You’re awake. This is real. Yes, the federal government just passed a law that, if it goes into effect in its current form in a year, will essentially destroy the non-industrial hemp industry as it exists today. So now what?

I suspect it will take some longer than others to process the shock. While anti-hemp advocates are spiking the football and saying “we told you so,” hemp operators are facing an existential crisis to the businesses they created over the past almost eight years and wondering what to do next. In this space, I will do my best to explain how we got here and what, if anything, can be done to provide a path forward for hemp operators and the cannabis industry as a whole. Thanks, in advance, for stopping by.

What Is the New Law?

The Agriculture, Rural Development, Food and Drug Administration, and Related Agency Appropriations Act of 2026 (the “Agriculture Bill”) defines hemp as Cannabis sativa L. and any part of that plant, including seeds, derivatives, and extracts, with a total concentration of 0.3% THC (including — but not limited to — Delta 8, Delta 9, Delta 10, THCA, and THCV).

Unlike hemp’s definition under the 2018 Farm Bill, however, the Agriculture Bill expressly excludes certain intermediate and final versions of hemp-derived products. Legal hemp does not include hemp products that are not in their final form (intermediate products), or that are in final form (final products), and that 1) contain cannabinoids that are not capable of being naturally produced by a Cannabis sativa L. plant; or 2) contain cannabinoids that are capable of being produced naturally by a Cannabis sativa L. plant but were synthesized or manufactured outside of the plant.

For intermediate products, a total THC content of more than 0.3%, including any other cannabinoid that has an intoxicating effect on humans as THC, will take it outside of the legal protections afforded to hemp. The law prohibits the sale of intermediate products with a total THC content of more than 0.3% directly to consumers as a final product.

For final products, any direct-to-consumer packaging (such as cans, bottles, bags, or boxes) cannot contain more than 0.4 milligrams of total THC, including any cannabinoid that has or is marketed to have intoxicating effects on humans. Thus, not only must final products be below the 0.3% THC content restriction, they must also meet packaging restrictions, which will substantially impact THC contents and the final products’ production process.

Critically, the hemp provisions of the Agriculture Bill do not take effect for 365 days following enactment (i.e., November 11, 2026).

How Did This Happen?

Put simply, and this truly is not intended as a pun, the hemp industry got rolled. Actors in Congress (led by Mitch McConnell), encouraged by the marijuana and alcohol industries uneasy about the rise of hemp as well as those who believe for ideological reasons that hemp should not be available in intoxicated forms at traditional retail establishments, put language in the Agricultural Appropriations Act (which includes things like farm subsidies and SNAP benefits) and basically dared members of Congress to keep the government shut down to protect hemp interests. Of course, very few members of Congress were willing to do so.

Rand Paul certainly tried, proposing an amendment that would strip out the hemp language from the appropriations bill. That amendment was tabled by a vote of 76-24. Minutes later, the Senate passed the Agriculture Bill. Two days later, it passed the House and was signed by the president only hours later.

Why Is This Important?

Hundreds of thousands of Americans working in the hemp industry and tens of millions more who rely on hemp-derived product for a wide range of needs have been dealt a gut punch in the form of a law that could wipe out most of the country’s existing hemp industry within a year.

To some extent, any responsible hemp operator knew or should have known this was at least a possibility. The industry was created by the federal government, but reasonable people disagree on whether it was created on purpose. Since the 2018 Farm Bill allowed for the commercial production and sale of hemp, there have been questions about just what Congress intended when it passed that legislation. The ground has always felt uneasy.

On the one hand, you have those who argue Congress allowed for the sale of products containing less than delta-9 THC and there should not be a presumption that Congressional action is based on a misunderstanding or error. Congress speaks through the legislation it passes, and the legislation it passed in the form of the 2018 Farm Bill allowed for the explosion of myriad products that complied with the plain text of the law. And in reliance on that clear text, an entire industry was born and saw tremendous growth.

On the other hand, you have those who believe that most of the consumable hemp industry results from a clear loophole and that hemp operators should have been prepared for it to be closed at some point. I think it’s probably fair to say that members of Congress who voted for the 2018 Farm Bill did not have a full understanding of what they were allowing (if they had any understanding at all), but I have a hard time looking to purported Congressional intent in the face of clear legislative language. I think both things can be true at the same time: Congress may not have intended to allow the scope of the hemp industry, but it did.

What Happens Now?

The clock is ticking. There’s just one year before the law takes effect. Is that enough time to convince Congress to change the law? Technically yes, as Congress can act quickly when it wants to. But there are a few complicating factors.

First, although the law will not take effect until November 2026, as a practical matter we can expect to see a dramatic reduction in the amount of hemp grown in 2026 if hemp farmers aren’t assured they will have buyers for their harvest in Fall 2026. That means that a change needs to take place by Spring 2026 in order to avoid substantial supply chain interruptions.

Second, is there the political appetite and will to take up the issue of hemp again in the coming month? Congressional staff has been inundated with meetings and information about hemp for nearly two years as part of the Farm Bill debate. It will take a major effort to get Congress to engage on this issue again so soon, but if enough members would like the opportunity to debate the issue without the sword of a shutdown hanging overhead, that may be enough to overcome institutionalized inertia.

Third, can the hemp industry come together to make a specific “ask” for what a legislative change should look like? Congress seems unlikely to allow high-THC products, and that could pit low-dose operators against those seeking high-dose products. It will be interesting to see if a sizeable group of operators can get together to push for a federal hemp program that is more regulated and less open than the industry is used to.

Fourth, can the hemp industry bring together additional stakeholders and fend off well-funded and well-organized challengers? The alcohol industry will be important to watch here given that many manufacturers are opposed to intoxicating hemp products they view as competitive to alcohol, which has been on a steady decline of late. Alcohol distributors, on the other hand, have with increasing frequency taken on hemp customers as a way to offset the decline in alcohol sales. And what, if anything, will marijuana operators agree to allow?

Conclusion

The cannabis business has never been for the faint of heart or risk averse. As Ronald Reagan said in a much different context, “[t]he future doesn’t belong to the fainthearted. It belongs to the brave.” Is it time for hemp operators to pack up or time to get moving?

I certainly don’t think any hemp operator should feel shame or judgment in choosing a different line of business in light of this most recent development. Hemp businesses have already had to overcome so many obstacles and roadblocks, and there is no assurance that there will be any Congressional relief from what, as of the time of this writing, appears to be a prohibition of nearly all non-industrial hemp nationwide.

But for those who have chosen to persevere and those who are still making that fateful choice, I’d like to introduce LL Cool J to the annals of Budding Trends: “When adversity strikes, that’s when you have to be the most calm. Take a step back, stay strong, stay grounded and press on.”

Stay tuned because this is going to be an interesting year.