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The future of the U.S. hemp industry is uncertain as lawmakers have decided not to reauthorize the farm bill for another year, instead opting for a one-year extension in the closing days of the current Congress.
2018 Farm Bill Extension
Several critical programs authorized under the 2018 Farm Bill were set to expire on December 31, 2024. In response, Congress is working to finalize a one-year extension of the bill. However, disagreements over various aspects of the extension have raised questions about what the renewal will ultimately look like.
USDA Delays DEA Testing Requirement for Hemp
In November 2024, the U.S. Department of Agriculture (USDA) announced it would push back the deadline for hemp testing at Drug Enforcement Administration (DEA)-approved labs. Originally scheduled for December 31, 2024, the new deadline is now December 31, 2025, giving producers more time to comply.
Changes to Hemp Regulation in Senate Farm Bill Draft
Senator Debbie Stabenow has introduced a draft of the Farm Bill that includes significant changes to the federal definition of “hemp.” The bill proposes amending the THC limit for hemp to address gaps in current regulation. Under the new definition, the 0.3% THC limit would apply to total THC content, including THCA, instead of just delta-9 THC, as defined in the 2018 Farm Bill. This revision is designed to close a regulatory loophole that allows companies to sell intoxicating hemp products that don’t fall under the same strict regulations that govern cannabis products, such as testing, age restrictions, and childproof packaging.
In addition, the draft bill distinguishes between “hemp” and “industrial hemp.” The new definition of industrial hemp focuses only on certain parts of the plant—such as stalks, seeds, and fibers—that are not used to make cannabinoid products. The bill also stipulates that industrial hemp cannot be used for manufacturing or synthesizing either natural or synthetic cannabinoids. As a result, a separate licensing structure for industrial hemp producers would be created, removing the need for background checks and relaxing testing requirements.
Proposed Federal Regulation of Hemp-Derived Cannabinoids
The “Cannabinoid Safety and Regulation Act” (Bill S.5243) is one of the latest legislative proposals to establish a federal framework for regulating hemp-derived cannabinoids. Under this bill, states would retain the ability to implement their own regulations for products like CBD, while the FDA would take on a larger role in ensuring that safety standards are met, including preventing products from being marketed to children.
Broader Implications of Hemp Regulation
The proposed changes go beyond simply addressing existing regulatory loopholes. By redefining hemp to include total THC content, the goal is to reduce the market for intoxicating hemp products. The revisions would also place restrictions on the use of certain hemp extracts in the production of synthetic cannabinoids, like delta-8 THC, which is typically synthesized from CBD. This would bring more hemp-derived products under regulatory oversight and limit the spread of products that fall outside the current cannabis laws.
Although the proposed changes would mark an important step forward in hemp regulation, it’s unlikely that either the House Republican or Senate Democratic proposals will be addressed in the current Congress’s lame-duck session. Instead, these provisions could form the foundation for future legislative efforts, particularly in the 2025 Farm Bill.
Conclusion:
The hemp industry’s future is hanging in the balance as we move into 2025, with a lot of uncertainty ahead. While Congress has extended the 2018 Farm Bill for another year, it’s clear that the hemp sector is about to face some major changes. Proposed updates to the definition of “hemp,” especially around THC content and hemp-derived cannabinoids like delta-8, could create new challenges that would impact everyone from growers to manufacturers to consumers.
While tighter regulation could help curb the rise of unregulated hemp products, it also risks stifling innovation and creating a more complex, costly landscape for hemp businesses. These changes may be necessary for safety, but for many small businesses and producers, they could mean navigating a lot of red tape and extra compliance burdens.
What’s at stake?
As the bill makes its way through 2025, it’s critical for everyone in the hemp industry to stay on top of these developments. If you’re a grower, producer, or just someone who cares about the future of hemp, now is the time to stay informed and get involved. Keep an eye on how this bill evolves and make sure your voice is heard.
This legislation could shape the industry for years to come, so we need to work together to make sure it doesn’t hurt small businesses or slow down progress. Whether through lobbying, public comments, or supporting industry groups, now is the time to figure out how to best work within this industry and for this industry to ensure hemp regulation grows in a way that supports both safety and opportunity.
https://www.agriculture.senate.gov/imo/media/doc/rural_prosperity_and_food_security_act_of_2024.pdf
