The Evisceration of The Hemp Industry

In a devastating blow to the hemp industry, Congress has passed a continuing resolution that threatens to upend years of progress in natural wellness and agricultural innovation. Hidden within the pages of this last-minute funding measure are provisions that could effectively dismantle significant portions of the hemp market through draconian restrictions and unrealistic THC limits.

The new regulations represent a troubling step backward, imposing artificially low THC thresholds that ignore the plant’s natural chemistry and the careful balance that responsible manufacturers have achieved in their products. These restrictions don’t just impact farmers and producers – they directly threaten consumer access to natural, plant-based solutions that thousands have come to rely on for their wellbeing. Some of these products have become literal lifelines for individuals seeking alternatives to conventional treatments.

This prohibitionist approach demonstrates a fundamental misunderstanding of both the hemp plant and its vital role in modern wellness. By implementing these severe restrictions, lawmakers have chosen to prioritize unfounded fears over scientific evidence and consumer benefits, potentially decimating an industry that has operated safely and responsibly under previous frameworks.

Here is the content of the bill:

Sec. 781. Effective 365 days after the enactment of this Act, Section 297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o) is amended—
(1) by redesignating paragraphs (2) through (6) as paragraphs (4) through (8), respectively; and
(2) by striking paragraph (1) and inserting the following:
“(1) HEMP.—
“(A) IN GENERAL.—The term ‘hemp’ means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a total tetrahydrocannabinols concentration (including tetrahydrocannabinolic acid) of not more than 0.3 percent on a dry weight basis.
“(B) INCLUSION.—Such term includes industrial hemp.
“(C) EXCLUSIONS.—Such term does not include—
“(i) any viable seeds from a Cannabis sativa L. plant that exceeds a total tetrahydrocannabinols concentration (including tetrahydrocannabinolic acid) of 0.3 percent in the plant on a dry weight basis; or
“(ii) any intermediate hemp-derived cannabinoid products containing—
“(I) cannabinoids that are not capable of being naturally produced by a Cannabis sativa L. plant;
“(II) cannabinoids that—
“(aa) are capable of being naturally produced by a Cannabis sativa L. plant; and
“(bb) were synthesized or manufactured outside the plant; or
“(III) more than 0.3 percent combined total of—
“(aa) total tetrahydrocannabinols (including tetrahydrocannabinolic acid); and
“(bb) any other cannabinoids that have similar effects (or are marketed to have similar effects) on humans or animals as a tetrahydrocannabinol (as determined by the Secretary of Health and Human Services); or
“(iii) any intermediate hemp-derived cannabinoid products which are marketed or sold as a final product or directly to an end consumer for personal or household use; or
“(iv) any final hemp-derived cannabinoid products containing—
“(I) cannabinoids that are not capable of being naturally produced by a Cannabis sativa L. plant;
“(II) cannabinoids that—
“(aa) are capable of being naturally produced by a Cannabis sativa L. plant; and
“(bb) were synthesized or manufactured outside the plant; or
“(III) greater than 0.4 milligrams combined total per container of—
“(aa) total tetrahydrocannabinols (including tetrahydrocannabinolic acid); and
“(bb) any other cannabinoids that have similar effects (or are marketed to have similar effects) on humans or animals as a tetrahydrocannabinol (as determined by the Secretary of Health and Human Services).
“(2) INDUSTRIAL HEMP.—The term ‘industrial hemp’ means hemp—
“(A) grown for the use of the stalk of the plant, fiber produced from such a stalk, or any other non-cannabinoid derivative, mixture, preparation, or manufacture of such a stalk;
“(B) grown for the use of the whole grain, oil, cake, nut, hull, or any other non-cannabinoid compound, derivative, mixture, preparation, or manufacture of the seeds of such plant;
“(C) grown for purposes of producing microgreens or other edible hemp leaf products intended for human consumption that are derived from an immature hemp plant that is grown from seeds that do not exceed the threshold for total tetrahydrocannabinols concentration specified in paragraph (1)(C)(i);
“(D) that is a plant that does not enter the stream of commerce and is intended to support hemp research at an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)) or an independent research institute; or
“(E) grown for the use of a viable seed of the plant produced solely for the production or manufacture of any material described in subparagraphs (A) through (D).
“(3) HEMP-DERIVED CANNABINOID PRODUCT.—
“(A) IN GENERAL.—The term ‘hemp-derived cannabinoid product’ means any intermediate or final product derived from hemp (other than industrial hemp), that—
“(i) contains cannabinoids in any form; and
“(ii) is intended for human or animal use through any means of application or administration, such as inhalation, ingestion, or topical application.
“(B) The term ‘intermediate hemp-derived cannabinoid product’ means a hemp-derived cannabinoid product which—
“(i) is not yet in the final form or preparation marketed or intended to be used or consumed by a human or animal; or
“(ii) is a powder, liquid, tablet, oil, or other product form which is intended or marketed to be mixed, dissolved, formulated, or otherwise added to or prepared with or into any other substance prior to administration or consumption.
“(C) The term ‘container’ means the innermost wrapping, packaging, or vessel in direct contact with a final hemp-derived cannabinoid product in which the final hemp-derived cannabinoid product is enclosed for retail sale to consumers, such as a jar, bottle, bag, box, packet, can, carton, or cartridge.
“(D) The term container excludes bulk shipping containers or outer wrappings that are not essential for the final retail delivery or sale to an end consumer for personal or household use.
“(E) EXCLUSION.—Such term does not include a drug that is the subject of an application approved under subsection (c) or (j) of section 505 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355).”.
(3) Within 90 days of the enactment of this act, the Food and Drug Administration, in consultation with other relevant Federal agencies, shall publish—

(A) a list of all cannabinoids known to FDA to be capable of being naturally produced by a Cannabis sativa L. plant, as reflected in peer reviewed literature;
(B) a list of all tetrahydrocannabinol class cannabinoids known to the agency to be naturally occurring in the plant;
(C) a list of all other know cannabinoids with similar effects to, or marketed to have similar effects to, tetrahyrocannabinol class cannabinoids; and
(D) additional information and specificity about the term “container”, as defined in paragraph (3)(C).

This proposed amendment — Section 781 — would represent a major shift in federal hemp regulation, particularly targeting hemp-derived cannabinoids like Delta-8 THC, Delta-10 THC, THC-O, and similar products that have proliferated since the 2018 Farm Bill.

We here at WellspringCBD have not focused on these types of cannabinoids, but that does not negate the fact that these cannabinoids have helped thousands of people deal with whatever issues they have been dealing with.

Here’s a breakdown of what it means for the hemp industry:

---

Redefines “hemp” and narrows what counts

• The current legal definition of hemp (from the 2018 Farm Bill) includes all derivatives and cannabinoids from hemp plants containing ≤0.3% delta-9 THC by dry weight.
• The new definition would exclude:
  • Synthetic or semi-synthetic cannabinoids — those created or altered outside the plant, even if they mimic naturally occurring cannabinoids (e.g., Delta-8 THC made from CBD isolate).
  • Any product with more than 0.3% total THC and THC-like cannabinoids (not just delta-9 THC).
  • Any consumer product marketed directly to end users that’s not yet in its final form (i.e., intermediate bulk oils, distillates, powders).

👉 Effect:
This effectively bans chemically converted cannabinoids (like Delta-8, HHC, THC-O, etc.) that don’t occur in significant natural quantities, removing them from the federal definition of “hemp” and likely classifying them as Schedule I controlled substances again under the CSA (Controlled Substances Act).

---

Creates a new, separate category: “industrial hemp”

• “Industrial hemp” would now mean hemp grown solely for non-cannabinoid uses, such as:
  • Fiber and stalk products
  • Grain and seed oil
  • Hemp microgreens or immature leaves for food
  • Research crops
• It explicitly excludes cannabinoid extraction for consumer products.

👉 Effect:
This would split the hemp sector into:

• Industrial hemp (for fiber, grain, textiles — traditional agriculture)
• Hemp-derived cannabinoid products (for CBD, Delta-9, etc. — now subject to stricter limits)

Most of today’s profitable hemp businesses focus on cannabinoids (CBD, Delta-8, etc.), so this shift would cut off parts of their main revenue streams unless they meet the new cannabinoid and labeling standards.

---

Caps total THC-like content in consumer products

• Final hemp-derived cannabinoid products would be limited to:
  • ≤0.4 mg total THC and THC-like cannabinoids per container
• This is an extremely low limit, far below what’s found in most hemp edibles, vapes, or tinctures today.

👉 Effect:
Almost all existing consumer hemp products (CBD tinctures with trace THC, Delta-8 gummies, etc.) would violate this rule and have to be reformulated or removed from the market.

---

FDA oversight and cannabinoid classification

• Within 90 days, the FDA must publish lists of:
  • Naturally occurring cannabinoids in cannabis (e.g., CBD, CBG, CBN, Delta-9 THC)
  • “THC-class” cannabinoids (psychoactive or marketed as such)
  • Cannabinoids with similar effects
• FDA’s interpretation of these lists will determine which cannabinoids remain legal in hemp products.

👉 Effect:
Expect most synthetic or modified cannabinoids to be listed as excluded, formalizing what’s currently a gray area. It could also impact CBD isolate and CBN if they’re deemed “THC-like” or “manufactured outside the plant.”

---

Timeline and enforcement

• These changes would take effect one year (365 days) after enactment.
• FDA and USDA would have the authority to enforce compliance and classify products accordingly.

---

Summary: What it means for the hemp industry

Area	Current (2018 Farm Bill)	After Section 781
Legal definition of hemp	≤0.3% Δ9-THC	≤0.3% total THC & similar cannabinoids
Synthetic cannabinoids (e.g., Delta-8, HHC)	Generally allowed (gray area)	Explicitly banned
CBD and non-psychoactive cannabinoids	Legal	Likely restricted by formulation limits
Industrial hemp (fiber, grain)	Minor market	Still legal, now main legal hemp sector
THC limit in consumer hemp products	0.3% by dry weight	0.4 mg total per container