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Crop says farm bill legalizing industrial hemp is within 'hair’s breadth' of becoming law after US Senate passage

Published: 09:24 12 Dec 2018 EST

Farm equipment in a field of hemp
The US$867 billion farm bill distinguishes industrial hemp from more potent strains of marijuana

Crop Infrastructure Corp (CSE:CROP) (OTCMKTS:CRXPF) hailed on Wednesday the US farm bill’s passage in the Senate, saying the legislation legalizing industrial hemp as a crop  is within “a hair’s breadth” of becoming law.

Senators voted 87-13 to approve the US$867 billion legislation, which distinguishes industrial hemp from more potent strains of marijuana. The farm bill now heads to the House of Representatives, where it is expected to pass. A breakthrough occurred after stricter requirements for food stamp recipients were eliminated.

READ: Crop Infrastructure cannabis subsidiary Elite Ventures leases 250 more acres in Nevada

“The legalization of hemp … will blow off the political barn doors that have been restricting our industry,” CEO Michael Yorke said in a statement.

Anticipating passage of the farm bill, Crop announced earlier in December that its 49%-owned subsidiary, Elite Ventures, had leased an additional 250 acres in Nevada. The move brings the company's 2019 holdings in the state to 2,115 acres, with 1,350 acres already under pivot irrigation for hemp cannabidiol production.

“We are planning to stay well ahead of the curve on hemp and its products as all indications are that this sector alone will prove far more vigorous than was initially forecast,” Yorke said.

The Farm Bill will effectively take hemp off the federal controlled substances list, which will allow farmers to pursue federal hemp cultivation permits. States may also decide to regulate the industry within their own borders as they wish.

Currently, 40 states oversee hemp cultivation “pilot programs” for industrial and commercial purposes. With the new law in place, oversight of hemp-derived CBD will now become clearer. 

Shares of Crop traded at C$0.38 in Tuesday’s Canadian trading. They climbed US$0.01 to US$0.29 on the OTC Markets.

 

Contact Dennis Fitzgerald at dennis@proactiveinvestors.com

 

 

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