On December 11, we reported that the farm bill is expected to be voted on later this week. The farm bill contained a lot of important changes. One of the most important changes that cannabis enthusiasts have been waiting for is the legislation on hemp farming. On December 12, the Senate passed the farm bill, which will have a term of five years.
What Canopy Growth had to say
Canopy Growth (WEED) told CNBC that the farm bill will be an initial step to have an active participation in the US cannabinoids market from a legal standpoint. Hemp doesn’t have the same psychoactive properties, THC or medicinal CBD, found in mainstream cannabonoids that still fall under controlled substances in the United States.
The new bill will allow farmers to legally grow hemp for commercial purposes. Farmers will also be eligible to receive crop insurance. While the update might be a backdoor entry to the cannabis industry (HMMJ) for companies like Aurora Cannabis (ACB) (ACBFF), Cronos Group (CRON), and Tilray (TLRY) in the United States, there will be strict regulations to ensure that the provision isn’t abused.
Recently, Canopy Growth acquired a hemp-based company EBBU, which uses a cannabis derivative for various cannabis products in the United States.