardless of how derived – from hemp plants with very little THC or cannabis flower containing more than 0.3% tetrahydrocannabinol (THC), all forms were considered illegal at their highest level unless exempted by law.
In 2014 however, an amendment was made which allowed certain extracts like those derived from industrial Hemp or “Hemp Oil” made within U.S. borders after 01/01/2018 if they contain less than 0fc 3 percent total cannabinoids on a dry weight basis.
Hemp and CBD businesses have thrived in numerous state jurisdictions where such products are legal. These businesses operate under a quasi-legal status permitted by the U.S. Department of Justice’s policy, effectively allowing otherwise legitimate industry related to cannabis operations within those states with legalized markets for these goods as long they’re properly regulated.
The FDA regulates hemp-based CBD products as a food, which is subject to their rigorous standards. There have been many cases where these items were found not fit for consumption or use, and some even triggered allergic reactions in consumers who tried them anyway.
While there are laws against marketing misinformation regarding medications (Section 1731 of the Food, Drug & Cosmetic Act). The FDA has taken a firm position against products that make health claims without demonstrating their safety and efficacy through clinical trials. The agency sends warning letters to companies marketing these types of unproven goods, but enforcement actions have not been followed yet.
The U.S. Food And Drug Administration (FDA) thinks it’s important for manufacturers who want people to believe in what they sell or how well it works on you – like an acne lotion maybe?-to go ahead with proper testing before saying anything about your product where there could potentially be false advertising because remember: if something sounds too good then odds are someone will buy into those.
The FDA is a major player in regulating the use and production of cannabis. In June 2018, they approved CBD as an epilepsy treatment with no dangerous side effects, making it one step closer to being recognized by federal law for what it does.
The 2018 Farm Bill
The 2018 Farm Bill has been a long time coming, and it was finally signed into law by President Trump. The new legislation is full of important updates for those that work in agriculture, specifically hemp production, which Senator Mitch McConnell (R-KY) fought hard to include as part of this bill because he felt strongly about its bi-partisan support.
- In 2018, the Farm Bill defined hemp as Cannabis sativa L. and any part of this species with a delta-9 THC concentration that is not more than 0.3 percent by dry weight; in other words, it’s an agricultural pilot program for research into industrial hemp. The 2014 version bill created a limited agricultural pilot program regarding research into industrial hemp. This definition is consistent with the previous one, which means that it’s still applicable in most cases, but there are some differences between them, such as how they define “industrial Hemp.”
- The 2018 Farm Bill has removed hemp from the Controlled Substances Act, paving the way for its wholly legal cultivation and distribution.
- The Farm Bill of 2018 delegates to states and Indian tribes the broad authority to regulate hemp production, sale, and any products made from this plant. States cannot restrict the transportation or shipment of hemp and its products through their respective jurisdictions.
Consequences of the 2018 Farm Bill to the Hemp and CBD Industries
The hemp industry is booming in the United States. In 2017, retail sales for products containing this versatile crop reached $820 million, and it’s forecasted that by 2020 there will be a $1 billion market! This year alone saw the passage of The 2018 Farm Bill, which should further increase production and demand for CBD within America’s borders.
The passing of the 2018 Farm Bill means that hemp producers and businesses dealing in products such as CBD can now pursue their line of work with less concern. With this new legislation, federal legalization has set a precedent for more freedom when pursuing these activities while also removing any possibility they could be investigated or prosecuted by authorities due to changes regarding enforcement priorities since last year’s passage on recreational marijuana use nationwide which granted certain parts (including resin) Schedule I status under Federal Law meaning it lacks medicinal value but still carries potential consequences.
With the 2018 Farm Bill passage, CBD producers have a much greater incentive to use hemp as their primary source for this product. It’s still important that businesses involved in producing or selling cannabinoids comply with state and federal regulations regarding legalized cannabis products – but you should also be aware of other regulatory issues such as those imposed by FDA oversight when marketing your food/beverage items too aggressively related towards health benefits without carefully navigating all potential problems first.
Worldwide, CBD consumers have been questioning the product’s authorization status. And this has created an opportunity for growth in our understanding of hemp and its products to come about as we continue developing new perspectives on what these can be used towards – whether that is medical or recreational purposes.
Notwithstanding all the remaining barriers, CBD products are showing significant upgrading. To treat health issues related to the nerve system and mental illness, and skin problems like acne or psoriasis.
The 2018 Farm Bill has allowed for extensive business investment and broad application with a decent impression. The end-users can also experience the best possible results from this new law.