The "Loophole" Debate and the 2025 Farm Bill

The 2018 Farm Bill, which legalized hemp by removing it from the list of controlled substances, was originally set to expire at the end of September 2023. However, as of April 2025, the legislation has received two one-year extensions. The most recent extension came through the American Relief Act, 2025, signed into law on December 21, 2024, which extended the 2018 Farm Bill through September 30, 2025.

The extensions were necessary because lawmakers could not reach an agreement on a new comprehensive Farm Bill. After failing to pass a new Farm Bill in 2023 and 2024, Congress now faces a narrower path to passing one in 2025 or 2026, given the slim margin of Republican control in each chamber. Most experts believe bipartisanship will be essential for completing a new Farm Bill before 2027.

The 2018 Farm Bill marked a significant milestone for the hemp industry by legalizing hemp cultivation and products, provided they contain no more than 0.3% THC on a dry weight basis. This legislation opened the door for a burgeoning market of hemp-derived products, including CBD oils, edibles, and other cannabinoid-infused goods. But today, the fate of the Farm Bill remains uncertain.

---

Proposed Changes to Hemp Regulation

The proposed changes in the emerging versions of the Farm Bill have sparked a heated debate between the hemp and cannabis industries. Key amendments already approved in previous drafts include significant modifications to hemp definitions.

The House Agriculture Committee passed a 2024 Farm Bill draft on May 23, 2024 (H.R. 8467) that included an amendment to exclude certain products from the definition of hemp, including hemp-derived products containing cannabinoids not naturally produced in the cannabis plant and products with quantifiable amounts of THC or similar cannabinoids.

This amendment changed the federal definition of legal hemp to "only include naturally occurring, naturally derived and nonintoxicating cannabinoids." Though the bill as amended doesn't define "intoxicating," it would prohibit hemp cannabinoid products with "quantifiable amounts" of Total THC or other similar cannabinoids.

---

MN's Hemp Industry in 2025

Minnesota has established itself as a significant player in the hemp industry, with a robust regulatory framework and hemp-derived THC products market showing significant growth. With the state collecting over $10 million in taxes in the first year of sales, this success has been attributed to Minnesota's wide retail access to hemp-derived THC products. The state's low-dose THC beverage market has been particularly successful, becoming one of the hottest markets for such products in the country.

Minnesota has set its own rules for hemp-derived edibles with low doses of THC, creating a robust market throughout the state. Some experts believe the proposed federal changes would have little impact on our legal hemp market due to these existing state protections. However, others argue that even in states like Minnesota, the changes could affect retailers' and manufacturers' ability to write off business expenses on federal tax returns.

NOTE: Minnesota is one of the states with the largest hemp-growing operations in the country, with hemp growers planting 1,160 acres of hemp in 2023, which was up 450 acres from the previous year.

---

Final Thoughts: Navigating the Crossroads

The current extensions of the 2018 Farm Bill and ongoing debate about potential changes raise important questions about the future of hemp in the United States:

1. Will stricter federal regulations push consumers toward the unregulated black market?

2. Can federal policy keep pace with innovation and market demand in the cannabis industry?
   

The outcome of the 2025 Farm Bill negotiations will likely have far-reaching implications beyond just the hemp and cannabis industries. The debate surrounding hemp-derived products underscores the broader challenge in cannabis policy: balancing consumer access, product safety, and industry growth.