The 2018 Farm Bill Hemp: What Is It?

In December 2018, Congress passed the 2018 Farm Bill, formally known as the Agriculture Improvement Act of 2018. This legislation marked a major shift in U.S. hemp policy—lifting federal prohibition on industrial hemp, unlocking commerce, and setting rules that still shape the industry today. But it’s not simply “legal today” — many details matter.

Quick Takeaways You Should Know

• The bill removed “hemp” (Cannabis sativa L. with ≤0.3% Δ⁹‑THC on a dry weight basis) from Schedule I of the Controlled Substances Act. 
• It allowed interstate commerce of hemp and hemp‑derived products (assuming compliance). 
• States and tribes were empowered to regulate hemp cultivation, subject to USDA approval.
• The law preserved FDA oversight of hemp‑derived products like CBD—just because hemp is legal doesn’t mean all products are unregulated.
• The industry growth potential exploded—but with new compliance responsibilities, quality risks, and regulatory uncertainty. 

What the 2018 Farm Bill Actually Did for Hemp

• Descheduling hemp: The bill defined hemp as Cannabis sativa L. and any part thereof with a Δ⁹‑THC concentration of not more than 0.3% on a dry weight basis. 
• Production & commerce allowed: For the first time, licensed producers could legally grow, process and sell hemp under federal law.
• Crop protections: Hemp was made eligible for farm support programs like federal crop insurance, research funding and other agricultural supports.
• Interstate shipment: The law explicitly allowed movement of hemp across state lines, provided it meets the legal definition. 
• State/tribal regulatory plans: States or Indian Tribes could create detailed plans for hemp cultivation; if not, USDA would step in with a federal plan. 

Definition of Hemp: 0.3% THC Rule & Why It Matters

One of the most pivotal pieces is the 0.3% Δ⁹‑THC threshold. Hemp must contain no more than that by dry weight. Any plant above that is classified as marijuana under federal law. 

Why it matters:

• It draws the line between federally legal hemp and federally illegal cannabis/marijuana.
• It sets the standard for testing, compliance, licensing and risk.
• It creates pressure on producers to monitor THC levels, genetics, crop conditions and lab testing.
• It affects product makers too: derivatives, extracts, cannabinoids must come from legal hemp if you want to claim compliance.

Regulatory Framework & State‑Federal Roles

• The law gave the U.S. Department of Agriculture (USDA) the authority to set a domestic hemp production program. 
• States and tribes could submit their own regulatory plans; if they opted out, the USDA’s federal plan applied. 
• Laboratories must test hemp for THC compliance; the law built in requirements for how labs and producers handle samples, testing methods and disposal of non‑compliant crops. 
• The Food and Drug Administration (FDA) retained authority over hemp‑derived products—such as CBD, food, cosmetics, drugs. Legal hemp cultivation didn’t remove FDA regulation of hemp‑derived consumer products. 

Impacts on CBD, Hemp Products & Agriculture

• For farmers: Hemp became a viable commodity crop with support mechanisms and commercial pathways. 
• For manufacturers: The bill opened the door for hemp‑derived products (e.g., CBD oil, hemp fiber, seed oil) but also challenged them to meet regulatory and quality standards. 
• For consumers: More availability of hemp‑based goods—but also confusion, variable product quality, and legal/regulatory gray areas.
• For the broader marketplace: It spurred investment, research and innovation—but also highlighted the need for compliance, transparency, testing standards.

Risks, Loopholes & What Consumers Should Look Out For

• Because the law allowed “derivatives, extracts, cannabinoids” of hemp, some businesses interpreted that to include novel intoxicating cannabinoids (e.g., Delta‑8 THC) leading to regulatory scrutiny and state crack‑downs. 
• Product quality issues: Even legal hemp crops can exceed 0.3% THC by dry weight leading to crop loss or criminal liability. Laboratories, testing protocols and chain‑of‑custody matter.
• States can impose stricter rules than federal law—so a product legal federally may still be restricted or banned in your state. 
• Legal hemp doesn’t mean all hemp‑derived consumer products are automatically compliant—FDA oversight remains, and claims (“dietary supplements”, “therapeutic”) carry risk. 
• Market risk: Rapid growth, unclear regulations, variable oversight—consumers should look for third‑party testing, transparent labeling, reputable brands.

Frequently Asked Questions (FAQ)

Q: Does the 2018 Farm Bill legalize all cannabis?
A: No—it legalizes specifically hemp (≤ 0.3% Δ⁹‑THC by dry weight). Cannabis/marijuana with higher THC remains federally illegal. 

Q: Will CBD derived from hemp always be legal?
A: Not always. While hemp cultivation is legal, the FDA still regulates hemp‑derived compounds like CBD—especially when used in food, supplements, or therapeutic products. 

Q: Can I grow hemp on my farm after the 2018 Farm Bill?
A: Yes—but you must follow USDA or state regulatory rules: obtain license, test THC levels, maintain records, comply with disposal of non‑compliant plants. 

Q: Are hemp products guaranteed safe because the bill passed?
A: No. Legalizing hemp doesn’t guarantee product quality or safety. Lab testing, proper processing and regulation still matter.

Q: Did the 2018 Farm Bill fully settle the legal status of hemp‑derived intoxicants (like Delta‑8 THC)?
A: No—some products derived from legal hemp are still under regulatory debate and some states/regulators are acting to restrict them. 

Alternative Conclusion: Opportunity with Responsibility

The 2018 Farm Bill opened the door to a new era for hemp—transforming it from prohibited plant to recognized agricultural commodity. But with opportunity comes responsibility.

For businesses, it means robust compliance, quality testing, state‑federal coordination. For consumers, it means informed choice: choosing products backed by labs and trusted brands, not just assuming “hemp‑legal” equals “safe”.

At Burning Daily, our value proposition is clear: we help you navigate the evolving hemp landscape—so you can access innovation with clarity, choose with confidence, and participate in the opportunity responsibly. The 2018 Farm Bill didn’t end the story—it began a regulated, dynamic chapter in hemp’s journey.