Hemp is now a legitimate American crop, and state policymakers have been hard at work to ensure that the definition of hemp, the licensing of producers, the regulation and certification of seeds, state commissions, and the legal protection of producers are all in order. Leader McConnell has been praised for his administration of hemp provisions in the Farm Bill and his leadership in legislation in general. Before the rule, many in the banking sector were looking for greater clarity about the legal and regulatory landscape surrounding funding in the hemp sector. While there are provisions that strongly regulate hemp, and there is concern among law enforcement that cannabis plants used to obtain marijuana are mixed with hemp plants, this legislation makes hemp a dominant crop.
McConnell's efforts have been instrumental in getting these hemp provisions into legislation. Anyone who falsifies any information in their application to participate in hemp production will be banned from participating in the future. These new regulations offer much needed guidance for farmers and others involved in industrial hemp production. However, the new Farm Bill does not create a completely free system in which individuals or companies can grow hemp whenever and wherever they want.
The banking industry has been waiting for these regulations to develop its own procedures regarding deposits from hemp operations. Each of these programs is illegal under federal law, with no exceptions, and the Farm Bill does nothing to change that. The ramifications of non-compliance range from corrective action plans to a permanent ban on participation in hemp production. Such a measure would require the ingredient to meet other FDCA requirements, including those required for food additives or new dietary ingredients, which could pose a challenge for certain ingredients derived from hemp.
In addition, section 7501 of the Agricultural Act expands research on hemp by including hemp under the Agricultural Materials Act. Under the USDA, eligible hemp producers may also be eligible for other programs, such as agricultural loans and participation in USDA conservation programs. The legalization of hemp has been a long time coming and has been met with much enthusiasm from advocates across the country. It is clear that Leader McConnell's efforts have been instrumental in getting these provisions into legislation and providing much needed guidance for farmers and others involved in industrial hemp production. The banking industry has also been waiting for these regulations to develop its own procedures regarding deposits from hemp operations.
While there are still some restrictions on growing hemp, it is now a legitimate American crop with many potential benefits.
