On Monday, U.S. Senate Ag Committee Chair Debbie Stabenow introduced a new farm bill, hoping it could pass before the end of the year. She acknowledged that her bill doesn’t have a hearing scheduled for a markup session or Republican support.

“We could do a markup in committee and then look to attach it to a bill moving at the end of the year, but there has to be a willingness to do a bipartisan approach,” she said in a call with reporters.

The 1,400-page document is a draft that envisions increasing farm bill spending by $39 billion over 10 years, including $20 billion for crop subsidy, crop insurance, specialty crop, and trade promotion programs, $8.5 billion for public nutrition programs, and $4.3 billion for rural development. According to Successful Farming, the bill would also immediately reimburse an estimated $2 billion in crop insurance premiums farmers pay. The bill would also advance by six months the payment date for crop subsidies, which now are paid a year after harvest.

Stabenow said in a statement, “This is a robust bill that puts more farm in the Farm Bill for all of our commodities, but not at the expense of rural communities and American families that are critical to holding the Farm Bill coalition together. It provides farmers with the certainty of a 5-year Farm Bill – so they can plan for the future – and the assistance they need to manage the urgent needs they have right now.”Tetrahydrocannabinol

Hemp changes

In addition to those issues, the bill also tackles the conundrum of intoxicating hemp. Stabenow’s bill attempts to drill down into the definition of industrial hemp by clarifying that it is ” whole grain, oil, cake, nut, hull, or any other compound, manufactured product, derivative, mixture, or preparation of the seeds of that plant (except cannabinoid resin extracted from the seeds of that plant).”

In her proposal, industrial hemp would still have a small THC cushion that is inherent in the plant but addresses the definition of THC (Tetrahydrocannabinol). Instead of the narrow language from the 2018 Farm Bill that carved out Delta-9 THC as the only form of regulated psychoactive cannabis, Stabenow’s draft includes all forms of THC – striking the word Delta-9 and changing it to “total.”

The draft also cites synthetic hemp products which addresses many of the intoxicating hemp products currently sold over the counter.

The term ‘industrial hemp’ means the plant Cannabis sativa L. if the harvested material …..will not be used in the manufacturing or synthesis of natural or synthetic cannabinoid products.’’.

The language also closes the loophole on THCa, another favored product for intoxicating hemp producers. The draft suggests, “by striking ‘‘concentration’’ and inserting ‘‘concentration (including tetrahydrocannabinolic acid)’.”

As a reminder the 2018 Farm Bill attempted to address the inclusion of some THC in industrial hemp products, but that narrow definition was exploited. The emergence of various hemp-derived THC products has exploded creating a market of psychoactive hemp products that are unregulated or tested and often sold to minors.

Unlikely future for passage

The senator announced her retirement and if this bill passes it would be her sixth farm bill. However, the chances seem slim. Republican Sen. John Boozman, from Arkansas, is expected to be named chairman. Boozeman posted this statement on X:

“An 11th hour partisan proposal released 415 days after the expiration of the current farm bill is insulting. America’s farmers deserve better.” RM

rural_prosperity_and_food_security_act_of_2024

The Daily Hit is a recap of the top financial news stories for Wednesday, June 5, 2024.

On the Site

Report: Michigan overtakes California in number of cannabis products sold

California is still outselling Michigan on the revenue front, likely due to higher prices in the West Coast state.

Read more here.

States, courts grapple with illegal hemp as they await new federal rules

Negotiations are underway on the 2024 Farm Bill, but intoxicating hemp products are already readily available.

Read more here.

Green Thumb CEO confirms proposal to Boston Beer

Kovler waxed poetic of the potential benefits of a combination between the two companies.

Read more here.

Safe Harbor expands cannabis services, lends $550k to three businesses

The three lines of credit didn’t require real estate collateral, “utilizing instead a flexible set of underwriting standards.”

Read more here.

Ohio DCC publishes new license application documents earlier than expected

The DCC will begin accepting applications on June 7, and regulators must approve or deny them by Sept. 7.

Read more here.

In Other News

Acreage Holdings

Acreage Holdings, (CSE: ACRG.A.U, ACRG.B.U) (OTCQX: ACRHF, ACRDF) entered into subscription agreements with certain institutional investors to issue units by way of a brokered private placement at a price of US$833.33 per unit, for gross proceeds $10 million.

Read more here.

Grown Rogue International

Grown Rogue International (CSE: GRIN) (OTC: GRUSF) received licensing approval with the New Jersey Cannabis Regulatory Commission and closed its first option to acquire 44% of ABCO Garden State LLC on May 31.

Read more here.

California recalls

California regulators are initiating more cannabis product recalls and health warnings to consumers. In the past month alone, the Department of Cannabis Control has issued six product recalls, and the California Department of Public Health issued a consumer warning regarding certain hemp-infused beverages.

Read more here.