Cannabis

Another Victim of the Federal Government Shutdown: Progress for Hemp

January 16, 2019

By: Rachel Gillette and Nabil Rodriguez, J.D.*

As the federal government enters its fourth week of government shutdown due to a lack of funding, the USDA continues to be prevented from implementing the 2018 Farm Bill. This shutdown not only prohibits the USDA from drafting regulations for hemp, but also from moving forward in the process for the approval of new hemp cultivation plans. This is a clear setback for the industrial hemp industry and certainly frustrates the long-awaited progress made removing hemp from the Controlled Substances Act, thus impacting hemp farmers, businesses and researchers alike.

The Agricultural Improvement Act of 2018 (“Farm Bill”) was signed into law by President Trump on December 20, 2018, legalizing hemp on a federal level with the power to enact federal regulations given to the Secretary of Agriculture. However, the USDA, among other agencies, was operating under a continuing funding resolution that expired December 21, 2018. Although this historic passing finally removed hemp from the Controlled Substances Act, the government shutdown has had a significant impact on the timetable to see any real effects of hemp legalization in early 2019.

Until funding issues are resolved, the implementation of the 2018 Farm Bill will remain on hold. In short, there is a lot more work to be done to see true progress as a result of the 2018 Farm Bill, including work to ensure hemp-derived CBD oil is properly treated by the FDA.

*Nabil Rodriguez is not an attorney

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 215 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has maintained a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

Cynthia Howard Chief Marketing Officer (720) 370-1182
[email protected]