Cannabis Cultivation is Agriculture.

Cannabis Cultivation is Agriculture.

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Hezekiah Allen started this petition to Senator Charles E. Schumer and

For several decades the United States of America has maintained a failed prohibition on cannabis. 

Now, thanks to groundbreaking legislation introduced by Senators Schumer, Booker, and Wyden this policy of prohibition may soon be ended and cannabis may be federally legal once again. 

While there are many issues to debate in the legislation there is one glaring oversight: cannabis cultivation is not recognized as agriculture. 

This oversight threatens the future of many existing cannabis farmers and will limit the ability of new farmers to enter the cannabis market. 

We write today to offer our support for 3 amendments that would not only open the gate for small farmers across the country to grow legal cannabis, these amendments would also work to provide opportunity for small farms to thrive in this new era. 

1. USDA Registration for Businesses Engaged only in Cultivation and Agricultural Processing

Consistent with hemp – as long as a cultivator is state licensed then a simple registration with USDA is all that will be required to operate.

Agricultural processing shall include the planting, making of seeds and cuttings, growing, harvesting, drying, curing, sorting, trimming, grading, sieving and washing of cannabis.

2. Tax Exemptions for Cannabis Cultivators
Cultivators shall be required to obtain a tax permit only when they package cannabis or cannabis products for consumption. If a cultivator does not obtain a tax permit they may only sell bulk and raw cannabis and cannabis products to manufacturers (as defined) for further manufacturing. No tax shall be due on this first sale, consistent with the exemption already outlined in the bill.

3. Direct to consumer Sales for the Smallest Cultivators
Cultivators who are exempt from federal taxes may engage in tax exempt direct to consumer sales only when these sales take place at a farm stand, an age controlled event, direct delivery from the farm, shipping, or other appropriate form of delivery to be determined by the secretary and only when the cumulative sales revenue of direct to consumer sales is less than $500,000 per year and the total sales revenue of the cultivator is $2.5 million or less per year. Cultivators who engage in consumer direct sales may package and label only products intended for direct sale.

 

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