US lawmakers have finally reached an agreement on the 2018 Farm Bill, ending months of debate on the subject.
A joint statement from the chairmen and ranking members of the Senate and House Agriculture Committees confirmed the news earlier today:
"We are pleased to announce that we’ve reached an agreement in principle on the Farm Bill.”
2018 Farm Bill
As an end to the debate, the Farm Bill effectively fully legalizes the growing of hemp across all 50 states of the US. Now, hemp-related stocks will be set alight.
Stocks such as Hemp Inc (OTC:HEMP), Charlotte's Web Holdings (CSE:CWEB), CROP Infrastructure Corp. (CSE:CROP), GW Pharmaceuticals plc (NASDAQ:GWPH), Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB), Isodiol International Inc. (CSE:ISOL), and Namaste Technologies Inc. (TSXV:N) may all benefit from the approval of this new hemp legislation.
Hemp vs. Marijuana
The biggest difference between hemp and marijuana is the level of THC—the psychoactive ingredient—present within the plant. In hemp, it is usually less than 0.3%, whereas marijuana is far more potent, with levels between 14%–25%.
Despite hemp's lack of mind-altering properties, the law has remained ambiguous surrounding it simply because it is a member of the cannabis species.
However, while marijuana remains illegal at the federal level, the recent 2018 Farm Bill agreement now means that cultivating hemp will be fully legal.
And this is exciting news for companies with a high focus on the CBD market, as hemp is rich in CBD.
>> CRON Stock: Soaring After News of Potential Altria Deal
CBD Market
As CBD will no longer remain in a legal grey area thanks to the hemp legislation, companies that have a strong focus on CBD products will be able to ramp up production. CROP Infrastructure is one example. Earlier this year the company began construction on a 2,100-acre hemp farm in Nevada. This farm was built in anticipation of the Farm Bill passing and is set to yield CBD from its hemp stocks.
The 2018 Farm Bill agreement now encourages companies to develop similar facilities in any state deemed suitable, as growing hemp will be fully legal.
The potential is now there for this industry to blossom, as the sector looks set to become a $22 billion industry by 2020.
Featured Image: Depositphotos/© Gajus-Images
