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Jonathan Miller: U.S. Farm bill passes; era of hemp prohibition over, will be multi-billion industry by 2020


The era of hemp prohibition is over.

From drafts of our founding documents to the sustainable paneling of 21st-century cars, hemp’s versatility and strength have made it the fabric of the American imagination. Today, hemp is used in clothing, biofuels, plastics, personal care, feed and food. Economic experts predict a multi-billion-dollar U.S. hemp industry by 2020.

During most of the last several decades, however, we had to import all of our hemp. It was illegal to grow in the U.S. because it was erroneously classified as a controlled substance. That all changed a few years ago when the U.S. Congress and more than 40 state legislatures permitted hemp cultivation as part of a research pilot program.

Today, Congress and the President have declared that the pilot program experiment has been an unqualified success. Thousands of jobs have already been created across the country, and American farmers realize that this is a meaningful economic opportunity.

Today, immediately, the Farm Bill instructs:

Hemp is now permanently removed from the Controlled Substances Act (CSA). It is forever deemed an agricultural commodity, no longer mistaken as a controlled substance, like marijuana.

By redefining hemp to include its “extracts, cannabinoids and derivatives,” Congress explicitly has removed popular hemp products — such as hemp-derived cannabidiol (CBD) — from the purview of the CSA. Accordingly, the Drug Enforcement Administration no longer has any possible claim to interfere with the interstate commerce of hemp products. This should give comfort to federally regulated institutions — banks, merchant services, credit card companies, e-commerce sites and advertising platforms — to conduct commerce with the hemp and hemp product industry.

Jonathan Miller

Hemp farmers now may finally access needed crop insurance and can fully participate in USDA programs for certification and competitive grants.

State and Tribal governments may impose separate restrictions or requirements on hemp growth and the sale of hemp products. We are hopeful that local and state officials will follow Congress’ lead, as well as the statements and resolutions of the World Health Organization and the U.S. Food and Drug Administration (FDA) that declare, after intense scientific scrutiny, that CBD is safe, non-toxic, and non-addictive.

The FDA continues to exercise jurisdiction over the regulation of ingestible and topical hemp products. We applaud the agency’s continued efforts to crack down on bad actors who undermine the industry through misguided marketing claims. And while we are concerned about non-binding statements made by the FDA that have led some state and local officials to question the legality of the retail sale of hemp-derived CBD, we are hopeful that we can work with the agency to clarify that CBD – which their own scientists concluded has no abuse potential and does not pose a risk to public health – should not be withheld from millions of Americans who count on it for their health and wellness.  To that end, the industry recently launched the U.S. Hemp Authority’s Certification Program which provides best practices and self-regulation, giving confidence to consumers and law enforcement that certified hemp products adhere to the highest standards.

We are deeply grateful to the bi-partisan group of Congressman who brought us to the moment. First and foremost, we thank Senate Majority Leader Mitch McConnell, who showed extraordinary leadership in putting the full weight of his influence behind passage of the hemp provisions in the Farm Bill in order to provide opportunity to Kentucky farmers. We are also grateful to Senators Ron Wyden and Rand Paul for their long-time leadership on the issue, to Rep. Jamie Comer for leading the effort in the House after setting the legalization process in motion as Kentucky’s Agriculture Commissioner, and to Reps. Bob Goodlatte, Earl Blumenauer, Jared Polis, and Thomas Massie for their continuing strong support. Finally, we appreciate the support from farm groups such as the American Farm Bureau Federation and the National Farmers Union, as well as state Agriculture Commissioners, especially Kentucky’s Ryan Quarles.

The U.S. Hemp Roundtable is the hemp industry’s leading business trade association. The Roundtable involves more than 60 businesses – representing all parts of the hemp food chain, from seed to sale – as well as all of the major national grassroots organizations in the industry. The Roundtable’s primary mission has been to support lobbying efforts to secure permanent legalization of hemp and hemp products at the federal and state level.

Jonathan Miller, General Counsel to the U.S. Hemp Roundtable, is the Member-in-Charge of Frost Brown Todd LLC (Lexington) and the former Kentucky State Treasurer and former Chair of the Kentucky Democratic Party.

The U.S. Hemp Roundtable can be found at www.hempsupporter.com
The U.S. Hemp Authority can be found at www.ushempauthority.org


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