It has been a while coming, and if you have been keen on hemp over the years, the Farm Bill of 2018 was the right decision, at the right time. Pressure had mounted over the last few years for the legalization of hemp. To be fair, hemp is a useful plant, one whose potential is incredible, yet for some reason, it was in the same category or banned substances with hard drugs like crystal meth. What the 2018 Farm Bill did was an attempt to change all this by making hemp acceptable. However, it’s not just about accepting hemp but also about what comes next.
The excitement about hemp was bound to happen. Even in the 2018 Farm Bill, the definition of hemp was been changed, and it’s now referred to as the plant Cannabis sativa L. The 2018 Farm Bill defines the regulation of CBD present in cannabis. This is bound to provide a framework upon which different states can proceed to chart the way forward.
The 2018 Farm Bill limits the concentration of CBD to no more than 0.3%, by dry weight. What this means is that any product that has CBD or any hemp extracts will now be considered legal for sale under federal law, as long as the THC concentration is not higher than the limit set by the Farm Bill.
Perhaps one of the best things that hemp enthusiasts can appreciate is the fact that hemp is not on the Schedule 1 list anymore. This is welcome news, given that farmers can now seek financial support from banks and other institutions. Hemp is no longer an illegal substance according to federal law, so owning a checking account for your proceeds from hemp is no longer a challenge. You can also seek loans at the normal interest rate without worrying about contravening the law.
Expectations Going Forward
The case for hemp doesn’t just end at financial support from banks, but it goes further. It’s expected that the IRS will make arrangements to do away with the hemp tax code, 280E. This code has been a major hindrance, given that it assumes that cannabis and hemp are part of a trafficking concern. The tax code had made it difficult for hemp farmers, given that it placed major limitations on the profits that farmers could earn from their yield.
It’s expected that the USDA will come in to set regulations regarding the growth of hemp. Other than that, the FDA will also provide guidelines for the growth of products that have CBD or hemp, especially those that will be introduced to the market as dietary drugs or supplements, good additives, and topicals. With this in place, people can now look forward to growing hemp and trading in hemp and hemp products across state boundaries without worrying about legal concerns, which has been a challenge for many years. While individual states are free to reject the sale of hemp in their states, the 2018 Farm Bill bars them from interfering with interstate commerce.