On July 25, 2025, the Ohio Department of Agriculture (ODA) announced it would discontinue its state hemp program at the end of the year, transitioning all oversight to the U.S. Department of Agriculture’s Domestic Hemp Production Program (DHPP) starting January 1, 2026.
Meanwhile, federal lawmakers continue to wrestle with how to rein in the hemp-derived THC market. New legislative developments in Congress now promise both disruption and a possible path forward for Ohio’s hemp growers and businesses.
Why Ohio Is Ending Its Hemp Program
Ohio’s hemp program began in 2019, riding the wave of nationwide excitement following the 2018 Farm Bill. Hemp was billed as a potential cash crop that could revive struggling farms. But early optimism gave way to harsh market realities. Some of those realities were already being documented as early as 2020, as detailed in this article in Farm & Dairy.
Oversupply & Market Collapse
The CBD boom of 2019–2021 created a glut of biomass, much of which went unsold. As prices crashed, some Ohio growers shifted to fiber and grain hemp, only to discover there weren’t enough processors to make it profitable.
High Regulatory Costs
Administering the program drained state resources. From licensing to lab testing and compliance, Ohio invested millions with limited returns. The move to USDA oversight relieves the state of these costs.
Dual Compliance Confusion
Farmers juggling both federal and state requirements often faced delays and red tape. Under USDA control, growers will now deal with a single, unified set of regulations—potentially easing interstate commerce.
What Changes for Ohio Farmers?
With USDA taking the reins in 2026, here’s what growers can expect:
✅ Potential Benefits
- No State Licensing Fees: USDA applications are free.
- National Standardization: Uniform rules simplify interstate sales.
- Reduced Bureaucracy: One regulator instead of two.
❌ New Challenges
- Slower Approvals: Other states report delays in USDA licensing.
- Tougher Background Checks: FBI screening required within 60 days.
- Loss of Local Support: ODA’s hemp team will no longer be available for in-state guidance.
Farmer Sentiment is mixed. While some appreciate a simplified system, others fear increased red tape and continued market instability.
Roadblocks to Ohio’s Hemp Revival
Despite strong potential, key barriers persist:
- ❌ Processing Gaps: Farmers still lack local buyers for raw hemp.
- ❌ Banking Hesitancy: Financial institutions remain wary of hemp.
- ❌ Unclear Market Demand: Oversupply risks haven’t disappeared.
Clearing the Air: The Hemp Loophole and Cannabis Confusion
A major obstacle for Ohio’s hemp industry—and the public’s understanding of it—comes from the national confusion between hemp and cannabis (marijuana).
What’s the “Hemp Loophole”?
Under the 2018 Farm Bill, hemp was federally legalized as cannabis with less than 0.3% Delta-9 THC by dry weight. But manufacturers found ways to extract other intoxicating compounds—like Delta-8 THC, THCA, and HHC—from hemp, and sell them legally.
These products, which can cause a psychoactive high, are often sold in smoke shops, gas stations, or even online—even in states where adult-use cannabis remains illegal.
Ohio’s Enforcement Problem
This “hemp loophole” has led to:
- Unregulated access to intoxicating hemp products—including by minors
- Difficulty for law enforcement—as THCA-rich hemp flower looks and smells identical to illegal marijuana
- Consumer confusion—especially after Ohio legalized adult-use cannabis in 2023, blurring the lines further. Some hemp retailers have further muddied the issue by calling themselves a dispensary, when they aren’t licensed or overseen by DCC.
Some hemp farmers worry that political backlash against these products could hurt their businesses, especially those focused on wellness.
Hemp as a Soil Superhero
In addition to its economic potential, hemp farmers often report that it offers powerful benefits for soil health. Hemp’s long taproots break up compacted soil, enhance water infiltration, and prevent erosion. It also absorbs heavy metals and toxins from contaminated soil through phytoremediation, making it useful for revitalizing depleted farmland. Ohio growers report that rotating hemp with traditional crops like corn and soy can reduce pests, improve yields, and cut down on the need for chemical inputs. As interest in sustainable agriculture grows, hemp’s role in soil regeneration could be one of its most valuable—and underappreciated—contributions to Ohio’s farming future.
Federal Lawmakers React to Hemp Crisis
Congress is moving swiftly to rewrite the federal hemp law. But not all lawmakers agree on what the solution should look like.
June & July 2025 Legislative Push
- In June, the House Appropriations Subcommittee passed language (led by Rep. Andy Harris, R‑MD) redefining hemp to ban any product with “quantifiable” THC—including THCA and synthetic cannabinoids like Delta‑8 and Delta‑10. If enacted, many existing hemp products—even broad-spectrum CBD—would be outlawed.
- By mid‑July, the Senate Appropriations Committee approved a similar bill (authored by Senators McConnell and Merkley) with unanimous 27‑0 support, but added a one‑year implementation delay to ease transition.
What’s in the Proposed Definition?
The revised law would:
- Define “industrial hemp” as cannabis and products with total THC (including THCA) of ≤ 0.3% dry weight
- Ban hemp-derived cannabinoid products containing synthetic or quantifiable THC forms. Industry groups warn this would outlaw over 90% of consumable hemp products now on the market.
Bipartisan Deal Evolving
Earlier this week, a deal was struck between Senator Rand Paul (R‑KY) and Sen. Mitch McConnell (R-KY) to strip language that would’ve prevented the sale of hemp products containing any “quantifiable” amount of THC. Paul’s amendment to remove those provisions was filed alongside a separate compromise option that would ban synthetic cannabinoid products.
By July 31, the bipartisan compromise emerged and Senator Rand Paul (R‑KY) filed an amendment to strip the complete THC‑ban language, while proposing a narrow ban on synthetic cannabinoids. Paul’s amendment would exclude from the definition of federally legal industrial hemp any product containing “cannabinoids that are not capable of being naturally produced by a Cannabis sativa L. plant” as well as those that “are capable of being naturally produced by a Cannabis sativa L. plant” but “were synthesized or manufactured outside the plant.”
It would otherwise maintain the legal status of plants with “delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent in the plant on a dry weight basis” and derivative products unless they have a “delta-9 tetrahydrocannabinol concentration of more than 0.3 percent, as determined based on the substance, form, manufacture, or article of the product.”
Senators Merkley and John Hoeven (R‑ND) expressed confidence that a final agreement preserving legal, non-intoxicating hemp is within reach. Merkley emphasized that banning CBD outright would be economically and medically harmful.
The next step would be to codify the revision with Paul’s amendment to Senate Appropriations Committee Chair Susan Collins’s (R-ME) substitute language for a House-approved spending bill.
Regardless of what happens on the Senate side, hemp bans are also included in the House version of the agriculture appropriations bill and may see further advancement. Furthermore, there may be significant inclusions involving hemp in the 2025 Farm Bill, due before year’s end.
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