The approval of the 2018 Farm Bill in Congress means that the hemp has been removed from the list of substances that are government-controlled. Furthermore, the bill also means that the hemp will be treated just like any other agricultural crop. It has also given an opportunity to the states to regulate the production of hemp and normalize its distribution. And in the event that the president will sign the legislation, experts have projected for the hemp industry to experience explosive growth.
Oregon’s hemp industry is a good example. The state’s hemp industry is likened to a raging river that’s being restrained by a dam and soon enough, this dam could break and will allow for the massive amount of products to flood the markets.
Hemp Industry in Oregon
Production of hemp in Oregon was effectively legalized in 2015, which was part of a pilot project that the previous farm bill authorized. Since then, there has been a significant increase of licensed growers in the state, climbing from 13 to 584. Furthermore, the hemp acreage has also increased from zero to a whopping 11,000 acres!
Oregon-based farmers who are involved in the cultivation of hemp are now excited about their prospects, after dealing with the prohibition for several years.
The approval of the Farm Bill could make way for Oregon’s hemp market to penetrate on eBay and Amazon and invite more investments into the industry while unlocking opportunities from the international markets. Congress’ decision has provided a clear legal authority for the country’s industrial hemp industry. The new legislation can also help loosen up the opportunity with financial institutions. Before, the banking industry was a bit hesitant in dealing with the hemp industry.
The approval of the Farm Bill can also help expand an already booming industry. In the past few years, Oregon has more than doubled the production of hemp. Not only is the number of licenses growing, but also the acres of farmland that the hemp occupies.
An End to the Underground Nature of the Business
The legalization can also help end the underground nature of the business. Hemp farmers can now acquire insurance, loans, and grants. They can now write-off any expenses related to their businesses when filing taxes, just like any other farmer. Several banks will now be open to the idea of granting financing to hemp growers. Even credit card processors might get involved as well as mass retailers such as Wal-Mart and Target may benefit from selling CBD products.
Several farm families in Oregon are now making the big switch. For instance, Coleman Agriculture, a company that’s been around for decades, has established a new company to take part in the thriving hemp business. Indeed, the Farm Bill has opened up a lot of business opportunities not only in Oregon but in several other states as well.