2024 Farm Bill Extension Maintains Hemp Status Quo Through 2025

Congress enacted the American Relief Act, 2025 on December 21, 2024, extending the 2018 Farm Bill through fiscal year 2025 without implementing any changes to hemp regulations. The extension preserves current federal hemp definitions and maintains the regulatory framework that has enabled a market now valued at over $20 billion annually.

The December 2024 Extension

The one-year extension marks the second consecutive postponement of comprehensive Farm Bill reform. Originally set to expire in September 2023, the 2018 Farm Bill received its first extension through September 2024 before this latest continuation. The extension maintains the current definition of hemp as cannabis containing no more than 0.3% delta-9 THC on a dry weight basis.

Key programs and regulatory frameworks remain unchanged, including the USDA's hemp production licensing system and state-level regulatory authority. The Department of Agriculture also extended the deadline for federally approved hemp to be tested at DEA-licensed laboratories from December 31, 2024 to December 31, 2025, providing additional operational flexibility for producers.

Proposed Changes That Stalled in Committee

Throughout 2024, both chambers of Congress advanced significantly different approaches to hemp regulation. The House Agriculture Committee approved an amendment by Representative Mary Miller (R-IL) that would have redefined hemp to include only "naturally occurring, naturally derived, and non-intoxicating cannabinoids." This provision would have effectively prohibited products containing delta-8 THC, THCA, and other hemp-derived cannabinoids currently available in the market.

The Senate's Rural Prosperity and Food Security Act, introduced in November 2024, proposed changing the hemp definition from 0.3% delta-9 THC to 0.3% "total THC," encompassing all THC variants including THCA. The Senate version also introduced a distinction between industrial hemp for fiber and grain versus consumable hemp products, creating separate regulatory pathways for different market segments.

Neither proposal gained sufficient momentum during the lame-duck session. The Cannabinoid Safety and Regulation Act, introduced by Senator Ron Wyden (D-OR) in September 2024, which would have established a comprehensive federal framework for hemp cannabinoid products, similarly failed to advance.

What's Ahead for Hemp Regulations

The 119th Congress, which convened on January 3, 2025, faces the task of crafting a new five-year Farm Bill under unified Republican control. Republicans hold a 53-47 majority in the Senate and maintain a narrow 220-215 edge in the House, though several seats may become temporarily vacant due to administration appointments.

Congressional priorities include immigration, energy policy, and extending tax cuts from the previous administration. The narrow margins in both chambers suggest that any Farm Bill negotiations will require careful coalition-building. Agriculture committee leadership in both chambers will need to reconcile competing visions for hemp regulation while addressing broader agricultural priorities.

Industry observers note that while President-elect Trump has indicated support for cannabis reform broadly, his administration has not specifically addressed hemp-derived cannabinoid policy. This ambiguity creates both opportunity and uncertainty for market participants as legislative discussions resume.

Industry Implications and Market Dynamics

The extension provides operational continuity for thousands of businesses operating in the hemp-derived cannabinoid market. Retailers, manufacturers, and agricultural producers can maintain current business models through at least September 2025 without federal disruption. This stability period allows companies to strengthen compliance frameworks and prepare for potential regulatory evolution.

State-level developments continue to shape the market landscape. Some states have implemented "total THC" standards or restricted specific cannabinoids, while others have created comprehensive regulatory frameworks for hemp-derived products. This patchwork of state regulations demonstrates both the complexity of the current environment and the potential models for federal reform.

The market's substantial economic footprint—supporting an estimated tens of thousands of jobs nationwide—will likely factor into congressional deliberations. Industry associations have mobilized to educate lawmakers about the sector's economic contributions and consumer demand for regulated products.

Looking Forward

The 2025 legislative session presents a critical juncture for hemp policy development. The convergence of a new Congress, evolving state regulations, and sustained market growth creates conditions for substantive policy discussions. Whether Congress opts for incremental adjustments or comprehensive reform will significantly impact market participants and consumers alike.

The extended timeline provides stakeholders with opportunities to engage in the legislative process and shape outcomes that balance consumer access, public safety, and economic development. As federal and state policymakers continue evaluating regulatory approaches, the hemp industry's trajectory remains one of adaptation and evolution within an increasingly complex but maturing marketplace.