Argitek Holdings Inc (OTCMKTS:AGTK) is upbeat on the fact that both the House of Representatives and the Senate in the United States have passed the 2018 Farm Bill that includes hemp reforms. The approval of the bill by the House comes only days after the Senate passed the Farm Bill to declassify hemp from the Controlled Substance Act. The voting of the House agreed to the Farm Bill concession with 369 legislators voting for it including the redefining of those cannabis plants with less than 0.3 percent of THC.
The Bill’s most significant reform to the Controlled Substance Act of 1971 is the clarification that low THC cannabis plants are no longer illegal drugs. President Donald Trump has ten days to either veto or sign the bill into law as Congress looks at completing the preparation of the act before going to recess.
Impact of the Farm Bill
The effect of the Farm bill is expected to be huge as hemp business is likely to grow. According to Hemp Business Journal, the hemp sales was estimated to be around $820 million by last year, and this was while it was technically illegal. Prior to the passing of the bill, projections estimated the value of hemp sales to be around $2.1 billion by the year 2020.
Beneficiaries of the bill
Agritek is among the first companies that are going to benefit from the passing of the Bill including farmers and the states that had already legalized hemp owing to its commercial potential regarding hemp products and raw materials. Similarly, other firms that are likely to benefit are those whose product lines focus on CBD resulting from hemp which Agritek is currently producing and they can now officially distribute nationally. The new company management expects to take advantage of the progress that has been made in Colorado to execute expansion and biomass production contracts of their current brands Hemp Pops, MD Vapes and also those of farmers who produce the raw materials.
Agritek plans to release its quarterly financial report by next week in a move aimed at assessing their operations in Colorado as well as their sales.