CBD Industry in 2019: New Farm Bill, New Studies, and New Products

It was like a dream come true when President Trump finally signed the 807-page Farm Bill 2018 into law.

The act potentially means that everything from your morning coffee to your beauty products will be affected by CBD (cannabidiol). After all, this bill gives the nod to make CBD, one of hemp’s byproducts, legal at the federal level.

It has set the stage for CBD-industry to create a huge wave of new products. It will include cosmetics, oils, food, and supplements. As estimated, this could bring $22 billion in sales by 2022 for hemp-derived CBD-infused products.

After every five years, this huge piece of legislation gets an update which sets the tone for agricultural policy for the next half a decade. Generally speaking, the bill talks in details about farmer’s food stamps and market funding. But this year, there are major new changes around hemp cultivation.

What Does the 2018 Farm Bill Say About Hemp?

The Farm Bill doesn’t exactly clear all the legal confusion lying around CBD. But it resolves all the pending discrepancies between federal and state regulations with regards to production and sale of hemp in all its forms.

The bill will allow licensed farmers and producers in all 50 states to lawfully grow hemp, including CBD, flower production, and other extracts, for commercial use.

It also spells out a clear definition of hemp. Any part of the plant with less than 0.3 percent of THC will be considered CBD. However, licensed hemp cultivators whose plants exceed the THC limit will not be found guilty. But they must present a proposal to fix the ‘hot’ hemp.

In addition to lifting many restrictions, it would also affect the following changes:

•    One can legally import and export hemp and CBD without any interference with transportation or shipment.

•    The government shifted the oversight of hemp from the U.S. Justice Department to the Department of Agriculture, with directions to come up with rules “as expeditiously as practicable.”

•    Unlike the 2014 Farm Bill, hemp cultivation is now legal in all U.S. territories and on Indian tribal land.

•    New farmers can access federally-backed farm support schemes, which also include federal water access, crop insurance, and low-interest loans.

•    It gives permission to all CBD farmers to bring foreign nationals to the USA to fill temporary agricultural jobs.

•    Apply for intellectual property protections such as patents rights and trademarks under federal law, without any barriers.

•    It also forbids individuals convicted of a drug felony from engaging in the hemp program for 10 years.

•    USDA will need to consult with the US Attorney General on setting up on any hemp rules.

Bill Alpert of Barron’s Take on the Farm Bill

To have a clear understanding, Bill Alpert of Barron discusses the changes that might take place in the CBD industry.

Apart from funding food stamps and crop subsidies, this $867 billion farm bill will also legalize industrial hemp or CBD. It will bring a huge change in the food and health industry — CBD-infused food, drinks, stocks, and cosmetics.

And the most notable changes will be in the funding of food stamps and farm subsidies for 10 more years. But decriminalizing hemp may set a little hitch on the farm bill cart.

Earlier, hemp was seen as a controlled substance under federal law and could only be grown with a license under certain state research programs. This new farm bill allows hemp cultivation without a license in every state of the USA.

As a matter of fact, it was the first time U.S. Food & Drug Administration that approved the use of CBD-based prescription to treat life-threatening seizure disorders in infants. And the seizures even stopped.

CBD is non-psychoactive in nature. It has soothing properties that can help relieve stress, anxiety, and pain.

Another added advantage of this is that it will lead to more scientific testing of cures using CBD and other cannabinoids in hemp.

Clearly, the 2018 Farm Bill will be a major breakthrough for the U.S. hemp industry. But how immediate the benefits will be felt will depend on how far along individual companies are in their development.