Topic Cluster

Hemp & THC Under the 2018 Farm Bill

The regulatory landscape for hemp-derived cannabinoids, delta-8 and delta-9 THC, and the compliance risks emerging from federal and state enforcement divergence.

Robert Hoban

Principal & Managing Attorney, Hoban Law Group

Colorado Bar

Full profile →

What the 2018 Farm Bill Did

The Agriculture Improvement Act of 2018 (the "2018 Farm Bill") removed hemp — defined as cannabis with no more than 0.3% delta-9 THC on a dry-weight basis — from the Controlled Substances Act. This created a federally legal category for hemp and hemp-derived products, including CBD.

The Farm Bill expires on a rolling basis and has been the subject of congressional reauthorization debates. Operators should track developments carefully.

The Delta-8 THC Ambiguity

Some manufacturers convert CBD into delta-8 THC through isomerization — a chemical process that produces a psychoactive cannabinoid not specifically listed as controlled under federal law. Proponents argue delta-8 is "Farm Bill compliant" because it is hemp-derived.

Federal and state regulators have pushed back aggressively:

  • The DEA's August 2020 IFR and subsequent guidance suggest synthetically derived delta-8 is a controlled substance
  • More than 20 states have specifically banned or restricted delta-8
  • FDA has issued warning letters to delta-8 manufacturers for unapproved drug claims

Delta-9 THC in Hemp Products

The 0.3% delta-9 limit is calculated on dry weight — a calculation that allows hemp gummies and beverages with significant THC content when the product weighs several grams. State regulators have begun closing this loophole through serving-size caps and total THC calculations.

USDA Licensing and Crop Compliance

Hemp cultivation requires either a USDA hemp production plan (for states operating under the USDA program) or a state-approved plan. Compliance testing must confirm crops come in below the 0.3% delta-9 threshold at harvest — crops that test "hot" must be remediated or destroyed.

State Law Divergence

Despite the Farm Bill's federal framework, states retain authority to regulate hemp within their borders more strictly. Some states — Idaho, Mississippi — have not legalized hemp at all. Operators shipping hemp products interstate must map state-by-state legal risk.

Consulting Hoban Law Group

Robert Hoban's team advises hemp operators on USDA licensing, product compliance, interstate commerce risk analysis, and defense against regulatory action. The intersection of federal hemp law and state cannabis regulation requires specialized counsel.

[Discuss your hemp compliance questions](/consultation?source=insights&topic=hemp-thc-2018-farm-bill&matter_type=hemp_thc) with Hoban Law Group.

Frequently Asked Questions

Is delta-8 THC legal under the 2018 Farm Bill?
The legal status of delta-8 THC is contested. It is not explicitly prohibited by the Farm Bill when derived from compliant hemp, but the DEA has indicated that synthetically converted delta-8 may be a controlled substance. More than 20 states have independently banned it. Operating in this space requires current, jurisdiction-specific legal analysis.
What happens if my hemp crop tests above 0.3% delta-9 THC?
Hot hemp crops must typically be remediated or destroyed under USDA and state hemp program rules. Remediation (bringing THC below threshold through dilution or processing) is allowed in some programs; others require destruction. Repeated hot tests can result in loss of hemp producer license.
Can I ship hemp products to all 50 states?
No. While the Farm Bill created a federal framework, states retain the right to regulate hemp more strictly within their borders. Idaho, for example, has not legalized hemp. Interstate shipment of hemp products requires route-by-route legal analysis.

Work with Hoban Law Group

Schedule a consultation

Tell us about your hemp & thc under the 2018 farm bill matter — our team prepares a regulatory briefing before you speak. No cost. No commitment.

Engage Hoban Law Group

Counsel notice: This page is provided for informational purposes only. No attorney-client relationship is formed by viewing this page. An engagement with Hoban Law Group requires a signed engagement letter. Subject to our privacy policy.