Hemp and Marijuana Conflict Explained

Hemp vs. Marijuana: What You Need to Know

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Summary

• The conflict between the hemp and marijuana industries is intensifying due to the lack of regulations surrounding intoxicating hemp products.
• While the hemp industry wants to maintain the current federal definition of hemp, marijuana companies are urging Congress to close the loophole that allows the sale of intoxicating substances derived from legal hemp.

The Farm Bill Conflict

The latest farm bill has sparked a significant conflict between hemp and marijuana industries over how to handle intoxicating products. Essentially, a battle is brewing that pits hemp against its close relative, marijuana. This dispute has become a focal point due to the burgeoning market for intoxicating hemp products, which has grown into a multi-billion-dollar industry but remains lightly regulated.

The Core of the Issue

Some marijuana companies and trade groups are urging Congress to close a loophole that permits the production and sale of intoxicating substances derived from legal hemp. In contrast, the hemp industry wants lawmakers to maintain the current federal definition of hemp. “This will probably be one of the more interesting debates and discussions in the farm bill,” House Agriculture Chair G.T. Thompson (R-Penn.) told POLITICO earlier this month.

A Nationwide Debate

This conflict isn’t just confined to Capitol Hill. Similar debates are unfolding in state legislatures across the country as the nation grapples with the complexities of this new industry. Different federal laws for marijuana and hemp have created legal intricacies that are challenging to navigate.

The Origin of the Loophole

The loophole in question emerged in 2018 when the last farm bill legalized hemp, defined as cannabis containing less than 0.3 percent THC (the primary psychoactive component of the plant). Cannabis with more than 0.3 percent THC is classified as marijuana and remains federally illegal. Many lawmakers who supported hemp legalization were unaware they were sanctioning an intoxicating substance.

“I supported the last farm bill and was okay with hemp being used for industrial purposes,” said Rep. Doug LaMalfa, a Republican lawmaker from Northern California. “I watched what happened after that, and a whole bunch of people got, I think, kind of hornswoggled.”

State-Level Actions

Capitol Hill isn’t the first to tackle this issue. Connecticut has already moved to restrict intoxicating hemp products. Louisiana may soon vote on a bill to outright ban hemp products containing any THC, and Missouri’s Attorney General launched an investigation into such products last month.

Upcoming Decisions

The main question on Capitol Hill is whether House Agriculture Committee Republicans can muster enough support within their caucus to amend the farm bill to either impose stricter regulations on hemp products or prohibit them from containing any THC. However, the market for non-ingestible hemp products, such as rope and fabric, has been slow to develop. Even sales of CBD products have been hindered by a lack of federal regulations.

The Rise of Intoxicating Hemp Products

Eventually, intoxicating hemp derivatives like Delta-8 THC and Delta-10 THC gained popularity. Hemp companies discovered they could include enough Delta-9 THC in beverages or edibles to produce psychoactive effects without violating the 2018 farm bill. While these intoxicating products have boosted the hemp industry’s economic outlook, they have also posed a challenge to state-legal marijuana industries. The lower cost and greater availability of intoxicating hemp products have made them formidable competitors.

Regulatory and Tax Discrepancies

Hemp products are often not subject to the same stringent regulations and high taxes as marijuana products in states where both are legal. As these products grow in popularity, they have attracted scrutiny from anti-drug and family groups concerned about intoxicating products falling into the hands of children.

“FDA’s refusal to issue regulations on CBD products has effectively turned hemp and cannabis companies against each other when we should be working towards the same purpose,” said Jim Higdon, co-founder of Cornbread Hemp, a Kentucky-based hemp company.

Diverging Interests

The U.S. Cannabis Council, which includes many of the largest marijuana companies in the country, warned lawmakers of a “national crisis” if they don’t crack down on intoxicating hemp products. Conversely, the Midwest Hemp Council warned Congress of dire consequences for farmers if the definition of hemp is altered in the farm bill.

Unlikely Alliances

Now, conservative Republicans and some cannabis companies find themselves aligned on Capitol Hill, both seeking to close the loophole but for different reasons. Rep. LaMalfa, for instance, strongly opposes cannabis yet finds himself sharing a policy position with many state-legal marijuana companies.

A Third Approach

Hemp groups are advocating for a third approach: implementing more regulations, such as testing and limiting sales to consumers over 21, while keeping the loophole open. “There are certain ways of going about it that could shut down the whole industry [and] there are others that would only shut down parts of the industry,” said Jonathan Miller, General Counsel for the U.S. Hemp Roundtable, noting that none of the proposals he’s heard on Capitol Hill are acceptable to the hemp industry.

Conclusion

As the debate over hemp and marijuana heats up, both industries are vying for a favorable outcome in the upcoming farm bill. The resolution of this conflict could significantly impact the future of both hemp and marijuana markets in the United States.