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With Trump’s signature on the Farm Bill, hemp gains federally legal status.
President Donald Trump has signed hemp legalization into law, a change expected to unleash seismic market changes for the hemp industry.
Trump’s signature on the 2018 Farm Bill immediately removes hemp – defined cannabis below 0.3% THC – from the Controlled Substances Act.
The change also applies to extracts from hemp, including CBD and other cannabinoids.
Federal drug authorities will have to treat hemp like any other agricultural commodity, such as wheat or potatoes, and hemp farmers will no longer face legal or regulatory burdens of being classified as an illegal drug, such as difficulty getting crop insurance or barriers to getting loans.
2018 farm bill has removed hemp from the list of controlled substances, opening the floodgates for hemp-derived products.
There is already a strong demand in the U.S. for products containing Cannabidiol, or CBD, a natural chemical component of cannabis and hemp that's non-psychotropic, meaning it doesn't get you high. Companies offering CBD products have a tremendous opportunity, as proponents of CBD claim the substance offers anti-anxiety, anti-inflammatory, and pain-relieving effects. Consumers are already embracing CBD as a product to be incorporated into their daily lives.
CBD is popping up in a wide variety of products including oils, lotions, soaps, and beauty goods. The newest niche is the food and beverage industry, where businesses have added it to snacks, coffee, ice cream, and cocktails. By 2020, CBD is expected to make its way into yogurts, soups, and even salad dressings, according to a report on 2019 food trends from snack-maker Kind.
Touted as a wonder drug capable of easing anxiety, reducing inflammation, and preventing seizures, cannabidiol, or CBD, has been growing rapidly in popularity. Following approval of the 2018 federal farm bill, the American hemp CBD market alone is projected to reach $20 billion by 2020.
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