Congress officially pushed back reauthorization of the U.S. Farm Bill this week, extending the landmark 2018 version of the omnibus agriculture legislation – and meaning more delays in putting the guardrails on CBD and intoxicating hemp products.
If consumers are to be protected from unregulated hemp products, states must continue to step in to control the two lucrative hemp subsectors.
While a stopgap spending measure to keep the government open – currently held up by the whims of incoming President Donald Trump – includes some spending on specific popular programs for farmers and rural communities, it means no changes to how CBD and synthetic cannabinoids like delta-8 are defined and regulated, exacerbating an already volatile situation and leaving stakeholders to continue navigating in the regulatory fog.
In a statement, U.S. House Agriculture Committee Chairman Glenn “GT” Thompson, a Pennsylvania Republican, and U.S. Senate Agriculture Committee Chairwoman Debbie Stabenow, a Michigan Democrat said the stopgap bill agreed upon this week provides much-needed relief for agriculture, including $10 billion in emergency economic aid, which will help address the significant losses incurred due to both weather and market-related issues. But the broader farming measure – and the matters critical to hemp – will wait to next year.
Thompson said that he hopes to move quickly to enact a five-year Farm Bill when the next Congress convenes.
Patchwork laws
CBD legality varies from state to state. Some states have enacted laws permitting CBD products use under specific conditions, such as for medical use or with a prescription. Other states have more restrictive laws, while some have not addressed the matter.
Similarly, states are constantly cracking down on products that contain hemp-derived intoxicating substances such as the popular delta-8 THC.
Farm bills are critical legislative frameworks that shape U.S. agricultural policy. The 2018 Farm Bill marked a significant milestone for the hemp industry by federally legalizing hemp cultivation and the plant’s derivatives, including CBD.
The hemp industry, particularly the CBD sector, boomed following this federal recognition, with consumer demand skyrocketing for products claiming a variety of wellness benefits.
However, hype and greed led to a quick crash, and regulatory ambiguity has left the sector in limbo. As the U.S. Congress debates the next Farm Bill, the future of the CBD industry and products containing intoxicating cannabinoids are key issues on the table.
CBD industry challenges
The regulatory vacuum surrounding CBD is one of the most significant issues facing the hemp industry. The 2018 Farm Bill legalized hemp and its derivatives but left the U.S. Food and Drug Administration (FDA) responsible for regulating CBD. However, the FDA has yet to establish clear guidelines, and says it needs guidance from legislators before it can do so.
Despite its hesitation to regulate CBD, the FDA has repeatedly expressed concerns about the safety of the hemp-derived substance, citing a lack of sufficient evidence to deem it safe for use in food, beverages, or dietary supplements. The agency has warned that CBD poses potential risks, including liver damage, interactions with other medications, and potential harm to the male reproductive system. Additionally, the FDA has flagged the possibility of cumulative exposure over time, especially among vulnerable populations such as children and pregnant women. Despite the proliferation of CBD products in the marketplace, the FDA has yet to establish clear regulatory guidelines, leaving consumers exposed to inconsistent quality and safety standards.
The lack of oversight has allowed the CBD market to proliferate without consistent safety or quality standards, leading to concerns among consumers and regulators alike. If the upcoming Farm Bill reauthorization or other legislation pushes the FDA to regulate CBD, manufacturers will likely need to adhere to strict labeling requirements, including dosage, warnings, and verified health claims.
This would create more consumer confidence but could also drive up operational costs for smaller hemp companies. Additionally, the FDA currently prohibits CBD from being added to foods and beverages, even though such products are widely available in many states. The new Farm Bill may push for a harmonized federal policy, potentially opening up new markets while simultaneously adding compliance challenges for businesses.
Concern over intoxicants
The biggest segment of the hemp industry in 2024 revolves around products containing synthetic cannabinoids such as delta-8 THC, which are derived from hemp but can produce mild psychoactive effects. These products exist in a legal loophole: they are technically compliant with the 2018 Farm Bill – which legalized hemp and all downstream derivatives – but weren’t anticipated by lawmakers who drafted that legislation.
The illicit products, which go by slang names such as “diet weed,” “marijuana light,” or “gas station pot,” are sold in the form of gummies, candies, drinks, tinctures, topicals (often taken internally), and inhalable vapes and smokable products. Officials in some states have come out strongly against the intoxicating hemp products because they are marketed in packaging that mimics leading brands of treats popular among children.
Industry insiders, investors, lawmakers, and regulators are closely watching the “intoxicating hemp” market, and many believe the 2023 Farm Bill will crack down on these products.