As the global perception on cannabis changes, the laws in the United States both its hemp laws and cannabis regulations. On December 20, 2018, President Trump signed the bi-partisan supported Agriculture Improvement Act of 2018 better known as the Farm Bill. The Farm Bill legalizes the commercial growing of hemp on the federal level as long as it contains less than .3% of tetrahydrocannabinol (THC).
Marijuana and Hemp are Same, Same, But Different according to the law
Cannabis is a growing billion dollar industry and interested people should learn about the opportunities. In this video, we discuss the legal history and 10+ business models.
Cannabis is a growing billion dollar industry and interested people should learn about the opportunities. In this video, we discuss the legal history and the 10+ Business Models
It is important to understand that while Marijuana and Hemp both come from the same Cannabis Plant, they have very different uses. Marijuana focuses on the Cannabis Plant’s euphoric psychoactive affects for medicinal, religious, and recreational purposes. Hemp does not have enough THC for mood altering effects and to get a person high.
Hemp has vast amounts of uses including:
- Body Care Products: soaps, shampoos, lotion, cosmetics;
- Textile Products: clothing, diapers, handbags, shoes, fabrics, biofuel;
- Building Materials: insulation, fiberboard, fiberglass substitutes; and
- Foods Products: oils, protein powder, food supplements, and herbal products.
Use the Law to Change the Law
It is important to understand that just because a law is in place, it does not mean the law is a correct or a moral law. The Italian philosopher Thomas Aquinas famously stated, “An unjust law is no law at all.” Therefore, the people have a duty to use the law to change the law they deem is unjust or unfair. This was done in 2004 when Hemp Industries Association sued the U.S. Drug Enforcement Administration (DEA).
The U.S. Controlled Substance Act defined hemp as having less than .3% THC and anything with more THC counted as marijuana. However, in 2003 the DEA essentially classified any amount of THC as a Schedule 1 drug. This placed hemp on the same level as heroin, ecstasy, and LSD.
It is important to note when there is a conflict in laws or when aspects of the law are interpreted differently, these situations are ideal to challenge legally.
The 9th U.S. Circuit ruled the DEA wrongfully regulated hemp by making it a scheduled drug. While the court’s ruling prevented hemp from being a scheduled drug, hemp was still not allowed to be grown in the U.S. Therefore, over the next 14 years, hemp had to be imported for use in various industries. However, the new hemp law allows hemp to be commercially grown creating new business opportunities.
The Hemp Laws Allows Countless Business Opportunities
With the New Farm Bill now passed, hemp laws will allow hemp to grow to an estimated $20 Billion Dollar Industry that everyone needs to be aware of. The beauty of hemp is that it:
Hemp in tea form offer numerous benefits
- Requires less water than crops such as corn, cotton, and soybeans;
- Doesn’t require high soil quality; and
- Can be grown densely which helps minimize the dangers of the hemp being choked by weeds.
Legalization of the uses of hemp allows countless business opportunities in many areas including:
- Transportation of hemp from the farm to markets;
- Marketing and product design of new hemp products;
- Research and Development experiments for new hemp derived products; and
- Drafting of contracts, creation of legal entities, facilitation of industry merger and acquisitions, and maintaining legal compliance with both Federal and State regulations to avoid criminal and civil penalties.
The Farm Bill extends another branch of business opportunity in the growing cannabis industry. There is plenty of room for everyone that is interested in this budding industry.
It will be important to follow the application guidelines in order to be approved for hemp commercial farming.
Individuals entering the hemp industry will need to legally separate themselves from their business to help protect themselves from being personally liable for lawsuits and other issues. They can do this by creating Limited Liability Companies, opening Business Bank Accounts, drafting Operating Agreements, and obtaining Crop Insurance, among many other things.