Congressional Report Sheds Light On Hemp's Impact And Future Prospects Amid Farm Bill Renewal Talks

• In 2022, the farm-level value of total utilized hemp production amounted to $238.4 million, a notable decrease from $824 million in 2021.
• This encompassed all production types and market segments, with floral hemp dominating in 2022, commanding higher market prices than other hemp products.
• In the same year, the US planted 28,300 acres of hemp and harvested approximately 18,300 acres, accounting for less than 0.1% of total US harvested cropland acres.

The US Congressional Research Service (CRS) released a memo on hemp industry issues ahead of the potential renewal of the 2018 Farm Bill.

THC Limits, Leading States, Policy Priorities In Congressional Report

The “Farm Bill Primer: Selected Hemp Industry Issues” memo highlights that about 20% of hemp grown may exceed legal THC limits, posing risks to farmers operating within USDA's regulatory framework.

Leading hemp-producing states in 2022 included South Dakota, Oregon, Montana, Missouri and Kentucky.

The memo addresses diverse interests in the hemp industry, with various groups advocating different policy goals.

The Food and Drug Administration (FDA) recognizes hulled hemp seed, hemp seed protein and hemp seed oil as generally recognized as safe for use in human food. However, some hemp product categories remain unapproved and unregulated by the FDA.

Shared policy priorities among industry groups include relaxing USDA's regulatory requirements, modifying DEA oversight and exempting certain hemp farmers from background checks and testing protocols.

Additionally, there are calls to expand USDA support for hemp, including research on genetics and processing capacity, promoting sustainability practices and potentially designating hemp as a specialty crop for USDA programs.

FDA Oversight, Reform: Economic Potential

The 2018 Farm Bill did not address consumer hemp products regulated by the FDA, whose authority remained intact (§10113) thus raising questions about potential changes within agriculture committees' jurisdiction.

Some hemp products, including CBD, stayed unregulated while the FDA assessed their safety. Congress considered proposals to ease FDA restrictions, set safety standards, or ban certain hemp derivatives.

In January 2023, the FDA pledged to cooperate with Congress on a new CBD regulatory path. In July 2023, members sought stakeholder input for CBD marketing regulations.

Hemp regulation reform could benefit agriculture, manufacturing and research and offer versatile raw materials for industries like textiles and construction.

In addition, innovation may diversify hemp's use and markets, supporting economic growth and job creation in local communities.

US House Extends 2018 Farm Bill For One Year 

On November 14, 2023, the House approved a spending bill that includes an extension for the 2018 Farm Bill. This extends all programs at levels provided in the 2018 Farm Bill through Sept. 30, 2024. The news came several weeks after a ranking member of the Senate Agriculture Committee, Senator John Boozman (R) suggested that a congressional farm bill might need a deadline extension.

Photo: AI-Generated Image.