Global Ganja Report

It was federal subsidies for healthcare that were center-stage in the government shutdown and the Capitol Hill deal that finally ended it. But the fight over the heretofore ambiguous legal status of hemp-derived THC was also at issue in the end—and this could represent a serious blow to America’s farmers.

For those, such as myself, who came of age in the prohibition era, it was a tad surreal to see the giant electronic billboard overlooking Manhattan’s Times Square (focal point of the world-famous New Years Eve countdown) displaying a “countdown to 420” promoted by a leading brand of rolling papers. But that is what gathered revelers witnessed in the minutes leading up to 4:20 PM on the afternoon of Sunday, April 20.

The autumn of 2019 saw the United States' first hemp harvest since effective prohibition of the crop under the strictures of the Marihuana Tax Act in 1937. These strictures were overturned in the Farm Bill signed into law by President Trump in the closing days of 2018. This harvest was looked to eagerly across much of rural America, as legal hemp had been plugged as a salvation for the nation's struggling farmers—and the soaring popularity of CBD appeared to provide a booming market. The fashionable cannabinoid had also been legalized by the 2018 Farm Bill—when derived from hemp, or cannabis with less than 0.3% THC.

Hemp and hemp-derived CBD were officially legalized under the 2018 Farm Bill, but the US Department of Agriculture has failed to bring its regulations into conformity with the new federal law—until now. Interim regs have just been issued by the USDA, with a 60-day public comment period to follow—meaning a final rule will likely be in place in time for next year's planting season.

With passage of the Farm Bill and removal of hemp-derived CBD from controlled substance status, big market growth is expected for the very chic and purportedly salubrious non-psychoactive cannabinoid. The law is a win for a nascent CBD industry that has been struggling to shake off the lingering stigma surrounding (psychoactive) cannabis. The effort to segment cannabidiol from "marijuana" is exemplified in the several states that now have "CBD-only" laws.

The newly enacted Farm Bill contains language implicitly removing hemp-derived CBD from the controlled substances list, along with industrial hemp. A CBD industry that has been growing fast in a legal grey zone stands to grow faster in the light of legal clarity. Conflicting state laws and even federal regulations, however, could prove an obstacle to unfettered expansion.

Will the Bluegrass State beat the Golden State as the next to follow in the happy footsteps of Colorado, Washington, Oregon and Alaska by legalizing cannabis for recreational as well as medical use? WHAS11 in Louisville reported Dec. 11 that state Sen. Perry B. Clark (D-Louisville) pre-filed an act to legalize and regulate cannabis in a manner similar to how the state handles alcohol. The bill would repeal Kentucky's prohibition on cannabis cultivation, possession and sale. Instated in its place would be a "regulatory framework designed to promote public safety and responsible cannabis consumption by persons over 21 years of age."

University of Kentucky agronomy researchers on May 27 planted a small hemp plot at Spindletop Research Farm outside Lexington—marking a victory in the state's showdown with the Drug Enforcement Administration. The seeds used were part of a shipment from Italy that was only released after Kentucky's Agriculture Department filed suit against the federal government, naming the Justice Department, DEA and US Customs and Border Protection. The breakthrough came after attorneys for the state and federal government met twice with a federal judge in Louisville, the DEA agreeing to issue a permit for release of the shipment—which Kentucky authorities said was not legally needed. Kentucky attorneys argued that the recent US Farm Bill allows state agriculture departments to designate hemp pilot projects for research in states that permit hemp cutlivation. Several more test crops were planted at other sites around the state in the following days. (ABC, Lexington Herald-Leader, May 27; AP, May 14)