President Donald J. Trump signed the Agriculture Improvement Act of 2018 into law on Thursday, December 20, instantly legalizing industrial hemp across the United States.
Federal Hemp Legalization
The new law expands the definition of “hemp” to include every part of the Cannabis sativa L. plant, its seeds and all derivatives, extracts, cannabinoids, isomers, acids, salts and salts of isomers, provided the delta‑9 tetrahydrocannabinol content stays below 0.3 % on a dry‑weight basis.
Congress also amended the Controlled Substances Act, explicitly removing hemp and its THC content from the Schedule I list and redefining “marijuana” to exclude hemp.
States may now choose whether to retain primary regulatory authority over hemp production; any state plan must be submitted to the USDA and include post‑decarboxylation testing methods for THC levels, mirroring the procedures used by the North Carolina Department of Agriculture.
Interstate transport of hemp and related products becomes lawful, and growers gain access to crop insurance and federal subsidy programs as they are rolled out by the appropriate agencies.
These provisions mark a major shift for farmers, processors and retailers, promising a boost to North Carolina’s agricultural economy and broader cannabis industry.
Industry participants should consult legal counsel before committing capital, as the regulatory landscape continues to evolve. Ward and Smith’s Industrial Hemp practice team stands ready to guide businesses through these complex issues.
