President Trump signs the Farm Bill — What does it mean for hemp and CBD?
By Christina Scannapiego
On December 20, 2018, President Trump signed the 807-page, 2018 Farm Bill, which legalizes industrial hemp, after months-long debates and reconciliation by the House and Senate Agricultural Committees. The provision in the Farm Bill relating to industrial hemp actually easily passed with bipartisan support just a week before the President officially signed it.
The bill doesn’t exactly signify outright legalization, however. Hemp will no longer fall under the jurisdiction of the Department of Justice, but strict regulations will still apply, and growers are required to submit cultivation plans to the US Department of Agriculture (USDA).
So, how does this impact CBD, specifically?
Though hemp-derived products have been removed from its Schedule I status — and the list of federally banned drugs — under the Controlled Substances Act, CBD is not necessarily a generally legal. A CBD product needs to be produced in a manner consistent with the Farm Bill, associated federal and state regulations, by a licensed grower. These regulations are partially designed to keep consumers safe with higher-quality products and lawmakers will be able to develop and impose best manufacturing practices and standards. The products we all choose matter. Transparency is key to knowing what ingredients are in your CBD and what extraction method is being used. (More on this to come.)
Opportunity in a growing market
The domestic market for hemp CBD products has grown from $170 million in 2016 to nearly $600 million in 20181 and is projected to reach $22 billion this year2. This growth presents great opportunity to domestic farmers with a versatile and sustainable crop. And consumers receive more than a chance to enjoy CBD supplements — they can use textiles, paper, animal feed, food, body care products and more. We may even parlay into Biofuels, bioplastic, green construction materials. In fact, a recent Gallup poll3 shows that two-thirds of Americans now support the legalization of marijuana, compared to 58 percent in 2013 and 12 percent in 1969; CBD may finally be poised to break into the mainstream.
Facts about CBD and the Farm Bill
- Industrial hemp is removed from the illegal Schedule I drugs list, giving it the same classification as any other commercial crop
- CBD products that come from marijuana plants must contain less than 0.3 percent THC
- There are no restrictions around selling, possessing, or transporting industrial hemp across state lines as long as it’s cultivated within the law
- The FDA still has the final say when it comes to using CBD in food, cosmetics and supplements
- Although federal guidelines exist, each state is free to create its own regulatory framework around industrial hemp
Note: We are not medical professionals and these blog posts are based on opinions from our staff
1. Report: Hemp CBD Sales Projected to Reach $1 Billion by 2020; Kim Nunley; Medical Marijuana, Inc. News; www.news.medicalmarijuanainc.com/report-hemp-cbd-sales-projected-reach-1-billion-2020
2. “CBD worth $22 billion by 2022? That’s crazy, right?” Brightfield Group; September 14, 2018
3. “Two in Three Americans Now Support Legalizing Marijuana”; Justin McCarthy; Gallup; October 2018