Hemp Farming Policy Changes Loom

By Scout Nelson

Hemp farming has seen strong growth across the United States following the 2018 Farm Bill, which legalized hemp containing less than 0.3 percent delta-9 THC. Since then, hemp-derived products such as oils, creams, and edible items have formed a multi-billion-dollar industry.

However, new federal legislation may place strict limits on hemp-derived THC products. The proposed changes would redefine hemp to include total THC limits rather than only delta-9 THC levels. If approved, many products currently sold could become illegal beginning in November.

“The federal hemp bill would basically eliminate full-spectrum products,” said Brett Mayo, Sweetwater’s chief extraction officer. “You would be working with broad-spectrum products with no THC, which with my process you can’t really do. Everything we do takes everything from the plant – and the plant, naturally, is gonna have some THC in it.”

This change may affect both processing businesses and the many growers who depend on hemp for income. A large share of hemp grown in the country is used for cannabinoid extraction, while smaller portions are grown for fiber and seed markets. Fiber hemp is used in textiles, building materials, and animal bedding, and these markets are expanding steadily.

Some regions have become leaders in fiber hemp production. Processing centers in certain states allow hemp to be turned into bioplastics, insulation, and other useful products. Even so, supply chains are still developing, and producers do not yet have the same reliable delivery options as major grain crops.

Recent data shows strong interest in hemp cultivation. Between 2023 and 2024, harvested hemp acreage increased by more than 60 percent nationwide. Fiber hemp harvests also rose significantly, reflecting increased investment in alternative crop options.

At the same time, recent executive actions and proposed federal bills indicate that lawmakers are considering new regulations to improve product safety, labeling, testing, and age restrictions. These efforts aim to build a clear regulatory framework while allowing appropriate hemp products to remain available.

The future of hemp farming will depend on how lawmakers balance public safety with economic opportunity. For now, businesses and growers are watching policy developments closely as they prepare for possible changes that could reshape the hemp industry nationwide.

Photo Credit: gettyimages-jessicahyde