Market Overview

Trump Signs Farm Bill Ahead Of Budget Deadline

Trump Signs Farm Bill Ahead Of Budget Deadline

President Donald Trump signed a Farm Bill into law Thursday that includes a provision removing hemp from the Controlled Substances Act.

What Happened

The 2018 Farm Bill includes provisions that will aid farmers in obtaining crop insurance, according to the administration. 

“By signing this bill we are protecting our crop insurance programs and funding that producers rely on in times of disaster,” Trump said at the signing ceremony. 

"We are ensuring that American agriculture will always feed our families, nourish our communities, power commerce and inspire our nation. And I’m opening up massive new markets in order to do things with other countries."

Why It's Important

Overall, the Farm Bill is expected to cost $867 billion over a 10-year period. The bulk of the money — around 80 percent —will go to the Supplemental Nutrition Assistance Program program, also known as food stamps. 

The bill removes hemp from the Controlled Substances Act, effectively legalizing hemp production. This represents a step forward from the 2014 farm bill, which allowed hemp cultivation for research projects approved and overseen by state governments.

This move makes hemp-derived CBD legal. Yet some uncertainties remain regarding the Food and Drug Administration's position on CBD as an ingredient in food and beverages. 

What's Next

Trump reiterated his position on the funding bill Thursday and said he will not sign it because it does not provide funding for his border wall with Mexico. Friday is the federal budget deadline, and the risk of a federal shutdown looms this weekend.

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