Hemp Definition Shift Threatens Fiber and Grain Expansion

Regulatory uncertainty could slow the growth of fiber and grain hemp unless implementation is delayed.

Small hemp plants growing in outdoor plots at Forty Acre Co-op in Willow River, Minnesota.

Forty Acre Co-op in Willow River, Minnesota

FarmHER, Inc.

NASHVILLE, Tenn. (RFD NEWS) — A pending change to the federal definition of hemp could disrupt U.S. fiber and grain hemp markets, even though those sectors are not the primary targets of the new rule. Unless delayed, the revised definition takes effect on November 12, 2026, tightening compliance standards and reshaping the broader hemp economy that supports industrial production.

The updated law shifts hemp compliance from a delta-9 THC standard to total THC, while excluding certain synthesized cannabinoids and tightening product eligibility. Although fiber and grain hemp typically test far below THC thresholds, industry leaders warn that the change could destabilize processing, financing, and infrastructure shared across hemp markets.

Fiber and grain hemp production has been rebuilding, with leading acreage in states such as South Dakota, Montana, Missouri, and parts of the Midwest. These crops support industrial uses, including animal feed, bioplastics, textiles, and construction materials, while also offering agronomic benefits such as crop rotation and soil improvement.

Concern over market disruption has prompted the introduction of the Hemp Planting Predictability Act, which would delay implementation for three years. Supporters argue the extension would protect farmers, preserve industrial investment, and allow time for clearer regulatory separation between intoxicating products and agricultural hemp.

Farm-Level Takeaway: Regulatory uncertainty could slow the growth of fiber and grain hemp unless implementation is delayed.
Tony St. James, RFD NEWS Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Tyson’s closure reflects deep supply shortages in the U.S. cattle industry, tightening packing capacity, weakening competition, and signaling more volatility ahead for cow-calf producers and feedyards.
Lower tariff rates and new rail-service proposals may improve corn movement efficiency during early-season marketing.
Crop producers face tightening credit and lower incomes, while strong cattle markets continue to stabilize finances in livestock-heavy regions.
Early Cattle-on-Feed estimates point to slightly tighter cattle supplies, reinforcing the need to monitor prices and timing for winter marketing.
Removing the 40% duty sharply lowers U.S. beef import costs on beef, coffee, fertilizer and fruit, and restores Brazil’s competitiveness during a period of tight domestic supply.
Row crop losses in 2025 are outpacing last year. With no disaster aid yet approved, many operations face a tough financial bridge to 2026 even as Farm Bill improvements remain a year away.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.