2023 Farm Bill
As a hemp or CBD operator, staying up to date on the regulatory landscape surrounding your industry is crucial. One key piece of legislation that has significantly impacted the hemp and CBD industries is the Agricultural Improvement Act of 2018, commonly known as the Farm Bill. Here’s what hemp and CBD operators need to know about the expiration of the Farm Bill and when it is set to expire.
When does the Farm Bill expire?
The Farm Bill was passed in 2018 and was signed into law on December 20, 2018. The provisions of the Farm Bill were set to expire in five years, on September 30, 2023. However, some of the requirements of the Farm Bill, such as those related to crop insurance, nutrition assistance, and other programs, are permanent and will not expire.
What does the expiration of the Farm Bill mean for hemp and CBD operators?
The expiration of the Farm Bill could have significant implications for the hemp and CBD industries. Some of the potential impacts include:
1. Hemp could be reclassified as a controlled substance.
One of the most significant provisions of the Farm Bill was that it removed hemp from the list of controlled substances under the Controlled Substances Act. Suppose the Farm Bill is allowed to expire without being renewed or replaced. In that case, hemp could again be classified as a controlled substance, severely affecting hemp farmers and businesses relying on hemp-derived products.
2. CBD could be subject to increased regulation.
The Farm Bill established a framework for regulating CBD products, requiring the FDA to develop regulations for manufacturing and selling CBD. However, the FDA has yet to issue these regulations, and if the Farm Bill expires, it is unclear what the regulatory landscape for CBD will look like. As a result, CBD could be subject to increased regulation, making it more difficult for businesses to operate in this space.
3. State-level regulations could become more critical.
Even if the Farm Bill expires, it is essential to note that many states have already passed their own laws legalizing hemp and CBD. If the federal government does not renew or replace the Farm Bill with a new law, state-level regulations could become even more critical. This could create a patchwork of regulations that vary from state to state, making it more difficult for businesses to operate across state lines.
4. Access to banking and financial services could be impacted.
One of the challenges hemp and CBD businesses have faced since the passage of the Farm Bill is access to banking and financial services. If the Farm Bill expires, this could become an even more significant challenge. Banks and other financial institutions may hesitate to work with hemp and CBD businesses if the regulatory landscape becomes more uncertain.
What can hemp and CBD operators do to prepare for the expiration of the Farm Bill?
Hemp and CBD operators should stay informed about developments at the federal and state levels and be prepared to adapt to changing regulations. This includes keeping up to date with the latest news and guidance from regulatory agencies, such as the FDA and the USDA, as well as monitoring developments at the state level. Hemp and CBD operators should also work with accounting, tax, financial, and legal professionals with industry experience to help navigate the complex regulatory landscape surrounding their businesses.
In conclusion, the expiration of the Farm Bill could have significant implications for the hemp and CBD industries. Hemp and CBD operators should be aware of the potential impacts and take steps to prepare for changes in the regulatory landscape. By staying informed and working with trusted professionals, hemp and CBD operators can navigate these changes and continue to grow their businesses.