We take a look at the 2018 Farm Bill, what has happened since then in the hemp industry, and the budding CBD market.

2018 Farm Bill

Date signed: December 20, 2018

Cost: $867 Billion

Did You Know?

Under federal legislation, hemp cannot contain more than 0.3% THC (a.k.a. It cannot get you high!). Anything above this limit earns no legal protection.

Hemp Timeline

 ↓ PAST                                                                                    PRESENT ↑

1933: The Farm Bill originates as part of FDR’s New Deal. 2014: The Farm Bill advocates for hemp research and protection.
1937: Hemp is made illegal under the Marihuana Tax Act. 2018: Section 11101 of the Farm Bill provides hemp farmer protection under the Federal Crop Insurance Act of 1980.
1970: The Controlled Substances Act bans cannabis of any kind. 2018: Section 12619 of the Farm Bill removes hemp-derived products, like cannabidiol (CBD), from Schedule 1 status.

Q: Can I grow hemp in my vegetable garden?

A: No. Without proper licensure, growers are subject to punishment, violations, and possible felony charges.

State’s Rights

OPT IN: States must devise a hemp licensing and regulation plan to be approved by the Secretary of the U.S. Department of Agriculture.

OPT OUT: States must follow federal regulations, and farmers must go through individual licensing application procedures.

Translation: States can shape their programs, under federal oversight.

Update: In 2020, 20 states decided to extend their current program rules on hemp production (those from the 2014 pilot rules) for the season instead of following the federal guidelines, which were considered temporary as the USDA worked to finalize regulations. In January 2021, the USDA published the final and updated hemp regulations. They took effect March 22, 2021.


Knowing your producer is licensed and legally cultivating is the only way to confirm the purchase and consumption of legal, hemp-based CBD products, post-Farm Bill.

What does the 2018 Farm Bill mean for hemp?

1) Hemp can be grown (legally) and used for extractions throughout the U.S.

2) Broad cultivation beyond pilot programs is permitted.
3) There are no longer restrictions on the possession, production, or sale of hemp products, under the bill’s provisions.
4) Transfer of hemp products is allowed across state lines for commercial and other purposes.

Market Update:

The CBD market is growing, and fast. In 2020, the global market size for caannabidiol was valued at $2.8 billion. It’s projected to expand 21.1% annually from 2021 to 2028.

Photo by herbadea Berlin on Unsplash.