The U.S. Department of Agriculture revealed Thursday that it is working toward advancing insurance policies for hemp businesses to make them more flexible.
By Nina Zdinjak
Ever since hemp and its derivatives were declared federally legal under the 2019 Farm Bill, the industry has been waiting for clear rules and regulations with regard to food and beverages infused with hemp-derived CBD.
The wait seemed endless, but now, a certain optimism has emerged in the form of a new bill presented on Thursday by a group of bipartisan House lawmakers. The measure demands that the Food and Drug Administration (FDA) set up regulations for food and beverages with hemp-derived CBD to enable their interstate commerce, reported Marijuana Moment.
The “CBD Product Safety and Standardization Act,” sponsored by Kathleen Rice (D-NY), Morgan Griffith (R-VA), Angie Craig (D-MN) and Dan Crenshaw (R-TX), aims to help resolve the ongoing regulatory issue hemp stakeholders have been asking the FDA to clear up.
“CBD products are exploding in popularity, but the lack of federal regulation surrounding them has put consumers at risk and left businesses looking for clarity,” Rice said in a press release. “The bipartisan CBD Product Safety and Standardization Act will establish the clear regulatory framework needed to provide stability for business and ensure unsafe products stay off the shelves.”
Under the bill, the FDA is being requested to create clear guidance and to open a public comment period on the maximum amount of hemp-derived CBD that can be added to food or beverages per serving, as well as on labeling and packaging demands, among other issues.
With interest in CBD products booming, not having FDA rules puts the industry in an unregulated and therefore unsafe position.
“As a result, adulterated or unsafe products are available that threaten consumer health, and businesses lack clarity,” Griffith said. “The CBD Product Safety and Standardization Act would require the FDA to address the issue and ensure more certainty in the CBD marketplace.”
USDA To Change Hemp Policy To Advance Insurance Coverage For Manufactures
This week the hemp industry welcomed another important move when the U.S. Department of Agriculture revealed Thursday that it is working toward advancing insurance policies for hemp businesses to make them more flexible in regards to stakeholder feedback, wrote Marijuana Moment.
USDA’s Risk Management Agency (RMA) highlighted it will ensure that hemp producers will no longer have to deliver their crops “without economic value for insurability.” The policy will precisely state how the “amount of insurable acreage is determined if the processor contract specifies both an acreage and a production amount.”
“This change was made in the policy to ensure producers know how their insurable acreage is determined for those contracts,” the agency said in a press release.
“[hemp is] an emerging crop, and we are working with hemp producers to provide insurance options that make sense for producers and for insurance providers,” RMA administrator Marcia Bunger said. “RMA has worked to expand and refine our offerings to be responsive and dynamic. “
This article originally appeared on Benzinga and has been reposted with permission.