Per the Commissioner of the Food and Drug Administration, Scott Gottlieb M.D., "The Agriculture Improvement Act of 2018 change 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 processor bonds. The Agricultural Marketing Service has been named as the lead USDA agency that will administer a new USDA Hemp Production Program. Individuals interested in the Farm Bill's hemp program may learn more here.
Hemp is now legal to cultivate, handle and distribute at the "federal" 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 statutes that regulate the activity. 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 processor surety bonds from cultivators, handlers, dealers and other intermediaries. 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 necessary. The following entities will help in identifying those codes.
Applying for a hemp processor bond should be accomplished through a surety bond underwriter with knowledge and experience with the agricultural industries and more specifically cannabis and hemp businesses. National surety bond leader, Surety One, Inc. offers both surety and fidelity bonds needed by farm trade professionals and hemp operators in every state where they are required. Questions about an industrial hemp 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 enormous economic opportunities for farmers and agricultural product intermediaries. We are available to help you understand the hemp surety bond process specific to your need.
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