U.S. to legalize hemp at federal level

The Farm Bill, a comprehensive document on agricultural policies voted on every five years or so, is attracting particular attention from the cannabis world this year. It contains an amendment legalizing hemp and augurs the creation of a federal hemp industry, with enormous potential for CBD.

The last Farm Bill dated from 2014 and already relaxed the laws on hemp, distinguishing it from cannabis on the basis of its THC content. Below a limit of 0.3%, it was now possible to grow the plant as part of pilot agricultural projects or for scientific research. Some states were already doing this, such as Kentucky, Colorado and Oregon. With the 2018 Farm Bill, hemp is squarely removed from the list of controlled substances and becomes an agricultural commodity like any other.

A diversified and lucrative industry

Hemp has many uses. It is used to create building materials and in the automotive, textile, cosmetics and pharmaceutical industries. The whole hemp plant can be used, from seed to fiber, but the lion's share of this industry is the CBD market. The molecule is used to treat a wide range of illnesses, from epilepsy to multiple sclerosis and chronic pain, alone or with THC and other cannabinoids, and is increasingly popular in the wellness and cosmetics markets. It is regulated differently in different states, but at federal level the major difference depends on whether it is extracted from THC-containing cannabis, in which case it is illegal, or from hemp, in which case its status is ambiguous.

The hemp market is currently estimated at $800 million but Brightfield Group plans to reach 22$ billion dollars in 2022 in the case of federal legalization.

Chris Boucher, CEO of Farmtiva, a hemp production company, explains that hemp cultivation will eventually be managed and controlled by the Department of Agriculture in the same way as corn and soybeans: «it will become an agricultural commodity like any other, which will also ensure harvests and allow Wall Street to invest in the industry». According to him, growing an acre of hemp can yield between $20,000 and $50,000, depending on the percentage of CBD. «That's twice as much as corn,» he explains.

In fact, the profitability of hemp has attracted agricultural states, particularly those that used to grow tobacco, which have seen their revenues decline along with tobacco sales and consumption. According to Kristin Nichols, editor of the newspaper Hemp Industry Daily, There has been a lot of support from congressmen and politicians in former tobacco-producing states who are looking for an alternative crop«. The hemp amendment was introduced by Senate Majority Leader Mitch McConnell of Kentucky, one of the world's leading tobacco-producing states. He was also the one who had introduced provisions on hemp cultivation in the 2018 Farm Bill.

Both houses of Congress voted on their versions of the Farm Bill last June, but significant differences led to renewed readings and the creation of a joint committee between the two chambers. Originally, the House version did not include the legalization of hemp, but it seems that Senator Mitch McConnell, who appointed himself to the joint committee, has succeeded in getting it accepted by the lower chamber. The final version of the text, published on Monday and signed by Mitch Mc Connell with a pen made of hemp, therefore includes his amendment. It will be presented to Congress for a final vote tomorrow and then sent to Trump's desk. If the bill is approved, the legalization of hemp should take effect on January 1. according to VoteHemp.

https://twitter.com/senatemajldr/status/1072267971278635008