Senate Move to Limit THC Sparks Panic in Hemp Industry

A sweeping rewrite of federal hemp policy, tucked into a government funding bill, is threatening to dismantle a multibillion-dollar industry. The effort has the potential to affect thousands of American farmers and retailers just as the federal government gears up to reopen.

In a sharp turn for U.S. agricultural policy, the Agriculture Improvement Act of 2018 (also known as the 2018 farm bill), which legalized commercial cultivation of hemp, may be effectively undone by a provision in the current spending package that would ban most intoxicating hemp-derived cannabinoid products.

Late Monday, the Senate approved a funding measure aimed at reopening the government that includes language redefining hemp and barring the sale of products containing certain THC compounds unless they meet strict new thresholds.

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