Government Policy Changes

My Take on the Industrial Hemp Provisions in the Federal Spending Bill 📄 A few folks have reached out asking for my take on the industrial hemp provisions in the new federal spending bill, wondering whether this could negatively impact Hempitecture The truth is this legislation will have a positive impact on Hempitecture and on other businesses working with fiber and grain hemp. Industrial hemp is a complex crop. Think of it as an umbrella term that covers several distinct types of hemp: fiber, grain, and CBD. While these plants share some common genetics, they're planted and grown quite differently. They direct their photosynthetic energy toward entirely different outcomes. Fiber hemp is planted densely, encouraging tall stalks that compete for sunlight with one another: ideal for textiles, insulation, and biocomposites. Grain hemp directs its energy toward nutritious seeds, which are now a staple in grocery stores nationwide. CBD hemp is cultivated with wider spacing and higher inputs to promote flower growth for cannabinoid extraction. When industrial hemp was first legalized, it opened the door to an unregulated cannabinoid industry that blurred the lines between hemp and intoxicating cannabis. The new hemp provision closes this loophole that allowed some CBD hemp growers to convert their crops into intoxicating derivatives. Our business has zero connection to this segment of the market. By closing this loophole, the federal government is finally recognizing that fiber, grain, and industrial hemp are distinct from CBD or intoxicating hemp products. I don’t intend to condemn the cannabinoid side of the industry. I recognize there’s significant investment, real farmers, and livelihoods tied to that work. This legislation will likely cause disruption for that segment. But for the industrial hemp sector, this represents an overdue step toward clarity and legitimacy. It means our products, made from large-scale, agricultural grade fiber hemp, can be understood for what they truly are: natural, renewable resources that have nothing to do with intoxicating substances. A few weeks ago, I shared how every year I’m required to get fingerprinted and undergo a background check to maintain our industrial hemp license. A company growing corn, soybeans, or potatoes would never face that. This new chapter moves us closer to being recognized as an agricultural industry with enormous potential to benefit people, the planet, and the economy. Photos taken at IND HEMP CC: National Hemp Association

With the new federal spending package now signed into law, there’s understandable confusion about the hemp provisions it contains. Some people call it a “hemp ban.” Others say it will wipe out the industry. Neither is true. This law doesn’t ban hemp. It closes a loophole that allowed an entirely separate market of intoxicating products to operate with no testing, no age controls, and no regulatory structure. That market grew far beyond the intent of the 2018 Farm Bill. In recent years, you could walk into a store in states like North Carolina and purchase products labeled as “hemp” that were every bit as intoxicating as regulated cannabis sold in California. In many cases, the products were California cannabis rebranded as hemp. In other cases, they were low-potency flower sprayed with chemically converted THC or synthetic cannabinoids. None of it required testing or safety standards. Consumers had no way of knowing whether the grower used pesticides banned in regulated cannabis markets, including chemicals such as Eagle 20. This wasn’t the industry Congress legalized. The 2018 Farm Bill was meant to support non-intoxicating hemp used for fiber, grain, seed, nutrition, and wellness. The rise of intoxicating hemp was a direct result of a technical reading of the law that ignored its purpose. Businesses built around this loophole were operating in legally unstable territory from the start. The new law restores the boundary between hemp and intoxicating products. It keeps hemp fully legal for the uses Congress intended. Industrial hemp is untouched. Hemp foods, supplements, topicals, grain, fiber, and non-intoxicating cannabinoids all remain protected. The only change is that intoxicating cannabinoids are no longer allowed to circulate nationally without oversight. Those products will now fall under the types of state-regulated systems that already exist for cannabis. These systems are designed to ensure testing, labeling, age verification, and consumer safety. The law also gives the Department of Health and Human Services the responsibility to identify which cannabinoids have intoxicating effects. This closes the door on future chemical workarounds where new forms of THC are created simply to evade regulation. All of this prepares the federal landscape for what comes next. If cannabis is moved to Schedule III or otherwise rescheduled, regulators will need stable definitions for THC, intoxicating cannabinoids, and the dividing line between hemp and cannabis products. This new law provides those definitions. So, clearly this is not a hemp ban. It is a modernization of federal hemp law that brings clarity and safety back to the marketplace. It protects the legitimate hemp industry while ensuring intoxicating products are handled through regulated channels built for consumer protection. With the loophole closed hemp can operate on stable ground and the country now has the regulatory footing needed for the next steps in federal cannabis reform.

South Africa has officially implemented its updated Plant Improvement Act, and one of the most impactful changes is the new legal limit for industrial hemp — up to 2% THC in the leaves and flowers of Cannabis sativa L. This replaces the old 0.2% limit, which was seen as too restrictive given local growing conditions. This is a huge shift — South Africa is now the only country in the world allowing more than 1% THC in certified industrial hemp. The move is designed to better match the climate and varieties cultivated locally, give farmers more stability (reducing crop losses from natural THC fluctuations), and attract investment into the sector. The change opens up exciting opportunities for textiles, bioplastics, construction materials, composites and other value-added hemp products — and could help position South Africa as a major player in global industrial hemp markets. A major regulatory step with big implications for agriculture, industry and the global hemp economy. https://lnkd.in/gHSBGUkW #hemp #southafrica CannaReporter®

🚨 The hemp industry has 353 days to change its future. Most people have no idea what is coming. As a founder, it’s easy to talk about growth and wins. But leadership also means speaking clearly when the future of an entire category hangs in the balance. And right now, hemp is at that point. Last week I was in Washington with the U.S. Hemp Roundtable meeting with key lawmakers. It became clear very quickly that hemp is standing at a crossroads. If Congress doesn’t act in the next 353 days, 95% of hemp products will be treated as Schedule 1 narcotics. This language was quietly added to the government funding bill. And while it claims to target synthetic intoxicants being marketed to kids, it doesn’t distinguish responsible companies from the bad actors. It sweeps up the entire wellness side of hemp and eliminates it. And behind every one of these products is a farmer. Many already face broken contracts and unsold biomass. Some don’t know if they can plant next season. These are real people whose livelihoods depend on this crop. This could become a deeply challenging moment for the entire industry and millions of American consumers. But here’s the part that gives me hope... For the first time, federal policymakers are giving hemp their full attention. They’re opening the door to real regulatory clarity. They’re signaling what a responsible framework could look like. And now it’s on the good actors in this industry to come together, make compromises where needed, and push forward with one unified voice. At Feals, our products aren’t meant for everyone, and that’s completely fine. What matters is that hundreds of thousands of people across the U.S. rely on them every day to sleep better, calm their nervous system, manage stress, and feel more grounded. The benefits are real. And what we make has nothing in common with the synthetic intoxicants that created this crisis. Here’s what the responsible side of the industry must focus on: 1️⃣ Secure a one year extension so decisions are made thoughtfully, not hastily. 2️⃣ Protect states’ authority to set potency limits and permitted form factors. 3️⃣ Build a federal framework that brings clarity, safety, enforcement, and long term legitimacy. We started Feals because we believed hemp could help people live calmer, clearer, better lives. And that belief has only become stronger as our community has grown. This next year will define the future of hemp. And I’m not pulling back. I’m stepping further into the work. For our customers. For our farmers. For the future of responsible hemp.

For the first time in decades, federal cannabis policy is showing real signs of movement. But while many are focused solely on the prospect of rescheduling, the more immediate challenge is the regulatory collision course facing both licensed cannabis and hemp operators over the next 12 months. Despite the optimism, the probability of a full rescheduling within the next year remains modest. The administrative pathway is slow, politically sensitive, and constrained by decades of Controlled Substances Act precedent. A move to Schedule III is not impossible; indeed, the agencies have laid more groundwork than ever before, but it would still require a level of inter-agency alignment that historically takes longer than the headlines suggest. Meanwhile, the hemp sector is bracing for an entirely different federal shift: the effective federal ban on intoxicating hemp derivatives. As that clock runs down, hemp companies are confronting a reality that licensed cannabis operators have lived with for years, operating federally illegal businesses in an uncertain marketplace shaped more by regulatory gaps than regulatory clarity. What is striking now is the convergence. These two industries, which Washington has long treated as separate, are increasingly finding themselves aligned. Both are recognizing that the FDA’s existing expectations, particularly the application of 21 CFR Part 211 drug-GMP frameworks, are unworkable for the vast majority of commercial operators. These standards were never designed for agricultural derivatives, consumer-packaged goods, or the types of decentralized supply chains that define this space. As a result, cannabis licensees and hemp manufacturers (thus far competitors) are now looking at forced collaboration on a common objective: establishing a regulatory pathway that acknowledges biological variability, allows scaled commercial production, and does so without imposing the full pharmaceutical-grade requirements that would effectively eliminate all but a handful of players. The next year will not just determine scheduling. It will determine whether the United States builds a coherent, economically viable cannabinoid regulatory framework—or whether we allow policy drift to decide the winners and losers of an entire industry. Operators who understand this moment—and who work collectively rather than in silos—will shape what comes next.

SF 4401 just passed committee — and it changes everything for hemp and cannabis businesses in this state. At Nothing But Canna (formerly Nothing But Hemp), we had a seat at the table as one of 80+ stakeholders who helped shape this bill. We've now read every one of its 119 sections so you don't have to. Here's what you need to know: - A brand-new product category — ratio hemp-infused cannabis products — just became law - Milligram limits for hemp edibles have been completely restructured (CBD up to 100mg per serving) - The cannabis macrobusiness license replaces the old medical cannabis combination business - Hemp operators now have a real, legal pathway into the cannabis market — effective January 1, 2027 - And if you own a hemp license and want to transition to cannabis? We break down exactly how that works — and where we still need more clarity A massive thank you to our lobbying partners at Larkin Hoffman, whose work at the Capitol made a measurable difference in shaping this legislation. And to every one of those 80+ stakeholders who showed up — this bill is proof that the community built it. We've published a full breakdown — milligrams, timelines, license fees, labeling changes, the transition pathway, and our honest take on what we still don't know. Link in comments. Nothing but the real stuff. 🌱 https://lnkd.in/g92AncsH #NothingButCanna #MNCannabis #Hemp #SF4401 #MinnesotaCannabis #HempToCanabis #CannabisBusiness #HempBusiness #OCM #LowerPotencyHempEdibles #CannabisLaw #MNLeg

BREAKING: Section 781 of the new Farm Bill establishes industrial hemp as a federally recognized materials category. The Farm Bill Just Landed. Here’s What Actually Changed. Sunday, the federal government finally drew a line that should have been there from the beginning: - Industrial hemp (fiber, grain, materials) is now clearly defined and protected. - Intoxicating cannabinoid products are being restricted under a separate category. This does two things at once: It unlocks industrial hemp for building materials, textiles, packaging, biocomposites, and rural manufacturing. It leaves a lot of people behind who rely on cannabinoid products for pain management, sleep, anxiety, PTSD, and daily function. The important part to understand: This bill did not create a “regulate like alcohol” framework. It separates the categories, but it does not solve access for people who depend on cannabinoids to live their lives. So yes, this is a major opening for the U.S. bioeconomy. Industrial hemp can now move forward in a serious way. And also... there is real work to do to ensure: - Pain patients - Veterans - Low-income families - People managing anxiety, trauma, and chronic illness …are not pushed into a black market or left without support. For the first time since 1937, U.S. law distinguishes between industrial hemp (materials) and cannabinoid products (intoxicants). This ends the 7-year period of market confusion that prevented banks, manufacturers, and institutions from supporting hemp-based materials. What Section 781 actually does: 1. Industrial Hemp is now protected as infrastructure. Hemp grown for fiber, hurd, grain, protein, composites, construction materials, textiles, filtration, paper and bioplastics is fully legal and federally recognized. 2. Cannabinoid and intoxicant products are removed from the hemp category. Delta-8, THCA flower, and synthetic cannabinoids will be regulated separately. This clears stigma and compliance barriers for industrial hemp investment. 3. $1.8B in rural development and manufacturing funding is now unlocked. Including: • Grants for processing infrastructure • Loan guarantees for manufacturing scale-up • Research + commercialization funding • Soil regeneration + climate-smart agriculture incentives 4. The supply chain is now investable. This creates a direct pathway for reshoring materials manufacturing, rebuilding rural economies, and reducing petrochemical dependency across textiles, construction, packaging, automotive, filtration, and consumer goods. We can modernize manufacturing and protect human dignity at the same time. More to come as the implications settle. #hemphelps #bioeconomy

I’ve been paying close attention to what’s happening with hemp-derived THC beverages, and it’s hard to ignore how quickly the pressure is building. Lawmakers across the country are introducing bills that could severely limit, or outright ban, a category they often don’t fully understand. In Texas: 👉SB 3 proposes banning all hemp products, including Delta 8, Delta 9, and THC beverages 👉SB 1103 would restrict flavored hemp consumables and criminalize their sale Other states are following suit: 👉Louisiana is capping THC at 5 mg per serving and banning sales in bars, restaurants, and gas stations starting in 2025 👉Alabama is pushing bills that could reclassify hemp-derived products as Schedule 1 drugs. It’s a strange contradiction. Some states are profiting from cannabis taxes, while others are working to eliminate a federally legal hemp category established by the 2018 Farm Bill. This isn’t about a passing trend. It’s about: 👉Small businesses being put at risk 👉Hemp-derived brands having their momentum stalled 👉Consumers being cut off from trusted alternatives There’s still a huge gap in public knowledge, and we see it firsthand every time we do tastings for THC beverage brands. Most people don’t know: 👉 The difference between Delta 8, Delta 9, and other derivatives 👉 What full-spectrum hemp means 👉 How hemp beverages differ from smoking or edibles But here’s the encouraging part: most people want to learn. They’re curious, they ask great questions, and they’re open to alternatives when given the facts. That’s why education matters, not just for consumers, but for lawmakers too. Because when policy is shaped by fear instead of understanding, we all lose. So, how can you help? 👉Join the Hemp Beverage Alliance 👉Talk to your legislators and show them how your business works 👉Educate your customers about what’s in the can and why it matters 👉Collaborate with others in the industry to show the legitimacy of this category Smart regulation is possible. It just takes more of us stepping up, sharing facts, and staying involved. If you want to talk more about what’s happening or how to get involved, feel free to reach out. This is bigger than policy. It’s about progress.

The White House letter to House Speaker Johnson re hemp is, in my view, the most significant potential positive federal move on hemp since the 2018 Farm Bill. In budget-speak, the Administration “requests additional authorities” to revise federal hemp regulation “in a manner consistent with Amendment #54 to H.R. 8646” or extend implementation of Section 781 of Public Law 119‑37. Translation: don’t let the blunt-force hemp “ban” take effect without a real regulatory framework. Why does this matter? Section 781 uses a total THC standard and a 0.4 mg total THC cap per package. In practice, that would treat most current hemp products—full-spectrum CBD, delta‑8, THCA flower, and other hemp-derived cannabinoids—as illegal intoxicating products or even marijuana. Amendment #54 is designed to replace that near-total ban with a regulatory framework for “final hemp-derived cannabinoid products”: potency limits, labeling, age-gating, and clear rules that distinguish compliant hemp from high‑risk, intoxicating products. The White House’s attachment to the letter says the goal is to “update the statutory definition of final hemp-derived cannabinoid products to allow Americans to benefit from access to appropriate full-spectrum CBD products while preserving Congress’s intent to restrict the sale of products that pose serious health risks.” Plain English: Federal law has set up a looming ban on most hemp-derived cannabinoid products. The Administration is asking Congress to swap that ban for a more nuanced scheme—or at least delay the effective date—so legitimate hemp products, including appropriate full-spectrum CBD, are not collateral damage while genuinely dangerous or clearly psychoactive hemp products remain restricted. And yes, this goes beyond “CBD only.” The language targets “final hemp-derived cannabinoid products” as a category, which includes CBD and psychoactive hemp products. The real policy fight is where Congress draws the line inside that category. From a compliance and IP perspective, this is the closest we’ve seen to Congress being invited to stop half-baked hemp rules from going up in smoke and instead let a regulated hemp market take root. (I'm still legally obligated to plant at least one pot pun per post!) If you work with hemp-derived products—CBD or psychoactive—this letter is a flashing signal: federal hemp policy isn’t settled; it’s being renegotiated in real time. #hemp Any thoughts, friends? Jonathan Black Diana Eberlein Ben Larson Saphira Galoob https://lnkd.in/gdX7UUT5

A new federal hemp restriction was quietly embedded into the recent spending bill, and most of the industry is missing the most damaging detail: Finished hemp products cannot exceed 0.4 mg total THC per container. This threshold has nothing to do with the traditional 0.3% THC concentration limit. It is based on the total cannabinoid content inside the finished retail package. Here’s the issue: Even common, fully legal hemp foods such as: • hemp hearts, • hempseed oil, • hemp snacks, • and full-spectrum ingestibles, will exceed 0.4 mg THC per container, even when their cannabinoid levels are microscopic, non-intoxicating, and compliant under all current FDA and international food regulations. For example: A standard 1 lb bag of hemp hearts from Canada (often 1–3 ppm THC) contains 0.5–1.5 mg total THC, depending on batch size and testing. Under the new rule: That bag would be considered illegal for interstate commerce, despite never being intoxicating, posing no safety risk, and being legally sold nationwide for over a decade. This change has enormous implications for: • farmers, • processors, • ingredient suppliers, • distributors, • grocery brands, • private label programs, • and health food CPG companies. If enforcement were active today, most hemp-derived food products would not qualify as legal hemp simply because of normal trace cannabinoid content inside a retail package. No one intended hemp foods to be outlawed. But mathematically, that’s what the 0.4 mg total THC rule does. This deserves urgent clarification and thoughtful regulatory refinement before enforcement begins otherwise a major agricultural and wellness industry will be unintentionally eliminated. Smart regulation is essential. Hemp foods should not become casualties of cannabinoid panic. Free the plant. Support farmers. Let science guide policy.