On December 11th the U.S. Senate passed the final 2018 Farm Bill on to the U.S. House, which then passed it on December 12th amid the threats of a looming federal government shutdown. This bill contains multiple provisions to provide improvements and assistance to the farming industry, including expanded disaster programs, something of note with the devasting storms that upended parts of Georgia … but it would also legalize hemp cultivation. The bill removes industrial hemp from the federal government’s list of controlled substances, making it a legal agricultural product. Removing it from the list of controlled substances is an interesting factor in potentially providing financial services, as some of the issues surrounding serving these types of businesses (or people involved with these businesses) are tied to this designation.
Here in Georgia, the Legislature has been studying the issue and appears poised to potentially allow farming of hemp that could be processed into cannabidiol (CBD) low-THC oil. GCUA was engaged in the multiple Low THC Oil study committee hearings during the 2018 off session where frustrations were voiced by the public, as Georgia’s laws allow medical access to Low THC oil, but do not provide a legal way to procure it. This federal bill, once signed into law, will pave the way for Georgia to possibly proceed with legislation to expand in this area. Georgia lawmakers are already recommending that the state pass laws in 2019 to allow the farming and oil distribution after the study committees; however, it will likely be a long debate during the upcoming legislative session. And from a credit union perspective, it is something that has been and will continue to be monitored closely to ensure that barriers to financial services are not unintentionally created in the process. For more information please click here for a quick overview on the issue as it applies to Georgia from The Atlanta Journal-Constitution.
