Billion-Dollar Strike: Farm Bill Amendment Could Change The Hemp Industry

Senate Agriculture Chair Debbie Stabenow's (D-Mich.) proposed that the 2024 Farm Bill include a subtle yet profound amendment poised to reshape the hemp industry. Released Monday, the bill revises key regulatory language, replacing "delta-9" THC with "total" THC and explicitly including THC-A in the calculation of total THC content. This adjustment preserves the 0.3% THC threshold on a dry weight basis but redefines how it is measured – a critical change for the billion-dollar hemp and CBD markets.

The bill also introduces a revised definition of “industrial hemp.”

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Key Changes In Hemp Regulation

The bill replaces "delta-9" THC with "total" THC as the metric for determining compliance, ensuring that all forms of THC, including THC-A, are included in the 0.3% THC limit on a dry weight basis. 

This update is critical for closing gaps that allowed intoxicating derivatives like Delta-8 THC to thrive under the current definition.

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Technical Definition Of Industrial Hemp

Stabenow's bill provides a revised and precise definition of “industrial hemp.” According to the proposed amendments, industrial hemp refers to the Cannabis sativa L. plant, but only if the harvested material meets the following criteria:

Plant Components Allowed For Use: 

• Only the stalks of the plant, fibers produced from those stalks, or any manufactured product, derivative, mixture, or preparation made from those stalks are included.
• Cannabinoid resin extracted from the stalks is explicitly excluded.

Seed-Based Products:

• Whole grain, oil, cake, nut, hull, compound, manufactured product, derivative, mixture or preparation derived from seeds are permissible.
• Cannabinoid resin extracted from the seeds is excluded.

Viable Seeds:

• The use of viable seeds is restricted solely to producing or manufacturing materials specified in the above clauses (e.g., stalks or seed-based products).

Prohibition On Cannabinoid Synthesis:

• Harvested material classified as industrial hemp must not be used in the manufacturing or synthesis of natural or synthetic cannabinoid products.
• This definition is a marked departure from broader interpretations that previously allowed cannabinoids to dominate the hemp industry, ensuring that industrial hemp remains non-intoxicating and focused on its traditional agricultural and industrial uses.

Read Also: Hemp Market Surge: How New Regulations Could Impact Growth

Implications For The Hemp Industry

The updated definition and THC calculation method aims to stabilize the industry while addressing public safety concerns. By narrowing the allowable uses of industrial hemp and explicitly prohibiting intoxicating derivatives, the bill signals a stricter regulatory environment.

However, compared to the House Agriculture Committee's farm bill, which proposed an outright ban on all THC in hemp products, Stabenow's bill preserves critical pathways for low-THC products like CBD, aligning with industry needs.

This technical clarity is crucial for agronomists, lawyers and investors to adapt their business strategies and compliance practices to remain competitive as the Farm Bill advances.

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