Industrial Hemp Regulation Undergoing Comprehensive Review

1.7 min readPublished On: February 26th, 2025By

LOS ANGELES- The regulatory framework governing industrial hemp is currently under extensive review, aiming to address emerging challenges and align with evolving industry practices. This initiative seeks to refine existing policies to better support the hemp sector while ensuring public safety and compliance.

The Agriculture Improvement Act of 2018, commonly known as the 2018 Farm Bill, federally legalized the cultivation of industrial hemp, defining it as cannabis with a delta-9 tetrahydrocannabinol (THC) concentration of no more than 0.3% on a dry weight basis. This legislative change prompted the U.S. Department of Agriculture (USDA) to establish a national regulatory framework for hemp production. In January 2021, the USDA published a final rule outlining comprehensive regulations for hemp cultivation, which became effective in March 2021.

Current Review Objectives

The ongoing review focuses on several key areas:

  • Product Safety and Public Health: With the proliferation of hemp-derived products, including those containing cannabinoids like cannabidiol (CBD), there is a concerted effort to evaluate their safety and impact on public health. In January 2023, the Food and Drug Administration (FDA) announced plans to collaborate with Congress to develop a new regulatory pathway for CBD products, acknowledging the complexities of regulating these substances under existing frameworks.

  • State and Tribal Coordination: The USDA continues to work closely with state and tribal authorities to review and approve hemp production plans, ensuring they meet federal standards while accommodating local conditions. As of the latest updates, numerous state and tribal plans have been approved, facilitating a more uniform regulatory environment across jurisdictions.

  • Market and Economic Considerations: The review also addresses the economic aspects of the hemp industry, including market stability, interstate commerce, and the development of infrastructure to support hemp production and processing.

Implications for Stakeholders

Stakeholders, including hemp cultivators, processors, and retailers, are advised to stay informed about regulatory developments resulting from this review. Engagement in public comment periods and active participation in industry forums can provide valuable input into the policymaking process. Adherence to updated regulations will be crucial in maintaining compliance and capitalizing on the opportunities within the evolving hemp market.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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