Do hemp farms, middle men, and retail from seed to sale get tax breaks and incentives for having a business in the US or do they get the same cash only treatment as the Cannabis industry?

This is all I could find for this exact question, and it keeps referring to the Marijuana business and not Hemp specifically, and it is 4 years old. https://www.thetaxadviser.com/issues/2019/dec/legal-hemp-deductible-expenses.html

  • fubo@lemmy.world
    12·
    1 year ago

    This question is actually two different questions mixed together:

    Do hemp farms, middle men, and retail from seed to sale get tax breaks and incentives for having a business in the US or do they get the same cash only treatment as the Cannabis industry?

    To answer these two questions separately:

    • There are not special tax incentives to promote growing industrial hemp. However, hemp growers can receive federal crop insurance, loans, and environmental incentives that apply to all agricultural producers.
    • Industrial hemp (including CBD) is not a cash-only business like state-legalized marijuana, as it is federally legal, and banks can do business with hemp farmers without running afoul of drug money laundering laws.

    There are some special federal requirements for hemp growers; they have to get a permit, file reports of where they’re growing, and identify the intended legal use of the hemp crop.

    • SnausagesinaBlanket@lemmy.worldOP
      31·
      1 year ago

      TY.

      Are all clones considered as being hemp? I am asking becasue i see the 2023 farm bill is increasing the definition of hemp from .03% THC to .1%.

      Will that cover any clone, even if it can produce higher THC later in its life cycle?

      • fubo@lemmy.world
        3·
        1 year ago

        That increase to .1% is probably to keep existing industrial hemp farmers legal. It’s not going to have an effect on federal marijuana law. Federally-legal hemp farmers have to report their locations so that their crops can be later checked to make sure they’re not actually federally-illegal marijuana.