In 2018, Congress legalized the production of hemp. It is nearly identical to marijuana but contains only trace amounts of the cannabinoid Delta 9 THC.
The 2018 Farm Bill passed overwhelmingly with bipartisan support. Many stated this was an overdue acknowledgement of the economic and agricultural potential of hemp.
This law created a legal distinction between hemp and marijuana, paving the way for the widespread use of hemp. Food, textiles, paper, building materials, personal care products, and biofuels are now all made from hemp.
Over five years later, that policy change has been a resounding success. Hemp production totaled $291 million in 2023. This economic impact extends beyond farming1 into small businesses up and down the supply chain. These businesses include a thriving therapeutic hemp-derived cannabinoid sector.
The total economic impact of hemp on the U.S. economy has been estimated at nearly $80 billion, supporting more than 300,000 jobs and generating more than $13 billion in wages2.
WHAT’S AT STAKE: THE FARM BILL AMENDMENT AND HEMP
Despite the positive economic boost hemp has provided small business owners, some Members of Congress are threatening this developing sector.
An amendment recently added to the Farm Bill Reauthorization authored in the House Agriculture Committee seeks to amend the definition of hemp. This language says hemp shall include only components of the plant that include less than 0.3% total THC on a dry-weight basis, and EXCLUDE cannabinoids that are not capable of being naturally produced in the cannabis plant, such as delta-8 THC. Similar language is also included in the House’s Fiscal Year 2025 Agriculture, Rural Development, Food and Drug Administration and Related Agencies Appropriations Act.
If this language becomes law, it would decimate not only the hemp-derived cannabinoid sector but the entire hemp industry. There are over 100 different natural cannabinoids, but certain therapeutic ones don’t exist in enough natural quantities to meet demand. Hemp is the stepping stone to meet these needs. The effects of these exclusions in the farm bill amendment would be felt up and down the supply chain and especially by the consumers who rely on them for medicinal and therapeutic needs.
Simply put, these legislative proposals do not take the full picture into account. They are ignoring the impact this would have on the health of thousands of Americans, not to mention stifling a strong and growing industry built by farmers and small businesses.
THE SOLUTION: Regulate! Don’t Decimate!
Responsible and effective regulation is the answer. Outright prohibition has never been effective. Research and fact-based safety regulations are paramount to ensure the future of the hemp industry. Want to learn more? Read over our statement of principles and the immediate reforms.
Hemp needs your support! You can join our coalition by reaching out to [email protected]
- https://www.nass.usda.gov/Newsroom/Executive_Briefings/2024/04-17-2024.pdf ↩︎
- https://formulaswiss.com/blogs/industry-news/hemp-industry-boom-economic-impact-policy-in-the-u-s ↩︎