The 2018 Farm Bill Opened Hemp Research, But Not a Regulatory Free-for-All
The 2018 Farm Bill gave hemp research and cultivation a federal foothold, prompting cannabis companies to explore applications ranging from cannabinoid extraction to food, cosmetics and agricultural products. But the law did not make every hemp-derived product automatically legal, and its implementation left companies navigating a complex mix of federal and state rules.
Signed on December 20, 2018, the Agriculture Improvement Act removed hemp from the federal Controlled Substances Act when the plant contains no more than 0.3% delta-9 THC by dry weight. It also directed the U.S. Department of Agriculture to establish a regulatory framework for hemp production. States and tribal governments, however, may impose additional requirements or restrict activities within their jurisdictions.
The change created new opportunities for research into hemp varieties, cultivation methods, extraction technologies and cannabinoids other than THC. The USDA’s research provisions specifically made hemp eligible for certain supplemental and alternative-crop programs and identified it as a subject for additional agricultural research.
Companies were already positioning themselves for that market before the legislation took effect. BAS Research, a California cannabis manufacturing and extraction company, said it intended to use hemp as a platform for developing new cannabinoid products and refining drug-development and production methods. Brian Vifian, then the company’s director of operations, described the business as particularly interested in compounds beyond THC and in the potential growth of nutraceutical products.
Other companies pursued cultivation and processing opportunities. In a 2018 update, Marijuana Company of America and Global Hemp Group described plans for greenhouse-based research and clone production at a hemp project in Oregon, with the goal of preparing plants for future commercial cultivation. Their project announcement illustrates how quickly businesses moved to expand planting, breeding and biomass production after federal restrictions eased.
Yet federal descheduling was only one step. The USDA regulates hemp production, while the U.S. Food and Drug Administration regulates many products made from hemp once they enter the marketplace. The FDA’s cannabis and CBD guidance makes clear that hemp-derived CBD remains subject to the Federal Food, Drug, and Cosmetic Act. Hemp seed protein, hulled hemp seed and hemp seed oil may be used in certain human foods, but CBD and THC face different requirements and cannot simply be added to foods, supplements or animal products without regard to federal law.
That distinction has remained central to the industry. Research and investment can expand when cultivation is lawful and raw materials are easier to obtain, but commercial success still depends on reliable testing, consistent production, evidence of safety and compliance with state and federal requirements. The FDA has also emphasized that additional clinical and safety data are needed, particularly for CBD products marketed outside approved drug uses.
The Farm Bill therefore did not resolve every question surrounding hemp. It created a legal and agricultural framework in which research and business development could proceed more openly, while leaving companies responsible for demonstrating that their products are safe, accurately labeled and legally marketed. For firms such as BAS Research and hemp-cultivation ventures like the Oregon project, the legislation marked the beginning of a longer process—not the end of regulatory uncertainty.
