17 States Are Ignoring Federal Hemp Laws and Markets Are Thriving

Even with the liberalization of the law in 2014, the federal government still prohibits industrial hemp production for commercial purposes. But this hasn’t stopped more than a dozen states from developing commercial hemp markets anyway. They’ve simply ignored the federal laws, nullifying prohibition in effect within their borders. Seventeen states specifically authorize and license commercial hemp production despite federal prohibition, and many other states allow commercial cultivation despite paying lip-service to federal law. FEDERAL FARM BILL In 2014, Congress cracked the door open for hemp in the U.S. with an amendment to the 2014 Farm Bill. The law allows hemp cultivation for research purposes, but prohibits “commercial” production. The “hemp amendment” in the 2014 farm bill—

…allows State Agriculture Departments, colleges and universities to grow hemp, defined as the non-drug oilseed and fiber varieties of Cannabis, for academic or agricultural research purposes, but it applies only to states where industrial hemp farming is already legal under state law.

In 2016, the U.S. Department of Agriculture and Drug Enforcement Agency released a “statement of principles” to guide interpretation of the hemp section in the Farm Bill. It states:

The growth and cultivation of industrial hemp may only take place in accordance with an agricultural pilot program to study the growth, cultivation, or marketing of industrial hemp established by a State department of agriculture or State agency responsible for agriculture in a State where the production of industrial hemp is otherwise legal under State law.

In short, the current federal law authorizes farming of hemp – by research institutions, or within state pilot programs – for research only. Farming for commercial purposes by individuals and businesses remains prohibited. The definition of “commercial” and the extent to which sales and marketing are allowed under the rubric of “research” remains murky. This has created significant confusion. The statement of principles also asserted that industrial hemp programs are limited to fiber and seed. It didn’t mention the CBD oil or other edible hemp products. In fact, the DEA has declared CBD illegal, and the FDA has also indicated hemp food products manufactured through research programs also violate federal law. The DEA has since reiterated its stand on CBD oil, saying it cannot be sold under any circumstances. An Indiana TV station interviewed DEA spokesman Rusty Payne. who affirmed this position. “It’s not legal. It’s just not.” Payne said cannabis plants are considered a Schedule I controlled substance, and medicinal oils derived from cannabis plants are illegal according to two federal laws: the Controlled Substance Act and the Food, Drug and Cosmetic Act. He said confusion surrounding the 2014 farm bill is frequently cited as legal justification by those who want to manufacture, sell or use CBD oil. The DEA believes the Farm Bill permits only CBD research — not CBD marketing and sales. “Anybody who’s in violation [of the federal laws] always runs that risk of arrest and prosecution,” he said. (Read more)

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