California Hemp at a Crossroads

A new federal law is prompting California hemp growers and regulators to reassess a young and already shrinking industry, according to Ag Alert from the California Farm Bureau. Signed in November, H.R. 5371 tightens the definition of legal hemp by capping total THC at 0.3 percent and banning intoxicating hemp products. The change closes a loophole in the 2018 Farm Bill that allowed intoxicating hemp-derived cannabinoids.

Alameda County grower Jack Norton, whose farm produces hemp essential oil, said the move was expected. “I’m not surprised this is happening,” Norton said, noting that earlier federal law allowed some companies to add extracted THC to foods and beverages.

The U.S. Hemp Roundtable warned the law could label most hemp extracts as Schedule 1 narcotics and is urging Congress to allow more time and clearer rules, saying there is no federal regulation of hemp products.

California regulators say the federal change, combined with new state rules, could raise costs and slow expansion for growers already facing declining acreage.

For more, visit: https://www.agalert.com/california-ag-news/archives/december-17-2025/hemp-producers-weigh-potential-fallout-of-new-law/