The Farm Bill is passed by Congress every 5 years. This Bill shapes the food and agriculture industry, rural economies, trade on farm energy products and many other issues. Many Americans celebrated the legalization of hemp and its derived products, when the Farm Bill, legalizing the growing of hemp, was announced in December 2018. This announcement however, does not allow an individual or business to grow hemp and produce CBD wherever and whenever they desire. The Law is very clear on what must happen in order to become a licensed hemp grower, and not following the guidelines could see you breaking the Federal Law.
Let’s try and explain when States can declare CBD illegal
When Can States Pronounce CBD Illegal?
In December 2018 The Farm Bill was passed by the US Senate. Section 12619 of the Farm Bill removes hemp derived products from Schedule 1 status in the Controlled Substances Act, but hemp still remains a Schedule 1 Substance under Federal Law, unless it is produced in a manner that is consistent with:
- The Farm Bill
- Associated Federal Regulations
- Associated State Regulations
- The grower is licensed.
There are certain guidelines and restrictions which must be adhered to in order to legally grow hemp as there is a shared State and Federal regulatory power over its cultivation and the production of CBD and its products.
- Under 10113 of the Farm Bill, the State Department of Agriculture must consult with the State Governor and Law enforcement. A plan is then submitted to the United States Department of Agriculture (USDA) who must then approve the States plan and issue a license.
- The plant cannot contain more than 0.3% THC or it is considered non-hemp cannabis, and the grower could face legal prosecution under Federal Law
Simply put, you would be violating Federal Law and be liable for prosecution if hemp contained more than 0.3% THC and was cultivated without a license.
How Has the Farm Bill Assisted the Production of CBD Products?
The passing of this Bill has had a hugely positive impact on CBD production and distribution. Some of the areas where this Bill has assisted as:
- CBD products have greatly reduced in cost
- There is increased research being done for pharmaceutical, health, wellness and general nutrition use.
- Banks and credit card companies can now legally service the hemp industry.
- There is investment and capital infusion growth in both the oil and fibrous hemp business
- Hemp farmers can now purchase crop insurance for the first time
- It allows for cultivation to be done broadly and not only for pilot programs
- Hemp can now legally be transported across State lines for commercial use and any other purposes
- There are no restrictions on the sale of, transport or possession of hemp and products derived from it, as long as they are produced in a manner consistent with the Law.
- CBD manufacturers and users have a wider variety of raw materials available for purchase and usage.
- Manufacturers can now freely advertise CBD and educate the public on its benefits
We need to remember that even though The Farm Bill legalizes hemp, it is still highly regulated for personal and industrial production. It is not a completely free system allowing anyone, business or individual, to grow hemp and produce CBD products when or whenever they want, and people found doing so will be prosecuted by Federal Law
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