The legal permission for the growth and selling of hemp in California means that an increasing number of companies and manufacturers are stepping forward and taking an active interest in California’s hemp business. The passing of the California Industrial Hemp Farming Act authorized the commercial production of industrial hemp in California. The act came into effect on the 1st of January 2017, as per the provision in the Adult use of Marijuana act.
Unlike cannabis, which is classified as Federal Schedule I controlled substance that is subject to 280E regulation, hemp is not regulated federally. The Agricultural Improvement Act of 2018 enabled the removal of hemp from the list of federal controlled substances. This new market isn’t subjected to similar strict tax and financial codes as the cannabis market.
Cultivating Hemp commercially in the state of California
Before you start the commercial cultivation of hemp or industrial hemp in California, you must gather all the information essential for the smooth opening and operation of the business. This includes applying and obtaining permits, cultivation details, harvest, selling, pricing, market, and infrastructure, amongst other things. There are a host of resources and information available online that you can access. That will provide you with the basic guidelines for getting with the hemp business in California.
Before you begin, here is worth noting that there are some contradictory clauses in different laws concerning the hemp industry’s authorization and regulation in the state of California. California’s state regulations for hemp business in the state are not exactly in tune or sync with federal regulations that have basically deregulated the hemp as a form of a controlled substance.
While California allows for the commercial cultivation of hemp, there are conflicting and contradictory articles in the 2014 and 2018 Bill. The previous Farm Bill 0f 2014 does not allow hemp cultivation for purely commercial reasons. However, the farm bill of 2018 deregulates the commercial hemp as long as it is provided that states submit the “hemp production plans” to USDA.
Theoretically, California’s state plan should be reviewed and then approved by USDA, which would have a direct impact on the hemp cultivators in the future. Meanwhile, California has started the process of accepting the registration for hemp cultivation applications. If you need more details and information regarding the legal and logistic details of the whole legal registration process for the hemp business in California, you must download the state regulation resource that provides you with the exact details needed for starting and operating your venture.
Industrial hemp provides an alternative solution and an incredible entrepreneurial opportunity for the cultivators to participate and engage in the cannabis market without going through strict regulations or high barriers for gaining entry. So if you think of a California hemp business, you can start the preparations and layaway the groundwork now.