2018 Farm Bill

Federal Farm Bill Legalizing Hemp (2018 Farm Bill)

The Agriculture Improvement Act of 2018, commonly known as the 2018 Farm Bill, marked a significant milestone in U.S. agricultural and industrial policy. One of its most notable achievements was the legalization of industrial hemp, a versatile crop derived from the cannabis plant. This legislative change reshaped the agricultural landscape and opened the doors for hemp-derived products, including consumable hemp, THC, and CBD, to enter mainstream markets. Below is an in-depth exploration of the 2018 Farm Bill, its impact on the hemp industry, and the distinctions among hemp, THC, and CBD products.

 

What is the Farm Bill?

The Farm Bill is a comprehensive piece of federal legislation that governs an array of agricultural and food programs. Renewed approximately every five years, the Farm Bill addresses policies related to farming subsidies, conservation efforts, food assistance programs, and more. The 2018 Farm Bill was signed into law by President Donald Trump on December 20, 2018, and it included landmark provisions for hemp cultivation and commercialization.

 

Key Provisions of the 2018 Farm Bill Related to Hemp

Legal Definition of Hemp:

Hemp was redefined as a distinct crop separate from marijuana. Under the law, hemp is cannabis containing less than 0.3% Delta-9 THC (tetrahydrocannabinol) on a dry weight basis. This threshold differentiates hemp from marijuana, which remains federally illegal due to its psychoactive properties.

 

Removal from the Controlled Substances Act (CSA):

Industrial hemp was removed from the DEA's Schedule I controlled substances list. This decriminalized hemp at the federal level and allowed for its legal cultivation, processing, and sale.

 

Regulation Framework:

The USDA (U.S. Department of Agriculture) became the primary federal regulator for hemp production. States and tribal nations were required to submit hemp cultivation plans for approval by the USDA or operate under the federal framework.

Farmers were required to adhere to strict THC testing and compliance measures to ensure crops did not exceed the 0.3% THC threshold.

Interstate Commerce Protection:

The bill explicitly protected the interstate transportation of hemp and hemp-derived products, preventing states from interfering with the movement of legally compliant hemp across their borders.

 

Expanded Market Opportunities:

Legalization spurred investment and innovation in various sectors, including textiles, construction, bioplastics, food, and wellness products. The bill also allowed for federal crop insurance coverage for hemp growers.

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Hemp, THC, and CBD: Key Differences

Understanding the distinctions among hemp, THC, and CBD is crucial for navigating the evolving legal and regulatory landscape.

 

Hemp

Definition: A variety of the cannabis plant containing less than 0.3% Delta-9 THC.

Uses: Industrial hemp has a wide range of applications, including clothing, rope, paper, biodegradable plastics, animal feed, and more.

Legal Status: Fully legalized under the 2018 Farm Bill when compliant with federal regulations.

 

THC (Tetrahydrocannabinol)

Definition: The psychoactive compound found in cannabis that produces a "high."

Delta-9 THC vs. Delta-8 THC: The 2018 Farm Bill unintentionally opened the door for Delta-8 THC, a psychoactive compound derived from hemp. While Delta-9 THC is federally regulated, Delta-8 THC has occupied a legal gray area and has become popular in states without recreational cannabis laws.

Legal Status: Delta-9 THC is heavily restricted under federal law unless derived from hemp and below the 0.3% threshold. State laws may vary.

 

CBD (Cannabidiol)

Definition: A non-psychoactive compound found in cannabis that is widely used for its potential therapeutic benefits, including pain relief, anxiety reduction, and anti-inflammatory effects.

Legal Status: CBD derived from hemp is legal under the 2018 Farm Bill, provided the source plant complies with the THC limit. However, CBD's inclusion in food and dietary supplements remains under FDA scrutiny.

The 2018 Farm Bill's Role in Consumable Hemp, THC, and CBD Products

The Farm Bill catalyzed the rapid growth of consumable hemp and CBD markets. However, the inclusion of consumable products introduced challenges regarding regulatory oversight and public safety:

 

Consumable Hemp Products:

Hemp-derived products such as oils, tinctures, and edibles became widely available. These products are marketed as containing less than 0.3% THC and are often used for wellness purposes.

 

Regulatory Challenges: The lack of uniform testing and labeling standards has led to inconsistent product quality and safety concerns.

 

THC Products (Delta-8 and Delta-9):

The bill's language inadvertently facilitated the rise of Delta-8 THC, which can be chemically synthesized from hemp-derived CBD. Delta-8 THC products, often marketed as legal alternatives to marijuana, have faced regulatory crackdowns in several states.

Legal Ambiguity: While Delta-9 THC above 0.3% remains federally illegal, Delta-8 THC occupies a legal gray area.

 

CBD Products:

CBD experienced an explosion in popularity post-2018 Farm Bill, with uses ranging from personal care products to pet supplements.

 

FDA Oversight: The FDA has yet to establish a comprehensive regulatory framework for CBD in food and dietary supplements, leaving the industry in a state of uncertainty.

 

The 2018 Farm Bill significantly altered the U.S. cannabis industry by legalizing industrial hemp and paving the way for a robust market of hemp-derived products. While this legislation has unlocked significant economic potential, it has also raised questions about regulatory oversight, product safety, and the distinction between hemp, THC, and CBD. As the industry evolves, consumers and businesses alike must stay informed about federal, state, and local laws governing these products.