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CBD, Industrial Hemp & The Farm Bill Act of 2018

    The 2018 Farm Bill (officially the Agriculture Improvement Act of 2018), which impacts how CBD in Cannabis sativa is regulated, was signed into law on Dec. 20, 2018.

    According to the 2018 Farm Bill, “hemp” is now defined as “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 [THC] concentration of not more than 0.3 percent on a dry weight basis.” This means CBD and hemp extracts may be included in federally legal products for sale, provided the concentration of THC does not exceed the limit defined in the Farm Bill.

The largest change for hemp is hemp and hemp-derived products will no longer be Schedule I controlled substances. This is huge news. It removes the issue of hemp and hemp-derived CBD from being federally illegal and means banking with checking accounts and loans at normal interest rates can be obtained in the industry.

    Further, the IRS should remove the 280E tax code for hemp, which considers all hemp and cannabis businesses to be “trafficking” Schedule I or II drugs and dictates only deductible expenses in the business are the cost of goods sold. This tax code excludes most normal business expenses, and it extremely limits profits within the hemp and cannabis industry.

    USDA will regulate the growing of hemp, and FDA will regulate any products containing hemp or CBD that are sold as topicals, food additives, dietary supplements or drugs. Interstate commerce of hemp and hemp products can now legally occur. Individual states can refuse to allow sales in their state, but a state cannot interfere with interstate commerce: transport of hemp through the state.

    Only a few hours after President Donald Trump signed the 2018 Farm Bill into law, FDA Commissioner Scott Gottlieb, M.D., issued a statement of FDA’s position on the 2018 Farm Bill.

“Just as important for the FDA and our commitment to protect and promote the public health is what the law didn’t change: Congress explicitly preserved the agency’s current authority to regulate products containing cannabis or cannabis-derived compounds under the Federal Food, Drug, and Cosmetic Act (FD&C Act) and section 351 of the Public Health Service Act.” 

    The pioneers of the hemp industry should be praised for their courage and sacrifice to get the industry to the point of federal acceptance that it has achieved. They have done so because they believe in the therapeutic benefits of hemp and CBD and its safety. However, the hemp industry has worked outside of federal regulations for all this time and must now work with FDA to ensure hemp and CBD products fit within one of the predefined FDA categories and are legal for interstate commerce. This is the only pathway forward for CBD and hemp extracts.

Meet Payton and learn about her journey with CBD and neuropathic pain.