New Regulations on Hemp-Derived Products Expected to Reshape the Industry

Legislation moving through U.S. Congress could soon bring significant changes to the regulation of hemp-derived products. The hemp-derived cannabidiol market, valued at nearly $30 billion, is poised for adjustments that may take effect as early as this fall or by the first quarter of 2025.

One of the major components of this shift is the 2024 Farm Bill, which aims to redefine hemp’s legal status by focusing on its total THC concentration rather than just delta-9 THC. This change would limit hemp to naturally occurring, non intoxicating cannabinoids. The bill also addresses concerns about the unintended consequences of the 2018 Farm Bill, which legalized hemp with less than 0.3% delta-9 THC but didn’t foresee the rapid growth of the hemp-derived cannabidiol market.

The 2024 Farm Bill proposes to shift the focus of legal limits for hemp from just delta-9 THC to the total THC concentration, including all forms such as THCA. This shift aims to better regulate products by considering their full THC content, ensuring they remain nonintoxicating. Additionally, the bill will restrict hemp products to naturally occurring cannabinoids, which could impact the legality of certain hemp-derived products currently on the market.

Further changes could come from the Agriculture-FDA Appropriations legislation for fiscal year 2025, which echoes the Farm Bill’s emphasis on naturally occurring cannabinoids. The outcome of these legislative efforts will have a profound impact on the hemp industry, particularly before the U.S. Drug Enforcement Agency (DEA) publishes its final regulations on marijuana rescheduling.

As Congress continues to refine these bills, industry stakeholders should stay informed and prepared for the potential regulatory shifts. These changes could reshape the market landscape, influencing everything from product development to legal compliance.

The evolving legal environment underscores the importance of understanding the upcoming regulations and their implications for the hemp-derived product market. Whether you’re a producer, retailer, or consumer, staying ahead of these changes will be crucial as the new legislative framework takes shape. New Regulations on Hemp-Derived Products