26 Investor Report Industrial Hemp Sector New Zealand ’ s New Export Opportunity 2020
Controlled Substances Act , which banned cannabis of any kind .
Federal policy did recognise ‘ industrial hemp ’ to the extent that pilot programmes to study hemp and market interest in hemp-derived products were approved by the USA , and by state departments of agriculture . This permitted small-scale expansion of hemp cultivation , for limited purposes .
However , the US Farm Bill is much broader , and is regarded as “ drastically ” transforming hemp policy in the US . It allows hemp cultivation broadly , not just pilot programmes . It explicitly allows the transfer of hemp-derived products across state lines for commercial or other purposes . In addition , it controls the sale , transport or possession of hempderived products , so long as those items are produced in a manner consistent with the law .
There is significant , shared state-federal regulatory power over hemp cultivation and production . State departments of agriculture must consult with the state ’ s governor and chief law enforcement officer to devise a plan that must be submitted to the Secretary of USDA . A state ’ s plan to license and regulate hemp can only commence once the Secretary of USDA approves that state ’ s plan .
In states opting not to devise a hemp regulatory programme , the USDA construct a regulatory regime under which hemp cultivators in those states , apply for licences and comply with a federallyrun programme .
The effect of the Farm Bill has been to dramatically increase the number of US hemp cultivation licences . Moving from pilot programmes to Farm Bill endorsed cultivation has meant an increase in licences from 3,546 in 2018 to 16,877 in 2019 . Similarly , hemp acreage has increased from 78,176 in 2018 to 230,000 in 2019 .
There is a misperception that the Farm Bill legalises CBD . While it has removed hempderived products from its Schedule 1 status under the Controlled Substances Act , the legislation does not legalise CBD , which remains a Schedule 1 substance under federal law .
The Farm Bill creates exceptions to that illegality ; it ensures that any cannabinoid that is derived from hemp will be legal , if and only if that hemp is produced in a manner consistent with the Farm Bill , associated federal regulations , associated state regulations , and by a licensed grower . All other cannabinoids , produced in any other setting , remain a Schedule 1 substance under federal law and are therefore illegal . ( The only exception are pharmaceutical-grade drugs approved by the FDA ).
Previously CBD products produced by state-legal , medical or recreational use cannabis jurisdictions - were illegal products under federal law , both within states and across state lines . Under the Farm Bill , CBD products are more broadly available , however this does not mean that all CBD products are legal .
In addition , state legal cannabis ( as compared to hemp ) programmes are still illegal under federal law . However , there is hope among interested parties that reforms to hemp policy under the Farm Bill may serve as a first step toward wider cannabis reform .
The US Food and Drug Administration ( FDA ) is an agency that is also obstructing the industry to some extent . To date , it has approved only one CBD product , a prescription drug to treat two rare , and severe forms of epilepsy . Its position is that it is illegal to market CBD by adding it to a food or labelling it as a dietary supplement .
The FDA states that it is “ committed to protecting public health while also taking steps to