Cannabis Law Glossary
2018 Farm Bill
Definition
The Agriculture Improvement Act of 2018 that federally legalized hemp by removing it from Schedule I of the Controlled Substances Act, defining it as Cannabis sativa L. with no more than 0.3% delta-9 THC.
What Is the 2018 Farm Bill?
The Agriculture Improvement Act of 2018 (informally, the "2018 Farm Bill") was the federal legislation that fundamentally transformed the legal status of hemp in the United States. Signed into law on December 20, 2018, it removed hemp from the Controlled Substances Act's Schedule I classification, effectively federally legalizing the cultivation, processing, and sale of hemp and hemp-derived products.
Key Legal Definitions
Hemp: Cannabis sativa L. and any part of that plant, including derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 THC concentration of not more than 0.3% on a dry weight basis.
This definition — particularly the phrase "and its derivatives, extracts, cannabinoids, [and] isomers" — created the legal argument that hemp-derived cannabinoids such as CBD, delta-8 THC, and others are federally legal so long as the finished product tests below 0.3% delta-9 THC.
USDA Regulatory Authority
The 2018 Farm Bill delegated primary hemp regulatory authority to the USDA, which issued final hemp regulations in January 2021. It also preserved state authority to run approved hemp programs and created a pathway for tribal hemp programs.
CBD and the FDA
The Farm Bill explicitly preserved FDA's authority over CBD-containing products under the Federal Food, Drug, and Cosmetic Act. The FDA has maintained that CBD added to food or sold as a dietary supplement is unlawful without explicit FDA authorization — a position that has created significant tension with the hemp industry.
2025 Reauthorization
Farm Bills are reauthorized approximately every five years. The 2025 reauthorization is expected to directly address intoxicating hemp, CBD in food, and hemp testing standards.
Related Terms
See also: [2014 Farm Bill](/glossary/2014-farm-bill), [USDA Hemp Program](/glossary/usda-hemp-program), [Delta-8 THC](/glossary/delta-8-thc), [CBD Isolate](/glossary/cbd-isolate)
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