U.S. Hemp Roundtable Reacts to Senate Farm Bill

Last week, Senate Agriculture Chair Deb Stabenow released the full text of the Senate Democratic version of the 2024 Farm Bill.  The bill text is available here and the summary here.

Without any warning or pre-briefing to key Members of Congress, the bill includes some concerning provisions concerning hemp.  The full hemp sections are linked here.

A summary of the provisions is listed below.  But the key element is to redefine “hemp” to require a total THC standard of 0.3%.  This means that currently legal delta-8 THC or THCA products that include more than 0.3% total THC would be illegal.  Currently legal delta-9 THC or CBD products would NOT be impacted by this new language.  Delta-8 THC products that have less than 0.3 total THC would also NOT be impacted.

It is important to note that it is unlikely that this bill will pass this year, and Sen. Stabenow retires before the new Congress begins.  This is considered more of a “messaging” bill than a serious legislative effort.  However, this is language that could reappear next year, so it is critical that we remain vigilant to provide an alternative path, with robust regulation instead of products bans.

We also need to understand its potential impact.  Please let us know if you sell products that would be affected, and what is the volume/percentage of your business.

Summary:

1. The bill changes the 0.3% delta-9 concentration standard to a 0.3% total THC concentration standard (including THCA). The standard would still be based on a dry weight basis.
2. The bill expands the definition of hemp to include the plant and plant parts and “industrial hemp.” Industrial hemp is a new defined term that includes harvested material that will not be used in the manufacturing or synthesis of cannabinoid products. Producing industrial hemp for a different purpose would be subject to penalties, including ineligibility for 5 years.
3. The bill requires the USDA plan and state and tribal plans to include a license process for producing (i) only industrial hemp (the new defined term) and (ii) hemp for any purpose. Industrial hemp producers would be subject to relaxed regulatory requirements, including no background check and THC testing by visual inspection or performance-based sampling. Other hemp producers would continue to be subject to existing regulatory requirements.
4. The bill allows USDA and states and Indian tribes to establish a pilot program for certified seeds. A producer who uses certified seeds may apply for a 3-year exemption from testing requirements.
5. The bill adds a section making clear that the Farm Bill does not preempt any state or tribal law that regulates “any activity involving hemp or hemp products, including with respect to the production, manufacture, or sale of hemp or hemp products.” This significantly expands the preemption provision of the 2018 Farm Bill and likely nullifies any legal argument that a state’s restriction or ban on hemp products is illegal.

The attempt to ban certain hemp products, rather than robustly regulate them, highlights the urgent need for Congress to enact S. 5243, Senator Ron Wyden’s Cannabinoid Safety and Regulation Act. This bill will provide much-needed federal guidance for hemp products, replacing misguided prohibition with a balanced regulatory framework.

When Congress reconvenes in January, enacting this bill will be a top priority for our organization. Please consider participating in our email campaign below urging your Members of Congress to co-sponsor S. 5243 — the more emails Senate and House members receive, the better our chances of success!