The 2018 Farm Bill was passed by the Senate on Tuesday by a vote of 87-13. The next move is that the legislation heads to the House for a vote — and then if it passes there, it goes to President Trump to be signed into law. It is expected to face no significant challenges.
The impact of this legislation on the cannabis industry is enormous. Last year, hemp sales in the U.S. reached $820 million, according to the Hemp Business Journal. That’s without hemp being completely legal. These sales have been projected to reach $2.1 billion by 2020 — and that’s not taking into account the passage of the Farm Bill.
The Hemp Farming Act includes language that will amend the federal list of controlled substances with regards to hemp. It also removes any federal regulations that keep farmers from growing and selling hemp and allows the farmers to collect crop insurance.
The first group to benefit from this is, of course, the farmers and the states where hemp is identified as a crop with a lot of potential. Next are the companies that stand to benefit from focusing their product lines on hemp-derived CBD.
Hemp Processing, Manufacturing, Farmtech Services
We process hemp plants into 99.9% CBD isolate or distillate hemp compounds that provide over 45 studied medical benefits. Hemp CBD contains less than 0.03% THC so it does not make people feel “stoned”. Scientific and clinical research(much of it sponsored by the US government) underscores CBD’s potential as a treatment for a wide range of conditions.
My name is Positive Phil. I am a podcaster/broadcaster and somewhat business motivational speaker. I live in San Diego, CA and working alongside a venture in an industry that will be bigger than CORN. No, not Cannabis.
It’s a HEMP PROCESSING Facility in Oregon with stellar management, would love to share our slide deck with you if this is an Industry that you are looking to invest in. 140,000 sq ft facility, FDA certified – $3M to buy the product to turn into Biomass.
The passing of the 2018 Farm Bill on December 20, 2018 allows U.S. farmers to cultivate, process and sell hemp, the market for which is becoming a multi-billion dollar industry. Simply put hemp is now federally legal and that spells opportunity. Previously, Hemp was categorized as a Schedule I substance under the Controlled Substances Act, the main federal criminal law regarding prohibited drugs such as cannabis and heroin.
If you’re an investor who has been considering an investment in cannabis; then it would be wise to explore the hemp industry. Why? For starters let’s compare the two opportunities. Cannabis is ingested and limited to consumer consumption while hemp has not only medicinal uses but can be used in over 25K industrial applications. We believe the hemp industry will be 10X the size of the cannabis industry. Cannabis, which is still federally illegal, is taxed to death by local and State authorities, can only be sold within the state it is grown and has federal taxation issues under 280E.
The majority of transactions are done in cash so transparency is limited and establishing a normal banking business account is extremely difficult if not next to impossible.
Hemp is federally legal and can be imported and exported both in the US and abroad. Hemp, which is non psychoactive (less than .3% THC), is currently grown in 31 States and is primarily processed into CBD products that are sold legally online and in stores like Sprouts. However, once the supply of farm grown hemp reaches critical mass industrial applications will start replacing or enhancing products in the following industries: plastics, concrete, textiles, biofuels and wood products to name a few.