For decades, the cultivation of industrial hemp has been banned in the United States due to its resemblance to its cousin cannabis. This was reinforced by the Controlled Substances Act of 1970, which virtually prohibited hemp production. However, two weeks ago, the North Carolina House of Representatives and Senate approved a bill that would legalize industrial hemp production in the state. This legislation makes hemp a dominant crop, while also providing provisions that strongly regulate it.
Hemp has a variety of uses for textiles, food, cosmetics and other purposes. It was once vital in almost every sector of an industrial society and is the raw material for rope. The Agricultural Act of 2018 removed hemp-derived products from their Schedule I status under the Controlled Substances Act, but this does not legalize CBD in general. Last week, Bruce Dietzen drove from Florida to Colorado in a deep red convertible made of hemp.
The publication of an interim standard allows other agencies and industries, such as financial institutions and crop insurance providers, to begin establishing their own guidelines and procedures for dealing with industrial hemp. The issue of interstate commerce arises when something, such as industrial hemp, is legal in some states and federally, but illegal in other states. The pilot programs allowed to study hemp (often referred to as “industrial hemp”) that were approved by both the U. S.
Department of Agriculture (USDA) and Drug Enforcement Administration (DEA) provide a general idea of where hemp is grown in the country. The existence of these rules also allows farmers to obtain funding and use other financial services if they produce hemp. Furthermore, it does not impose restrictions on the sale, transportation or possession of hemp-derived products, provided that those items are produced in a manner compatible with the law. It is clear that with this new legislation, hemp policy in the United States has been drastically transformed. We hope that with the publication of this rule, the banking industry will develop an appropriate guide that allows farmers to obtain funding and use other financial services if they produce hemp.