The farm bill helps removes obstacles farmers face in growing hemp, including restricted access to banking, water rights and crop insurance. Hemp is easier to grow than cotton, corn or soybeans as it requires little water and can be viable in lower-quality soil that is not practical for other crops.
“I used my very own hemp pen to sign the conference report, clearing the way for the House and Senate to pass legislation and send it to the president’s desk. I’m proud that the bill includes my provision to legalize the production of industrial hemp. It’s a victory for farmers and consumers throughout our country,” McConnell said when the Senate advanced the farm bill earlier this month.
Hemp production and sales have historically been illegal under the same federal prohibition against marijuana. The farm bill only deals with industrial hemp and does not address recreational or medical marijuana.
The fiber of hemp, a non-intoxicating derivative of the cannabis plant, is used to make a variety of products, such as cardboard, carpets, clothes, paper and more.
The hemp provision is just one of several aspects of the farm bill meant to aid farmers as exports of agricultural products such as soybeans take a hit as Trump engages in a bitter trade war with China and other countries.
Vicente, who has written ballot initiatives around the country, represents patients and caregivers. The firm helps people who want to start a new business and helps investors place capital in some of the larger companies. He said over the last 12 months, the biggest change in his business has been the increase in work from cbd and hemp companies.
Next year, the company expects to extract CBD oil from its own crop and produce its own products. Weissman’s aiming to produce 1,000 pounds an acre. He said compared to hay which sells for between $500 and $1,000 an acre, he expects to make as much as $50,000 an acre, including the CBD extraction and selling products containing the oil. He also expects to get more farmers to let his company grow hemp on their land.
Even though hemp can’t give you a buzz, all cannabis plants were outlawed in 1970, when the Drug Enforcement Administration was created and began fighting “The War on Drugs.” The new Farm Bill, which allocates billions of dollars in subsidies to American farmers, ended all that.
“It’s a branded space where no one company owns more than 4% of the market in any state and companies with strong brands trade at a higher multiple.”
Rick Weissman co-founded High Falls Agriculture with his wife, Tricia Horst, in 2017. The company received a license to grow hemp in High Falls, N.Y., and produced its first harvest in 2018, growing 1,500 pounds of hemp on about 12 acres.
One of the biggest problems the company experienced in 2018 was with its credit card processor. Before the Farm Bill, the sale of hemp and marijuana was restricted by the federal government. This led most banks, credit card companies and other payment systems to refuse to process payments for sales of cannabis products.
This is leading to greater efficiency, economies of scale, and lower costs of production.