How the 2023 Farm Bill May Impact the CBD/Hemp Industry
As 2023 swiftly approaches, so too do new pieces of legislation that impact many of us in a variety of ways. One such bill will be the updated farm bill. This bill touches everything from the food and products we consume, to how they are produced and sourced. The production of CBD and hemp fall under this umbrella, and how the 2023 draft unfolds will have great implications for the CBD industry.
With the sharp rise in demand for CBD products, the 2023 version of the farm bill may help pave the way for a sustainable future for hemp production.
This article outlines some potential improvements pointed out to the subcommittee earlier this year. While the bill has yet to be debated and drafted, each of these amendments could potentially have a massive impact on the CBD industry in ways that will benefit both consumers of hemp based products and the companies that produce them.
A Brief History of the Farm Bill
The farm bill was originally rolled out in the 1930s as part of Franklin Deleno Roosevelt’s New Deal legislation. This original bill had three primary goals:
- To keep food prices fair for both farmers and consumers.
- To guarantee an adequate food supply.
- To protect and preserve the nation’s natural resources.
Furthermore, this legislation sought to address the economic and environmental threats brought on by the Dust Bowl and the Great Depression.
While significant changes have been made to the bill over the years, its core goals have remained.
Every 5 years, the farm bill expires. The bill is then updated and goes through the process of being introduced, debated, and passed by Congress before it gets signed into law by the President of the United States. The current farm bill, known as the Agricultural Improvement Act of 2018, was signed into law by former U.S. President Donald J Trump, and it will expire in 2023.
How Did the Agricultural Improvement Act of 2018 Impact the Hemp Industry?
When this bill was enacted in 2018, it legalized hemp at the federal level. This had a major impact on the financial future of the hemp industry across the nation.
While the U.S. Food and Drug Administration has yet to allow CBD in foods and beverages, the demand for CBD based products has propelled the hemp industry to a net worth exceeding $800 million.
This hesitancy from the FDA regarding CBD impacts the consumer because there is not a clear regulatory path to ensure the safety of a product.
What Will Be In the 2023 Update?
Over the course of 2023, lawmakers will draft a new farm bill to be signed into legislation for the following 5 years.
In the summer of 2022, the House Agriculture Subcommittee on Biotechnology, Horticulture, and Research held a congressional panel. This was in an effort to see in which ways the current rules on hemp production may be improved with the next farm bill.
Some key areas for improvement brought up by panelists included:
- Addressing the FDA’s stance on CBD products.
- Raising the allowable THC threshold in hemp products from 0.3% to 1%.
- Revising bank regulations and easing limitations for hemp companies.
- Removing the cumbersome Drug Enforcement Administration’s lab testing requirement for hemp.
- Providing a USDA stamp of approval for hemp that is shipped between different jurisdictions in the U.S.
Each of these proposed improvements would help to ensure the quality and safety of all hemp based products going to U.S. consumers. Revising bank regulations will help hemp companies obtain the loans needed to build thriving businesses. With these updated regulations both hemp companies and their customers may experience an even healthier industry.
If you would like your voice to be heard by those who will have the ultimate say in how the new farm bill rolls out, the United States Senate Committee on Agriculture, Nutrition, and Forestry has provided a form for public opinion and feedback on their website.
The Importance of High Quality CBD
Regardless of how the 2023 farm bill shapes up, it is essential that consumers are presented with the best products in quality and safety.
A brand is only as good as its product and reputation. At KND Labs, we partner with our customers to ensure that every product passed on to consumers is the cream of the crop when it comes to quality and safety standards. As the most compliant CBD ingredients manufacturer across all industries – from pet products to pharmaceuticals – we have demonstrated our commitment to this promise.
With an amended farm bill that reflects the issues brought to light, more hemp producers and brands will be held to a higher standard regarding the quality of the products that end up in consumers’ hands. This would be a win-win for industry leaders and consumers alike.
Want to learn more about our commitment to quality and safety?
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