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If you’ve been following the hemp industry, you’ll know the impact of the 2023 Farm Bill on CBD this year could potentially be huge… from more laxed banking guidelines, to officially being regulated, there is a lot on the line. So, we’ll explain what the Farm Bill is, and how it can change the CBD industry completely, that way you (or your business) are ready for all the big things to come!
What is the 2023 Farm Bill?
Every 5 years or so, Congress passes an updated Farm Bill that determines policies and funding for a wide range of things under the U.S. Department of Agriculture- things like food assistance programs, rural development, natural resources, conservation, and so much more. The Farm Bill is an opportunity for the government to develop transformational federal programs for years to come. With the previous legislation set to expire this year (September), all eyes are on what will be included with the new 2023 Farm Bill. And while nothing has been signed yet, there is some speculation of what to expect with the upcoming measure.
How the 2023 Farm Bill may impact CBD
Without an official draft, we can’t be sure of what exactly will make the final cut… but here are some of the important hemp industry advances brought forward in discussions by the House Agriculture Subcommittee:
· Reconsideration of bank regulations: this would be major for CBD because banks would finally be able to provide loans to hemp companies, ultimately allowing them to grow into thriving, lucrative businesses.
· Focus on the FDA’s inaction: another big thing that could happen is the FDA is pressed to regulate CBD as a non-intoxicating substance. Without an established legal pathway, big retailers are hesitant to develop or produce CBD-related products and consumers are cautious about trying it.
· Reassessment of unnecessary DEA requirements: there are some current CBD requirements that aren’t needed- and in fact, they mostly just cause delays. The review of these constraints will allow farmers to plant hemp in a much easier, and much quicker, way.
· Provisions for a higher THC threshold: the push for raising the allowable amount of total THC (including delta-7, delta-8, delta-9, delta-10, and HHC) in CBD from 0.3% to 1%, and a separate definition for consumer-ready products, means better development of specialized hemp varieties that are adapted for specific reasons.
And these are just a few of the legislative developments to be on the lookout for this year! If your business is interested in taking advantage of the CBD market as it continues to explode- reach out to Align eCommerce where we’re here for your questions and for your payment processing needs.
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