President Donald Trump signed Congress’ omnibus Farm Bill into law on Thursday, legalizing hemp at the federal level.
The new law will make it possible to buy crop insurance for hemp, erasing some of the risk for farmers who want to expand into the new market, and allowing hemp to be moved across state lines, expanding options for exports and sales.
Hemp, which is closely related to marijuana but has no psychoactive effect, has been classified as a controlled substance under federal law for decades. The Farm Bill removes this designation and reclassifies hemp as an agricultural product, legally distancing hemp from pot, which is still illegal
to grow in most states.