Hemp and CBD Oil Following the 2018 US Farm Bill
Has the legalization of the 2018 US Farm Bill paved the way for cannabidiol (CBD) oil to break through the mainstream? It cannot be denied that CBD oil has become the talk of the town these past months, and demands for its products have increased tremendously.
It is believed that the new 2018 Farm Bill will radically change the US relation to hemp. Before, CBD was categorized as a Schedule 1 substance together with marijuana. This was a business barrier for many hemp producers and entrepreneurs. The control also results in limited to non-existent financing and interstate commerce opportunities.
But all of these have changed after US President Donald Trump signed into law the $867 billion farm bill last December 2018.
American Agriculturist revealed that the legislation of the 2018 Farm Bill will open several benefits. For instance, hemp is now regulated by the USDA and CBD-containing products by the FDA. In addition, it can now be labeled as organic and a non-drug commodity.
In terms of business, the new law translates to the legalization of interstate hemp commerce. This means individual states can refuse the sales of hemp in their state, but the state cannot restrict interstate commerce or transport of hemp through the state.
But for many people, CBD oil is one of the most exciting applications of hemp as the legalization means opening more doors for finance and research. Although the investigation is still in its infancy, many animal studies have found pieces of evidence that CBD oil works wonders to the human body. Its long list of medical benefits includes treating a range of illnesses such as anxiety, insomnia, chronic pain, and epilepsy. Some even claimed CBD oil can help treat even heart diseases and cancer.
However, previously issued letters have warned CBD product makers to uphold the FDA’s mandate to protect the public from false claims and adulterated products. The hemp market used to work outside the federal regulations, but now, hemp and CBD products have to abide to fit the interstate and FDA’s policies.
The new law means CBD will not only be regulated but also researched more. This will allow many researchers to finally understand the medical efficacy of CBD oil. For those who do not know, CBD is one of the major components derived from hemp. However, unlike tetrahydrocannabinol, CBD does not have a psychoactive effect; in short, it does not produce a high.
Other than its touted medical benefits, hemp has a whole lot of other surprising applications. For instance, hemp can be used in textiles, plastic, livestock feed, building materials, and home cooking. In fact, soon enough, cannabis-based products will play a big role in our lives without even realizing it.
Ultimately, the new law is good news to farmers. Planting hemp reportedly brings in more returns in their pockets. Reports revealed that compared with canola, hemp will rake in $100 per-acre more profit. And when grown for CBD oil, it can take in an estimated $8,000 per acre, which is more than 13 times bigger than corn’s $600 per acre.
Aside from the increased cash flow, growing hemp is friendlier to the environment. Hemp can be grown to harvest using about half as much water as corn. It can grow in different kinds of soil and tolerate varying temperatures. You also do not need to use pesticide. Clearly, this is a big help for our environment, especially that climate change is a universal issue we need to address.
The demand for hemp-based consumer products is expected to drive explosive growth in the economy too. In fact, the hemp industry is expected to skyrocket to as much as $10.6 billion globally by 2025.