Farm Bill Extension: How It Impacts the Hemp Industry and Cannabis Community

Minimalist depiction of natural hemp and agricultural elements, reflecting the grounded and organic nature of the cannabis and hemp industries amid policy updates.

Introduction

The Farm Bill Extension in 2023 continues the policies set in 2018, impacting everything from hemp farming to CBD products and their regulatory status. Historically, the Farm Bill has shaped agricultural policy across the U.S., but this year’s delay creates an uncertain future for the cannabis community. Instead of addressing new issues like THC limits and clearer FDA and CBD regulations, the extension leaves the industry in a holding pattern.

Background: The Farm Bill Extension and Its Role in Cannabis Regulation

The Farm Bill affects a wide array of industries, from food and fiber to hemp-derived products. The 2018 Farm Bill changed the hemp industry by legalizing industrial hemp with a THC limit of 0.3%, creating the current landscape for CBD products and opening doors for new cannabinoid regulation. With each new Farm Bill, changes to federal cannabis law and agricultural policy directly impact hemp farming.

Why the Delay in the 2023 Farm Bill?

Congress extended the Farm Bill due to delays in reaching a bipartisan agreement, primarily due to funding and cannabis regulation differences. The Farm Bill delay means many hoped-for changes, like an increase in THC limits or FDA action on CBD products, are postponed. This delay prolongs the lack of clear federal cannabis law and keeps the cannabis market in an uncertain state.

Impacts on the Cannabis and Hemp Industries

1. Maintaining Current Regulatory Standards Under the extension, the THC limit for industrial hemp remains at 0.3%, causing compliance issues for farmers who may exceed it inadvertently. Many hoped for an increase to 1%, which would have reduced crop loss. The Farm Bill delay means the industry must navigate these compliance risks for at least another year.

2. Missed Opportunity for CBD Product Regulation The FDA has yet to create a clear regulatory framework for CBD products in foods or beverages. This regulatory void limits hemp-derived products in the cannabis market and affects the credibility of CBD producers. Cannabis advocacy groups are disappointed, as a new Farm Bill could have set clear guidelines for FDA and CBD oversight.

3. Challenges for Cannabis Market and Research Cannabis advocacy groups emphasize that the delay affects the broader cannabis community, especially in expanding research opportunities for cannabis legalization. Without new laws, federal cannabis law remains restrictive, impacting cannabinoid regulation and industrial hemp growth.

4. Intoxicating Cannabinoid Concerns Current hemp-derived products have loopholes allowing the sale of intoxicating cannabinoids like Delta-8 THC, a situation many cannabis advocacy groups want addressed. The Farm Bill extension means this issue remains unresolved, leaving cannabis regulation inconsistent across states.

Conclusion

The 2023 Farm Bill Extension continues current regulations, creating an environment of uncertainty for the hemp industry and broader cannabis community. For now, advocacy groups and industry leaders will keep pressing for clearer regulations on hemp-derived products and cannabinoid regulation. Until Congress passes a new Farm Bill, the industry must navigate its current challenges, from regulatory gaps in FDA and CBD policies to compliance issues in hemp farming.

Call to Action

Supporting cannabis advocacy groups and remaining informed on potential Farm Bill updates will help businesses and consumers navigate these challenges and prepare for a stronger cannabis market future.