In a recent report from the Congressional Research Service (CRS) published on Monday, analysts have raised concerns over the hemp provisions in a large-scale agriculture funding bill currently advancing in the House. The report indicates that the proposed changes to federal hemp regulations could create confusion within the industry due to a lack of clarity around allowable products.
Proposed Changes and Industry Concerns
The CRS report examines the amendments under two pieces of legislation that recently moved through committee. These proposed changes have generated controversy among cannabis stakeholders. The main concern highlighted is the potential ban on many consumable hemp-derived cannabinoids, including CBD products containing any “quantifiable amounts” of THC. The amendments also aim to clarify that intoxicating synthetic cannabinoids, such as delta-8 THC, are prohibited.
Supporters and Opponents of the Provisions
“Congress is continuing to debate these proposed changes as it proceeds to consider these bills,” CRS noted. The report states that the provisions have both supporters and detractors. Proponents include prohibitionist groups and some major marijuana companies, while the hemp industry largely opposes the language, despite agreeing on the need for a regulatory framework to address public health concerns since hemp was federally legalized under the 2018 Farm Bill.
Impact on Consumable Hemp Products
The CRS report clarifies that the provisions would not necessarily ban all consumable hemp cannabinoid products but would require determinations by the U.S. Department of Agriculture (USDA) based on scientific research and quantification methods. However, hemp stakeholders argue that this proposal would fundamentally disrupt the cannabinoid market.
Legislation Details
The controversial provisions have been included in an Agriculture, Rural Development, Food and Drug Administration, and Related Agencies appropriations bill, as well as the 2024 Farm Bill. Both bills were approved in committee over the past month. Unlike the Farm Bill, the spending legislation amendment does not define “industrial hemp,” potentially causing confusion.
Additional Provisions in the Farm Bill
The Farm Bill advancing through the House Agriculture Committee also includes provisions to reduce regulatory barriers for certain hemp farmers and to scale back a ban on industry participation by individuals with prior drug felony convictions. Specifically, the bill would allow the USDA, states, and tribal entities to eliminate the policy preventing individuals with drug felony convictions in the past 10 years from being licensed to produce industrial hemp.
Broader Legislative Efforts
Advocates hoped for more expansive language, such as that in Senate Democrats’ recent summary of their forthcoming Farm Bill draft, which mandates eliminating the felony ban for all hemp producers. The Senate Agriculture Committee has not yet released the draft text of their bill, leaving some details uncertain.
Regulatory Challenges and Economic Impact
The hemp industry, which began to rebound in 2023 after significant losses in 2022, continues to face regulatory hurdles. Bipartisan lawmakers and industry stakeholders have criticized the FDA for not enacting regulations for hemp-derived CBD, attributing economic stagnation to this inaction. FDA Commissioner Robert Califf testified in April that the agency needed additional congressional authorization to regulate non-intoxicating cannabinoids.
USDA’s Stance and Market Outlook
The USDA has also been revoking hemp licenses for farmers simultaneously growing marijuana under state-approved programs, highlighting policy conflicts from federal prohibition of some cannabis forms. Despite these challenges, the hemp market in 2022 was larger than all state marijuana markets, equaling sales for craft beer nationally.
Internal USDA Precautions
Internally, USDA food safety workers are being advised to exercise caution and avoid cannabis products, including federally legal CBD, due to an uptick in positive THC tests amid growing state-level legalization.
As Congress continues to debate these provisions, the hemp industry remains concerned about potential market disruptions and regulatory confusion. Stakeholders emphasize the need for a clear and supportive regulatory framework to ensure the industry’s growth and public health safety.
