This article is purely informational and does not constitute medical advice. Consult your healthcare provider about CBD.
2018 Farm Bill CBD
2018 Farm Bill CBD has long been passed but people are still struggling to grasp its full relation to CBD.
At this point, CBD or Cannabidiol is one of the world’s rapidly growing markets, currently valued at $2.8 billion. More than that, experts believe that it will continue to expand rapidly well into 2028.
In the US, estimates are projected to have CBD consumer sales reaching $1.8 billion by 2022.
The numbers are mind-boggling, especially since the consumer sales were barely a third of that just three years prior.
One of the main reasons for such a rise? A Federal Law passed in 2018 called the Farm Bill, which allowed Hemp grounds for legal production – and a legal gray area that allows for CBD production.
What is CBD?
While many are familiar with the three letters “CBD,” it is not surprising that people are still naive on some facts about the beneficial cannabinoid. CBD is extracted from Hemp, a variety of the cannabis plant.
CBD is a chemical sibling of Tetrahydrocannabinol or THC, and together, they comprise two of the most abundant cannabinoids found in the cannabis plant.
The differentiator between THC and CBD is in one of its carbon sidechains, enough for the two to have very different and distinct functions and benefits on the human body.
More importantly, CBD does not give you an intoxicating high – unlike with THC. This feature is enough for people to prefer CBD.
The 2018 Farm Bill CBD
Originally started as the Hemp Farming Act of 2018, it was incorporated and came into law on December 20, 2018, as the Agriculture Improvement Act of 2018.
The bill sought to remove Hemp or, precisely, cannabis with less than 0.3% THC from Schedule I controlled substances.
The removal from the controlled substances list would make Hemp an ordinary agricultural commodity.
Likewise, the bill would also avail Hemp farmers water rights and federal agricultural grants, access to the national banking system, and more.
Overall, the bill would create benefits for farming Hemp as a whole as it opened the crop for marketing, research, and insurance.
Important Points to Remember About the 2018 Farm Bill CBD
The 2018 Farm Bill summary can be whittled into a few key points related to Hemp farming and CBD and its associated market.
Primarily, the Farm Bill sought to:
– Remove Hemp or Cannabis with less than 0.3% THC from Schedule I Controlled Substances.
– Establish a Federal Hemp Regulatory System under the US Department of Agriculture
– Remove Hemp and Hemp seeds from the statutory definition of marijuana
– Make Hemp an eligible crop under the Federal Crop Insurance Program
– Legalize the transfer of Hemp and Hemp-derived products across state lines provided that it was lawfully produced under a State or Indian Tribal plan or under a license issued by the USDA plan.
What Does the 2018 Farm Bill Say About CBD and its Legality?
Contrary to popular belief, the Farm Bill itself does not legalize CBD; instead, it specifies that it removes Hemp-derived products from its Schedule I status. However, under Federal Law, CBD is still a Schedule I substance.
But why is CBD continuing to thrive despite its ongoing classification as a controlled substance? Within the Farm Bill, there are a set of exceptions lifting this Schedule 1 status in certain situations.
For example, the compounds extracted from Hemp can be legal if and only if the Hemp used for extraction is produced consistent with the provisions of the Farm Bill, associated Federal regulations, associated State regulations, and by a licensed grower.
Otherwise, cannabinoids produced from other methods remain a Schedule 1 substance and remain illegal under federal law.
What Are the Changes in the CBD Industry After Passing the Bill?
To put it simply, after passing the 2018 Farm Bill, CBD just exploded. Even before the Farm Bill had passed, the CBD industry was already a growing market with a heck of a lot of potential.
For example, in a report by the Hemp Business Journal, the CBD industry in 2017 was already at $820 million.
Even then, experts believed that the CBD industry was ripe for unique opportunities and business growth. So, when the Federal government eventually passed the bill, it essentially opened the floodgates that would lead to its boom.
In addition, the lifting of the schedule on Hemp essentially incentivized CBD producers to use locally grown Hemp as the primary source for CBD, which in turn benefitted Hemp farmers considerably, creating a feedback loop that helped both parties.
By the by, so long as the CBD producers and the Hemp farmers stuck with the provisions of the Farm Bill and stayed clear of the FDA by not using aggressive health-related marketing, the CBD industry buoys “safely” for the foreseeable future.
Restrictions on Cannabinoids (CBD) Mentioned on the 2018 Farm Bill CBD
As mentioned earlier, cannabinoids are still considered a Schedule I substance under federal law. However, so long as it is extracted or derived from Hemp grown strictly following the Farm Bill, the cannabinoids could be considered legal.
In the same vein, cannabinoids like CBD produced from Hemp must fall in line with federal regulations and state regulations.
Finally, it must also be noted that products made from these cannabinoids must adhere strictly to the FDA’s mandate on health-related marketing.
The 2018 Farm Bill had a significant effect on the CBD industry at large. It removed Hemp from Schedule I substances, including giving Hemp farmers benefits, more leeway, and helping the CBD market grow.
Is there a farm bill update? By law, the Farm Bill expires after five years. Since it was enacted in 2018, lawmakers and the CBD community at large will have to look closely again in 2023.
“These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.”