Industry reactions have been mixed and often heated after an amendment that proposes redefining hemp was added to the draft 2024 Farm Bill, closing loopholes in the bill that would essentially shutter much of the cannabinoid hemp market and the THCA seed market should it become law.
The amendment, offered by Rep. Mary Miller, R-Ill., proposes to change the definition of hemp … to only include naturally occurring naturally derived, and nonintoxicating cannabinoids and to include only components of the Cannabis sativa L. plant and all derivatives and seeds that include less than 0.3% total THC (including tetrahydrocannabinolic acid, or THCA) on a dry-weight basis. The amendment would effectively make illegal products containing intoxicating hemp-derived cannabinoids (e.g., delta-8 THC), shuttering what has become a multibillion-dollar market in the U.S., and would hinder seed companies, breeders and cannabis flower producers from selling seeds and cannabis flower across state lines in the U.S. under what is considered a loophole in the 2018 Farm Bill.
The amendment was adopted as part of an en bloc package (several amendments offered and considered as a group) with other unrelated amendments during a May 23 markup hearing for the draft 2024 Farm Bill (officially called: The Farm, Food, and National Security Act of 2024) by the House Agriculture Committee. Fifty-nine amendments to the 954-page draft bill (H.R. 8467) were filed between May 22 and May 24.
“It’s worth noting that this is a committee approving an amendment (not via a roll call vote, mind you, but rather en bloc) to a draft version of the Farm Bill, not the full House doing so,” Jonathan Havens, partner at national law firm Saul Ewing, told CBT. “In other words, the sky isn’t falling for the hemp industry, at least not yet.”
Havens said, however, that “any action” the House Agriculture Committee takes “vis-à-vis the Farm Bill is noteworthy.”
“But it will be important to pay attention to what, if any, action the full House takes on the Farm Bill this year,” he said. “Some are assessing that the likelihood of passage this year is low—I think it’s too early to conclude that definitively. And even if the House ultimately approves the Farm Bill with this amendment, unless the Senate passes an identical version, the differences between the chambers’ versions will have to be resolved (and then the conference committee’s version would need to be approved by each chamber). In other words, there’s a long way to go before Rep. Miller’s proposal becomes law.”
The Senate Agriculture Committee released a 94-page summary of its 2024 Farm Bill proposal on May 1 that did mention hemp but only regarding defining “industrial hemp”—a distinction that was not included in the 2018 Farm Bill—among a couple other proposed changes, none of which addressed intoxicating hemp-derived nor synthesized cannabinoids, as CBT reported.
The 2018 Farm Bill was set to expire on Sept. 30, 2023, but was extended by President Biden on Nov. 16, 2023, under H.R. 6363, the Further Continuing Appropriations and Other Extensions Act, 2024, to “allow authorized programs to continue through Sept. 30, 2024,” according to the U.S. Department of Agriculture (USDA).
Some constituents of both the state-legal cannabis industry and the hemp industry have voiced opinions that intoxicating cannabinoids should be regulated, and some believe that even nonintoxicating cannabinoid products should be regulated, to ensure consumer safety and prevent these products from being sold to children (e.g., at gas stations). Others believe hemp-derived cannabinoids should be left alone.
Matthew Savolskis, founder and CEO of Accipiter Consulting, commented on an intoxicating-cannabinoid-related CBT post on LinkedIn, “Garbage. NOT medicine. Hemp is a phenomenal industrial product. Cannabis is medicine.”
“Unfortunately, when it comes to the hemp-derived products that have been flooding the market, such as delta-8 THC, there is no independent person or agency regulating them—which is highly dangerous,” Peter Grinspoon, M.D., a cannabis specialist for 25 years, wrote in his Grinspoon on Drugs newsletter on May 28.
“These products haven’t been studied sufficiently, if at all,” wrote Grinspoon, who is a primary care doctor at Massachusetts General Hospital and an instructor in Medicine at Harvard Medical School. “The claims of benefit have been exaggerated, if not wholly fabricated. There is no reason to think that the labels delineating which each product purportedly contains are even remotely accurate, or that these products are free from contamination with heavy metals or other, random industrial byproducts. I would avoid these products until this industry is sufficiently regulated or somehow manages to get its act together on its own.”
Many also have shared opinions that the businesses that have emerged in the burgeoning hemp-derived cannabinoid industry were established legally (whether through an unintended loophole in the 2018 Farm Bill) and should not be just shut down overnight through yet another act of sweeping legislation.
RELATED: Texas Hemp Business Council Tells Texas Lawmakers ‘Don’t Mess with Hemp’
During the House Agriculture markup hearing, Rep. Derrick Van Orden, R-Wis., who stated for the record that he is not a supporter of recreational marijuana, said he opposed Miller’s amendment.
“Although I understand the intent of this amendment, which is to limit the accessibility of these derivatives to children, and I appreciate that greatly … the issue is this: Congress inadvertently created this problem in the 2018 Farm Bill because they could not … or they didn’t reasonably predict that these types of cannabinoids could be synthesized, and then they passed this bill through,” he said. “There are now tens of thousands of Americans who have created different businesses, including several in my district now, that are using this process to feed their own kids. … I think that Congress, again, is going to inadvertently do something. I’ve spoken to my industry experts on this, and they absolutely want to be regulated. They do not want to be part of an industry that is producing different types of substances that can be given to children … but they also want to make sure that the quality and consistency of the products are across the board the same.”
Van Orden said those businesses “do want to be regulated; they do not want to be destroyed.”
“And again, Congress created this problem in the 2018 Farm Bill and now in order to right the wrong that they feel that they did, they’re going to put tens of thousands of Americans’ jobs at risk, and they’re going to destroy an industry that was allowed to be created legally,” he said. “And so I don’t think it’s appropriate for Congress to retroactively go back and make an industry essentially illegal that’s going to put these people out of business. So unfortunately, I will not be able to support this en bloc if this amendment is still included in it.”
With the news of the amendment still ringing fresh in the ears of those in the cannabis and hemp industries, CBT compiled responses to the potentially industry-altering 2024 Farm Bill from industry businesses, industry organizations, lobbyists and others:
Michael Bronstein, president, American Trade Association for Cannabis and Hemp (ATACH)*:
“ATACH supports the creation of a regulatory framework for cannabis and hemp products through full federal legalization, as well as the ability for states to preserve their own cannabis and hemp programs. It is clear that the intent of the Farm Bill in 2018 was not to legalize synthetic THC in an unregulated fashion. Today’s amendment, which closes the loophole, should be a wake-up call. The Farm Bill, which is authorized every five years, is an imperfect vehicle for meaningful legalization and going forward the call must be for sensible regulation.”
*In a statement
“[The Rep. Mary Miller Amendment] would functionally end most hemp farming. So, the way that this industry has been built has been around a 0.3% Delta-9 THC, without factoring in THCA, and farmers have been working over the last five years to make sure that their crops are compliant with that. And so, we've gotten new certified seed varieties, we've gotten planting techniques all built around this standard. But if you add in the THCA, like the bill suggests, then all of this hemp is going to be noncompliant. They've got it down to 0.25 THC, but then if you add in the THCA, it's going to be over 0.3. And it just would be—I don't think they intended this, or they might have. I'm certain that most people that voted for this did not realize what this meant …. And I think that the intent was to try to go after THC cigarettes to crack down on that segment of the industry, but they did it all wrong. They decided to define the plant at post the finished product, and it's causing great, great anxiety.”
Boris Jordan, executive chairman, Curaleaf*:
"We disagree with yesterday's amendment filed by Mary Miller (R-IL), which is an attempt to roll back the Farm Bill. We support hemp farmers, and we believe that hemp-derived products made within the guidelines of the Farm Bill should be available to adults with strict age gating and safety standards. We believe there should be one regulatory framework for all cannabinoids, and that all legal players in the hemp-derived product market must adhere to the same safety and age restrictive standards in order to combat the dangers of the illicit market—just as in cannabis."
*In a statement
Caren Woodson, senior director of compliance, Kiva Confections:
“To increase safe access to Kiva products for consumers not currently served by the regulated cannabis market, we introduced a line of hemp derived Delta-9 edibles earlier this year. Regardless of whether intoxicating cannabinoids come from hemp or cannabis, it is imperative for the government to increase safe and legal access to protect public health and safety.
Where cannabis products are excessively regulated and overtaxed, hemp products are under regulated and subject to no special tax. This paradox provides an opportunity for brands, policymakers, and consumers to reimagine a legal and regulatory framework for cannabinoids in California and beyond.”
Leili Fatehi, partner and principal of cannabis government relations firm Blunt Strategies:
"As we discuss the regulatory future of hemp and its intoxicating derivatives, it's imperative to recognize this as an opportunity to rectify broader policy failures within our national cannabis laws. Here in Minnesota, we've set an example by using hemp not just commercially but as a progressive tool to destigmatize cannabis and foster economic diversity. The ongoing debate on the federal level highlights a stark inconsistency: There is no scientific or public policy justification for treating intoxicating products derived from hemp differently from those derived from marijuana. This reflects and perpetuates an inequity, where historically, certain communities faced harsh penalties under cannabis prohibitions while others now exploit these regulatory ambiguities. States need to adopt thoughtful frameworks like Minnesota's, harmonizing regulations for all cannabis products, ensuring fairness, equity, and rational public health principles guide our policies."
Brittany Hallett, executive vice president of marketing, SLANG Worldwide (which includes national CBD gummy brand, Alchemy Naturals)*:
"The passage of the Mary Miller amendment to the Farm Bill would be devastating to the wellness-oriented CBD industry. Thanks to emerging cannabinoid science we're learning that the entourage effect which is when the parts of the plant work better together as a whole is vital to delivering the most effective experience possible for consumers. Full-spectrum oil has become an industry standard in many CBD products which possesses a range of cannabinoids found natively within the cannabis plant from CBD to THC and CBG, and the list goes on. Restricting the ability to utilize full-spectrum oil would hamper consumers' access to effective products increasingly being turned to for legitimate wellness needs, from sleep to relief to stress management. These products aren't about loopholes or getting people high, they're about safe access to natural wellness. There are certainly loopholes within the hemp space that should be examined but this isn't the right way to proceed and is a classic example of lobbying gone wrong and being persuaded by big business agendas."
*In a statement
Justin Singer, J.D., CEO & co-founder of dissolvable and edible company Ripple:
“This amendment to the Farm Bill is ill-advised, shortsighted, and has zero chance of becoming law. Given the Democrat-controlled Senate, it’s hard to believe that the Biden Administration will roll out marijuana rescheduling while simultaneously reinstituting hemp prohibition. Meanwhile, there is no cannabis-related risk that isn’t more effectively addressed through regulation than via prohibition.”
Kevin Sabet, Ph.D., President, Smart Approaches to Marijuana (SAM)*:
“Today’s vote by the House Agriculture Committee is a major victory for public health and safety. The addiction industry has created a massive market for unregulated drugs that exploits the legal gray areas to hook new users using dangerous THC edibles, vapes and other products. It’s been a recipe for disaster that’s left people across the nation hospitalized and fueled a rise in addiction and substance use disorders. Worst of all, it is fueling a dangerous perception among our nation’s young people that THC drugs and marijuana are safe and even ‘recreation.’
High-potency marijuana products and Delta-8 THC products are virtually indistinguishable. It was never the intention of Congress to create this unfettered market with addictive drugs. We thank House Agriculture Committee Chairman GT Thompson, Representatives Miller and LaMalfa, and all the members of the committee who voted in favor of restoring sense and sanity. They have taken a tremendous stand that will reverberate in America’s communities for years to come.
Because Delta-8 THC is virtually identical to Delta-9 THC, it carries similar risks including addiction, psychosis. The House has led on this issue and Senate Democrats must now support closing this dangerous loophole that has exacerbated the nation’s drug crisis.”
*In a statement
From the U.S. Hemp Roundtable (USHR)*:
"There was no roll call vote on the hemp-killing Mary Miller Amendment. Instead, House Agriculture Committee Chairman G.T. Thompson grouped it 'en bloc with several other amendments and subjected them to a voice vote, which passed. This is especially disappointing because we were confident that on a roll call vote, we would win. In the 12 hours since we started our campaign, Hemp Supporters sent more than 7,000 emails urging defeat of the amendment. Three Members of Congress spoke up at the hearing denouncing the amendment. But unfortunately, the decision was made by the Chairman to use a procedural tactic to avoid a separate vote on the issue. And that resulted in passage of a deeply flawed and deeply objectionable policy. Although we lost today’s battle, the war is far from over. The Farm Bill will be sent to the floor of the House where its passage this year seems unlikely. Even if the House should pass the Farm Bill, the differences between House Republicans and Senate Democrats are considerable at this point. And even if the major issues dividing the parties are resolved, we continue to have many friends in both branches on both sides of the aisle who will work with us to defeat this hemp-killing language.”
The USHR is "asking all Representatives to vote against the Farm Bill unless the Mary Miller Amendment is removed," and encouraging its members to contact their members of Congress to "urge him or her to be prepared to vote against the Farm Bill unless the hemp industry-killing language is stripped out of the final draft."
*From an eblast statement.
Eapen Thampy, lobbyist for the Missouri Hemp Trade Association, and American Shaman:
“If enacted, the Miller Amendment to the 2024 Farm Bill will have three primary negative impacts: One, a massive increase in demand for cannabis that is cheaper than the limited-license state marijuana markets can provide, a gap that will be filled by Chinese triads, Russian mafia, and Mexican cartels. Two, it will make China the global leader in CBD and cannabinoid export markets. And three, gut U.S. based scientific and pharmaceutical research into novel cannabinoid risks, benefits, and send any future drug development efforts to countries in Eastern Europe.
Congress should instead give the U.S. hemp industry what we've been asking for—regulatory clarity from the FDA on cannabinoids as dietary supplements along with further regulation of so-called "intoxicating" cannabinoids for adult use by the Alcohol and Tobacco Tax [and] Trade Bureau. Preserving domestic markets and protecting American entrepreneurs prevents capture of our markets by illicit multinational organizations, protects America's interests in scientific and medical discovery, and allows consumers to make informed, safe choices in the market.”
Rob Pero (Bad River), founder, Indigenous Cannabis Industry Association*:
“As members of the Indigenous Cannabis Industry Association, we are deeply concerned about a new amendment proposed in the upcoming House Farm Bill hearing. This amendment, introduced by Rep. Mary Miller (R-IL), poses a significant threat to the U.S. hemp industry and our communities' interests in advancing wellness, industry, and economies.
The proposed amendment seeks to federally ban all ingestible hemp products containing any level of THC. This would not only impact potentially impairing products like Delta-8 but would also extend to non-intoxicating CBD products with any quantifiable amount of THC. Such a broad prohibition would effectively eliminate 90-95% of the hemp products market, jeopardizing the livelihoods of countless farmers, entrepreneurs, and Indigenous communities relying on the hemp industry for economic sustainability.
Furthermore, the proposed redefinition of hemp to include THC-A calculations could wreak havoc in the fiber and grain market, exacerbating the challenges faced by Indigenous farmers and producers.
We urge all members of Congress to recognize the detrimental impact of the Mary Miller amendment on Indigenous hemp interests and the broader hemp industry. This cynical effort, influenced by monopoly-seeking marijuana companies, threatens to undermine the progress made since the legalization of hemp in the 2018 Farm Bill.
Tribal nations, tribal businesses and operators, and communities must be bold in protecting hemp as a plant medicine and viable agricultural industry. We must push back against the criminalization of hemp and defend our rights to cultivate, process, and utilize this sacred plant for the betterment of our people and our future generations.
Together, we can defend the interests of Indigenous hemp farmers, entrepreneurs, and communities and ensure that the U.S. hemp industry continues to thrive as a driver of wellness, industry, and economic prosperity.”
*In a statement
Editor's note: Cannabis Business Times is conducting an industry survey on whether and/or how intoxicating hemp-derived cannabinoids should be regulated. Please share your opinions on this important topic. Take CBT's brief survey here.