The 2018 Farm Bill Passed Today Federally Legalises Hemp, Hemp Products, and the CBD Industry.

Good news for the hemp industry! The 2018 Federal Farm Bill, with the formal name of H.R.2 – Agriculture Improvement Act of 2018, contains sections which make the growing of hemp legal in all 50 states. It places hemp on the list of crops which qualify for crop insurance and sets standards for the states to follow in regulating hemp. As an example, a State may not inspect hemp growing farmland more than once a year.  This bill is nothing less than a revolution for the hemp and hemp products industry.

Of special interest, this bill will make it legal for banks to offer services to hemp farmers and hemp businesses.

In the bill, in the section titled Subtitle G- Hemp Production, hemp is defined as cannabis sativa with a low THC content. The language regarding derivatives, extracts, cannabinoids, and isomers formally legalizes CBD products and anything else entrepreneur’s wish to manufacture from hemp.

Below are some of the sections of the bill discussing hemp.  Left out are the hemp research sections, which may be the subject of a future post.

Here is the section that defines hemp:

(1) HEMP.—The term hemp means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.

This is the link to the bill:

https://www.congress.gov/bill/115th-congress/house-bill/2/text

H.R.2 – Agriculture Improvement Act of 2018

Sec. 7125. Supplemental and alternative crops; hemp.

Sec. 7415. Legitimacy of industrial hemp research.

Sec. 10111. Hemp production.

SEC. 7125. SUPPLEMENTAL AND ALTERNATIVE CROPS; HEMP.

Section 1473D of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319d) is amended—

(1) in subsection (a)—

(A) by striking 2018 and inserting 2023; and

(B) by striking crops, and inserting crops (including canola),;

(2) in subsection (b)—

(A) by inserting for agronomic rotational purposes and as a habitat for honey bees and other pollinators after alternative crops; and

(B) by striking commodities whose and all that follows through the period at the end and inserting commodities.;

(3) in subsection (c)(3)(E), by inserting (including hemp (as defined in section 297A of the Agricultural Marketing Act of 1946)) after material; and

(4) in subsection (e)(2), by striking 2018 and inserting 2023.

SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT.

(a) Hemp Research.—Section 5(b)(9) of the Critical Agricultural Materials Act (7 U.S.C. 178c(b)(9)) is amended by inserting , and including hemp (as defined in section 297A of the Agricultural Marketing Act of 1946) after hydrocarbon-containing plants.

SEC. 7415. LEGITIMACY OF INDUSTRIAL HEMP RESEARCH.

(a) In General.—Section 7606 of the Agricultural Act of 2014 (7 U.S.C. 5940) is amended—

(1) by redesignating subsections (a) and (b) as subsections (b) and (a), respectively, and moving the subsections so as to appear in alphabetical order;

(2) in subsection (b) (as so redesignated), in the subsection heading, by striking In General and inserting Industrial Hemp Research; and

(3) by adding at the end the following:

“(c) Study And Report.—

“(1) IN GENERAL.—The Secretary shall conduct a study of agricultural pilot programs—

“(A) to determine the economic viability of the domestic production and sale of industrial hemp; and

“(B) that shall include a review of—

“(i) each agricultural pilot program; and

“(ii) any other agricultural or academic research relating to industrial hemp.

“(2) REPORT.—Not later than 120 days after the date of enactment of this subsection, the Secretary shall submit to Congress a report describing the results of the study conducted under paragraph (1).”.

(b) Repeal.—Effective on the date that is 1 year after the date on which the Secretary establishes a plan under section 297C of the Agricultural Marketing Act of 1946, section 7606 of the Agricultural Act of 2014 (7 U.S.C. 5940) is repealed.



SEC. 10111. HEMP PRODUCTION.

The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) is amended by adding at the end the following:



“Subtitle GHemp Production

SEC. 297A. DEFINITIONS.

In this subtitle:

“(1) HEMP.—The term hemp means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.

“(2) INDIAN TRIBE.—The term Indian tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304).

“(3) SECRETARY.—The term Secretary means the Secretary of Agriculture.

“(4) STATE.—The term State means—

“(A) a State;

“(B) the District of Columbia;

“(C) the Commonwealth of Puerto Rico; and

“(D) any other territory or possession of the United States.

“(5) STATE DEPARTMENT OF AGRICULTURE.—The term State department of agriculture means the agency, commission, or department of a State government responsible for agriculture in the State.

“(6) TRIBAL GOVERNMENT.—The term Tribal government means the governing body of an Indian tribe.

SEC. 297B. STATE AND TRIBAL PLANS.

“(a) Submission.—

“(1) IN GENERAL.—A State or Indian tribe desiring to have primary regulatory authority over the production of hemp in the State or territory of the Indian tribe shall submit to the Secretary, through the State department of agriculture (in consultation with the Governor and chief law enforcement officer of the State) or the Tribal government, as applicable, a plan under which the State or Indian tribe monitors and regulates that production as described in paragraph (2).

“(2) CONTENTS.—A State or Tribal plan referred to in paragraph (1)—

“(A) shall only be required to include—

“(i) a practice to maintain relevant information regarding land on which hemp is produced in the State or territory of the Indian tribe, including a legal description of the land, for a period of not less than 3 calendar years;

“(ii) a procedure for testing, using post-decarboxylation or other similarly reliable methods, delta-9 tetrahydrocannabinol concentration levels of hemp produced in the State or territory of the Indian tribe;

“(iii) a procedure for the effective disposal of products that are produced in violation of this subtitle;

“(iv) a procedure to comply with the enforcement procedures under subsection (d);

“(v) a procedure for conducting annual inspections of a random sample of hemp producers—

“(I) to verify that hemp is not produced in violation of this subtitle; and

“(II) in a manner that ensures that a hemp producer is subject to not more than 1 inspection each year; and

“(vi) a certification that the State or Indian tribe has the resources and personnel to carry out the practices and procedures described in clauses (i) through (v); and

“(B) may include any other practice or procedure established by a State or Indian tribe, as applicable, to the extent that the practice or procedure is consistent with this subtitle.

“(3) RELATION TO STATE AND TRIBAL LAW.—

“(A) NO PREEMPTION.—Nothing in this subsection preempts or limits any law of a State or Indian tribe regulating the production of hemp, to the extent that law is consistent with this subtitle.

“(B) REFERENCES IN PLANS.—A State or Tribal plan referred to in paragraph (1) may include a reference to a law of the State or Indian tribe regulating the production of hemp, to the extent that law is consistent with this subtitle.

“(b) Approval.—

“(1) IN GENERAL.—Not later than 60 days after receipt of a State or Tribal plan under subsection (a), the Secretary shall—

“(A) approve the State or Tribal plan if the State or Tribal plan complies with subsection (a); or

“(B) disapprove the State or Tribal plan only if the State or Tribal plan does not comply with subsection (a).

“(2) AMENDED PLANS.—If the Secretary disapproves a State or Tribal plan under paragraph (1)(B), the State, through the State department of agriculture (in consultation with the Governor and chief law enforcement officer of the State) or the Tribal government, as applicable, may submit to the Secretary an amended State or Tribal plan that complies with subsection (a).

“(3) CONSULTATION.—The Secretary may consult with the Attorney General in carrying out this subsection.

“(c) Technical Assistance.—The Secretary may provide technical assistance to a State or Indian tribe in the development of a State or Tribal plan under subsection (a).

“(d) Violations.—

“(1) IN GENERAL.—A violation of a State or Tribal plan approved under subsection (b) shall be subject to enforcement solely in accordance with this subsection.

“(2) NEGLIGENT VIOLATIONS.—

“(A) IN GENERAL.—A hemp producer in a State or the territory of an Indian tribe for which a State or Tribal plan is approved under subsection (b) shall be subject to subparagraph (B) of this paragraph if the State department of agriculture or Tribal government, as applicable, determines that the hemp producer has negligently violated the State or Tribal plan, including by negligently—

“(i) failing to provide a legal description of land on which the producer produces hemp;

“(ii) failing to obtain a license or other required authorization from the State department of agriculture or Tribal government, as applicable; or

“(iii) producing Cannabis sativa L. with a delta-9 tetrahydrocannabinol concentration of more than 0.3 percent on a dry weight basis.

“(B) CORRECTIVE ACTION PLAN.—A hemp producer described in subparagraph (A) shall comply with a plan established by the State department of agriculture or Tribal government, as applicable, to correct the negligent violation, including—

“(i) a reasonable date by which the hemp producer shall correct the negligent violation; and

“(ii) a requirement that the hemp producer shall periodically report to the State department of agriculture or Tribal government, as applicable, on the compliance of the hemp producer with the State or Tribal plan for a period of not less than the next 2 calendar years.

“(C) RESULT OF NEGLIGENT VIOLATION.—Except as provided in subparagraph (D), a hemp producer that negligently violates a State or Tribal plan under subparagraph (A) shall not as a result of that violation be subject to any criminal or civil enforcement action by the Federal Government or any State government, Tribal government, or local government other than the enforcement action authorized under subparagraph (B).

“(D) REPEAT VIOLATIONS.—A hemp producer that negligently violates a State or Tribal plan under subparagraph (A) 3 times in a 5-year period shall be ineligible to produce hemp for a period of 5 years beginning on the date of the third violation.

“(3) OTHER VIOLATIONS.—

“(A) IN GENERAL.—If the State department of agriculture or Tribal government in a State or the territory of an Indian tribe for which a State or Tribal plan is approved under subsection (b), as applicable, determines that a hemp producer in the State or territory has violated the State or Tribal plan with a culpable mental state greater than negligence—

“(i) the State department of agriculture or Tribal government, as applicable, shall immediately report the hemp producer to—

“(I) the Attorney General; and

“(II) in the case of a State department of agriculture, the chief law enforcement officer of the State; and

“(ii) paragraph (1) of this subsection shall not apply to the violation.

“(B) FELONY.—Any person convicted of a felony relating to a controlled substance under State or Federal law shall be ineligible—

“(i) to participate in the program established under this section; and

“(ii) to produce hemp under any regulations or guidelines issued under section 297D(a).

“(C) FALSE STATEMENT.—Any person who materially falsifies any information contained in an application to participate in the program established under this section shall be ineligible to participate in that program.

“(e) Authorization Of Appropriations.—There are authorized to be appropriated such sums as are necessary to carry out this section.

“(f) Effect.—Nothing in this section prohibits the production of hemp in a State or the territory of an Indian tribe for which a State or Tribal plan is not approved under this section in accordance with section 297C or other Federal laws (including regulations).

SEC. 297C. DEPARTMENT OF AGRICULTURE.

“(a) Department Of Agriculture Plan.—

“(1) IN GENERAL.—In the case of a State or Indian tribe for which a State or Tribal plan is not approved under section 297B, the production of hemp in that State or the territory of that Indian tribe shall be subject to a plan established by the Secretary to monitor and regulate that production in accordance with paragraph (2).

“(2) CONTENT.—A plan established by the Secretary under paragraph (1) shall include—

“(A) a practice to maintain relevant information regarding land on which hemp is produced in the State or territory of the Indian tribe, including a legal description of the land, for a period of not less than 3 calendar years;

“(B) a procedure for testing, using post-decarboxylation or other similarly reliable methods, delta-9 tetrahydrocannabinol concentration levels of hemp produced in the State or territory of the Indian tribe;

“(C) a procedure for the effective disposal of products that are produced in violation of this subtitle;

“(D) a procedure to comply with the enforcement procedures under subsection (c)(2);

“(E) a procedure for conducting annual inspections of a random sample of hemp producers—

“(i) to verify that hemp is not produced in violation of this subtitle; and

“(ii) in a manner that ensures that a hemp producer is subject to not more than 1 inspection each year; and

“(F) such other practices or procedures as the Secretary considers to be appropriate, to the extent that the practice or procedure is consistent with this subtitle.

“(b) Licensing.—The Secretary shall establish a procedure to issue licenses to hemp producers in accordance with a plan established under subsection (a).

“(c) Violations.—

“(1) IN GENERAL.—In the case of a State or Indian tribe for which a State or Tribal plan is not approved under section 297B, it shall be unlawful to produce hemp in that State or the territory of that Indian tribe without a license issued by the Secretary under subsection (b).

“(2) NEGLIGENT AND OTHER VIOLATIONS.—A violation of a plan established under subsection (a) shall be subject to enforcement in accordance with paragraphs (2) and (3) of section 297B(d), except that the Secretary shall carry out that enforcement instead of a State department of agriculture or Tribal government.

“(3) REPORTING TO ATTORNEY GENERAL.—In the case of a State or Indian tribe covered by paragraph (1), the Secretary shall report the production of hemp without a license issued by the Secretary under subsection (b) to the Attorney General.

SEC. 297D. AUTHORITY TO ISSUE REGULATIONS AND GUIDELINES; EFFECT ON OTHER LAW.

“(a) Authority.—

“(1) IN GENERAL.—The Secretary shall have sole authority to issue Federal regulations and guidelines that relate to the production of hemp, including Federal regulations and guidelines that relate to the implementation of sections 297B and 279C.

“(2) CONSULTATION WITH ATTORNEY GENERAL.—The Secretary may consult with the Attorney General before issuing regulations and guidelines under paragraph (1).

“(b) Effect On Other Law.—Nothing in this subtitle shall affect or modify—

“(1) the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.); or

“(2) the authority of the Commissioner of Food and Drugs and the Secretary of Health and Human Services under that Act.”.

SEC. 10112. RULE OF CONSTRUCTION.

Nothing in this title authorizes interference with the interstate commerce of hemp (as defined in section 297A of the Agricultural Marketing Act of 1946, as added by section 10111).TITLE XICROP INSURANCE

SEC. 11101. DEFINITIONS.

Section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)) is amended—

(1) by redesignating paragraphs (6), (7), (8), (9), (10), and (11) as paragraphs (7), (8), (10), (11), (12), and (13) respectively;

(2) by inserting after paragraph (5) the following:

“(6) COVER CROP TERMINATION.—The term cover crop termination means a practice that historically and under reasonable circumstances results in the termination of the growth of a cover crop.”; and

(3) by inserting after paragraph (8) (as so redesignated) the following:

“(9) HEMP.—The term hemp has the meaning given the term in section 297A of the Agricultural Marketing Act of 1946.”.



Leave a Reply