The USDA has announced that it is seeking White House approval to revise a series of forms used to track hemp production, signalling an effort to better understand the size, value, and structure of a rapidly evolving market.
In a notice published in the Federal Register, the USDA said it plans to submit seven revised forms to the White House Office of Management and Budget for review. The updates are intended to improve information gathering under the U.S. Domestic Hemp Production Program, which requires licensed hemp producers and state, territorial, and tribal regulators to submit detailed reports. These forms collect data on licensing status, acreage, laboratory testing results, remediation of crops that exceed federal THC limits, and other key compliance metrics.
The timing of the proposed revisions is significant. They come as the federal government prepares to implement new restrictions on hemp derived THC products following the passage of a large spending bill signed by President Donald Trump last year. That legislation includes provisions that would effectively recriminalize many hemp derived THC products, with enforcement scheduled to begin later this year.
The USDA is now accepting public comment on the proposed form revisions through March 30. The agency has encouraged stakeholders to weigh in on the accuracy of the data being collected, the estimated burden placed on respondents, opportunities to improve reporting quality, and ways to reduce the administrative workload for farmers and regulators.
The department has surveyed hemp farmers annually since the crop was legalized under the 2018 Farm Bill. While recent surveys show that the overall value of hemp increased between 2023 and 2024, industry participants have consistently argued that federal data fails to capture the true economics of the market. In particular, farmers say the reported values of hemp grain, fiber, and cannabinoid products do not reflect real world pricing or profitability.
A report published last year by Whitney Economics echoed those concerns, concluding that the USDA is undervaluing the hemp industry through flawed data collection methods. According to the report, the agency’s reliance on blended averages that combine biomass and floral hemp sales masks the significantly higher value of flower used for cannabinoid extraction. As a result, the report argued, policymakers may be operating under the false assumption that farmers are not benefiting from the growth of the hemp derived cannabinoid sector.
As federal agencies reassess hemp oversight, pressure is also building in Congress to reconsider the looming THC ban. Major alcohol retailers have formed a new alliance called the Beverage Alcohol Merchants Coalition, which includes companies such as Total Wine and More, BevMo! by Gopuff, ABC Fine Wine and Spirits, and Spec’s Wine and Spirits, along with hemp product wholesalers. The coalition is urging lawmakers to delay implementation of the ban and instead pass the Hemp Planting Predictability Act, which would give the industry an additional two years to operate while broader regulatory solutions are negotiated.
Other industry groups, including Wine and Spirits Wholesalers of America, have also voiced support for regulating hemp products rather than prohibiting them outright. Several bipartisan lawmakers opposed the hemp ban provisions as they moved through Congress, warning that the policy could disrupt legitimate businesses and state regulated markets.
Public opinion appears to align with those concerns. Surveys show that a large majority of marijuana consumers oppose the recriminalization of hemp derived THC products. That polling occurred before President Trump issued an executive order directing the rescheduling of marijuana under federal law and before he publicly supported expanded access to full spectrum CBD.
Last month, Trump signed an executive order instructing the attorney general to complete the process of moving marijuana from Schedule I to Schedule III of the Controlled Substances Act. The order also encouraged Congress to examine updates to the federal definition of hemp to ensure continued access to non intoxicating CBD products. Administration officials have suggested that future reforms could include allowing Medicare beneficiaries to receive doctor recommended CBD at no cost under a pilot program administered by the Centers for Medicare and Medicaid Services.
Despite expressing support for CBD and states’ rights on cannabis policy, Trump signed the spending bill containing the hemp THC ban without publicly addressing its implications. GOP strategist Roger Stone later said the president was effectively forced to sign the legislation, though a White House spokesperson maintained that Trump supported the prohibition language.
Criticism of the ban has come from across the political spectrum. The Democratic governor of Kentucky described hemp as a vital part of the state’s economy that should be regulated locally rather than banned at the federal level. Veterans organizations have also warned that sweeping restrictions on consumable hemp products could shut down important medical research.
Under existing law, hemp has been defined since 2018 as cannabis containing no more than 0.3 percent delta nine THC on a dry weight basis. The new legislation dramatically changes that definition. Within one year of enactment, the THC threshold will apply to total THC, including delta eight and other isomers, as well as any cannabinoids deemed to have similar effects by federal health authorities. Products containing synthesized cannabinoids or intermediate hemp derived compounds sold directly to consumers will also be prohibited.
The law further limits legal hemp products to no more than 0.4 milligrams of total THC per container. Within 90 days of enactment, the Food and Drug Administration and other agencies must publish comprehensive lists of naturally occurring cannabinoids, THC class compounds, and other substances with comparable effects.
Compared to earlier versions of the proposal, which would have banned any quantifiable amount of THC, the final language introduces slightly different thresholds. Still, industry leaders warn that the changes could reshape the hemp market entirely unless lawmakers intervene.
As the USDA revises its data collection efforts and Congress debates the future of hemp regulation, the industry finds itself at a crossroads, balancing rapid innovation and growth against increasing federal scrutiny and uncertainty
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