Congress just quietly passed a law that could spark a boom for the $1 billion marijuana-linked CBD industry
Hemp is now an industry again
The US Farm Bill passed on Wednesday legalizes hemp, a plant that's roughly identical to marijuana and is a key source of highly touted wellness ingredient CBD.
The bill defines hemp as an agricultural product for the first time and amends a major drug law that hadn't been altered in 50 years.
Experts said the shift could spike interest in CBD, which is also the active ingredient in the first cannabis-based medicine to gain federal approval in the US.
Despite its hazy legal status, CBD already makes up a roughly $US1 billion industry.
This week, a plant that's nearly identical to marijuana is set to become legal to grow in the US.
Thanks to the US Farm Bill, which the House passed on Wednesday in a 369 to 47 vote, American farmers will be able to plant and harvest hemp, a strain of the same plant species from which marijuana originates. The bill passed the Senate Tuesday in an 87 to 13 vote, and President Donald Trump has indicated his support.
Hemp legalization has been a longtime goal of Senate Majority Leader Mitch McConnell, a Republican from Kentucky, who believes it can help replace tobacco as a key crop for his state's farmers.
The move alters the language of a major drug law that had previously remained unchanged for half a century and loosely defined hemp alongside marijuana as a controlled substance. The new bill exempts hemp from that law and defines it as an agricultural product. That means farmers and researchers of hemp now get some of the same benefits as farmers and researchers of other crops, like the ability to apply for insurance and federal grants.
"The era of hemp prohibition is over," Jonathan Miller, legal counsel for a lobbying coalition of over 60 hemp companies called the US Hemp Roundtable, told Business Insider.
That's a key change for scientists, many of whom say previous drug laws deterred them from studying hemp because it was regulated like marijuana.
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