Released by the U.S. FDA, Commissioner Scott Gottlieb M.D., "The Agriculture Improvement Act of 2018 changes certain federal authorities relating to the production and marketing of hemp, cannabis derivatives with extremely low (less than 0.3 percent on a dry weight basis) concentrations delta-9-tetrahydrocannabinol (THC). These changes include removing hemp from the Controlled Substances Act, which means that it will no longer be an illegal substance under federal law." This means a lot to the insurance sector, especially for those underwriters that will offer hemp cultivator surety bonds. The Agricultural Marketing Service has been named as the lead USDA agency that will administer a new USDA Hemp Production Program. Parties interested in Farm Bill hemp program details may learn more at the links below.
Hemp is now legal to cultivate, handle and distribute at the federa" level however many states still prohibit the same. If you wish to operate in the hemp sector it is vital that you carefully review the laws that regulate the activity in your locale. The National Conference of State Legislatures maintains a helpful database of the various state laws that affect the industry. In those states where hemp is permitted, licensing is generally regulated by the respective departments of agriculture. Those licensing rules often require hemp producer surety bonds from cultivators, processors, handlers and dealers. For example, hemp industry participants in Colorado are required to file a Colorado Commodity Dealer or Handler Bond to operate in this space. Careful research of the pertinent laws is imperative! The following entities will help in identifying those codes.
Applying for a hemp handler bond should be processed with a surety company with knowledge and experience with the agricultural sector and more specifically /hemp operations. National surety bond leader, Surety One, Inc. offers both surety and fidelity bonds needed by hemp trade professionals in every state where required. Questions about an hemp surety bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat. Industrial hemp and CBD product legalization will create broad economic opportunities for farmers and agricultural product producers, dealers and traders. We are available to help you understand the hemp bond process specific to your operating need.
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