Congress Just Killed Hemp. Now What?

OG article by Rod Kight

November 17, 2025

Congress has effectively dismantled the hemp industry with recent farm bill amendments, banning popular products like delta-8 THC and imposing stringent THC limits that render most cultivation unviable, leaving farmers, processors, and retailers scrambling for survival strategies. The changes, driven by pharmaceutical lobbying and moral panics over intoxicating hemp derivatives, reclassify many CBD-adjacent items as Schedule I drugs, slashing market access overnight. What was once a booming $28 billion sector under the 2018 Farm Bill—promising economic revival for rural America—now faces existential threats, with small growers reporting 70% revenue drops and mass layoffs in extraction facilities. Legal challenges are mounting: lawsuits in federal courts argue the bans violate interstate commerce clauses and prior appropriations, while states like Texas and Kentucky push back with emergency hemp protection acts. Industry leaders advocate pivoting to compliant, low-THC fibers and grains for textiles or biofuels, but skeptics doubt scalability without intoxicating cannabinoids' profitability. Meanwhile, black-market alternatives proliferate, undermining regulatory goals and eroding consumer trust. Experts forecast consolidation among big ag players, squeezing out independents and stifling innovation in wellness formulations. As the 2025 session looms, bipartisan calls for a "hemp salvage plan" gain steam, proposing carve-outs for vetted products and R&D funding. Yet, with Big Pharma's influence entrenched, advocates warn of a "prohibition 2.0" that could ripple into full cannabis rescheduling delays. The fallout demands urgent adaptation: diversify crops, lobby fiercely, and educate on hemp's non-intoxicating roots to reclaim legislative ground before the sector collapses entirely.